You are worth tens of billions before you come to the system?

In mid-September, good news came one after another from Parks.

The cumulative sales of Ganlin hair growth hormone in Europe and the United States exceeded 1000 million units, with sales reaching US$26.8 billion.

China's purchase price is US$144. Depending on the relevant tax rates in various countries, the average price obtained by Novartis is US$172.8.

For every copy sold, a profit of US$95.2 can be made, the total sales volume exceeds 9.52 million, and the net profit reaches US$ million.

It can be expected that Novartis’ net profit in the third quarter will not be less than US$21 billion, a year-on-year increase of 58%.

Good news is directly reflected in the stock price.

As of September 9, the share price of Novartis Group has achieved 18 consecutive positive gains, regaining its foothold in the hundreds of billions of dollars.

The three major credit rating agencies also lost the lawsuit and had no choice but to raise Novartis's credit rating again.

But they are very stubborn and still believe that Novartis, which only relies on agent products to make profits, is not worth investing in the future.

It only raised 1-2 small levels symbolically, rating Novartis Group as a 3C stock.

"There are also banking institutions such as Morgan Stanley and Citigroup that have also withdrawn their fund recovery from us."

Parks was extremely excited. They had won this battle, which meant that Wall Street institutions could not target Novartis and thus restrain them from acquiring Merck.

At least even if the subsequent acquisition of Merck fails, Novartis Group will not suffer much economic losses.

Lin Zitai couldn't help laughing: "Are you satisfied with this?"

Parks was helpless: "Mr. Chairman, K drug has been unable to pass the drug regulatory review for a long time, and we have no choice."

They have no direct competitive relationship with Merck. Even if Novartis Group's market value stands at 4000 billion, Merck's market value is still as stable as an old dog at billion.

To be honest, Parks has the same idea as some of the group's senior executives, and basically has no expectations for Novartis' acquisition of Merck.

"No need to worry, the fun is about to begin, they will agree to the approval of K drug."

Lin Zitai checked the share structure of Merck and found that the current shareholding ratio of all members of the board of directors is only 14.66%.

The top ten shareholders of the group include the Saudi Sovereign Fund, Vanguard Group, BlackRock Fund, State Street Fund and other established European and American capitals.

Needless to say, the former is a famous Middle Eastern tycoon, and the latter’s Vanguard, BlackRock, and State Street are fund institutions that have existed almost since the birth of capitalism.

Older than Wall Street capital, they are also the top three shareholders of Pfizer, Johnson & Johnson, and Roche.

If Novartis wants to acquire Merck, Lin Zitai needs to hold at least 33.4% of the shares, change the entire board of directors, and have one veto power.

They need too many shares to acquire from the secondary market. If they can get the support of even two of the top five shareholders, their winning rate will be greatly increased.

Lin Zitai thought for a long time and decided to start with the wealthy people in the Middle East. As the old saying goes, the persimmons must be picked softly.

Therefore, he contacted Amin Sir, the global president of Aramco Group, hoping to use his channels to get to know the head of the Saudi sovereign wealth fund.

The two sides set a date to meet, and on September 9, Lin Zitai’s special plane arrived in Riyadh, Arabia.

Through Seer's introduction, I met Yasir, an unremarkable middle-aged man in his fifties.

The sovereign fund in charge of nearly 3 trillion US dollars is also the largest fund holding institution in the world.

Yasser was dressed in a white robe and showed a polite smile: "Mr. Lin, welcome to the Arab world."

"Mr. Yasir, thank you very much for taking the time to meet with me."

"Mr. Lin, you are joking, I have wanted to meet you a long time ago, but I never had the chance."

The two of them exchanged some appropriate greetings, but Lin Zitai didn't play catch-up and said straight to the point: "Mr. Yasir, to be honest, I came here this time for Merck's shares."

Yasir nodded slightly, his smile gradually fading: "I've heard of it, but why should we transfer the shares to you?"

Lin Zitai showed a confident smile: "I'm afraid you misunderstood me. It's not a transfer, it's a replacement."

Yasir was stunned and asked quickly: "Is it a replacement for the shares of the Prince Group?"

Since the launch of the new slow-grain drug, they have been paying attention and hope that Prince Group will one day announce news of financing.

But after waiting and waiting, they did not receive any news about financing until Mojin Beverage was launched.

Also knowing that Mojin is on the market, Lin Zitai is not short of money.

