Reborn since 2005

Chapter 780 The merger plan of the two groups

"Fengxiang Group and Anye Group merged?"

Yan Xin's proposal surprised Cai Qixiang.

At first I found it incredible - the two companies were not equal at all.

He knew Anye Group, which was engaged in interior decoration. When he first heard about it four or five years ago, it was just a small workshop.

Although it is now large in scale, in his mind, it is still a small company.

Even if it wants to join Fengxiang Group, it will only be swallowed up by Fengxiang Group, not merged.

They are not of the same order of magnitude.

However, Yan Xin then told him about Anye Group’s current scale and future expectations.

He suddenly discovered that this small workshop four or five years ago has now become a behemoth.

Although it has not yet reached the scale of Fengxiang Group, it is not far away.

Moreover, there is greater room for future development.

Fengxiang Group is a traditional real estate company, while Anye Group has transformed into an Internet company and has become a leader in the industry with unlimited possibilities in the future.

The group has invested in more than a dozen factories related to decoration materials, and has become a domestic leader in the field of interior decoration. As for the Internet, the Anye app they launched has been downloaded over 100 million times. Its business is not limited to interior decoration, but also involves house rental, and it has even launched second-hand house trading business in several cities.

The online business scope covers all large and medium-sized cities across the country.

Advertising revenue is also a new source of profit for them.

In terms of business structure, it is healthier than Fengxiang Group, a pure real estate company.

It doesn't really need Fengxiang Group to join.

But if Fengxiang Group wants to transform, it really needs the participation of such a semi-Internet enterprise.

The company is also seeking to go public and is indeed qualified to do so.

Yan Xin had never thought about merging Anye Group and Fengxiang Group before, because he did not expect Feng Chen to be able to lead Anye Group to develop so rapidly.

Even just a year ago, when the two groups were talking about a merger, Anye Group was swallowed up by Fengxiang Group.

The gap between the two sides is too great.

There is no benefit for Anye in the merger, as they will not have much say.

But now it is different. After Anye Group introduced a strategic investor with a Chinese character in its name, it has more sufficient funds and financing capabilities in the capital market, and its business development has entered a fast lane.

In addition, they coincided with the era of the explosion of smart phones, which led to a significant increase in the number of users of the apps they launched.

Driven by sufficient funds and boosted by the Internet, the development speed has reached an astonishing height.

Fengxiang Group is considered to be a fast-growing real estate company, but compared with Anye Group's development speed in the past year, it can be said to be a snail's pace.

It has to be said that when Anye Group decided to focus on the Internet, they were already at the forefront.

After a year of riding the wave, this company has already soared very high.

After listening to Yan Xin's analysis, Cai Qixiang began to feel that merging with Anye Group was indeed a good choice.

After the merger, they will have the characteristics of Internet companies, which can significantly increase their valuations.

Even if the real estate industry really enters a long cold winter as Yan Xin said, after the merger with Anye Group, it will be able to effectively reduce losses and survive that cold winter.

Moreover, after learning about Anye Group's development speed over the past year, Cai Qixiang discovered one more thing - this merger must be carried out as soon as possible.

If the two groups merge now, Fengxiang Group will still occupy an advantageous position.

If we talk about the merger again a year later, I won’t know who will have more say.

The two talked about this topic for a long time. Later, Yan Xin called Feng Chen over and had dinner together.

After dinner, the three continued to talk about the merger of the two groups and reached a preliminary agreement.

On the Anye Group side, Feng Chen and Yan Xin together own more than two-thirds of the shares, and they can make the decision.

On the Fengxiang Group side, Yan Xin is the largest shareholder, Cai Qixiang is the second largest shareholder. In addition, Shu Yi, Ai Lili and Feng Chen are also major shareholders and own a certain share.

If these people come together, they will have a great say in Fengxiang Group.

If we can also bring over the senior executives in the group who have equity incentives, we will be able to have a majority.

