Reborn: Billionaire in College

"coming?"

"I'm coming!"

At 10 o'clock in the morning, the three giants of AutoNavi Map, Cheng Congwu, Xiao Jun and Hou Jun, were already waiting downstairs.

After getting off the car, Chen Pingjiang walked over quickly and shook hands with the three people.

"Welcome, Mr. Chen. Thank you for your hard work."

"Go up and rest first."

After exchanging pleasantries for a while, the group went to the conference room of Amap.

After chatting about some trivial things, Chen Pingjiang got straight to the point: "To be honest, I came here on behalf of Renren.com to make an acquisition offer to your company. The price is negotiable."

"Uh!"

As soon as he finished speaking, Cheng Congwu and the other two looked at each other in confusion.

Originally, it was thought that Chen Pingjiang came here to discuss map licensing with AutoNavi on behalf of his three companies, but no one expected that he would open his mouth to ask for an acquisition.

This is a huge matter.

For a moment, the three giants didn't know how to respond.

Chen Pingjiang smiled and said, "Are you all shocked by this news? I'm really sorry, I was too abrupt."

Cheng Congwu waved his hand and said, "Don't blame Mr. Chen. It's the three of us who were preconceived."

"I would like to ask, why does Mr. Chen want to acquire our AutoNavi?"

Chen Pingjiang said: "Because the map navigation business is very important to several companies under my control, it is a part of the ecological chain. Baidu has a map business, Tencent also has SOSO, and whether it is Renrengou or Juzi mobile phone, maps are an indispensable part."

Hou Jun frowned, obviously not satisfied with this answer.

He also knew what Chen Pingjiang said: "If that's all, we can just talk about licensing cooperation. There's no need to seek acquisition."

"Because only an acquisition can make me feel at ease. As far as I know, Baidu has also extended an olive branch to you, right? If it is just a cooperation, what if AutoNavi sells itself to someone else in a few years and doesn't renew the contract with me?" Chen Pingjiang spread his hands and said, "Besides, AutoNavi's current valuation is not particularly high, so an acquisition is more cost-effective."

Really rich and powerful.

The three giants felt that AutoNavi was quite short of money at the moment.

Watching the three people find an excuse to go to the next room to discuss privately, Chen Pingjiang smiled and looked at Bu Housheng.

Bu Housheng found it funny. It was indeed the style of his boss. He wanted to acquire the company as soon as there was a disagreement. There was no need for any polite words. He just sat down and discussed the needs.

Chen Pingjiang also didn't have time to waste too much time on the acquisition of AutoNavi.

On the one hand, Baidu has always been flirting with AutoNavi. If it weren't for Robin Li's absence, AutoNavi might have been named Baidu.

On the other hand, if it is delayed any further, AutoNavi will go public.

Chen Pingjiang made up his mind that if AutoNavi did not sell, he would switch to Sogou.

Generally, the first step in an acquisition is to send a letter of intent to express the sincerity of both parties. To put it bluntly, do you want to sell?
In the next office, Cheng Congwu and two other people were meeting.

"This Chen Pingjiang is so secretive. There was no news about us before, but now he wants to acquire us as soon as we meet. He really doesn't follow the rules." Cheng Congwu complained a little because he noticed that the other two partners seemed to be tempted.

Xiao Jun, who is in charge of technology, smiled and said, "After all, he is a young man and is definitely different from us old guys. I have heard that he is very decisive in his work. After meeting him today, I can see that his reputation is well-deserved."

"So, what do you mean? Are you going to refuse it outright, or are you willing to sit down and talk if the price is good?" Hou Jun asked.

Cheng Congwu shook his head first: "I don't want to sell it. Right now, AutoNavi has the largest market share in the industry, whether it's maps or navigation. The listing is almost certain. The most important thing is that we have been in business for so many years, and the company is like our own child. I would feel bad if I were asked to sell it now."

Xiao Jun said, "I am different from Lao Cheng. If Chen Pingjiang offers a good price, we can negotiate. Of course, this price must be higher than our market value after listing. Even if it is the same, I think listing is a better choice."

Hou Jun sighed and looked at Cheng Congwu: "I am the same as Lao Xiao."

Cheng Congwu's expression changed instantly.

Among the three shareholders, I am the only one who hopes to stick to the end, while the other two are taking a wait-and-see approach.

Seeing his old friend's unhappy face, Hou Jun continued to smooth things over: "In my opinion, Lao Cheng, you should not rush to refuse. There are more than three shareholders. We also need to notify other investment institutions."

Amap raised funds once in 06.

The investors are Sequoia Capital, KPCB, Legend Capital and Walden International.

Acquisitions of listed companies may be even simpler. If the target company disagrees, Chen Pingjiang can simply buy shares in the secondary market, even if the company exceeds the 5% mark. If the major shareholder agrees to the acquisition, that would be the best. If not, Chen Pingjiang can still persuade other small shareholders and investment institutions to force the acquisition. In the worst case, Chen Pingjiang can directly launch a hostile takeover, also known as a hostile takeover.

Of course, hostile takeovers are more difficult to implement, as they require the target company to have a high level of stock liquidity. When facing a hostile takeover, the target company can also look for a "white knight" with whom it has a good relationship to take over, or directly launch a poison pill plan or other anti-takeover plans.

For non-listed companies, Chen Pingjiang cannot buy shares in the secondary market. If the major shareholder refuses, he can only take his time to persuade the minority shareholders and investment institutions. If no one agrees, then there is no way to acquire the shares. Therefore, Chen Pingjiang can only find another way to acquire the shares held by a certain shareholder. What he seeks is no longer a full acquisition, but to join the board of directors.

