My Age of Investment

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As night falls, the lanterns come on.

A small white yacht is cruising slowly on the Huangpu River. Sitting on the boat, you can have a panoramic view of the night views of the cities on both sides of the strait.

However, Xia Jingxing had no intention of lingering on the scenery, because all his attention was on Chen Hong, who was sitting opposite.

"Is it yellow?"

"It's yellow! It's completely hopeless!"

Chen Hong picked up the wine glass on the table and took a swig of wine, as if he wanted to vent his frustration in this way.

He had just finished handling the follow-up matters of Pengcheng Development Bank, and then he received such bad news!

The big project that Envision Securities has been following since the beginning of the year - the transaction of "Hualco Group's acquisition of nearly 9% of Rio Tinto Group's shares" fell through.

Xia Jingxing couldn't let go of the news, but he still forced out a smile to comfort Chen Hong and said, "If it's bad, then it's bad. Everything can't be smooth sailing."

Chen Hong put down his cup, looked at the towering Oriental Pearl Tower in front of him, and said: "This acquisition has set a new record for overseas mergers and acquisitions by Chinese companies. It is actually a rare opportunity for Envision Securities to participate in such a top-notch acquisition.

But we messed up and more or less betrayed the trust of our client, Fanghua Aluminum Group.

Taking a longer view, the failure of this acquisition means that domestic companies will continue to accept the sky-high price of ore from Rio Tinto Group. "

Xia Jingxing said: “It’s not all our fault if this matter turns out to be dirty, Hualco itself also has a big responsibility.

They believed too much in the moral standards of the guys on Wall Street, and went to invite JP Morgan, Nomura Securities, and Blackstone to serve as financial consultants. Including us and CICC, there were five institutions in total.

Envision Securities only has one supporting role in the financial advisory group, which is just soy sauce.

We provided a "quick-fix, not public" acquisition opinion, but they didn't listen and insisted on believing those foreign consultants. What was the result? It has become like this now! "

Xia Jingxing spread his hands, his face full of displeasure.

A few months ago, Envision Securities acquired the Hualco project through Lou Wei’s recommendation.

Everyone at Envision Securities, including him and Chen Hong, were gearing up and preparing for a big fight.

But at the same time, he also knew that this acquisition ultimately failed in his previous life, so he kept giving advice to Hualco.

But Envision Securities was just a fledgling company, and Hualco didn't rely much on their opinions.

Xia Jingxing had too many things on his hands, so he later let go of the project. As a result, he still followed the same path of his previous life and was ganged up by Wall Street.

Last year, Hualco spent more than 14 billion U.S. dollars with Alcoa to acquire 12% of Rio Tinto UK's shares, and held 9.3% of Rio Tinto Group's shares to become its single largest shareholder.

Half a year later, the financial crisis broke out. Forced by debt pressure of nearly 40 billion US dollars, Rio Tinto Group asked Hualco Group for help.

Hualco Group plans to invest a total of US$19.5 billion to increase its shareholding in Rio Tinto Group to 18%, send two directors to Rio Tinto's board of directors, and participate in Rio Tinto's iron ore, aluminum ore, copper mine, and alumina factory, electrolytic aluminum plant and countless other high-quality assets.

Especially for some minerals owned by Rio Tinto, once China Alcoa successfully participates in the shares, it will own 15%-50% of the equity of these mining companies, which can greatly enhance the bargaining power of Chinese companies in purchasing ores and hedge against the sky-high prices of Chinese companies purchasing ores. loss of profits.

This acquisition project went well from the beginning, and was successively approved by the Kangaroo Country Competition and Consumer Commission, the German government, the Committee on Foreign Investment in the United States and other departments.

But this month, Kangaroo Nation went back on its word and wanted to overturn the previously signed cooperation agreement.

The reason given by the Kangaroo Nation was public opposition. In fact, stimulated by the good news of Chinalco's investment, Rio Tinto's stock price rose again, and the financial pressure greatly improved.

Therefore, the Kangaroo Nation, which has the blood of ruffians in its bones, saw money and decided not to abide by the spirit of the contract. Anyway, the cost of breach of contract is low. It only needs to pay 1% of the acquisition price as liquidated damages, which is US$195 million, to cancel the transaction. , reducing the loss of benefits of tens to tens of billions of dollars.

