My 1999

"Mr. Lu, you're welcome. Let's learn from each other."

After the polite greetings, Xu Liang said directly: "Mr. Lu personally came to visit. I think there must be something important to do, right?"

"Mr. Xu is quick to speak quickly, so I will speak frankly.

This time I came here mainly for two things.

Wanxiang hopes to acquire the shares of Huaguan Technology held by Delong Group and the auto parts business of Hunan Torch. "

There are currently two major auto parts giants in China.

One is Wanxiang and the other is Hunan Torch.

The core of the universal joint is the universal joint, shock absorber, drive shaft and bearing.

The core of Xiang Torch is the spark plug, braking system, lights, mirrors and gears.

Both parties have marketing channels in the United States and are deployed in foreign auto parts markets. Hunan Torch is larger in scale, but its profitability is not as good as Wanxiang.

If the two parties can merge, they will create an auto parts giant with an annual revenue of nearly 10 billion, occupying nearly half of the country's market, and a certain position in the world.

Before getting the due diligence information from Alloy Holdings, Xu Liang’s plan was also to sell Xiang Torch’s auto parts business to Wanxiang.

By joining forces, I will only be a financial shareholder and share the profits from the rising stock price of Wanxiang Qianchao.

Wait until the time is right before selling.

The premise for why he did this was that he did not have a trustworthy, capable person who knew enough about the machinery and auto parts industry to be in charge of this business.

But the appearance of Peng Shengyu undoubtedly gave him another choice.

"Mr. Lu, I'm sorry.

Xianghuo Torch is the pearl of Delong Industrial Assets. The main reason why I am willing to acquire Delong through debt is for it.

Therefore, it is impossible for me to sell the Xianghuo Auto Parts business to anyone. "

Lu Guanqiu frowned slightly.

This was inconsistent with what he had learned from the cabinet.

"Mr. Xu, Wanxiang is very sincere in acquiring the Hunan Torch Auto Parts business. It is 2 billion Chinese dollars, half of which is cash and half is the equity of the new company."

Lu Weiding, who had not spoken much, also said: "Mr. Xu, Wanxiang and Xianghuo are one of the largest auto parts giants in China, and we will merge.

Not only can it occupy half of China's auto parts market, but it can also save both parties' management costs, financial costs, logistics costs, etc., creating huge synergy effects.

This is a matter of mutual benefit. "

Xu Liang smiled, "The merger between Wanxiang and Hunan Torch does have more advantages than disadvantages. If you two are willing, I would also like to acquire Wanxiang.

How about 3 billion Huaxia coins, all in cash? "

The Lu family and his son fell silent.

They have no doubt that Xu Liang can get 3 billion Huaxia coins in cash. This amount of money is a huge amount of money to others, but to Hanhua, although it is not a drop in the bucket, it can be easily taken out.

But they can't sell Wanxiang Money Tide.

This is the foundation of the Lu family.

"Mr. Xu really doesn't plan to sell the Hunan Torch Auto Parts business?" Lu Guanqiu asked unwillingly.

"That's right."

Seeing his firm look, Lu Guanqiu, who was disappointed in his heart, quickly changed the subject.

"What about Huaguan Technology?"

Speaking of Huaguan Technology, we have to talk about Lu's industrial layout.

The world thinks Lu Guanqiu is engaged in automobiles. In fact, Wanxiang was already a huge consortium in 2005.

In addition to focusing on auto parts, Wanxiang Qianchao is also the core manufacturing business.

Wanxiang is also actively deploying in the financial industry, and the manipulator is "Young Marshal" Lu Weiding.

Under his leadership, Pengcheng Tonglian Investment Co., Ltd., the predecessor of Tonglian Capital, was established in 1995.

This company has also become the financial flagship of Delong’s “Youlian Strategy”.

Under its umbrella is Wanxiang Leasing, which was established in 1996.

There is Wanxiang Futures established in 1999.

There is also Wanxiang Venture Capital Co., Ltd., a VC institution established in 2000.

Also in 2002, Wanxiang invested 120 million yuan in Minsheng Life Insurance, and then further controlled Minsheng Life Insurance.

In 2004, Wanxiang invested in Zheshang Bank.

Through planned acquisitions and restructuring, Wanxiang has expanded its financial footprint.

Compared with the financial and automobile industries, Wanxiang is rarely known for its investments in agriculture.

Lu Guanqiu, who claims to have a "farmer complex", has always favored the agricultural industry.

In the 1970s, he wanted to set up a business in every village, but failed.

In the 1980s, we tried to establish three-dimensional agriculture and set up a farm, but it failed again.

In the 1990s, we still failed to engage in foreign exchange-earning agriculture.

In this regard, his conclusion is: You cannot do anything without the environment, and you must have the ability.

After 2000, the fledgling Wanxiang began to adopt the method of acquisitions and mergers, investing capital into a high-quality enterprise and cultivating it into a listed company in a relatively short period of time.

In the agricultural field, the first company selected by Wanxiang to train was ‘Huaguan Technology’.

In June 2000, Wanxiang Group invested 52.25 million yuan as a strategic investor and acquired 23.75% of Huaguan Technology's shares from Heilongjiang Huafu Group, becoming its second largest shareholder.

In September 2002, the company was listed on the Shanghai Stock Exchange, and Wanxiang's investment realized appreciation.

Having said that, I have to mention Wanxiang’s investment strategy.

In the capital market, Wanxiang is nicknamed the ‘second shareholder’.

The reason is that for companies he is optimistic about, he will first acquire a certain amount of shares and become the other party's second shareholder.