If a shareholder transfers equity to Chen Pingjiang, the consent of more than half of the other shareholders is required. In this case, the transferring shareholder needs to notify other shareholders in writing and seek their consent. If other shareholders do not respond within thirty days after the notification, it is usually deemed that they agree to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who disagree should purchase the transferred equity, otherwise it is deemed that they agree to the transfer. Under the same conditions, other shareholders have the right of first refusal.

In short, there are many tricks here, and the key lies in whether Gaode is solid. If there is any gap, Chen Pingjiang will come over like a bloodthirsty crocodile following the smell.

Although Cheng Congwu didn't want to sell, he was at most a major shareholder. If other shareholders wanted to sell, he would have no way to stop them.

Gaode's prospectus can be publicly checked to see the shareholding ratio of each shareholder.

After making a phone call for a while, Hou Jun returned to the office.

He is currently the chairman of AutoNavi Maps and is responsible for connecting with other investment institutions.

"How is it?" Cheng Congwu asked anxiously when he saw Hou Jun coming back.

Hou Jun shook his head. "It is obvious that Chen Pingjiang came prepared. Sequoia and Legend Capital both said they would consider it. I have no problem with the other two companies because they hold a very low stake. If I am not mistaken, Chen Pingjiang had already convinced Shen Nanpeng before he came, and Shen Nanpeng helped him communicate with the various investors."

Xiao Jun clicked his tongue: "This young man really has no moral principles. He has made it clear that he will buy other shares even if we don't agree."

Seeing this, Cheng Congwu had no choice but to say, "Let's see their sincerity first."

It seems that other shareholders besides it are not so firm in their stance.

If it were another young company, Chen Pingjiang might not have a chance.

Although Amap does a good job, none of the people here are young.

Cheng Congwu was born in 64 and is 46 years old this year.

Xiao Jun is over 50, and Hou Jun is almost the same.

Hou Jun has a lot of business outside and doesn't have much energy to focus on Gaode.

In fact, AutoNavi’s founder structure doomed it to be acquired.

Everyone's position is not so firm, as long as the price is okay, they will sell it.

After about half an hour, Cheng Congwu and others returned to the meeting room.

"Mr. Chen, what a good trick." Cheng Congwu was a little angry.

Chen Pingjiang pretended to be deaf and dumb: "Ah? What does Mr. Cheng mean?"

"Forget it, it's okay." Chen Pingjiang did not admit that he had informed the investment institution in advance, and Cheng Congwu had no choice.

As the chairman, Hou Jun needed to make a statement: "In principle, we agree with your company's acquisition intention. Mr. Chen can arrange for someone to do a special investigation."

"Okay!" Chen Pingjiang grinned. "Then I will add one more thing. Even if the merger is successful in the end, I hope that all directors can stay in office. And I promise that as long as Gaode is here, the name will not be changed. Because I also started from scratch, I know very well how much love a founder has for his company."

After hearing this, Cheng Congwu's expression looked better.

After the intention meeting ended, Chen Pingjiang, accompanied by the three people, took a tour around AutoNavi.

"Mr. Cheng, I know you may feel uncomfortable. But with all due respect, AutoNavi needs a strong backer. Although AutoNavi has a good market share, your competitors are even stronger. Not to mention Baidu, Tencent is bound to make a big move in the map. The resources and funds behind you cannot match them."

"The in-car navigation system you have collaborated with various car companies on is a product of the last era. It is not an exaggeration to say that it is a sunset industry. Once the 4G era arrives, the navigation function will be embedded in mobile phone maps. Baidu and Tencent will promote it vigorously with their powerful channels. Will you still be as stable as you are now?"

"Renren is the only one that does not have its own map navigation. If the merger is successful, I can promise that Mr. Cheng can join the board of directors of Renren.com, and Renren.com will also invest a lot of resources and funds in AutoNavi to help AutoNavi grow."

"The Orange mobile phone can be pre-installed with the AutoNavi map application, which is very attractive. My WeChat can also help promote AutoNavi."

At the dinner table, Chen Pingjiang spoke frankly and expressed his true feelings, which shook Cheng Congwu's inner thoughts.

perhaps?

Is it also a good choice to commit yourself to everyone?

The first step in the acquisition process is to express the intentions of both parties, that is, whether to sell or not and whether they really want to buy. This is also what Chen Pingjiang came to AutoNavi to do today.

After confirming this, Chen Pingjiang will form a special investigation team consisting of accountants and lawyers to understand the financial, commercial and administrative affairs of AutoNavi. All account books, qualifications, original contracts, guarantees and licenses will be carefully investigated.

The purpose is to ensure that there is no corruption within Gaode, that it is not insolvent, how much money is in the account, whether there are any legal disputes, etc.

The third step is for AutoNavi to hold a board meeting and have everyone vote by raising their hands whether they agree to the acquisition.

However, the acquisition plan was submitted to the government for approval. All countries have antitrust laws, and large acquisitions require government approval. In addition, if the company's business also exists in other countries and regions, it also needs the approval of other governments. If other governments disagree, it will have to be resolved locally.

This is also the reason why Microsoft acquired Blizzard and Blizzard itself agreed, but it was always stuck in many countries.

After all this is done, the two sides begin to negotiate the transaction method, compensation method and specific amount. Whether it is an equity swap or an all-cash acquisition, there is a big difference.

The boards of directors of the two companies will then have to agree to the acquisition plan, sign a contract, hold a press conference, disclose it to the outside world, and, if necessary, convene a shareholders' meeting and reorganize the board of directors.

At this point, the entire acquisition process is completed.

The fastest time is three months, the slowest is half a year or even a year. (End of this chapter)