My Age of Investment

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

An old white man in his sixties with a tall nose and deep eyes looked at Chen Hong, who was sitting across the table from him, with sinister eyes. If you bargained again, I would immediately lift the table.

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

Once our group becomes domestically owned, better bank acquisition opportunities will always be available.

As for 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 its existence. "

David Bonderman, the founder of tpg, smiled coldly, "Sorry to disappoint you. We have obtained the consent of the fund's limited partners and decided to extend the fund's duration."

Chen Hong is also an old capitalist, and he replied without any sign of weakness: "This decision will affect the calculation of the fund's investment return rate, and in turn affect the manager's income."

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

He was a little unhappy in this negotiation from the beginning. He, the founder of TPG, was personally involved, while Envision Financial Holdings only sent the little-known Chen Hong.

David Bonderman has a high seniority and lofty status on Wall Street. He is respected as an artist of mergers and acquisitions in the industry. The Texas Pacific Group he founded is also known as the four PE kings along with Blackstone, KKR, and Carlyle Investments.

The mergers and acquisitions of well-known companies such as Ducati Motorcycles, Burger King, Att, Nestlé, etc. all have TPG participation behind them.

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

Among them, Conscience Group acquired a well-known overseas PC brand, and they were the ones who connected it and subscribed for hundreds of millions of dollars in convertible preferred shares to provide financial support for the acquisition.

Three years ago, TPG completed 17 M\u0026A transactions with a total value of more than US$101 billion, defeating industry giants such as Blackstone, Bain Capital, and KKR, becoming the PE overlord with the highest transaction volume in the world in 2006, and ascending to the international The supreme throne of private equity.

Darren Xia's cheap father-in-law, Friedrich, was such a shrewd businessman that he claimed that no one knew real estate better than him. However, twenty years ago, he was not the one who severely influenced him in the real estate field.

In 1988, he bought the Plaza Hotel in New York for US$250 million. Seven months later, he increased the price of the hotel to US$410 million and sold it to Frederic.

Seven years later, Friedrich finally got out of his trap and sold the hotel to the Saudi prince with tears in his eyes for US$325 million. He suffered a small loss of nearly US$100 million and wasted seven years of valuable capital utilization. .

But Friedrich was not without gains. When "Home Alone 2" was filmed in the hotel, he went to guest star in a few scenes, enjoying his addiction as an actor. At the same time, he also used this hotel to gain 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 young rookie who can pinch water in front of him.

He felt that Xia Jingxing disrespected him a little, so he was determined to teach Xia Jingxing how to do PE investment just like he taught Friedrich how to do real estate investment.

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

David Bonderman's words were so high-sounding that Chen Hong smiled, didn't take it seriously, and continued to poke tpg's skin.

"Last year, TPG invested in Washington Mutual Bank with the idea of ​​rescuing troubled banks. I heard that this investment dragged down a lot of TPG's cash flow?"

Upon hearing this, David Bonderman immediately became furious and yelled: "What do you mean? Does this have anything to do with our negotiations?"

The corners of Chen Hong's mouth raised slightly, it seemed that the news from Liu Hai was true.

Speaking of David Bonderman, he is really fierce, daring to think and act, and with first-rate action.

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

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

So, last year, he got the fighting spirit and united a group of capital to come back and try to create two classic leveraged buyout cases in one company. In the end, he spent US$7 billion to buy Washington Mutual Bank at the bottom.

Within months of the purchase, Lehman Brothers collapsed, the financial crisis intensified, and Washington Mutual became a cash machine for short sellers.

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

TPG suffered heavy losses in this investment case. It was very honored to be named one of the top ten worst transactions in 2008 by Time Magazine. The 2007 list also included a case of investing in Blackstone.

This matter is not a secret on Wall Street, but tpg, a giant with an asset management scale of tens of billions of dollars, has nearly depleted its cash flow due to this transaction, so it is relatively secretive. 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 using the guise of complying with the "tide of foreign capital withdrawing from Chinese banks."

Now this tiger skin has been pierced by Chen Hong. He deliberately acted angry, but in fact he was hiding his inner panic.

Chen Hong didn't care about David Bonderman's anger and looked directly at the latter, "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 off in one go. Hope this helps you.”

Gu Ling

Hearing these words, David Bonderman's face became slightly better, but he quickly realized that this was the Chinese forcing him to make concessions.

He quickly put on a nonchalant attitude, smiled and waved his hands and said, "We can start raising new funds if we run out of funds. Besides, Ping An has given us a price we can't refuse."

In fact, after negotiating for so long, David Bonderman had already discovered that Envision Financial Holdings knew about the existence of Ping An and simply exposed this.

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 in front of David Bonderman in an unhurried manner, and said: "This is a long shot. Securities' financial analysis report on Ping An.

The world's third-largest insurance company with a market value of 250 billion yuan spent 23.8 billion yuan last year to invest in Fortis Group, Europe's 15th largest financial institution.

With the outbreak of the financial crisis, Fortis Group was forced into bankruptcy and split up and sold. In response to this investment, Ping An made a huge impairment provision of RMB 22.79 billion in its annual report last year.

Their current troubles are greater than you think. If they want to acquire Pengcheng Development Bank again, they must first ask the regulatory authorities whether they agree. "

Chen Hong's disdainful look shocked David Bonderman. He had gone through a lot of things like the court battle with the Pengcheng government, the share-trading reform, etc. that he could not understand before. Now he has a full understanding of supervision. department energy.

Whether the equity acquisition transaction can be successful or not does not matter after signing the agreement. It will ultimately require review and release by the regulatory authorities.

Because of last year's investment tragedy, Ping An may be questioned by regulators about its investment capabilities, right?

With such questions, David Bonderman looked through the analysis report.

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

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

A hint of sarcasm appeared on David Bonderman's lips, "Is this advice to us? The deal with Ping An will definitely fail?

But Mr. Ma Mingming promised me that he had cleared all the links. "

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

After a quick look between David Bonderman and the negotiating team sitting next to him, he proposed adjourning the meeting for an hour.

An hour later, David Bonderman, who had discussed it with his colleagues, gave a new quote.

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

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

David Bonderman's face lit up, and he was about to make a celebratory gesture with his companions when he was stunned by Chen Hong's last words.

"but……"

Chen Hong glanced at David Bonderman and the negotiating team opposite, and after whetting their appetite, he added: "We have a condition."

"What conditions?" David Bonderman asked seriously.

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

Hearing this, David Bonderman immediately relaxed. It was not a very difficult condition.

"A package plan, I understand!"

Chen Hong smiled. This foreigner quite followed the locals and even understood the macro-strategy proposed by China last year.

"Yes, solve all the problems at once, and 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, regulatory authorities will be more confident in allowing transactions after seeing a complete solution. "

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

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

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

Chen Hong smiled lightly, "I don't need to worry about this matter, Mr. Bonderman. We are strategic partners with HSBC Group, Ping An's largest shareholder, and we have been negotiating several transactions with HSBC Group recently.

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

David Bonderman laughed loudly, "Chen, you have a great appetite."

"Thank you for the compliment. Our digestive system has always been relatively good."

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