Chapter 918 Vivendi after business reorganization
When people are busy, time flies extremely fast.
In the blink of an eye, more than two months have passed since Xu Liang arrived in France.
The integration of Vivendi Group has also initially achieved results.
After selling 25% of Sina's shares to Bernard, Mouriez and others for US$5.5 billion, it spent another 4.2 billion euros to acquire Universal Music Group.
Not only did he spend US$5.124 billion in proceeds from the sale of Sina's equity, he also inherited nearly 2 billion euros of debt from Universal Music Group.
Following this, Vivendi Group announced an agreement with Bolore Group.
Bolore Group used its 21.7% stake in Vivendi Group, Bolore Telecom, and 4.1 billion euros in cash to acquire the world's four largest publishing groups and the sixth largest publishing group in total for a total of 9.7 billion euros. Havas, a large advertising and media group.
As the news spread, the share price of Vivendi Group, whose market value has been hovering around tens of billions of euros, fell in response.
Because Havas Group is selling net assets.
Its debts of up to 3.95 billion euros are all retained in Vivendi.
And the acquisition of Borlore Telecom also included a debt of 2.87 billion euros.
Coupled with the debt of Universal Music and the debt after the integration with Christina Investment Company.
The debt of the entire Vivendi Group has exceeded that of 2002, reaching an unprecedented 24.12 billion euros.
The staggering scale of debt has caused the stock prices of all companies related to the Vivendi Group to fall.
Vivendi Group and Morocco Telecom suffered the biggest declines, losing one-third of their market value.
Vivendi’s market value has dropped to an unprecedented 6.95 billion euros.
Cegtel Telecommunications Company, which holds 56% of the shares, is not obvious because it is not a listed company.
Even the market value of Veolia Environment Group, in which Vivendi holds 45% of the shares, fell from 12.5 billion euros to 9.83 billion euros.
Even Ubisoft Games, in which Vivendi holds only 11.5% of its shares, fell.
Of course, Christina, who has been waiting for this opportunity, will not let it go.
Enter the market quickly to buy the dip.
It only took 1.4 billion euros to increase the company's shareholding in Vivendi Group from 50.1% to 67.4%.
Coupled with the 21.7% stake held by the legal person Vivendi Group and the management’s shareholding.
Xu Liang basically controls more than 90% of the shares of Vivendi Group.
The remaining equity was directly compulsorily acquired, successfully allowing Vivendi to complete its delisting.
After undergoing major changes.
Vivendi Group’s total assets have increased significantly.
Universal Music Group (plus goodwill) has increased by 7.2 billion euros. The 21.7% stake in Vivendi Group acquired from Bolore Group has increased assets by about 2.4 billion euros based on the current market value of Vivendi. .
Bolore Telecom (plus goodwill and debt) has total assets of 7.7 billion euros.
4.1 billion euros in cash received from the sale of Havas Group.
And 18.46% of Sina shares.
Vivendi used to hold less than 4.5% of Sina's equity, and Sina's market value at that time was less than US$12 billion.
Now after the merger of Sina and Vivendi Networks, the market value has climbed to US$24 billion.
And it’s still growing.
The value of this stake alone exceeds 4 billion euros.
All this adds up to almost 26 billion euros.
Excluding Vivendi Network (net assets plus goodwill, excluding debt) 6.9 billion euros, Havas Group (net assets plus goodwill, excluding debt) 9.7 billion euros.
Vivendi overall increased its on-balance sheet assets by 9.4 billion euros.
After completing these integrations, the total assets of the Vivendi Group are now as high as 49 billion euros, and this does not include Veolia Environnement’s 45% stake.
6.4% stake in Hongmeng Bing, Hongmeng No. 1 Store and Hongmeng Games.
If these are added, the total assets of Vivendi Group will exceed 60 billion euros.
The assets are huge, and the debts are equally huge.
Coupled with the cost of privatization and delisting, Vivendi Group’s debt scale has increased again.
Achieved 27.12 billion euros.
Although under Xu Liang's control, most of them were long-term debts, and the average interest rate was only about 7.6%.
But debt is debt.
The pressure to repay is too great.
The annual interest alone is as high as 2.03 billion euros.
In addition, Vivendi Group has a huge cash flow of nearly 7 billion euros.
One-fifth is from its own accumulation, and most of the rest is from the sale of Havas Group.
As for net income and net profit.
A more accurate result can only be obtained after the integration is completed.
“It’s finally finished. I’ve been so exhausted during this period.”
Christina lay lazily on the sofa, her silk coat fitting closely against her skin, making her curves even more beautiful. Graceful.
"Are you tired? I see you're not very happy?"
Xu Liang sipped the tea in the cup and smiled.
The corners of Christina's mouth curled up, and there was a touch of excitement in her eyes.
Of course she is happy.
I obviously have a world-class enterprise group.
Vivendi Group, she grew up watching their TV broadcasts, listening to their music, and using the water purification services they provided since she was a child.
I never thought that one day I would become the boss behind this world-class corporate giant.
