Reborn in Hong Kong as a Tycoon

Chapter 684: Bentley's Acquisition Progress, Agency Change (Two in One)

"Mr. Lin, the negotiation with Rolls-Royce has finally made progress."

"Rolls-Royce no longer insisted on the price of 2 million pounds, and started normal commercial negotiations."

When Lin Baicheng and Wei Li contacted again, Wei Li told him that the negotiations on the British side had progressed.

Although the Hutchison Whampoa team headed by Wei Li has reached an agreement with the Prime Minister's Office, Rolls-Royce is currently a state-owned enterprise, but the management of Rolls-Royce is not so obedient. , Offered an unacceptably high price for Hutchison Whampoa.

2 million pounds, plus the 1.2 million pounds of debt that Bentley bears, that is to say, the total selling price is 3.2 million pounds, which is about 8 million U.S. dollars in U.S. dollars.

The transfer price of 3.2 million pounds can be said to be a huge sum in the early 80s.

The problem is that Bentley's profit last year was only 1100 million pounds, and the year before last was only 1000 million pounds. It seems that the price-earnings ratio is only [-] times, which is not high for the high-tech technology of the automotive industry.

But this is not the case. Take Bentley’s profit of 1100 million pounds last year as an example. This is the profit from car sales after deducting various expenses such as employee salaries, but it does not deduct the debt that Bentley has to repay every year.

The debt of 1.2 million pounds, because it is a state-owned enterprise, the interest on bank loans is not very high, only 6% annual interest rate, and the annual debt to be repaid is 720 million pounds.

In this way, the final net profit is only 280 million pounds, which is the money that Bentley Motors earned in its pocket last year.

If calculated based on the net profit of 280 million pounds, the transaction price of 3.2 million pounds has exceeded a hundred times the price-earnings ratio, and it will take more than 100 years to earn back the capital.

Of course, the net profit cannot be calculated based on 280 million pounds, because if the debt is paid off, the company's annual net profit will reach tens of millions of pounds, and the price-earnings ratio will only become [-] times.

As an acquirer, Hutchison Whampoa cannot calculate the valuation based on Bentley’s annual net profit of tens of millions of pounds; similarly, as a seller, Rolls-Royce certainly cannot accept Bentley’s annual net profit of 280 million pounds valuation.

Therefore, Hutchison Whampoa absolutely cannot accept the price of 2 million pounds without counting debts. If Rolls-Royce insists on selling at 2 million pounds, there is no need to talk about it.

Today, Rolls-Royce can be regarded as a concession.

Lin Baicheng listened and said: "Since Rolls-Royce has made a concession, let's conduct business negotiations with Rolls-Royce. The final transaction price must not exceed the bottom line."

"President Lin, don't worry, I've always remembered it." Wei Li responded.

Lin Baicheng: "When negotiating with Rolls-Royce, remember to keep an eye on Bentley Motors. What Hutchison Whampoa wants is a complete Bentley Motors, factories, R&D departments, technical patents, etc. No matter which part is missing, Bentley Motors It's not worth the high price, you know what I mean?"

Wei Li replied: "I understand, I will arrange someone to watch, and Mr. Bingley will also watch."

"We can't completely rely on White Vedder Bentley. We need someone to watch over us. No one can guarantee that White Vedder Bentley will be bought."

Lin Baicheng reminded that it is true that Hutchison Whampoa has reached a cooperation with White Vader Bentley, but the cooperation has not yet been finalized, and Bentley Motors has not yet been acquired. As long as the price is right, White Vader Bentley is completely betrayed possible.

This is an acquisition worth hundreds of millions of dollars. If Rolls-Royce plays a role in it and allows Hutchison Whampoa to acquire an empty shell or a weakened Bentley Motors, if Hutchison Whampoa loses hundreds of millions of dollars in the acquisition, Rolls-Royce can buy White Wader Bentley with tens of millions of dollars, but Lin Baicheng can't guarantee that White Wadder Bentley won't be tempted.

Wei Li immediately said: "Boss Lin, what you taught me is that I will make corresponding arrangements."

"After the acquisition negotiations are completed, I will entrust a third-party company to perform asset calculations. I believe that there will be no problem."

Since Lin Baicheng said so, he will do so. He will invite a third party to conduct an audit. He is not sure whether Wei Li has any problems in this huge acquisition. Telling Wei Li clearly is also a reminder to Wei Li to let Wei Li know what Things can't be done.

