Top of the Great Era

Chapter 1723 Share Convertible Bonds

Zhou Buqi communicated with the doctor, and her mother has no physical problems, and she can go home now.However, if there are no other arrangements, the safer option is to stay in the hospital for a few more days and observe more.

The sutures are expected to be removed in 5 days.

You can leave the hospital after the stitches are removed.

Zhou Buqi felt that the hospital wanted to make more money, but it didn't matter, money is not a problem, just stay a few more days.The environment and facilities here are so good, it's like staying in a hotel, without any delay.

During the day, he goes out to work.

Just come back to accompany me at night.

Then, he formed a group and called Senior Sister Zhenyu, Baoshan, Xu Baihui, and two big secretaries Ning Yaxian and Ning Lu to meet with the team in charge of the EMI acquisition.

This is the most important event of Ziwei Star Global this year.

After winning EMI, Ziweixing Universal has officially entered the music industry.For the music streaming media that Zhou Buqi has already deployed, it will form an ecological industrial support.

As one of the four major music giants in the world, EMI records are expensive.

When Terra Firma Capital acquired EMI, it spent a total of 42 billion pounds.Of this, £8 million was paid out of Terra Firma's own pocket, £22 billion was a leveraged loan from Citibank, and another £12 billion was its own debt.

In other words, EMI now has a debt of up to 34 billion pounds!
The annual interest is more than 2 million pounds, and I can't afford it!
Terra Firma Capital collapsed!

I can't take it anymore!

According to the terms of the leveraged buyout that year, Terra Firma Capital was unable to repay the interest, and Citibank had the right to convert its debt of 22 billion pounds into 100% of the shares of EMI!

Terra Firma is almost out!
However, nothing can be definitively guaranteed.

Terra Firma and Citigroup have entered a final scramble for control of EMI after a year-long legal battle.Next, wait for the verdict of the New York Supreme Court jury in November.

If Terra Firma loses, it will be completely out.

Although the verdict has not yet been pronounced, all parties have already determined that Taifeng Capital will undoubtedly lose.In the past two years, due to the impact of the subprime mortgage crisis, Terra Firma has repeatedly violated the bank contract.

Only this one, Terra Firma Capital will undoubtedly fail.

Now, Terra Firma's defense is mainly aimed at the legality of the loan contract signed with Citigroup during the leveraged buyout of EMI, saying that Citigroup used fraudulent means.

This is basically unreasonable trouble.

Both parties will invite the best teams in the world to operate this multi-billion dollar super transaction case. Will there be fraud?If it was a fraud, wouldn't lawyers, accountants, and investment bankers see it?With the strength of Terra Firma Capital and the experience in capital operation, would you not be able to tell?
The jury in civil litigation is different from criminal litigation. There is no clear legal text, and it is more based on the basic logic of society. The view of Terra Firma Capital is contrary to common sense.

So regardless of the fact that the control battle between Citigroup and Taifeng has not yet ended, all parties have basically determined that EMI belongs to Citigroup!
Citigroup is just a bank. They are not interested in managing EMI, so they must sell it as a package.

At this time, someone took the initiative to come to the door.

Not only Ziweixing Universal, but also Warner Music.

At the beginning, Zhou Buqi was very worried, worried that Citigroup and Warner Music were colluding, deliberately raising the price, and driving up the acquisition cost of Ziweixing Global.

Unexpectedly, Warner Music offered EMI Music's music business, and the bid was only 4.7 million pounds.In addition to assuming about 5.4 million pounds of debt, there is only a total offer of 10 billion pounds.

This is simply doing Ziwei Star Global a big favor.

It really helped to lower the price!
EMI Records has two major businesses, one is the music business and the other is the publishing business.

The music business mainly refers to the music recording department, which is the department that records and releases new songs for its contracted singers. It has popular singers such as Fruit Sister and Coldplay.

The publishing business is to release some songs whose copyright is owned by EMI Records in various channels, the most famous one is a series of songs by the Beatles.

In terms of assets, the music business accounts for 45%, and the copyright business accounts for 55%.

If Citigroup obtains the control of EMI, it is equivalent to Citigroup spending 22 billion pounds and assuming a debt of 12 billion pounds, a total of 34 billion pounds to win EMI.

The music business accounts for 45% of assets, which is about 15 billion pounds.

And Warner Music is only willing to pay 10 billion pounds for the acquisition.

Such an offer is not surprising.

Even if Terra Firma Capital was eliminated with a total loss of more than 20 billion US dollars, and Citigroup owned Citigroup in the form of debt-to-equity swaps, it does not mean that Citigroup can make a lot of money in this transaction.

This is bound to be a bad investment.

From the subprime mortgage crisis to the European debt crisis, the prices of global assets have shrunk significantly, including of course EMI.Citigroup has withdrawn Taifeng Capital. It is impossible to make money, so it can only stop losses as much as possible.

Now, negotiations are drawing to a close.

It's time to make a decision.