Throughout the entire acquisition process, Hualco was completely led by Wall Street and the Kangaroo Nation.

First, the public acquisition news created a positive effect on Rio Tinto Group's stock and helped Rio Tinto get out of trouble.

At the same time, the announcement of this acquisition also laid the groundwork for Kangaroo Nation to manipulate public opinion.

If Rio Tinto’s stock price does not rise later, the Kangaroo Nation may not inspire public opinion and accept the shares honestly.

But as soon as the stock price rebounded, this secret move was immediately used.

Finally, there is the 1% liquidated damages, which is too low and does not effectively restrict possible breaches of contract.

Xia Jingxing thought he had tried his best, but Hualco Group didn't listen to him. What could he do?

He set a goal for Envision Securities very early on, to use the capabilities of a professional investment bank to help Chinese companies go global while avoiding pitfalls.

As a result, the company got off to a bad start, and the first overseas merger and acquisition case it handled failed.

Although Hualco Group received nearly US$200 million in breach of contract compensation, it was actually a huge loss.

This incident made him feel very unfulfilled, and at the same time, Envision Securities was disgraced.

"What do Hualco say? Do you want us to help them match up with BHP Billiton?"

Chen Hong heard the ridicule in Xia Jing's jargon and knew that he was somewhat complaining about Hualu's disobedience to him, which resulted in the current bitter consequences.

"China Aluminum is now filled with regrets. Their boss even said that he would set up a table to apologize to you."

Xia Jingxing waved his hand, "Forget it. People who don't know think we won the battle and are going to have a grand celebration banquet."

Chen Hong smiled, "Actually, looking at it from the other side, this may not be a bad thing."

Xia Jingxing looked at Chen Hong in surprise, who had a strange smile on his face, "In the acquisition case, Envision Securities did its best and demonstrated our professionalism.

More importantly, we are a company controlled by the Chinese, so our butt is not crooked.

Unlike people like JP Morgan, Blackstone, and Nomura, who take money and do nothing about personnel, but only sell out their employers.

If Hualco had listened to our advice at that time, it would have successfully taken over the Rio Tinto Group by now.

What is this indicating?

It shows that Chinese-funded enterprises still need to find a reliable institution when going overseas! Envision Securities is just that reliable investment banking institution. "

Chen Hong's words suddenly opened Xia Jingxing's mind. Yes, although the acquisition failed, Envision Securities not only had no fault, but actually made merit!

Then we cannot take the blame for failure!

Instead, we have to do the reverse operation, and we win! Turn defeat into victory!

Thinking of this, Xia Jingxing looked at Chen Hong with a smile and asked, "Do you have a specific plan? If we brag about it, it will inevitably rub salt into Hualu's wounds."

Chen Hong sneered, but he also thought that what Xia Jingxing said made sense.

In this matter, the more prescient Envision Securities appears to be, the more it highlights Hualco's incompetence.

What kind of company is Hualco? Can their mistakes be used for marketing purposes?

Chen Hong rolled his eyes and suddenly had a plan in his mind.

"This is how we..." Chen Hong lowered his voice and introduced his plan.

After hearing this, Xia Jingxing couldn't help laughing and said, "Is it possible? People from Hualu are not fools."

"You have to pretend to be a fool even if you're not a fool, otherwise you'll be punished!"

When he said these words, Chen Hong seemed very confident because he knew that group of people very well.

Xia Jingxing thought for a while and said, "Then give it a try. We are doing this for everyone's benefit. In the future, everyone will be able to pay less tuition when they go overseas."

Chen Hong said: "When I finish this matter, I will really step down."

Xia Jingxing was still a little reluctant to let Chen Hong leave, but thinking that he had delayed Chen Hong's departure time and time again, he immediately stopped trying to dissuade him.

"Okay! Who do you recommend to take over your position?"

"Just Wu Jianmin, you really admire him anyway."

Xia Jingxing thought for a few seconds and said, "Let him take over first and give it a try. I hope he can bring some surprises to Envision Financial Holdings Group."

"He was born in Hong Kong and is a member of the American Committee of 100. He still has some influence in the Chinese world. Envision Financial's current layout of the Asia-Pacific region + the United States is very suitable for him, a Chinese-American, to stand at the front."

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