Reborn in Hong Kong as a Tycoon

Chapter 640 Hutchison Management's London Trip ([-])
The first day of March, London.

After five days of research, Wei Li and others had a more detailed understanding of Bentley's technology, patents, factories, finance, management and other aspects.

The Bentley Motor Company was established in 1919, but as early as 1912, the Bentley family had already raised funds to introduce French sports cars, improved the sports cars, and began to enter the automotive industry.

In 1919, the Bentley company was formally established, but at that time the company's funds were only 20 pounds, which was inherently insufficient. Therefore, although Bentley cars were invincible on the Le Mans track in the next few years, they were still on the verge of bankruptcy in the early 30s. , was eventually merged into Rolls-Royce.

Bentley's technology is not bad, otherwise it will not be invincible on the Le Mans track, and it will not be in the eyes of Rolls-Royce. After being acquired by Rolls-Royce, with the support of Rolls-Royce, Bentley The 50s ushered in the peak period of development.

After the 60s, Bentley began to go downhill. In the 70s, it was nationalized together with Rolls-Royce, and its operating conditions became worse and worse.

Fortunately, whether it is Rolls-Royce or Bentley, they are all luxury cars, which are high-end in the industry. The mid-to-low-end car market in England is occupied by Japanese cars, and the high-end car market is only affected to a certain extent. Therefore, Rolls-Royce and Bentley Things aren't too bad for Bentley.

In recent years, the annual sales of Bentley cars have been around 9000. The price of Bentley cars in the UK is 3 pounds per car, and the export price is 3.2 pounds per car. The annual revenue is more than [-] million U.S. dollars.

Like Rolls-Royce, Bentley cars are also hand-made, so the car factory has a large number of employees, and the labor cost is extremely high. In addition to research and development costs, after deducting various taxes, the annual profit is only more than 3000 million US dollars.

If the Bentley brand can have a net profit of more than 3000 million U.S. dollars every year, that's not bad. If you calculate the valuation, because of the importance of the automobile industry, how can you estimate a valuation of [-] million U.S. dollars.

But the problem is that due to historical reasons, Rolls-Royce has extremely serious debts, and the Bentley brand also has debts. Rolls-Royce can’t bear the annual interest repayment of huge debts, so that the company’s profits are left after paying off the interest. Not much.

Therefore, the current situation of Rolls-Royce is very serious, and there is not much profit left every year, so naturally there is not much investment in research and development.And technology will become obsolete. If you don't invest a lot of money in research and development, as the technology is updated, the company's car sales will only get worse and worse, and the revenue and profit will decrease, which will only cause more serious consequences.

Of course, the situation of Rolls-Royce is not good, yes, but technology is still quite strong in this era, and it is definitely at the forefront of the world. As long as the huge debt can be paid off, the company is still very likely to come back to life and create another glories .

Because of the time difference, Wei Li contacted Xiangjiang this morning to report to Lin Baicheng, but learned from Qin Lan that Lin Baicheng was playing outside. If it was not an urgent matter, then after the big boss finished playing, she would talk to the big boss. The boss said that the big boss will definitely contact Wei Li when he has time.

Wei Li was going to report the research report on Bentley Motors to Lin Baicheng, so it didn't matter if he was late, and he was not in a hurry.

But in the morning, Thiessen White from the Trade Department and Wendana Thompson from the Prime Minister's Office came to find Wei Li first.

"Master Werley, about Bentley, I think you have a clearer understanding now, what are your thoughts now?"

"Hutchison Whampoa still hopes to acquire Bentley Motors, but before the acquisition, there are some things that need to be agreed."

Wei Li, who has been authorized by Lin Baicheng, can talk to Thyssen White and Wendana Thompson first, anyway, the result will not be reached immediately.

"Bentley Motors is at the top of the entire auto industry in terms of technology and reputation. If Hutchison Whampoa wants to acquire Bentley Motors, it must bear some responsibilities in addition to the normal transaction price."

Wendana Thompson said aloud that he represented the Prime Minister's Office, and he was very clear about the request of Prime Minister Mrs Thatcher.

Wei Li nodded after hearing this, and said: "After these days of research, I found that Rolls-Royce's debts are extremely serious. Bentley is one of the brands of Rolls-Royce. This time we bought Bentley Motors, so The hope is to acquire a Bentley without the debt burden."