As long as they can finalize this matter, it will basically be done.

Of course, for such a big thing, we still need to convince other major shareholders.

If you can convince people, it is better to do so. This way, everyone can be united and work together.

What they have reached now is just a preliminary framework.

Both believe that the merger of the two groups will benefit both sides, and they are willing to promote this merger.

As for the details of the merger and the shareholding ratio of the new company, they will have to be negotiated slowly by a professional team.

Although we are all family, we still have to settle the accounts clearly.

What's more, there are other shareholders, and they also need to come up with a reasonable plan.

These details are naturally taken care of by professionals, and there is no need for them to discuss them here.

Just determine a general direction.

After the deal was done, Cai Qixiang was very happy, and Feng Chen was also very happy.

Such a merger would be beneficial to both of them.

Anye Group's current valuation is quite high, mainly due to its Internet sector.

But this thing still belongs to the virtual economy and we have to look at the future.

But Feng Chen doesn’t have much confidence about what the future will be like.

If the market believes it has a future, it has a future.

If the market doesn't believe it has a future, it will collapse.

He had also heard about the situation during the previous Internet winter.

The current scale of Anye Group is built on the virtual economy and the huge amount of loans it carries.

In terms of profitability, it is far inferior to Fengxiang Group.

Being able to merge with such a real estate company will greatly enhance their profitability.

A listed company that has both the bright prospects of the Internet economy and the profitability of a real estate company, wouldn't its stock take off?

It’s scary to think about it.

Cai Qixiang was happy, of course, because he found an opportunity for Fengxiang Group to transform and then increased the company's valuation.

In fact, he was thinking about merging with Yan Xin's Xingguang Group, which would increase the possibility of success in the future. However, Yan Xin declined.

Although Anye Group has also transformed to the Internet, its original business was real estate-related. After the transformation, its main business is also real estate-related.

Their merger can be said to be complementary of each other's strengths.

However, his Starlight Group is engaged in games, e-commerce, short videos, live streaming, etc., which has nothing to do with real estate. He believes that such a merger does not make much sense.

Of course, the main reason was that he didn't want to merge.

Starlight Group is a complete Internet company. It does not have many fixed assets and its profitability is not strong. It is still in the stage of spending money to buy the market.

If we really merge, it will be too disadvantageous.

Although he rejected Tsai Chi-hsiang's idea of ​​a merger, he also told Tsai Chi-hsiang that he would still welcome Tsai Chi-hsiang's personal investment in the Starlight Group.

The real estate industry will still have a few years of rapid development. According to their current plans, this industry will be able to bring them huge profits in the next few years.

It’s a pity to keep that money in the bank; you have to take it out and invest it eventually.

In the future, his Starlight short video platform will need to invest a lot of money, that is tens of billions of dollars.

If he relied on himself alone, he might not be able to invest so much money.

Of course, it would be best to attract more financial sponsors.

The loans that the backers of the Starlight Short Video Platform can help him get are limited. He cannot rely on loans for everything, nor can he count on loans for everything. He needs to have certain strength himself.

The Starlight Group will not merge with the Fengxiang Group, but he can accept Cai Qixiang's personal investment.

——Anyway, these assets will eventually fall into the hands of his son. They are all family members, so there is no room for loss or advantage.

Cai Qixiang was happy to hear him say this.

That night, Feng Chen returned to his home in Guangzhou.

Yan Xin, Feng Xi and others lived in Cai's house.

Anyway, the Cai family’s villa is big enough, so it’s no problem to accommodate them.

The next morning, Shu Yi and her daughter Xiao Mango boarded a plane to Europe.

Gu Ru did not go with her. She planned to stay in Yangcheng for a few more days before returning to the United States.

After seeing Shu Yi and her daughter off at the airport, Yan Xin and his party went to see the villas they bought last year and called Chen Li and his wife over as well.

The villas have now been renovated, but they cannot be moved in yet. They still need to be ventilated for a few months.

