Reinventing the Millennium.

Chapter 403 I Can't Put It Down (Two in One)

Sina is a very mature company with its own operating logic and model.

Therefore, after Fang Zhuo provided it with a solid shareholding structure, he could delegate power with peace of mind, and appointed Wang Yan as the president to handle daily affairs. He only needs to give guidance in certain key directions so that this listed company can have a higher market value.

By the way, let's carry out a small win-win related transaction.

The term related party transaction is a neutral description, which may damage the company's interests, and may also save a lot of business negotiation costs.

Fang Zhuo connected Sina's private placement with Goldman Sachs Group in order to save business costs. The private placement is to find a suitable investment institution. Goldman Sachs Group is naturally extremely suitable as an internationally renowned funder.

This wave, everyone will be very happy.

Goldman Sachs was very happy to get the stock below the market price.

Sina got the cash for development and was very happy.

Fang Zhuo... was simply very happy.

There are so many ways to play a listed company, it's hard to put it down.

Just as the chairman of CSMC Ice Core was eagerly looking forward to the arrival of September 20st, Sina quickly determined that the investment institutions for the private placement were Goldman Sachs Group, Industrial and Commercial Bank of China, and Morgan Stanley. 80% of the stock price will issue 300 million additional shares.

According to the SEC regulations of the United States Securities and Exchange Commission, the discount of fixed increase below 20% does not need to be voted by the general meeting of shareholders, otherwise, even if the board of directors signs a general authorization as usual, it will take another layer of trouble.

In other words, the price of 52*0.8=41.6 US dollars held by Goldman Sachs, ICBC, and Morgan is the most favorable price that Sina's board of directors can directly decide.

On August 8, Sina disclosed the plan for private placement, raising a total of US$31 million from three investment institutions including Goldman Sachs, ICBC, and JPMorgan, and will devote itself to the development and expansion of the domestic wireless value-added market, e-mail market, and game market.

Once this plan was disclosed, the secondary market responded immediately, and the stock price fell from US$55.35 to US$51.60.

Wang Yan, president of Sina, accepted an interview with the media for this, saying that "fixed growth is the company's overall long-term strategic plan, and it needs to be matched with a part of funds, which will definitely open up a new profitable market for the company."

At the same time, he also confidently expressed his opinion on the drop in stock price, "Our first quarter earnings are quite good, and the stock price is only a temporary fluctuation. I believe everyone will soon realize that our Sina still has huge growth potential."

However, the statement made by the president of Sina did not seem to be recognized by the market. The next day, Sina’s stock price fell below the full mark of $50. Financial media reporters were not satisfied with interviewing the president this time, and called Sina to interview Chairman Fang Zhuo.

Everyone knows that Sina's surname is Fang, and this fixed increase plan must have Fang Zhuo's nod.

The reporter's request for an interview was declined, and when he asked the reason, he received a shocking answer—the chairman is not in the company, and he will attend the signing meeting of the Ministry of Industry and Information Technology today.

The reporter from the "Huaxia Securities Journal" immediately called his colleagues and learned that there was indeed a symposium and signing meeting held by the Ministry of Industry and Information Technology today. through official media channels.

The reporter was a little shocked, and began to pay close attention to the news of such a specification meeting.

On the afternoon of September 9st, Fang Zhuo, as the chairman of CSMC Bingxin, attended the semiconductor industry analysis symposium of the Ministry of Industry and Information Technology and the signing meeting with CSMC.

Although the official support policy was a plan that was studied within a few days, when it was actually implemented, it felt as if it had been studied for several months.

Fang Zhuo had no sense of presence in this scene. He was basically listening to the analysis, review and planning of the semiconductor industry by the big leaders and directors. He heard the emphatic praise for SMIC and heard their expectations for the future development of semiconductors. .

It was not until the last 10 minutes that Fang Zhuo got the frontal footage of the official media camera. He said calmly and low-key that he would use CSMC as the starting point, seize the opportunities given by the times, vigorously develop semiconductor manufacturing projects, and strive to catch up with the world-class level .

In the end, Fang Zhuo got the key project letter stamped by the Ministry of Industry and Information Technology, and obtained several preferential support policies, including but not limited to subsidies for export products.

This subsidy alone can improve the competitiveness of ice core products, because fabs such as SMIC have more than 90% of their sales in foreign countries in the past year. Even if China develops in the next few years, this proportion will still be Foreign countries account for the vast majority.