"Boss Lin is still considerate."

Of course, Wei Li understood the meaning of Lin Baicheng's words. It was impossible for him to ask Lin Baicheng if he didn't believe him. After all, he was a part-time worker, and smart people would not say such things.

Besides, since Lin Baicheng told him, it means that Lin Baicheng didn't completely disbelieve him, but just wanted to add an insurance policy.

Lin Baicheng continued: "Since the acquisition negotiations on Rolls-Royce have progressed, you can arrange for people to contact the companies I have selected to acquire. Don't be in a hurry to acquire immediately, and contact them first. Conduct research on relevant companies and factories, etc.”

"Alright Mr. Lin, I will arrange someone to follow up." Wei Li responded aloud.

For the acquisition of Bentley Motors, Hutchison Whampoa has an agreement with the Prime Minister's Office to privatize several state-owned enterprises that are not doing well, and to take over employees from related companies and factories. Lin Baicheng has already selected these goals.

The reason why the acquisition negotiations were not carried out was because the acquisition negotiations with Rolls-Royce did not progress.Because it was an agreement to acquire Bentley Motors, there was no progress in the acquisition of Bentley Motors, and of course there was no need to follow up on what was attached to the agreement.

"If there is nothing else, let's do it first."

After confirming that Wei Li had nothing else to report, Lin Baicheng ended the call with him.

That afternoon, Lin Baicheng took his personal secretary Catherine to a golf course in New York.

Although Lin Baicheng was not the latest to arrive, he was not the first to arrive either.When he arrived, the Phil Smiths, Logan Rockefeller, and Barry Diller had already arrived.

Yes, today was a meeting of the shareholders of the Statue of Liberty Broadcasting Company, and Claure Rockefeller and Abigail Johnson were not there.

"Smith, haven't you and Anna gone on your honeymoon yet?"

Lin Baicheng asked Phil Smith. At the last party, Phil Smith said that he would go on honeymoon with Anna Nord in a few days. He did not expect the couple to come to the party again this time.

Phil Smith said helplessly: "The honeymoon can only be postponed temporarily, and it still has something to do with Allen."

"It's about me? How do you say that?"

Lin Baicheng was a little surprised when he heard the words, what could it have to do with him?
"It's Xinghe Game Company!"

Upon seeing this, Phil Smith explained: "Starting from this month, Galaxy Games' arcade will no longer entrust me with sales in North America. Instead, it will find a state-level agent by itself, and cancel the general agent in North America or even the United States."

"That is to say, my agency company will lose this piece of profit, and now it can only compete with other agencies for arcade machine agency in a certain state. Now that the company needs me to sit in, how do you think I am still in the mood to go on honeymoon? "

Speaking of this matter, Phil Smith was still a little depressed, because his agency company did not sign the general agency contract with Xinghe Games in North America, so Xinghe Games would not give him the general agency if it didn't, it was a one-sentence matter.

The year before last, Phil Smith thought about signing a North American general agency contract with Galaxy Games, but if he signed the contract, even if he didn't get a single machine, he would have to pay Galaxy Games $1000 million a year. This is the general agency fee after negotiation between the two companies.

Because the price was too high, Phil Smith kept procrastinating. Later, seeing that Lin Baicheng had no intention of changing the agent, he simply pretended that this incident had never happened, and took a small advantage.

But in this case, Phil Smith's agency company did not sign an agency contract with Galaxy Games, and Galaxy Games could decide to change the agent or terminate the agency relationship at any time.

In fact, Galaxy Games has not signed an agency contract with any agent. Lin Baicheng did not charge the agent a fixed annual agency fee. The reason why he did not sign a contract with the agent at the beginning was mainly to prevent the agent from being able to change agents at any time after inaction.

Compared with the little agency fee every year, Lin Baicheng pays more attention to the market. He hopes that Xinghe Game Company can change the agent at any time, so as not to be stuck by the agent.

"Smith, I told you about this. I have to be responsible to the other shareholders of Xinghe Game Company. For the sake of the company's interests, canceling the general agent can increase the stand-alone price of arcade machines and increase revenue and profits. This is the trend. must do."

Lin Baicheng shrugged when he heard the words. If he alone had the final say on the company, he was willing to keep it as it was. He would rather make less money every year and maintain the stability of the broad market. It is like spending money to buy peace.

