Chapter 1018 XCMG Acquisition Case
Does Xu Haohao have face?
It should be, after all, a person has a face and a tree has a bark.
But it depends on the situation.
When faced with major interests, his face is very flexible, and he can keep it or throw it away.
The main focus is profit-seeking.
Seeing that the previous method did not work, Dies-Arnold quickly changed his tactics.
"Mr. Xu, I would like to ask, you came to Pengcheng this time for the XCMG acquisition, right?"
"No."
Dies Arnold : "..."
Why don't you play by the rules?
Xu Liang said with a smile: "The weather has warmed up and I came out to relax, and I happened to go shopping in Pengcheng."
See if I believe your nonsense.
"Mr. Xu, I think everyone should be more honest."
Putting down the tea cup in his hand, Xu Liang squinted his eyes slightly.
"Do I look dishonest?"
The overwhelming aura made Dies-Arnold's heart sink. The feeling of being stared at by a beast simply suffocated him.
After more than a dozen times of turmoil in the financial and international markets, Xu Liang's aura is terrifyingly powerful.
Especially when paired with his tall and strong body, it grows exponentially.
Gudu.
Swallowed.
Dies Arnold quickly explained: "Mr. Xu misunderstood, I did not question your intention. It's just that we at Carlyle have been talking about the XCMG acquisition for half a year. Now that your company has intervened without any reason, I'm afraid it will spread out." It will affect Mr. Xu’s reputation.”
“Half a year? As far as I know, your merger negotiations with XCMG have just begun, right?
And who said that one transaction can only be completed? If you want it, others can’t join?
Is there such a truth in the world? ”
Taking a deep breath, Dies-Arnold said.
“Mr. Xu is determined to participate in XCMG’s acquisition?”
“Originally I just took a look, but Carlyle is so optimistic about XCMG, I am really curious. Carlyle’s investment I've always admired his vision."
Turn around.
"Lao Peng, tomorrow we will formally send a tender offer document to XCMG in the name of the group."
"Yes."
At this point, there is nothing more to talk about.
Dies Arnold stood up.
"Mr. Xu, I have said everything that needs to be said. Since you disregard business ethics and insist on blocking Carlyle's acquisition, we will use all means to defeat you.
Goodbye. ”
After watching him leave, Xu Liang turned his head.
“What are your thoughts?”
Peng Zhiyu pondered for a while.
"I'm afraid Carlyle will not give up easily."
"With the greed of the Americans, of course they will not give up easily, but this time they will definitely lose."
...
After returning to his room, Dies-Arnold looked at the time, estimated the time difference between China and the United States, and waited for another hour before making the call.
“BOSS, it’s me, Dies Arnold.”
“Dear Dies, do you have any good news for me?”
“Very good. Sorry BOSS, this is bad news.”
Carlyle CEO David Rubinstein, who had just arrived at the company, was stunned for a moment.
"Diez, the sunshine in New York is great today. I was rarely in a good mood, but you ruined it all."
"Sorry, BOSS. This time the opponent is too strong. , without the support of the company, I am afraid it will be difficult to get the acquisition of XCMG.”
“What happened?”
“Jin Kaiser arrived in Pengcheng, and his subsidiary Torch Heavy Industry joined the fight. XCMG’s mergers and acquisitions”
"Golden Caesar?"
"Yes."
David Rubinstein looked serious.
After stepping on the corpse of old Soros to take office, no one in the world dares to underestimate the ability and capital of the Chinese man.
Even the Carlyle Group.
In terms of capital and connections, they are not as deep as Hanhua.
Most of the blue-blood aristocrats on the east coast are clients of Hanhua's Pacific Fund and Qinglong Fund. This energy is too huge.
Especially China is his home court.
"Dies, you have been following XCMG's projects. Now tell me honestly, what are your chances of winning?"
"If it weren't for Golden Caesar's interference, I would at least have a chance. Half the chance of winning.”
Rubinstein frowned.
Half the chance of winning is not low, but it is still not safe enough.
Think for a moment.
"I know about this. You continue to follow up on the project, and I will contact Golden Caesar."
The XCMG project is expected to invest about 400 million U.S. dollars, and it is also a big project at Carlyle . It is impossible to simply give up.
“Okay.”
After hanging up the phone, Rubinstein found a document from the drawer, flipped through it, looked at the time, and dialed Xu Liang.
……
Pengcheng Kaiyuan Guest House.
"Mr. Xu, Carlyle Group CEO David Rubinstein would like to have a phone call with you." Li Jinling said.
He reached out and took the phone.
“Hello, David, it should be morning in New York now.”
David Rubinstein had attended Hanhua’s financing reception and the two had met, although there was nothing too deep. Friendship, but not stranger either.
“Dear Xu, the sunshine in New York is very nice today.
