Chapter 1327 Package

   "The average price per share is 24 yuan. This is our last concession. If Vision Financial Holdings agrees, we can sign the contract today."

  A white old man in his sixties, with a high nose and deep eyes, looked at Chen Hong who was sitting across from him across the table with a sullen look. If you haggle again, I immediately flipped the table.

  Chen Hong spread his hands, with an indifferent attitude: "Mr. Bonderman, I think you are mistaken, Pengcheng Development Bank is just a dispensable thing for Vision Financial Holdings.

  Once our group is converted into domestic capital, we can always get better bank acquisition opportunities.

   And Pengcheng Development Bank, for Texas Pacific Group, exit is imminent.

   Your Xinqiao No. 3 Fund was established in 2000, and this year is the last year of the fund's duration. "

  TPG founder David Bonderman sneered, "Sorry to disappoint you, we have obtained the approval of the limited partners of the fund and decided to extend the duration of the fund."

  Chen Hong is also a veteran capitalist, and he replied without showing weakness: "This decision will affect the calculation of the fund's return on investment, and then affect the manager's income."

  David Bonderman looked at Chen Hong's proud face and wanted to punch him.

   This negotiation has been a little unhappy from the very beginning. The founder of TPG personally took the initiative, while Vision Financial Holdings only sent the little-known Chen Hong.

  David Bonderman has a very high rank on Wall Street and his status is also very high. He is respected as an M&A artist in the industry.

  The mergers and acquisitions of well-known companies such as Ducati Motorcycles, Burger King, ATT, Nestle, etc., have the shadow of TPG participation behind them.

   As early as 1994, TPG, as the first international private equity investment company to enter the Chinese market, opened its first office in Modu, and also invested in many well-known enterprises such as CICC, Postal Savings Bank of China, Li Ning, and Conscience Group.

   Among them, the Conscience Group acquired a well-known overseas PC brand, and they threaded the needle and subscribed for hundreds of millions of US dollars of convertible preferred shares to provide financial support for the acquisition.

Three years ago, TPG completed 17 M&A transactions with a total value of more than US$101 billion, beating industry giants such as Blackstone, Bain Capital, and KKR, and becoming the PE overlord with the highest transaction value in the world in 2006. The supreme throne of private equity.

   Daeron Xia's cheap old husband, Frederick, is such a shrewd businessman. He claims that no one knows real estate better than him. As a result, 20 years ago, he was not severely placed in the real estate field.

  In 1988, he bought the Plaza Hotel in New York for $250 million. Seven months later, he blundered and sold the hotel to Friedrich for $410 million.

Seven years later, Friedrich finally solved the problem, and with tears in his eyes, he sold the hotel to the Saudi prince for $325 million, a small loss of nearly $100 million, and wasted seven years of precious capital utilization. .

But Frederick is not without gain. When "Home Alone 2" was filmed in the hotel, he ran to make a cameo in a few scenes, passed the addiction of the actor, and also borrowed this hotel to harvest the fourth time in his life. bankruptcy.

   Therefore, let alone Chen Hong, even Darren Xia, who is famous on Wall Street, can only be called a tender PE rookie in front of him.

   He felt that Xia Jingxing disrespected himself, so he was determined to teach Xia Jingxing to do PE investment as he taught Frederick to do real estate investment.

   "The manager's income is our own business, so you don't have to worry about us. As an alternative asset management company, TPG first considers the LP's income."

  David Bonderman's remarks are very grand and grand, Chen Hong smiled, didn't care, and continued to poke TPG's tiger skin.

   "Last year, TPG took a stake in Washington Mutual Bank with the idea of ​​saving the troubled bank. I heard that this investment has dragged down TPG's cash flow a lot?"

   Upon hearing this, David Bonderman immediately froze, and snarled: "What do you mean? Does this have anything to do with our negotiation?"

   The corners of Chen Hong's mouth twitched slightly, it seems that the news from Liu Hai is true.

  To say that David Bonderman is really fierce, dare to think and act, and has first-class action.

   After the subprime mortgage crisis broke out in 2007, Washington Mutual Bank, as an important participant in subprime mortgage bonds, suffered serious bad debts and was once in trouble.

  David Bonderman made nearly $2 billion two decades ago by buying failed banks and then merging them with Washington Mutual.

   So, last year, he had the will to fight, and he joined a group of capital to run around to eat back grass, trying to create two classic leveraged buyout cases in one company, and finally spent $7 billion to buy Washington Mutual Bank at the bottom.

   Within a few months of the purchase, Lehman Brothers collapsed, the financial crisis intensified, and Washington Mutual Bank became an ATM for short sellers.

   Then Washington Mutual was taken over by the government, and then forced to sell JP Morgan for $1.9 billion.

  TPG suffered heavy losses in this investment case, and was honored to be named one of the top ten worst deals in 2008 by Time Magazine. In 2007, there was also a case of investing in Blackstone.

This matter is no secret on Wall Street, but TPG, a giant with an asset management scale of tens of billions of dollars, was nearly depleted of cash flow by this transaction, which is relatively secret. This is also an important reason why TPG insists on selling Pengcheng Development Bank. .