The entire Rolls-Royce is in debt more than one billion pounds, and the debt is almost catching up with the company's assets. How dare Hutchison Whampoa touch such a huge debt.More than a billion pounds, converted into Hong Kong dollars, is more than 100 billion Hong Kong dollars.

"Part of Rolls-Royce's debt is due to Bentley Motors, so this part of the debt needs to be borne by Bentley Motors. The specifics will be negotiated between you, Rolls-Royce and the Bentley family."

"When Rolls-Royce was nationalized, the state promised that once Rolls-Royce or Bentley were privatized, the original controlling party would give priority to repurchase the shares at the time of nationalization according to the market value. Before being nationalized , the Bentley family holds 15% of the shares of the Bentley company, so if Hutchison Whampoa wants to acquire Bentley Motors, it needs to communicate with the Bentley family."

After Bentley was acquired by Rolls-Royce, it does not mean that Bentley disappeared, but that Bentley became a subsidiary of Rolls-Royce, and Bentley still operated independently.

"There are still such historical relics."

Wei Li couldn't help frowning when he heard this, and asked after thinking for a while: "Mr. Thompson, may I ask if the Bentley family has the idea of ​​acquiring Bentley Motors? Or, will the Bentley family prevent us from acquiring Bentley Motors?"

"The Bentley family has no right to prevent the government from selling Bentley cars. The Bentley family may be interested in buying Bentley cars, but the Bentley family can't afford the money."

Wendana Thompson thought for a while and said that the Prime Minister still hopes to achieve the sale of Bentley Motors this time, so it is better not to let Hutchison Whampoa think that the acquisition is difficult.

Wei Li said: "So, before we officially launch the acquisition, it is necessary for us to communicate with the Bentley family."

Wendana Thompson reminded: "The Prime Minister is in favor of selling Bentley, but the attitude of Rolls-Royce management is also important."

"Thanks for the reminder, Mr. Thompson."

Wei Li nodded to express his understanding, and then changed the topic: "Mr. Thompson, I don't know what responsibilities we have to bear in addition to the normal purchase price for the acquisition of Bentley Motors?"

"Walley Taipan may or may not know that the Prime Minister is currently pursuing the privatization of state-owned enterprises, and the sale of Bentley is based on this policy."

"In any case, Bentley Motors is profitable every year and is a high-quality asset. Therefore, if Hutchison Whampoa wants to acquire Bentley Motors, it must support the Prime Minister's privatization policy of state-owned enterprises. as a balance."

This was a relatively formal negotiation, so Wendana Thompson did not beat around the bush, but made it clear to let Wei Li understand what it meant.

This kind of acquisition must be done with the mutual consent of both parties. Otherwise, even if it can be concealed now, after Hutchison Whampoa investigates the relevant companies, the real situation will be found out soon, and Hutchison Whampoa can completely go back on its word. That would serve no purpose other than wasting time.

"How many companies does Hutchison need to privatize and acquire?"

Lin Baicheng and Wei Li had guessed this kind of thing before they came, so Wei Li was not surprised or resisted.

Seeing that Wei Li didn't object immediately, Wendana Thompson couldn't help feeling relieved, and then said: "Hutchison Whampoa needs to privatize five companies, and the number of employees in these five companies must not be less than 1."

"It's impossible! It's absolutely impossible for Huang to agree to this kind of condition!"

Wei Li immediately shook his head when he heard this. Ten thousand employees is not a problem. The total number of employees of the Bentley brand is tens of thousands. But the problem is that Bentley makes money. As Wendana Thompson said just now, The company that has been taken over has poor performance and is a non-performing asset. The company's annual profit is likely to be negative.

There are 200 employees, and the salary of the employees is at least 300 million pounds per month. The salary of the employees is as high as 3000 million pounds, and the annual salary is [-] to [-] million pounds.

This is only the salary of employees, not the loss caused by the company's operations. If it is really acquired, Hutchison Whampoa will fill it with two to three hundred million Hong Kong dollars every year. .

"Master Wei Li, since Hutchison Whampoa wants to acquire Bentley Motors, it needs to cooperate with the Prime Minister's privatization policy of state-owned enterprises. Otherwise, high-quality assets like Bentley Motors will not be acquired by Hutchison Whampoa. few."