There are four villas next to each other, one for Chen Li, one for Ai Lili, and then two villas, one big and one small, bought by Yan Xin.

In a few months, they will move out of Parkview Court and live here, officially becoming neighbors.

These villas were bought a few months ago, and in these few months, their value has appreciated by several million.

The real estate market is so scary right now.

During the visit, Chen Li said to Yan Xin with great emotion:
"Thanks to your suggestion that I invest in houses, I found that I made much more money from houses than I did from writing novels."

At Yan Xin's suggestion, he bought several houses, all in first-tier cities. House prices have risen rapidly in recent years, more than doubling.

To be honest, it is indeed more money than what he earned from writing novels.

His novel "The Great Ruler" will be completed in a month or two. The next thing he will write is still a fantasy theme, but this time he did not ask Yan Xin for advice - he wanted to write a novel based on his own ability.

He is no longer short of money now. As long as he doesn't start a business or gamble, he will have more money than he can spend in his lifetime.

Of course, what I pursue has changed a bit. I want to write a completely original work of my own.

The ideas for the first two books were all provided by Yan Xin. The novel structure, character design, and storyline were also provided by Yan Xin.

Although he wrote it, it cannot be said to be his original work.

After all, I still feel a little uncomfortable and I still want to write a novel that is 100% created by myself.

Anyway, I don’t have such a strong desire for money now, and I have a huge fan base, so I don’t have to worry about single-player writing.

Yan Xin also supported his idea.

The new book hasn't been published yet, but the adaptation rights have already been sold for an eight-figure sum based on the title alone.

This is the terrifying power of today's top online writers.

When looking at the house, he mentioned his novel and told Yan Xin that he would not work so hard on writing in the future and would spend more time enjoying life and accompanying his children.

He had actually finished writing the book "The Great Ruler", but he still had about 100,000 to 200,000 words in reserve that had not been published.

He felt that typing too fast would affect the quality of the novel, and too many updates would result in many loopholes.

I won’t do this again in the future. I will focus on polishing my novel and would rather stop updating than make do with something mediocre.

It does sound ideal.

Yan Xin doesn't think that Chen Li's ideas are suitable in the online literature circle.

But he still supported Chen Li's idea.

It's good to have dreams.

Although sacrificing updates for the pursuit of quality will lose a lot of readers, Chen Li doesn't need readers that much now. He can be willful and pursue something purer.

He doesn't think Chen Li's current writing ability is enough to produce a literary masterpiece, but he sets high standards for himself. Who knows if he will be able to produce a masterpiece that will be passed down through the ages?
Even if I can't figure it out, it's worth it as long as I feel satisfied.

That night, Chen Li's family of four went to Yan Xin's house for dinner, and Ai Lili cooked.

There are about ten of them, adults and children included.

Yan Xin stayed in Yangcheng for the next week.

I met with some friends in the business community, held several meetings with my subordinates, learned about the development status of several companies under my control, planned future development plans, and reviewed and approved several important investment projects.

During this period, the most important task is to convince the remaining shareholders of Fengxiang Group and Anye Group respectively, describe to them the bright prospects after the merger of the two groups, and let them support this merger.

Finally, the shareholders of the two groups came together, held a meeting, and reached a preliminary intention to merge within a framework acceptable to both parties.

——Shu Yi is one of the major shareholders of Fengxiang Group. She was in Europe with her daughter and could not come to participate in the meeting, but she also gave authorization to let Ai Lili exercise the powers of the major shareholder on her behalf.

The scale of Anye Group is still much smaller, so this merger is not equal, probably one accounts for one third and the other accounts for two thirds.

Even so, Anye Group still has a slight premium.

However, considering that Anye Group is an Internet company, this is understandable.

The details also started to work.

The requirement raised at the meeting was to strive to complete the merger within the next two months.

After this matter was settled, Yan Xin left Yangcheng.