After nearly two weeks, Fang Zhuo got the actual preferential policies he wanted, and he sincerely thanked all the leaders, investors, collaborators, and technical talents.

That night, while urging DCM and Goldman Sachs across the air, he set up a small dinner and invited Wang Yan, Xiong Xiaoge and others to see him off. The time in the capital was longer than planned, and he had to go back home tomorrow. .

The richest man in Shencheng has something to do in Shencheng, the richest man in Anhui Province has a project in the provincial capital, the president of Yike has to pay attention to his own listing path, and the chairman of the medical department has a scheduled meeting to chair, these people can't stay in Beijing for a long time .

There were not many people at the dinner party, and Fang Zhuo himself had only six people in total, but he, who was a party member, didn't have much time to communicate with each other after eating and drinking, and spent most of the time on the phone.

But in any case, the sense of ritual before leaving has been done enough.

On September 9, Fang Zhuo received a telephone interview from a reporter from the "China Securities Journal" before boarding the plane.

Just one night later, almost all of the reporter's original questions were cancelled, because the previous trading day in the US time, Sina's share price rose slightly and stood above $50 again.

It stands to reason that the news of private placement would not be digested by the market so quickly, but Sina's stock price went against the trend after the chairman attended a signing meeting for an unrelated project.

"Mr. Fang, what do you think of Sina's stock price fluctuations after it announced its fixed increase plan?"

"Technical adjustments are normal. Everyone will understand our fixed increase capital needs, and investment institutions are also very optimistic about Sina's future development."

"Do you think Sina's share price will return to the high of $55?"

"The domestic market is still growing at a high speed. Not only Sina, but the entire Internet industry will have further benefits. The stock market value should not be taken too seriously. Our focus at Sina is to provide better services for domestic users. This is our only point of concern."

"Do you think the stock price returned to the 50 mark last night, is this related to your attendance at the symposium of the Ministry of Industry and Information Technology?"

Fang Zhuo decided to take this as the last question, and he answered righteously: "This is completely different. Semiconductors are semiconductors, and Sina is Sina. Everyone is willing to hold stocks because of the real value of our Sina. I thought it was worth buying when I saw the leader? Are the stockholders so blind?"

"Okay, okay, I'm about to board the plane. I have confidence in Sina. The domestic Internet is a vast market. Let's wait and see."

The reporter quickly thanked the reporter. Although it was a telephone interview, it was also a complete reply from Sina's chairman's statement on the fixed increase.

Although, the last sentence seems to have a bit of a joke.

At noon that day, Fang Zhuo led his team back to Shanghai. He didn't want to wait for a moment and made appointments with DCM, Goldman Sachs, and Deutsche Bank to meet and discuss with each other. He wanted to use the preferential policies given by the Ministry of Industry and Information Technology to promote the progress of the first round of financing.

All three investment institutions readily agreed.

Especially DCM was the most active, and the time was directly arranged in the afternoon.

Fang Zhuo ate lunch whole, met Yike's management, reviewed the situation in the past two weeks, and then called Su Wei, the vice president, from the outside before DCM Connor arrived. .

"What's the matter with the proposal for the adjustment plan of the marketing department?"

In the president's office, Fang Zhuo brewed a cup of strong tea, and on the table was a proposal for moving the knife, with the signatures of all the executives on it.

"This is to better coordinate the marketing department, increase our domestic share, and the layout of the music market..." Su Wei replied sternly, and was stopped by Fang Zhuo.

"Wait, Mr. Su, that's not what I want to hear. Whose idea is this? What is your meaning?" Fang Zhuo was puzzled. This proposal made a lot of internal adjustments, and he had no such intention before.

Su Wei pursed her lips: "It's Derek's strong suggestion."

Derek is the CFO of Yike. He was recommended by Goldman Sachs Group. He also has a very beautiful work resume.

"Do you also have such a suggestion? President Chu and President Sun who signed the agreement also think the same way?" Fang Zhuo frowned.

Su Wei was stunned: "Derek has rich experience, he thinks that our domestic business should move closer to the US market."

"Do you think so too?" Fang Zhuo asked a similar question again.

Su Wei hesitated for a few seconds: "I think at least the music market is not as mature as the US market, and there is no need to get closer for the time being."

"Then why did you sign?" Fang Zhuo asked again.

"Derek has rich working experience in **** and Goldman Sachs before. His suggestion..." Su Wei said very truthfully, "I don't agree with it, and I plan to communicate with you when you come back."

