Rebirth 76: Industrial Internet Empire

Southwest of the capital of Chile, Santiago, in the Central Valley, the town of Maipo Valley Piqué.

The summers here are dry and hot, the winters are short and mild, and the temperature difference between day and night is huge. The unique Mediterranean climate makes this place the oldest and most famous grape-growing area in Chile...

The entire Maipo Valley has a grape planting area of ​​11500 hectares, including Cabernet Sauvignon, Merlot, Carmenere, Syrah, Sauvignon Blanc, Chardonnay, Pinot Noir, Malbec, Cabernet Franc and other precious grape varieties. !

A large number of high-quality grape plantations and its close proximity to the capital Santiago make this the first choice for wineries.

The Concha winery with a long history is located here.

In order to avoid suspicion, Yang Mo did not participate in this acquisition. Li Heping brought a Spanish translator and Zhiyuan International's professional legal and accountants. As agreed, the group came to the company under the introduction of Vincent Gonzalez. Concha Winery.

The general manager of the winery, Gray Edward Gillisasti, was a spirited old man in his [-]s. He looked at Li Heping and Lin Xi with a suspicious look on his face and secretly cursed in his heart: What the hell is this Gonzalez doing? Tell us. The winery recommended a powerful Japanese consortium, but why did such an inconspicuous young man come?

Li Heping took a step forward and introduced himself in a Japanese accent: "Mr. Edward, I am Li Heping, the president of Qianhai Asset Management Company. I am here to visit you. Please take care of me!"

After a brief exchange of greetings, Edward took Li Heping and his party to visit the winery.

"This is the drying and fermentation equipment that the winery just imported from Bordeaux last year. We have also begun to use oak barrel winemaking technology like French wineries..." Edward introduced seriously as he walked.

Founded in 1883, Concha Winery has a century-old history, but it has always used traditional winemaking techniques. In the past two years, it has begun to improve its technology and purchase equipment to transition to a modern winery.

However, purchasing equipment and acquiring high-quality grape plantations require a large amount of capital. The asset management company recommended by Vincent Gonzalez seemed like a sleepy start to Edward, who wanted to make Concha Concha the largest wine company in Chile. Someone brought a pillow.

Edward has also tried to introduce capital in the past two years, but the financial statements of Concha Winery have made their valuation in the capital market less than 800 million US dollars, and the brand value is better than nothing. There are many century-old wineries like them in Chile.

After reading the financial statements, Zhiyuan International's accountants also gave a valuation of less than US$800 million in accordance with international practice...

Edward said very unwillingly when he heard this: "No, no, the greatest value of Concha Winery is our centuries-old winemaking technology. We cannot use simple sales revenue to measure its value. This is unfair!"

Li Heping smiled and said: "Mr. Edward, this is a common calculation method for capital market valuation. What do you think the valuation of Chateau Concha should be?"

"The value of our winemakers and the secret ancient winemaking process exceeds the estimated value. The actual value of Concha Winery should be around US$1800 million..." Edward said after pondering for a moment.

"1800 million US dollars? This price can buy 2-3 wineries with the same long history in San Diego..." Li Heping laughed.

Although Li Heping's words are a bit exaggerated, there are indeed many wineries in Chile with a century-old history. These wineries have a common feature, that is, their production is limited, and the wine they make has basically not left the country of Chile!

"In business, there will always be some disagreements. Mr. Li, you also have to make an offer! Is Qianhai Asset Management planning to acquire the whole or simply invest?" Vincent Gonzalez saw that the two sides were arguing and quickly smoothed things over. .

"Of course it is an overall acquisition! Qianhai Asset Management is willing to acquire the entire equity of Chateau Concha Concha at a 800% premium on the valuation level of US$20 million. After the acquisition is completed, the management structure will remain basically unchanged and Mr. Edward will continue to be responsible for the management. Qianhai Asset Management will continue to invest funds to help wineries improve processes, upgrade equipment, acquire high-quality grape plantations, and use our resources to promote Concha winery products to Eurasia and North America..." Li Heping did not hesitate. said.

"No... no, Concha Winery is only planning to sell about 40% of its shares. The funds raised will be used to upgrade equipment and complete the industrial transformation of the winery..." Edward quickly denied.

Li Heping shook his head and said: "Mr. Edward, we can give you another 10% premium in terms of valuation, but in terms of equity, we still hope to acquire the whole..."

"We can use up to 49% of our equity for financing, and the valuation must not be less than US$1600 million. This is our bottom line!" Edward insisted.

Li Heping pondered for a moment and then said: "80% of the equity is our bottom line. Below this ratio, Qianhai Asset Management will not consider cooperation with Concha Chateau. If Mr. Edward is worried about losing his right to speak, he can divide the 80% of the equity. It is divided into two parts, 49% of which has voting rights, and the other 31% of which has signed a unanimous actor agreement with you..."

After intense bargaining, the two parties finally reached an equity financing agreement: Concha Chateau was valued at US$1250 million, and Qianhai Asset Management invested US$1750 million. After the original shareholders of Concha Winery received 350 million in cash, their equity was diluted to 27%, and Qianhai Asset Management obtained 73% of the equity, and at the same time signed a concerted actor agreement with the management of Concha de Concha, which can only be terminated if there is a major decision-making error...

After the signing was completed, Li Heping, in accordance with Yang Mo's instruction, temporarily transferred 3% of the equity to Vincent Gonzalez as a consulting fee. The remaining 19% of the equity was transferred with some special triggering conditions and needed to be completed one year later. Final transfer agreement completed following the acquisition of the Escondida deposit.

After completing the equity financing, the value of Concha Concha Winery became US$2650 million, and the 22% equity was US$583 million. How to distribute it specifically is Gonzalez's own business.

Yang Mo believes that with the future development of Concha Winery, the value of this part of the equity will be returned tenfold or even a hundredfold, which will firmly tie these profit-making elites to the Escondida Copper Mine. The chariot!

News that Zhiyuan Group was interested in the Escondida copper mine project quickly spread throughout the mineral resources industry...

"Zhiyuan Group? Is the news accurate? Isn't it the news released by the Chilean Copper Company to raise prices?" Ian, chief commercial officer of BHP Billiton Americas, asked with a frown.