Ziweixing Global's offer is 24.8 billion pounds, which is about 37 billion US dollars, and the offer is for the acquisition of EMI Records.In other words, after deducting the debt of 12 billion pounds, there are 12.8 billion pounds left.

Citigroup paid 22 billion pounds that year, but now it can only recover 12.8 billion pounds.

It can be seen how unsuccessful the acquisition of EMI Records was.

Terra Firma vomited blood at a loss.

Citigroup also vomited blood at a loss. (In the previous life, Citigroup sold EMI Records to Universal Music and Sony Records for 2011 billion pounds at the end of 26.5)

However, Ziwei Star Global's investment has been very sincere.

At least much better than Warner Records.

Due to its size, Warner Music can only purchase the music business.Because there are already too many music copyrights of Warner Records, coupled with the 210 million songs in EMI's record library, it will form a monopoly situation.

This led to the need to split EMI Records and require more operating costs.

In contrast, selling EMI Records to Ziweixing Universal is easy and convenient, no splitting is required, and the price is also high.Moreover, Citibank does not need to be responsible for managing the EMI company, and does not need to take risks for the more complex changes in the music market that may occur next.

Zhou Buqi made his appearance and started the last round of talks.

At 4:20 in the afternoon, the two sides finally reached a unity!

The transaction price was 25.5 billion pounds.

The transaction method is a share-to-bond exchange.

That is, after Citigroup obtains 100% equity of EMI, it will transfer this 100% equity to Ziweixing Global in exchange for 13.5 billion pounds of corporate bonds of Ziweixing Global.In addition, Ziwei Star Global has to assume 12 billion pounds of debts from other creditors, totaling 25.5 billion pounds.

Ziwei Star Global is a real high-quality asset, and this year's summer file broke out to shock the world's box office performance!
Iron Man 2, $8.6 million worldwide; Shrek 4, $7.8 million worldwide; The Twilight Saga, $2 million worldwide; Despicable Me, $6.9 million worldwide ; "How to Train Your Dragon," $5.2 million worldwide; "Super Villain," $4.8 million worldwide; Robin Hood, $3.2 million worldwide...

This summer, Ziwei Star Global is definitely the most cheering entertainment giant in the world.

This year, Ziwei Star Universal will definitely surpass Time Warner and become the super giant of the entertainment industry with the most annual box office.

However, Ziweixing Global is still in a debt-free state.

This is a premium asset.

For those financial traders at Citibank, it is a business they understand better and are better at converting the equity of EMI Records into the lower-risk and more reliable corporate bonds of Ziwei Star Global.

Moreover, Citibank also got a guarantee clause.

That is, if the lawsuit between Citigroup and Taifeng fails, and Citigroup fails to obtain the equity of EMI, it is logically a breach of contract.This guarantee clause ensures that even if Citigroup loses the lawsuit, it does not need to pay liquidated damages to Ziweixing Global.

In short, Ziwei Star Global is very sincere!
Citigroup gritted its teeth to bear a loss.

feeling bad.

However, if you think about Terra Firma Capital, you can balance it.Terra Firma Capital lost even more. Taking into account the initial purchase and the accumulated investment in the later period, Terra Firma Capital lost a total of more than 16 billion pounds in this case.

In 07, Terra Firma Capital and Citibank cooperated to acquire EMI Records for a total price of 42 billion pounds.

Three years later, Ziweixing Universal acquired EMI Records at a price of 25.5 billion pounds.

Boss Zhou's successful bottom-hunting and his excellent business operation ability once again shocked every participant.

The transaction plan was reached, and there was a simple reception in the evening.

The employees were very happy, drinking and drinking.

Many people came to congratulate.

This business is unusual, and there are complex capital operations behind it, debt-for-equity swaps, equity-for-debt swaps, and even unsettled lawsuits.Once the deal is closed, the total commission could exceed £8000 million.

Holding a glass of red wine, Xu Baihui walked over with a smile on her face, "Boss Zhou, this case will definitely be successful, right?"

Zhou Buqi is very confident, "It's not bad!"

"Congratulations, you have made further progress in your career." Xu Baihui knew some of his business plans, "You won the EMI Records, and your layout in the music streaming market will be more stable."

Zhou Buqi nodded, "The next step is to promote Spotify's further financing, and Ziweixing will obtain more equity."

Xu Baihui said softly: "Jieyu Media is also coming in, I have resources in the Asian market."

"Well, we'll talk about it later." Zhou Buqi waved his hand and coughed lightly, "Where is that Jiang Shuying? Is it in London?"

Xu Baihui smiled, "Should I let her come here?"

"can."

"That's fine, if you win the EMI record, it will be a reward for your career achievement."

"What rewards are not rewarded." Zhou Buqi didn't care about these things, "I just have a soft heart and don't want to see others suffer."

Xu Baihui glanced at him, and said meaningfully: "Well, where there is yin, there is yang, and where there is softness, there is hardness. It's okay to be soft, but when it's time to be hard, you have to be hard."

Zhou Buqi said: "Well, a soft heart and a hard style are standard for a good man."

(End of this chapter)