Wendana Thompson was not surprised by Wei Li's refusal. What he had to do was to get Hutchison Whampoa to agree to the conditions offered by the government.

"Even so, Hutchison Whampoa cannot afford to support at least tens of thousands of employees, not to mention the high cost of acquiring these enterprises."

Wei Li still shook his head. Although he hasn't communicated with the big boss Lin Baicheng, he can be sure that if Yinglun's conditions don't make concessions, the big boss is basically impossible to agree.

Although it is likely to be suppressed after rejecting the prime minister, it is better to be suppressed than to let Hutchison Whampoa die slowly. Hutchison Whampoa currently has a market value of more than 400 billion Hong Kong dollars.

Thompson said: "Master Wei Li, I think you can report to Chairman Lin of Hutchison Whampoa. Maybe Chairman Lin will agree after thinking about it."

"I will definitely report to Mr. Lin."

Wei Li nodded heavily, and said, "About these companies, I wonder if you can give me a copy of the relevant company information, so that I can report to Mr. Lin."

"Of course, I have brought the information."

While speaking, Thompson took out a thick stack of documents from the briefcase he brought.

"Mr. Thompson is really well prepared."

Wei Li took the materials and put them aside for the time being. There is no time to read them now.

"This is what I should do."

Thompson said: "Master Wei Li, please tell Chairman Lin that as long as he is willing to cooperate with the Prime Minister's work, the Prime Minister will naturally feel his friendship. Not only will he help in the acquisition of Bentley Motors this time, but Chairman Lin will also help you in the future. Or if Hutchison Whampoa wants to invest in England, the Prime Minister will also provide corresponding help."

In this way, of course, it is increasing the chips.

"I will tell Mr. Lin."

Wei Li nodded slightly, agreeing to the conditions can get the Prime Minister's friendship, otherwise the consequences of refusing can be imagined.

"Then, I'll just wait for the good news from Mr. Wei Li."

Thompson didn't say much anymore, he said everything that should be said, and there was no need to say more.

"If Hutchison Whampoa increases its investment in England, it will be beneficial to both Hutchison Whampoa and Chairman Lin himself, and the influence will definitely increase. Therefore, Chairman Xilin can give careful consideration."

At this time, Thyssen White, the director of the trade bureau who had been silent next to him, also said something.When entertaining Wei Li and others, he is the main one, and when it comes to business negotiations, it is Wendana Thompson who is the main one.

"Don't worry, both of you, since Mr. Lin sent me here this time, it has already shown that Hutchison intends to invest in the land of England."

Wei Li felt that it would be better to say something, so he said: "Hutchison's first target is the automobile industry, and Bentley Motors is the priority acquisition target. But if the acquisition price is too high, Hutchison can change the acquisition target. If it enters the automobile industry If the cost of the industry is too high, Hutchison can change its target and enter other profitable industries.”

I said this mainly to show my attitude, lest the other party think that Hutchison Whampoa must have Bentley cars, and the lion opened his mouth.

"There are many domestic industries, and Hutchison Whampoa is welcome to invest in any industry."

What the prime minister wants is for Hutchison to privatize unpopular bad asset state-owned enterprises, so it doesn't matter for Hutchison to enter any industry.

Wei Li said: "I need to report to Mr. Lin on how to do it, so after I report to Mr. Lin, I will contact you two."

"Then we'll wait for the good news from Mr. Wei Li."

Thyssen White and Wendana Thompson knew that they would stop here for the time being.

"I'll give you two."

Wei Li sent the two out of the hotel.

After sending the people away, Wei Li gathered everyone in the team together, showed everyone the corporate information brought by Thompson, and asked them to compile a concise corporate report so that he could report to the big boss report.

There are a lot of people, and there are only a dozen companies in total, so after more than an hour, they sorted it out.

Wei Li looked at it seriously first. Only when he understood, could he easily answer the big boss's questions when reporting to the big boss, so that he would not be ignorant of one question.

After reading it, Wei Li found that it was already lunch time, and it should be around seven o'clock in the evening at Xiangjiang.But since the big boss has not contacted here now, it means that the big boss is not free for the time being, he can go to eat first, as long as one person is left waiting by the phone.

(End of this chapter)