It's a pity that you are not here, otherwise we could drink Romanee-Conti and enjoy the warm sunshine together. "
" Haha, there will be opportunities in the future. ”
“Of course. Rubinstein changed the subject, "Dear Xu, my people told me that you are very interested in XCMG?" ”
“XCMG is an excellent heavy machinery company, and I am indeed very interested in it. ”
“But it was the company Carlyle selected first, and we have been following it for half a year...”
Xu Liang interrupted him.
"David, we are all our own people, so there is no need to say such meaningless words. And as far as I know, you only formally proposed an acquisition intention to XCMG half a month ago.
There has been no substantial progress so far
If this is all it takes for Xu to give up, Carlyle would be too fanciful.”
“Xu, you must acquire XCMG?”< br>
"Dear David, I am a businessman."
The meaningful words made Rubinstein understand instantly.
Businessmen are profit-seeking creatures.
If Carlyle could come up with something that made Xu Liang more interested, he wouldn't mind giving up XCMG.
Understanding the subtext, Rubinstein immediately started brainstorming.
"Xu, I heard that Hongyan is very interested in Seibu Group?"
"There is some interest, but the plate for practicing martial arts is too big, and I don't have such a big appetite." Xu Liang changed the subject, "But If Carlyle is willing to give you all the interests in Pacific Life."
"Impossible."
Rubinstein refused instantly.
Starting in 2002, Carlyle negotiated with CPIC for more than three years before finally signing an investment contract in December last year.
Carlyle acquired a 24.9% stake in China Pacific Insurance for US$400 million.
And according to the contract, Carlyle’s shares in China Pacific Life Insurance can be converted into a certain proportion of the group company’s shares in the future.
In other words, Carlyle can convert its shares in CPIC Life Insurance into shares in the entire CPIC Group at any time.
The investment time limit is locked at least 3 years, and you cannot withdraw within three years.
You can also give priority to increasing your shareholding to 49% when policies permit.
If nothing unexpected happens, in 2007 Carlyle will invest part of the capital and convert its shares in CPIC Life Insurance into CPIC shares, eventually holding 19.9% of it.
On December 25, 2007, CPIC was listed on the A-share market, and on December 23, 2009, CPIC H-share market was listed on the Hong Kong Stock Exchange.
Beginning on December 30, 2010, Carlyle successively reduced its holdings of CPIC shares and finally withdrew completely in January 2013, with an investment of US$800 million in exchange for a return of US$5.1 billion.
Profits of US$4.3 billion in six years.
The average annual profit is 90%.
Robbing a bank is not that profitable.
Although Xu Liang didn’t know how much Carlyle had earned from investing in CPIC, he knew it.
Every oversized state-owned enterprise is a gold mine.
"Dear David, there is an old saying in China, only when you give up can you get something. How can you get it if you don't give it?" Xu Liang said with a smile.
“Xu, please don’t treat me as a fool.
We already hold the shares of CPIC, but XCMG’s acquisition still has many unpredictable risks, and we may not be successful.
No smart person would do this in exchange for certain benefits for an uncertain future that may not lead to higher returns. "
"You can't say that. Your investment in CPIC is just to hold shares and you have no decision-making power.
But XCMG is different. As long as it succeeds, Carlyle can operate according to its own wishes. With your many years of operating experience, I believe it has a higher chance of success than CPIC, and will gain far more than CPIC by then. . "
"Dear Xu, I have been talking to Taibao for three years, and I understand his value better than anyone else. "Rubinstein said.
"David, CPIC's 'old policy' liabilities are close to 20 billion Huaxia dollars, which is a heavy burden."
There are three major non-performing assets in the Huaxia insurance industry.
The "long tail insurance policy" of the 1980s.
"Indiscriminate investment" in the early 1990s.
But the biggest negative impact is "interest loss".
In 1996, Huaxia Insurance began to separate property insurance and life insurance operations.
During the March 27 treasury bond incident, due to the high inflation rate, the Ministry of Accounts subsidized the value of treasury bonds, and the deposit interest rate of 10.98% lasted until 1996.
Starting in 1996, the People's Bank of China began to cut interest rates.
By 1999, the one-year deposit interest rate dropped sharply from 10.98% to 2.25%.
During the period from 1995 to June 1999, CPIC sold a large number of life insurance policies with a guaranteed return rate of 4-8.8%, and the average cost of liabilities was approximately 6.53%.
After the central bank significantly cut interest rates, policy interest rates cannot be adjusted simultaneously with bank savings interest rates, and the original high-interest rate policies will continue to generate interest rate losses, which will increase year by year.
This has led to huge losses in China's life insurance industry, including China Life, China Ping An, and China Pacific Insurance, all of which are seriously insolvent.
(End of this chapter)