Fang Zhuo said bluntly: "Then you shouldn't sign on this. The adjustment of the marketing department is the most important thing, and the change of the strategic direction is also the same. Derek, a foreigner who knows nothing about the domestic market?"

"Not only you, but also the other executives who signed the contract. Good guy, I went to the capital, and when I came back, I found out that you were going to raid your house."

"I asked Derek to deal with financial compliance issues and make various reports more in line with SEC requirements, not to let him dictate."

"Don't be superstitious about his foreign experience, just bring it up if you feel wrong."

Fang Zhuo was a little harsh at the end.

Su Wei defended her colleagues: "The main reason is that I am afraid of affecting the company's listing..."

Fang Zhuo shook his head: "This is not an example."

After he finished speaking, he picked up the phone and called Xu Kaiwei of Goldman Sachs Group, and said in front of Vice President Su: "What kind of CFO did you Goldman Sachs recommend for me? When I get to the company, I will move my department. He is here to give Yi Ke Go public or come to be CFO?"

Xu Kaiwei on the phone asked a few questions about the situation.

Fang Zhuo didn't explain in detail, and after a few brief sentences, he asked, "Replace with a CFO who knows his responsibilities."

He hung up the phone and said to Su Wei: "Go and inform Derek that the company has dismissed him and will soon be replaced by another chief financial officer recommended by Goldman Sachs."

"That's... okay." Su Wei accepted the president's handling.

"There are differences between the southern and northern markets. What's more, the difference between the other side of the ocean and our country? Don't blindly believe in foreign methods. He hasn't even figured out his own position. How can he figure out the market's position?"

"Mr. Su, you are both a director and a vice president, so you must have a clear understanding of everything."

Fang Zhuo finally said a few words in a moderate tone.

Su Wei left the president's office thoughtfully.

Fang Zhuo picked up the plan book on the table, glanced at it again, and threw it into the trash can. Derek had never worked in China, and this move was pure nonsense, using his experience in the US market to forcefully graft it into the domestic market. market.

But the persuasive power brought by such a bright resume is unparalleled. If you change other presidents, you may follow suit. It's a good way to live well.

At 02:30 in the afternoon, Fang Zhuo, who was the first CFO in Yike's history and only served for less than a month, was not affected at all. He greeted the DCM group in the conference room with a smile.

He took out the income from this trip to the capital, and saw a satisfied expression on Connor's face as he wished.

"The Huaxia government is still happy to see the development of the semiconductor industry, which is a good thing." Connor commented on the action of quickly obtaining preferential policies.

For him, whether it is the United States or China, as long as it is beneficial to the project, as long as it is beneficial to his investment decision, it is a good thing.

"Well, this is our opportunity. There are still few semiconductor projects in China. I'm afraid we won't be able to get such a discount in two years." Fang Zhuo laughed.

Connor nodded. It is very possible that rare things are more expensive.

Fang Zhuo talked about the details of the trip to the capital again, and then said: "CSMC's funds have begun to be partially in place, and Luzhou State Investment's 13 billion contract has also been officially signed. We will start to purchase equipment in batches and supplement the funds at the same time. .”

The funds of Yike Group, MIGA Fund, Luzhou State Investment, and Huaxia Enterprise Investment are all in place. This is not a small amount. It already has 50% of the total budget, which is close to 5 million US dollars. If you count the social investment funds obtained by IDG , The money proposed to arrive has exceeded 5 million US dollars.

Coupled with the preferential policies stamped by the Ministry of Industry and Information Technology, Bingxin CSMC is making great strides forward.

Connor asked, "How about Deutsche Bank, Goldman Sachs, and IDG?"

"IDG has secured part of the funds, because their American and Chinese businesses are relatively independent, and it may take some time. The other two are also advancing, and the process is fast and slow. Goldman Sachs will sign an initial agreement with us first." Fang Zhuo said.

Goldman Sachs' initial agreement can be described as hard-won, and it is the result of Yike's listing and Sina's fixed increase.

Connor nodded slightly, and promised: "Our DCM will try to complete all the investment processes in the first half of this month. It is best to see the initials of Goldman Sachs before then, so that it will be faster."

Fang Zhuo smiled and stretched out his right hand: "No problem."

Connor shook hands vigorously, and said with a smile: "Sometimes, I don't know the difference between voting earlier and later. Since I am optimistic about this project, of course I fully support it."

"Our DCM fully supports CSMC in becoming the best wafer foundry in mainland China."

Fang Zhuo felt in his heart that if every family had more people like Mr. Connor, the world would be a better place.

(End of this chapter)