This feeling is so exciting. "Okay, don't be silly. Acquisition is only the first step in the Great Wall, and the next integration is the most critical step. Although Foch is mainly responsible for it, if you want to rise to the top in the future and become the CEO of Vivendi Group , we must work hard to participate
Listen more, read more, and summarize more, and constantly improve your management capabilities
After five years, if you cannot meet my standards, I will not give you the position of CEO. ”
“I know. Don't worry, I will definitely work hard! "
Xu Liang nodded and asked, "Has the financial team you asked to form established? "
"Hmm. Everything is ready, a total of thirteen people, except for the five people transferred from the finance department of Hanhua and Vivendi Group, the rest are all elites we poached through headhunting. "Christina said quickly.
"Have the funds been transferred? ”
"All 5 billion euros in cash have been transferred to Vivendi's investment account."
Vivendi Group still has 2 billion euros in cash, which is enough to maintain the subsequent operation of Vivendi Group.
If that doesn't work, there are still 18.46% of Sina's equity and 4.6% of Wangke's (diluted and part sold after listing), which can be sold.
Just these two assets, based on the current market value of the two companies, can generate a cash flow of 5 billion euros.
And as Sina's market value continues to rise and Internet technology continues to develop, the value of these equity interests continues to grow.
In fact, although Vivendi Group's debt is huge, it is not difficult to repay it.
Not to mention anything else, the combined value of the 6.4% equity interests in Hongmeng Bing, Yihaodian and Hongmeng Games exceeds 7 billion euros.
If all these equity shares are used to repay debts, the debt of Vivendi Group can be reduced to less than 10 billion euros.
Unfortunately, smart people are always in the minority.
Not many people can see the value of Vivendi.
Coupled with the financial collapse in 2002, almost all investment institutions and individuals have been frightened.
They are not willing to gamble on future profits, they just want to protect the present.
I am afraid that I will be stuck if I run too slowly.
Under the overwhelming trend, few people can think seriously.
But this is also a good thing, helping Xu Liang complete the privatization of Vivendi Group at a very low price.
"My dear, have you decided how to invest?"
Looking at her anxious look, Xu Liang smiled and said, "Why, you don't have confidence in me?"
"Of course not. . My man is the world’s top financial investor, which is recognized globally. But of course I am worried about investing so much money in the high-risk capital market.
This is human nature.” br>
Christina emphasized.
"Don't worry, nothing will go wrong. By the way, tomorrow you go to the company and transfer all the people in the investment department to the Courbevoie Building. I asked Michelle to leave an office for you."
"Go to Hanhua? Why?"
"Vivendi is now in a period of integration. People come and go, and everything is complicated. People with ulterior motives may get involved.
< br>It is better to place it in Hanhua's Paris office, where there are fewer people, the level of defense is higher, and various equipment can track the world's major capital markets at any time.
It is also convenient to manage. ”
< br>
In the Vivendi Group, which has many people and many eyes, powerful people such as Bernard and Mouriez can easily insert spies into it.
And it’s not easy to check, after all, there are too many people.
In contrast, Hanhua's Paris office is different. Including Vivendi, there are only about a hundred people. A stranger who comes in is extremely conspicuous.
Hei Wuchang tracks their mobile phones and computers, which is relatively easy to monitor.
Higher confidentiality.
Christina also understood.
"I will let them move there tomorrow."
"Tell them not to bring any electronic products. When they go, Hanhua will distribute them uniformly." Xu Liang emphasized road.
The computers and mobile phones of Hanhua employees are basically Kunlun customized products.
It is equipped with security software and work programs developed by Kingsoft Software.
Whether it is safety or convenience, they are the most suitable for Hanhua.
“I know.”
After hesitating for a moment.
“Honey, do you want to buy Veolia Environnement Group?”
“How do you want to buy it? Like Vidyvan Group?”
"This costs too much money. We don't have so much cash now. What I mean is to acquire 6% of the equity first, increase our shareholding to 51%, and get the initiative first.
Later When we have sufficient funds, we will continue to increase our holdings.”
“What is Veolia’s share price now?”
“It has fallen to 9.3 billion euros, and there are many selling orders on the secondary market. As long as we spend 500 million euros, we can get absolute control and it will not cause too much trouble to Vivendi's operations," said Cristina.
“Then buy it.”
Xu Liang felt a little sad.
At first, he wanted to acquire Veolia. Later, under Huo Yan’s persuasion, he narrowed his target and only wanted to acquire the Canal+ Group.
Unexpectedly, in the end, by mistake, not only the Vivendi Group was acquired, but the entire Veolia was taken over.
He even completed the integration of Universal Music Group and the sale of Sina shares ahead of schedule, which he originally planned to push forward two or three years later.
Christina's face lit up with joy.
Holding Vivendi Group and Veolia Environnement,
with assets of nearly 90 billion euros, although it is heavily in debt, it also represents huge potential.
As long as she catches these two giants, she will be the queen of the French business world and even the European business world.
(End of this chapter)