But now, Xinghe Game Company is no longer Lin Baicheng's sole proprietorship company. There are many shareholders in the United States. The Lin family's combined shareholding ratio is only 63%, and the combined US capital and tradable shares account for 37%, which is so high. The ratio is enough for these capitals to escort Galaxy Games.

Listing on the U.S. stock market is already spending money to buy Ping An, so there is no need for Galaxy Games to find a general agent to spend money buying Ping An. It is of course better to earn more if you can earn more.

"Alan, I'm not blaming you, it's just a pity. After all, being the general agent is too profitable."

Phil Smith said aloud that the agency company brought him more than 5000 million US dollars in profits in the previous year and last year. It can be seen how profitable the general agent is. Now such a good thing is no longer possible. How can it be possible for him to say that he has no regrets.

If Lin Baicheng hadn't led Phil Smith to make a lot of money in other areas, Phil Smith and Lin Baicheng had other cooperations, otherwise, if the two had their own arcade agency relationship, then Phil Smith would definitely resist, after all, his interests greatly affected.

Even if he knew that the rebellion would fail, Phil Smith would still rebel. He couldn’t let Galaxy Game Company make money because of the money he couldn’t make. The arcade machines sold in the United States are doing as much damage as possible anyway.

It's different now. Although the agency company has lost a lot, as long as it can win the agency right in a big state, the agency company can still make a lot of money every year.

More importantly, Phil Smith and Lin Baicheng have cooperated in other places, and the interests involved are not small, so it is impossible for Phil Smith to tear up his face with Lin Baicheng for the agency company that will inevitably not be able to make a lot of money. It is right for him to do that Not any good.

"Just don't blame me."

Lin Baicheng couldn't help laughing: "The management of Xinghe Game Company did this to increase the company's revenue and profit. Starting from the second quarter of this year, the company's revenue and profit will definitely increase significantly compared with last year. Smith, a small shareholder You can also benefit from it.”

"The one who benefits the most is Alan, you, the major shareholder of the company."

Phil Smith said with a smile, but knew in his heart that Lin Baicheng was telling him not to rush to sell the shares in his hand. With such favorable support, the stock price of Xinghe Game Company will definitely have a wave of rise.

The management of Xinghe Game Company began to carry out more detailed agency in April to increase the company's revenue and profit, not only in North America, but also in Japan and the regions that can be affected by the United States. They are doing this simultaneously.

In addition, the company's anti-piracy software has increased its promotion efforts since the beginning of the year, and it has been quite effective. If there is no accident, the company's revenue and profit this year will definitely be higher than last year, and it will be stable in the first half of the year. Stable and high growth rate.

This is what Goldman Sachs and other Wall Street institutions want, and these are also promoted by Goldman Sachs and other institutions, in order to boost the stock price of Xinghe Game Company with good news, so that they can sell the stock at a higher price at that time.

Not to mention the stock price, the company's increased revenue and profit alone are also beneficial to Lin Baicheng, a major shareholder, so Lin Baicheng did not object, but agreed smoothly.

Lin Baicheng waved his hand: "Haha, if I didn't sell the shares, the increase in the stock price would not be beneficial to me."

"The increase in book value is also a benefit, which means a lot." Phil Smith said.

"lets change a topic."

Shaking his head, Lin Baicheng said, "There has been a change in the agency company. From now on, Smith, your career focus will be transferred to Zhonghe Game Company?"

"It was already shifting, and now it just makes me more determined."

Then, Phil Smith said to Lin Baicheng: "Alan, when the company is financing this time, I want to buy some shares of the company from you. I wonder if it is possible?"

"Of course no problem, how much do you want to buy?"

Lin Baicheng agreed without even thinking about it. He didn't care too much about Zhonghe Game Company. The original investment was only 400 million US dollars plus the game idea of ​​"Western Cowboy", and the investment has already paid back.

"I will buy up to 5% of the shares, and we will discuss the specifics later."

Phil Smith said that he would not buy too many shares from Lin Baicheng, because that would only reduce the contact between Lin Baicheng and the company, which is not advisable.

The reason why Phil Smith wants to buy shares is mainly to increase his shareholding ratio in the company, to become the chairman of the company more legitimately, and to regard the company as his career.

If Lin Baicheng holds more shares in Zhonghe Game Company than Phil Smith, it is a concealment after all. Although the relationship between the two parties is very good, as a successful businessman, he should not leave serious hidden dangers in the core of his career.

(End of this chapter)