Rebirth of England.

Chapter 595 Agreement reached
"It seems that the Rothschild family is somewhat unwilling to accept their loss, Your Highness the Duke."

"What do you say? Ms. Weber."

After personal assistant Zhang Junning handed Ashley Weber's order to Barron, he walked to the window, looked at the scenery in the yard that was already covered in green, and asked relaxedly.

"Someone is investigating our company's financial transactions. If nothing else happens, it must be someone from Rothschild."

"you sure?"

Ashley's natural voice came from the phone:
"All signs indicate that it is them. Don't forget, Your Highness the Duke, I also have my own channels. This kind of thing will not go wrong."

"That's normal. After all, they lost a lot of money before. At least they need to find out whether you have a bigger purpose in doing so. If it were me, I would investigate first."

"Let's not talk about this for now. The Nestlé Group has already taken care of it..."

Hearing Ashley's words, he smiled and said:

"That's great news, well done."

Prior to this, Ashley Weber helped Barron negotiate with Nestle Group, hoping to obtain the 29.44% of L'Oreal Group shares they held through equity swaps.

Originally, this matter was relatively difficult. After all, the Nestlé Group has been in an "alliance" with the L'Oréal Group for more than 20 years.

However, since this year, due to the impact of the subprime mortgage crisis, high inflation has led to a decrease in the purchasing power of European and American people. L'Oreal Group's first quarter financial report is not good-looking, and there are reports that they are preparing to lower their profit expectations for this year, which has also caused its stock price to drop. From more than 100 euros at the beginning of this year, it has dropped to about 70 euros at this time, a direct drop of nearly 30%!

According to Barron's request, the conditions proposed by Ashley Weber to Nestlé Group are really tempting - they proposed that if the share price of L'Oreal Group is lower than 8 euros per share in the next eight years, then they will They have the right to purchase the shares of the L'Oreal Group held by the Nestlé Group at a price of 120 euros per share at any time; if the share price of the L'Oreal Group is higher than 120 euros per share in the next 8 years, they have the right to purchase the shares of the L'Oréal Group at the then current price at any time. share price to purchase Nestlé Group’s shares in L’Oréal.

Of course, the premise is that if they purchase the shares of L'Oréal Group held by Nestlé Group before April 2014, they need to obtain the permission of the Bettencourt family - because according to the previous agreement reached between Nestlé Group and the Bettencourt family , before 4, if both parties sell their shares in the L'Oréal Group, the other party will have priority.

If Barron and the others came to purchase the L'Oréal Group shares held by Nestlé Group in April 2014 after the agreement between the two parties expired, they would be able to complete the transaction directly without further confirmation from the Bettencourt family.

This agreement means that Barron's side has guaranteed to Nestlé Group that the minimum price for their acquisition of the other party's L'Oréal Group shares is 120 euros per share.

You know, the current share price of L'Oréal Group is about 70 euros, and the price of 120 euros per share is a premium of more than 70%!

Even compared to the L'Oreal Group's share price of around 100 euros at the beginning of the year, it is still a 20% premium - the L'Oreal Group's share price has not yet reached 120 euros per share.

And even if the share price of L'Oreal Group really rises in the next eight years and exceeds 8 euros per share, Nestlé Group will still be able to sell its shares of L'Oreal Group to Barron's at a higher price.

To put it bluntly, this is a guaranteed stock option agreement that is much higher than the share price of L'Oréal Group at this time.

The only thing Nestlé Group needs to do is to confirm that it will sell its shares in L'Oreal Group to Barron's.

No matter what, it is not a loss for them. Of course, this agreement is not a loss for Barron either - it seems that he needs to pay a higher price to acquire the shares of L'Oreal Group, but the key is that the current share price of L'Oreal Group is very low, but he can't buy it.

Yes, it is true that they quietly bought shares of L'Oréal Group in the secondary market, but at best, they could only buy some sporadically.

You must know that the shares of L'Oréal Group held by the Bettencourt family and the Nestlé Group alone exceed 60% of the total share capital.

You should definitely not think about buying shares from the Bettencourt family. Even if they have internal conflicts, buying their shares is more difficult than buying from the Nestlé Group.

Moreover, you must know that the agreement signed by the Betancourt family and the Nestlé Group to restrict the sale of L'Oreal Group shares restricts both parties. Even if Barron can buy the L'Oreal Group shares held by the Bettencourt family before 2014, he still needs to Only with permission from Nestlé Group.

What's more, if you really want to buy shares from them, how can you buy them at the original stock price? A premium is definitely essential - just like EDF purchased the British Energy Group and paid a 35% premium!

And Barron also knew that in his previous life, the Betancourt family repurchased 2014% of the L'Oreal Group shares from the Nestlé Group for 65 billion euros in 8. At that time, the market value of the L'Oreal Group was more than 820 billion euros, and the stock price At around 135 euros per share.

Then five years later, in 5, the market value of L'Oreal Group has reached more than 2021 billion euros.

Even before that, he purchased the L'Oreal Group shares held by the Nestlé Group at a price of 120 euros per share. The corresponding market value of the L'Oreal Group was only more than 720 billion euros, and he still did not lose money.

And the L'Oreal Group's position in the beauty industry is very important to the Gucci-Hermès Group.

By winning over L'Oreal Group, Gucci-Hermès Group will be able to make up for their shortcomings in beauty.

At least now that the agreement with Nestlé Group has been signed, it is confirmed that the shares they hold in L'Oréal Group are destined to eventually belong to Barron - even if the Bettencourt family wants to buy the shares of L'Oréal Group from Nestlé Group, there is this With the agreement in place, it is impossible for the Nestlé Group to be sold.

This means that the 29.44% of L'Oreal shares held by the Nestlé Group can almost be regarded as theirs.

Coupled with the L'Oreal Group shares they secretly purchased in the secondary market, after completing this acquisition, Barron's L'Oreal Group shares will exceed the Bettencourt family and become the largest shareholder of L'Oreal Group.

Of course, if he can also buy the Bettencourt family's shares in the L'Oreal Group, he will be able to privatize the L'Oreal Group.

Prior to this, Gucci-Hermès Group was first preparing to complete the privatization of Hermès.

Affected by the subprime mortgage crisis, the share price of Hermès has also fallen accordingly, but it is still early. After the subprime mortgage crisis completely breaks out and affects the European stock market, they will begin to increase their holdings of Hermès shares in the secondary market.

In addition, some members of the Hermès family will also be affected by the subprime mortgage crisis and will have the idea of ​​selling Hermès shares. When the time comes, the Gucci-Hermès Group will also take over.

Eventually, together with the remaining Hermès family shareholders, the company was privatized and delisted.

After all, when Hermès went public, it was mainly to facilitate financing. However, Gucci-Hermès Group has the support of Barron's and does not lack funds. Moreover, their income is relatively stable and there is no need to go public.

(End of this chapter)