Rebirth of the World’s Richest Man

Chapter 3080 Yili

"Dr. Jiang, our people in Yili have been keeping an eye on it. We went to inspect it once before, but the situation in Yili is just like what you said, Dong Jiang, it is very complicated."

Zhang Weiyi introduced the situation of Yili. In 1983, Yili was just a Hui food factory affiliated to Hohhot with an annual profit and tax of only 40,000 yuan. Under the management of Zheng Junhuai, Yili seized the domestic pure Development opportunities in the milk market.

 Established the largest dairy enterprise in China.

It is said that if you stand on the cusp of the storm, even a pig can take off, not to mention that under the leadership of some capable entrepreneurs, Yili is also like this.

Hohhot is very rich in resources. Coupled with opportunities, Yili is soaring into the sky.

By 1996, Yili became the first listed company on the grassland. Last year, Yili’s sales revenue reached 4 billion yuan.

 This output value has already caught up with Hope Group.

The Hope Group started its business in 1978, but Yili was five years late, so Zheng Junhuai's ability goes without saying.

If you had started a business by yourself from the beginning, maybe things would go smoothly now and you could become a big boss in a private enterprise.

 But Yili has a problem, that is, Yili is a state-owned enterprise.

Although Yili was able to grow from a small factory with an annual profit and tax of 40,000 yuan, which is equivalent to the annual profit of a private enterprise, to a company with annual sales of more than 4 billion yuan now, most of the credit here goes to Zheng Junhuai of.

But the only problem is that even when Zheng Junhuai took over, it was just a small factory with an annual profit of 40,000 yuan, but it was still a state-owned enterprise.

No matter how much it has doubled under your management, it is fundamentally a state-owned enterprise, that is, a state-owned enterprise, and it has nothing to do with its current scale.

 So often, when starting out, the source of funding is very important.

Now that Yili has become bigger, if Zheng Junhuai were asked to hand over Yili to the local area, Zheng Junhuai would definitely not do it.

Not only did Zheng Junhuai refuse to do it, but in recent years, no one from a small factory to a large enterprise could do it.

For example, a typical example is Li Jingwei's idea of ​​​​seeking a profit. Li Jingwei was not willing to do this, so he began to seek MBO. MBO is the abbreviation of Management Buy-Outs, which means management buyout when translated.

 It is a merger and acquisition transaction in which the company's management uses high-debt financing to buy out the company's equity, making the company privately owned, and then achieving the purpose of controlling and reorganizing the company, and obtaining abnormal returns. It belongs to the category of leveraged buyout, but the acquisition subject is the management.

  But this management buyout requires money. Where does this money come from? The management of domestic state-owned enterprises were originally paid according to the administrative level 13.

Theoretically speaking, the salary is the same as that of eighth-level workers. Even if it is reformed later, the salary received by the factory management will still be limited.

 It is simply impossible for them to use their own money to acquire companies.

  So there is an extension of the word, which is the curved MBO road.

As for Yili, Zheng Junhuai first invested in the establishment of a Huashi Trading Company with more than 20 directors of Yili, and took the opportunity to acquire the legal person shares of Yili held by some state-owned enterprises.

 But he was quickly restrained by reality, because Zheng Junhuai’s team did not have much cash.

If you want to make an acquisition, but don’t have much money, you can only use other methods, such as using Yili’s money to transfer to the account of Huashi Company to buy Yili’s shares, and then return the money. . Otherwise, companies and milk factories that work closely with Yili can help find bank loans and then buy Yili's shares.

After the shares are sold to Huashi Company, Huashi Company will mortgage the shares to the bank and get the money to plan Yili, or the bank.

 In fact, there is nothing unexpected about this method. It is completely normal. In recent years, state-owned enterprises have almost always adopted this method when they want MBO.

 Because the management of state-owned enterprises do not have much cash to purchase shares.

 Last year, Zhang Weiyi had been keeping an eye on Zheng Junhuai, but what he didn’t expect was that Zheng Junhuai’s MBO journey was going very smoothly.

According to Zhang Weiyi’s observation, Zhang Weiyi once thought that Zheng Junhuai’s behavior had the tacit approval of the local people.

Zhang Weiyi said with emotion now: "Dr. Jiang, you don't know that Zheng Huaijun is really capable. At that time, the Huashi Company was renamed Qiyuan Investment.

This Qiyuan Investment Company has previously acquired shares from various miscellaneous channels, and after Hohhot transferred 5 million shares to Zheng Huaijun’s management team investment company for a fee last year, Qiyuan Investment has become Yili’s second largest shareholder. Shareholders.

 I thought there was no hope at the time..."

Jiang Xiaobai nodded. Indeed, looking at the MBO journey of the management of these state-owned enterprises in China, from Kelon to Jianlibao, from Jianlibao to Chunlan Group, and from Chunlan Group to Yili, the smoothest one here is Yili.

 However, no matter how smooth the process is, as long as it is not completed until the final moment, it will be like a moon in the water or a flower in the mirror.

People can’t help but sigh and regret that so many good companies have ended sadly due to the issue of shareholding restructuring.

“But something happened this year. Zheng Junhuai was reported to have embezzled state-owned assets, so now…”

 Before Zhang Weiyi finished what he said, Jiang Xiaobai probably understood. Even Jiang Xiaobai knew before that Yili was dejected and lonely in the end.

As for the grievances and hatreds between Yili and Zheng Junhuai, the fierce Mr. Niu, and later Yili and Pangang, a book can be written.

But this has nothing to do with Jiang Xiaobai.

Jiang Xiaobai feels sorry for state-owned enterprises, but he will not feel sorry for any one person. The MBO road for state-owned enterprise management is not that easy to follow.

 If there is a fundamental mistake, then many things that follow will not be right or wrong.

Each person has his or her own reasons for each position, and it is difficult to distinguish between right and wrong.

“So what do you think now?” Jiang Xiaobai looked at Zhang Weiyi and asked.

Zhang Weiyi said directly: "Dr. Jiang, the situation in Yili is very bad now. After the news of the accident in Yili spread, Yili's stock price fell in response to the news. Now I estimate that Hohhot is very concerned about Yili." Li's attitude is not very clear either.

I was thinking, otherwise, I would go to Hohhot first and contact the people there to see what their attitude is towards Yili and whether they are willing to sell it. "

 (End of this chapter)