Now suddenly hearing what Lin Zitai said, Yasir couldn't help but feel happy. After all, no matter how important Merck's shares were, they couldn't compare to the Prince Group.

Even though the price of slow-grain pills has been greatly reduced, there are still magic powers and hair growth kits, two consumables with terrible sales.

Needless to say, Mojin has been blooming in countries all over the world for more than a year since Aramco Group won the European and American agency rights for its products, and the harvest will come in a few more years. Although Ganlin hair growth products are a rising star, they have already begun to bear fruit early because of their relatively high selling prices and the fact that the Prince Group is not short of money.

According to statistics, since the product was launched in mainland China in March, as of the end of last month, the total global sales have exceeded 2500 million copies, bringing revenue of 245 billion to the Prince Group.

Analysts have calculated that the profit margin of this product is about 450%. In other words, with just one product, Prince Group's net profit has reached 188 billion yuan in the past six months.

As long as it is promoted further and there are no similar competing products, the conservative net profit per year will not be less than US$150 billion.

According to the ten-year projection method commonly used in financial markets, one year's net revenue multiplied by ten is the market value of the company.

Although it is not 100% accurate, the difference is generally not too big.

In other words, relying on this product alone, the market value of Prince Group can reach at least US$1500 billion.

Even if Merck swaps shares with Prince Edward, they will definitely not lose money because Prince Group has greater potential.

The smile on Lin Zitai's face did not diminish: "Mr. Yasir, the exchange is with Novartis shares."

Yasir laughed angrily: "Mr. Lin, I need to remind you that we hold 11.2% of Merck's shares. As of last week, Merck's market value was still US$4050 billion, while Novartis's market value was only US$1011 billion."

The market value of the two companies is four times different. Even if Lin Zitai returns all 33.4% of his shares to them, it will not be enough.

The smile on Lin Zitai's face did not diminish, and he suddenly changed the subject: "Mr. Yasir, what do you think is Novartis's chance of winning in acquiring Merck?"

Yasir didn't even think about it: "Less than 10%, your factor accounts for 9.5%. Without you, it would not even be 1%."

"Then do you want to bet with me?"

"What are you gambling?"

"Bet I can get this deal done."

Yasir became interested: "Then what's the bet?"

"Bet that we can complete the merger and acquisition plan within one year, and finally successfully become the board of directors."

Yasir asked: "What's the price for us? And what's the price for you?"

Lin Zitai said lightly: "The price you paid is to transfer the 3000% shares of Merck you hold to us with a market value of US$11.2 billion for US$336 billion.

If the merger plan fails, you only need to spend the same amount to repurchase the shares. Not only will the shares be returned in full, but 17% of Novartis Group's shares will also be given away for free. "

The share swap was just an excuse, and his real intention was to sign a gambling agreement.

Betting on shares of Novartis.

If he wins, he will become the chairman of both companies.

If he loses, he doesn’t even want shares in Novartis.

From then on, he completely retreated to China.

Yasir pondered for a moment and was suddenly shocked: "17%? You want to sign the same gambling agreement with Pioneer."

Lin Zitai smiled slightly and was noncommittal.

The Saudi Sovereign Fund holds 11.2% and the Vanguard Fund holds 10.95%. Only if they win the shares of the two funds can he be qualified to sit at the poker table.

Yasir was silent for a long time and looked at Lin Zitai with complicated eyes: "Mr. Lin, you are too gambling."

He has never seen anyone with such a gambling habit.

If one year later, Lin Zitai cannot complete the merger and acquisition plan and successfully take over Merck.

When the Prince Group issued a 2000 billion financing, the funds used to acquire the Novartis Group may have been wasted.

Lin Zitai took a sip of yerba mate and found it tasted awful, but he was embarrassed to spit it out and said with a forced smile: "Mr. Yasir, will you accept this bet?"

Yasir pondered for a long time and made several more phone calls to inquire about the royal family until nightfall.

"agree!"

Yasir and the others had been thinking about it for a long time. If Lin Zitai wanted to acquire the Merck Group, he would be the enemy of the entire Western world, and the chance of winning would be almost zero.

In this transaction, they will only lose a maximum of 33.6 billion US dollars, because it is sold with a market value of 3000 billion. 11.2% stake of Merck.

At the upper limit, the loss will only be more than 30 billion US dollars.

But the winner is 17% of Novartis shares, which are now worth US$170 billion and will only become more valuable in the future. (End of chapter)