Then I don’t interfere in management, and I don’t make blind comparisons.

As time went by, everyone regarded him as a harmless second shareholder who lived a peaceful life.

Just when everyone relaxes their vigilance, the opportunity comes.

Wanxiang will strike quickly and hit the critical point.

Before the major shareholders can react, quickly obtain the controlling stake and then take control of the company.

This is the case for China National Nonferrous Metals Corporation, Zhejiang Industrial and Commercial Trust, Hangmin Holdings, Sapphire Information and Bunny Company in Deqing, Zhejiang Province.

Without Xu Liang's intrusion, Huaguan Technology would have been taken over by Wanxiang and become Wanxiang Denong in the future.

To be honest, Xu Liang is more in awe of old coins like Wanxiang than those acquirers who wave banknotes or maintain relationships.

Because you don't know when it's going to break out.

"How much money does Wanxiang plan to pay?" Xu Liang asked.

Huaguan Technology is engaged in deep processing of corn, although Harvest Agriculture also has the same business, and the scale is larger.

But he does not plan to let Harvest Agriculture acquire Huaguan Technology.

the reason is simple.

Negotiating acquisitions with each shareholder is too time-consuming, and integrating them requires energy.

If you have this spare time, you might as well directly invest in building a factory.

“The mutual guarantee between Xianghuo Torch and Huaguan Technology was lifted, and all the equity interests in Heilongjiang Seed Industry and Chifeng Seed Industry held by Huaguan Technology were sold to Delong.

In this context, Wanxiang is willing to acquire Delong’s equity in Huaguan Technology for 60 million. "Lu Guanqiu said with a smile.

There was a hint of thought on Xu Liang's face.

After 27.45% of Huaguan Technology's equity was acquired by Delong and became the former's largest shareholder, Huaguan Technology joined Delong's guarantee circle.

In February 2003, the board of directors of Huaguan Technology approved a mutual guarantee agreement with Delong's Hunan Torch. Huaguan Technology ultimately provided a joint liability guarantee of 164 million yuan for Hunan Torch.

Hunan Torch provided a guarantee of 80 million yuan.

In September of the same year, Huaguan Technology invested 40 million to establish Heilongjiang Denong Seed Industry and held half of the equity.

In the same year, Huaguan Technology invested 45 million yuan to acquire 41% of the equity of Chifeng Denong Seed Co., Ltd., and increased its holdings to 75% in October of the following year, with a total cost of more than 100 million yuan.

In other words, Huaguan Technology not only spent 164 million to support Hunan Torch, but also spent 140 million to support the development of Delong Seed Industry.

But Delong's feedback was only 80 million.

A company with net assets of no more than 200 million and net profit of less than 20 million has basically been hollowed out by Delong.

But this kind of "emptiness" is compared to Huaguan Technology, whose main business was corn deep processing.

In fact, the equity interests in Delong Chifeng Seed Industry and Heilongjiang Denong Seed Industry are also considered its assets.

If calculated this way, Huaguan Technology actually only 'lost' 84 million on Delong.

And this kind of ‘loss’ is based on Huaguan Technology’s guarantee for Hunan Torch.

If Xiang Torch did not close down and repaid its debts on time, this kind of loss would not exist.

However, the 140 million worth of equity held by Huaguan Technology in Chifeng Seed Industry and Heilongjiang Seed Industry under Denong Seed Industry is indeed a real asset.

Now if Xu Liang wants to recover this asset, he will have to pay Huaguan Technology 140 million Huaxia coins.

This is also a transaction between companies.

After this transaction is completed, the equity transaction between Wanxiang and Delong will begin.

"For 100 million, not only the 27.45% equity of Huaguan Technology held by Delong Group will be sold to Wanxiang, but the 6.2% equity of Huaguan Technology held by Huafu Group will also be sold to you." Xu Liang said directly.

In 1995, Huafu Group, as the main sponsor, jointly initiated the establishment of ‘Huaguan Technology’ with five companies, including Qiqihar Yinghua Mineral Spring Beverage Co., Ltd. and Gannan County Township Construction Association.

As the boss, Hua Fu Group accounts for most of the company's equity.

Later, these shares were sold to Delong Group and Wanxiang respectively, leaving 6.2% in their own hands.

In order to completely control Huaguan Technology.

In 2003, Delong signed an acquisition agreement with the collective "Xing Shishicun", the actual controller behind the Huafu Group, to acquire 80% of the shares of the Huafu Group for 94 million.

Unfortunately, after 2003, Delong's financial crisis worsened.

There is no way to integrate Delong's agricultural assets through Huaguan Technology.

Otherwise, according to Delong's plan, both Denong Seed Industry and Delong Agricultural Supermarket will be integrated into Huaguan Technology.

Just like Zhongyan Holdings and the textile industry, Tianshan Holdings and the building materials industry.

But Xu Liang obviously has no such need.

He has higher expectations for Denong and is not in a hurry to get it listed in the short term.

Even if you want to go public, you don't need to do everything possible to find a shell like Delong.

As a major shareholder of the Hong Kong Stock Exchange, he can list his companies on the Hong Kong Stock Exchange.

Lu Guanqiu shook his head, "One hundred million is too much, 70 million."

Of course Xu Liang could not agree.

After receiving Delong's 140 million acquisition money, even after deducting the 80 million debt, there is still 60 million left.

Coupled with the value of Huaguan Technology itself, the valuation will definitely exceed 200 million.

How could 33.65% of the equity be sold for only 70 million?