Rebirth of the World’s Richest Man

Chapter 3838 Controversy

“After the plan came out, the group discussed it several times and finally gave up. MBO alone cannot actually inject funds into the company and cannot solve the company’s future development problems.

  In April 2003, our group proposed a plan for state-owned holdings to hold 51% and private or foreign capital to participate in 49%. After contacting many companies, almost no one paid attention to it. Those who were willing to take shares paid very low prices.

 We think this is the best form, but it is actually very difficult to operate. We contacted many companies, but no one was willing to participate in the company. Under the state-owned system, the engineering equipment industry is an industry with complete market competition, and investors believe that the risks are too high. "

Mr. Wang said it with bitterness and tears. Everyone said that private enterprises are difficult, but in fact it is also difficult for state-owned enterprises. State-owned enterprises are better than private enterprises in some aspects, but sometimes they are subject to more restrictions.

“Director Qin, Director Liu, and all the leaders, we held two promotion meetings at that time, one in Shanghai and one in Xiangjiang. We just hoped that domestic and foreign investors would catch the hydrangea thrown by Mr. Xu.

 But there is none. We at Xu Gong actually hope that assets will not be lost, the interests of company employees will not be damaged, and the reformed company will achieve great development. This is the route we hope for..."

 Mr. Wang’s words still moved many people in the conference room.

Director Qin frowned and thought for a while and said: "Well, let Sanyi Heavy Industry come over. You can mainly talk about the reasons why you chose Kailei Group in the first place. I think there may be a little misunderstanding between you two. Please tell me about the misunderstanding." Wouldn’t it be nice if you explained it clearly?”

Director Qin said and looked at Director Liu from the business department. Director Liu also nodded. At this moment, the secretary walked in and wanted to report something to Director Qin.

Director Qin learned that it was about the matter between Sanyi Heavy Industry and Xu Gong, and said directly: "Okay, there are no outsiders in this conference room. If you have any questions, just talk to us directly."

The secretary nodded and reported slowly: "We just received news that Kai Lei Group has publicized the plight of Xu Gong Group in well-known foreign media, and then hired foreign writers to report it in domestic newspapers. He also stated that he had no other purpose but to cooperate with Xugong Group to achieve a win-win situation for both parties while saving Xugong Group..."

As the secretary said, Director Qin and Director Liu in the conference room looked ugly, and even Mr. Wang and others on Worker Xu's side looked very ugly.

 Mr. Wang also thought that the Kailei Group would support this cooperation in foreign media. In that case, although the effect would not be too great, at least it would be considered an ally.

However, I didn’t expect that Kailei Group would publicize Xu Gong’s plight and publicize it with great fanfare. Didn’t this publicity make Xu Gong’s employees lose confidence in the group?

 You must know that sometimes, this confidence is more important than gold.

 Not just in the stock market, but everywhere else.

Director Qin looked at Mr. Wang with an ugly expression: "Mr. Wang, do you know about this?"

"I don't know." Mr. Wang quickly shook his head. He never thought that this ally did use his strength, but at the same time, he stabbed himself in the back.

  There was no regard for Xu Gong's interests at all, and he was considering the issue entirely from the perspective of Kai Lei Group.

 This is a foreign-invested enterprise. At this time, Mr. Wang felt a little regretful in his heart, but sometimes regret is useless. Things have reached this level, and regret can only go on.

Director Qin's face looked better when he heard Mr. Wang's answer. After a brief discussion with Director Liu, he decided to call Sanyi Heavy Industry over to solve the problem quickly.

With the Kailei Group making such a fuss, the matter has become even more out of control. If a practical solution cannot be quickly come up with, the matter will become even more difficult to resolve in the end.

After receiving the notice, Sanyi Heavy Industry also came to the commercial department. The two sides closed the door and began to argue.

From Xu Gong’s point of view, Sanyi Heavy Industry is not the highest bidder anyway. Are you making a fuss? The one who paid the highest price didn't make any fuss.

Furthermore, the conditions provided by Kailei Group are also very suitable. After Kailei Group acquires Xu Gong, it will establish a brand base. The original brand of the group will remain intact, and it will be responsible for inputting international experience and introducing investment.

 The original management methods and other matters will be carried out according to the original methods of Xu Gong Group, and Kai Lei will not interfere.

And that’s not all. There are also some restrictive clauses written into the agreement, including: within four years, Kai Lei shall not transfer the equity of the joint venture company; Xu Gong has the first right to repurchase the joint venture company;

If Kailei Company transfers the shares of the joint venture to a third party, it must go through the relevant approval procedures again. This avoids the possibility of Kailei selling Xu Gong's shares to other industrial investors.

 In addition, a “poison pill” plan has been submitted to the commerce department to close the door to hostile takeovers by industrial investors that may appear in the stock market in four years.

Finally, the agreement also included the retention of Xu Gong’s brand and the stability of the workforce. Xu Gong shared all overseas sales channels of Kailei, and Kailei introduced advanced technology projects to provide every employee with the opportunity to compete for jobs. Universities set up talent training stations and other provisions.

Mr. Wang talked about the conditions offered by Kailei Group, and also said: "According to our thinking, this is a borrowed chicken that lays eggs. In three or four years, our Xu Gong will prepare to be listed in Xiangjiang and slowly redeem it." come over.

ˆMarketization of mechanisms, internationalization of operations, socialization of funds, and taking the road of international branding are our future positioning at Xu Gong. "

Everyone nodded at Mr. Wang's words, but Mr. Liang and Mr. Ji of Sanyi Heavy Industry did not say that, but only focused on two points.

 One is the price issue, that is, the money given by Kai Lei Group is too little. The current market valuation for Xu Gong is at least around 10 billion, and 85% of the shares are worth 8.5 billion, while Kailei only gave it 375 million US dollars, which is less than 3 billion in domestic equivalent.

 Another issue is the safety of the equipment manufacturing industry. These jobs are in high-quality industries. If they are sold to foreign investors, can you expect them to help you compete in the future?

This Kailei Group is a consortium of Citigroup. If it is sold to others, it will become their company. Now, to put it nicely, the contracts and other signings are very good, but the company has been sold to others, and you know that they have no means to do it. Bypass your restrictions?

 (End of this chapter)