  David Bonderman thinks that no one has linked the sale of Pengcheng Development Bank to the investment tragedy last year, because he has been playing the pretense that he is in line with the "tide of foreign capital withdrawing from Chinese banks".

   Now this tiger skin has been pierced by Chen Hong. He deliberately appeared angry, but he was actually covering up his inner panic.

Chen Hong didn't care about David Bonderman's anger, and looked at the latter with a straight eye, "We are happy to help TPG get out of the predicament, we can pay all cash for the acquisition of Pengcheng Development Bank, and pay it all at once, Hope it helps you."

   Hearing this sentence, David Bonderman's complexion looked a little better, but he quickly realized that it was the Chinese who were forcing him to make concessions.

   He quickly put on a stance that he didn't care, smiled and waved his hand and said, "We can start raising new funds if we don't have any funds. Besides, Ping An has offered a price that we can't refuse."

   In fact, after negotiating for so long, David Bonderman realized that Envision Financial Holdings already knew about the existence of Ping An, and simply revealed it.

Chen Hong didn't answer, he reached out to Li Yaqian next to him, took a document from the latter's hand, and then pushed the document to David Bonderman in a slow motion, and said, "This is a long-term view. Securities' financial analysis report on Ping An.

   The world's third largest insurance company with a market value of 250 billion spent 23.8 billion yuan in the previous year to invest in Fortis Group, the fifteenth largest financial institution in Europe.

   With the outbreak of the financial crisis, Fortis Group was forced to go bankrupt and split up for sale. In response to this investment, Ping An's annual report released last year provided a huge impairment of 22.79 billion yuan.

   They are in more trouble now than you think. If they want to acquire Pengcheng Development Bank again, they must first ask the regulators if they agree. "

With a look of disdain, Chen Hong shocked David Bonderman. He experienced a lot of things that he could not understand before, such as the court battle with the Pengcheng government, the reform of the share structure, and now he has a full understanding of supervision. Department of energy.

   Whether the equity acquisition transaction can be successful or not depends on the signing of the agreement, and ultimately requires the review and release of the regulatory authorities.

   Ping An’s investment ability will be questioned by regulators because of last year’s investment tragedy, right?

   With such a question, David Bonderman flipped through the analysis report.

   He quickly read the document, closed it and put it on the table, and said, "On the condition that the solvency of the insurance subsidiary is met, the cash that Ping An can use is only 24 billion?"

   "Yes, this is a number that makes investors and regulators uneasy. As Ping An is a leader in my country's Sino-foreign joint venture financial institutions, the regulators have always been concerned about their healthy development."

  David Bonderman showed a sneer at the corner of his mouth, "Is this a piece of advice to us? The deal with Ping An is bound to fail?

  But Mr. Ma Mingming promised me that he has got through all the links. "

  Chen Hong continued to apply eye drops, "As far as the painful lesson from the overseas acquisition last year, if it weren't for the fact that it was a joint venture, Ma Mingming would have been beaten."

  David Bonderman offered to adjourn the meeting for an hour after exchanging a quick glance with the negotiating team sitting next to him.

   An hour later, David Bonderman, who had negotiated with his partner, gave a new offer.

   "The average price per share is 23 yuan. TPG agreed to transfer 520.41 million shares of Pengcheng Development Bank, accounting for about 16.76% of the company's total share capital, with a total price of 11.97 billion yuan."

  Chen Hong smiled and nodded, "I can agree to this plan!"

  David Bonderman looked overjoyed, and was about to make a celebration gesture with his companions, but was stunned by Chen Hong's last sentence.

"but……"

  Chen Hong glanced at David Bonderman and the negotiating team opposite, and added, "We have a condition."

   "What conditions?" David Bonderman said sternly.

   "Before signing the equity transfer contract, help us persuade the board of directors of Pengcheng Development Bank to pass the private placement plan."

   Hearing this, David Bonderman suddenly relaxed, not a very difficult condition.

   "The package, I understand!"

  Chen Hong smiled, this foreigner is quite follow the local customs, and even understands the macro strategy proposed by China last year.

   "Yes, to solve all problems at once, TPG will withdraw from Pengcheng Development Bank as a responsible shareholder, which will be beneficial to your future business in China.

   At the same time, the regulatory authorities will release the transaction with more confidence after seeing the perfect solution. "

  David Bonderman said with a smile: "One more thing, you Envision Financial Holdings, you can control Pengcheng Development Bank in one fell swoop."

  Chen Hong smiled silently, "This is a win-win solution!"

   "Wrong, Mr. Ma Mingming will definitely be very angry, he has been planning for Pengcheng Development Bank for three years."

  Chen Hong smiled lightly, "Mr. Rob Deman doesn't need to worry about this matter. We are strategic partners with HSBC Group, Ping An's largest shareholder, and there are several transactions that have been discussed with HSBC Group recently.

   Maybe one day we will become a family with Ping An. "

  David Bonderman laughed, "Chen, you guys have such a good appetite."

   "Thank you for the compliment, our digestive system has always been better."

   Chapter 1318 has been revised and released. If you haven't read it yet, you can go back and read it. Chapters 1327 and 1333 are also blocked today. They have just been released after the revision. Semiconductors are too sensitive.

  

  

   (end of this chapter)