My Age of Investment

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A few days later.

Hualco officially announced that the shareholding plan was terminated due to Rio Tinto Group's unilateral breach of contract.

As soon as the news came out, the whole country was in an uproar.

Last year's US$14 billion, plus this year's US$19.5 billion, the two investments totaled more than US$33.5 billion. The huge amount set a record for Chinese overseas mergers and acquisitions, making countless Chinese people proud but also deeply worried.

This concern is not unreasonable.

Last year's investment has already lost more than half, reaching a huge US$8 billion.

If this year's investment succeeds, it won't matter. It will be regarded as losing money and achieving the strategic goal of controlling the upstream steel industry.

However, Hualco failed to acquire shares, which meant that the previous huge losses did not bring any beneficial returns. At the same time, Hualco also had to bear the responsibility for the default of the four major banks.

When Hualco invested in Rio Tinto Group, it did not use all of its own funds. The M\u0026A funds mainly came from M\u0026A loans provided by the four major banks: China Development Bank, Export-Import Bank, Agricultural Bank of China, and Bank of China, totaling up to US$21 billion.

The fact that the transaction went bad and the loan was not released does not mean that Hualco does not need to bear the liability for breach of contract and needs to compensate the four major banks.

Before providing loans to China Aluminum, the four banks conducted project evaluations and pre-loan investigations, spending a lot of expert consulting fees, evaluation fees, lawyer fees, exchange losses and exchange rate risks, and foreign exchange asset allocation, etc. With Rio Tinto's By breaking the contract, the bank made a huge futile effort.

All of these losses have to be paid for by Hualco, which was the big loser. The total amount far exceeds the US$195 million in breach of contract compensation Hualco received from Rio Tinto Group.

This is because the four major banks are all on their own side and there is no big claim for compensation.

In addition, Hualco also needs to bear investment banking fees, financial advisory fees, legal fees, accounting fees, etc., which add up to a huge expenditure of no less than US$195 million.

As for the big A-shares, Hualco’s stock has already fallen first!

Fortunately, the leeks are relatively honest and do not understand the class action lawsuit, so they can only swallow the bitter pill of the stock plunge.

In short, Hualu lost both his wife and his troops this time, leaving him disgraced.

Originally, this incident passed slowly, and the people scolded them for a while before turning off the fire.

However, at a press conference held by the four major banks on Hong Kong Island, a certain manager of Bank of China said a few extra words, adding fuel to the already furious public opinion.

“We should take a warning from what happened with Hualco!

When carrying out overseas mergers and acquisitions, in addition to paying attention to the attitude of the government and the public of the country where the acquired company is located, we should also strengthen the professional skills training of local investment banks, and we cannot always rely on and superstition on Wall Street..."

As soon as these words came out, the reporter with a keen sense of smell immediately sensed something was wrong.

What does it mean?

Hualco failed to acquire shares in Rio Tinto, is there another hidden reason?

As reporters and enthusiastic netizens continued to dig deeper, the entire process and details of Hualco's investment in Rio Tinto were restored.

Some financial professionals directly pointed out: There were serious mistakes in the work of financial consultants!

This is considered a relatively moderate view.

Some more radical scholars and professors directly pointed out that this was a shocking conspiracy of "Rio Tinto colluding with Wall Street and targeting Hualco"!

The arguments listed are also very detailed!

Public acquisition news causes the stock price of the acquired company to rebound;

Liquidated damages are set too low;

The Kangaroo Nation, which has always danced happily, had a very ambiguous attitude towards Hualco's investment in Rio Tinto at first, but then it made a huge reversal, turning its back as fast as a chameleon;

…

When these things are connected in series, the truth is ready to come out.

Rio Tinto had no intention of selling its equity to Hualco from the beginning. Its intention was just to delay the sale and allow Hualco to relieve itself of its unfavorable capital difficulties. At the same time, it was also prepared to break the contract at any time.

Hualco's five major financial advisors were either stupid or bad. They were accomplices in the entire process and failed to fulfill their duties as professional financial advisors.

Then, the five major financial consultants were also eliminated together.

JP Morgan, Nomura Securities, and Blackstone are all criticized lightly, because they are foreign investors, and the public has long given up hope in their integrity.

Just imagine how many Chinese companies have been harmed by these Wall Street investment banks over the years?

Because of this group of pests, countless domestic brands have disappeared from the shelves, been acquired and hidden.

In addition, there are countless Chinese-funded companies that went overseas with high spirits, but ended up buying back a lot of junk.

China Investment Corporation invested in Blackstone, Ping An acquired Belgium's Fortis Group, China Minsheng Bank acquired Union Bank of America...

There are too many similar failures and lessons, and they all have two things in common. One is that they lost all their pants, and the other is that they all hired a group of professionals from Wall Street as financial consultants.

It’s just that foreign investment banks have no professional ethics. What really makes the public angry is that there are two Chinese members on the financial advisory team-CICC and Envision Securities.

CICC is the grandson of CICC and the direct bloodline of Zhongxin. As a result, he did not help his own people and only did things that took advantage of others. The Internet was full of crusade.

Moreover, Hualco's investment in Rio Tinto last year resulted in a loss of US$8 billion, which was enough to build two or three aircraft carriers. During this period, CICC was also a financial consultant. CICC could not get rid of the blame for its lack of vision.

At the same time, there was also a street guy named Lehman who served as a consultant with CICC last year.

Within a few months of completing the Hualco case, Lehman collapsed.

Therefore, Hualco’s vision in choosing financial consultants has also been questioned by everyone.

Vision Capital was also scolded!

In the words of netizens: Envision Financial Holdings acquired Lehman Asia and changed its name to Envision Securities today. It uses the same team of people, so it also inherited Lehman’s stupidity!

Mr. Xia, such a smart person, actually started a loss-making business.

Fortunately, everyone was relatively tolerant of Xia Jingxing, and the accountability only stayed at the level of Envision Securities, and did not accuse Xia Jingxing of cheating.

The main reason is that Xia Jingxing's halo of holding industry conferences and donating tens of billions to support higher education has not faded yet. His prestige is there. Even if someone leads the way, Xia Jingxing does not have much momentum.

But even so, it makes Envision Securities very uncomfortable.

As an investment bank that makes a living by brokering deals, it has been criticized by the public for having no vision and being played around by overseas financial giants. Who will trust you to do the work in the future?

This is a sign of destruction!

Seeing that the public opinion was intensifying, Envision Securities could not sit still anymore and held a press conference. At the same time, it also invited people from Hualco Group to testify.

People from Hualco really didn't want to testify. After all, this was a shameful matter because they didn't adopt Vision Securities' plan.

But if you don't come, let Envision Securities hold a unilateral press conference. Who knows who they will blame in order to clear their names.

Therefore, Hualco had no choice but to hold its nose to testify.

However, before the formal press conference was held, Hualco also had a friendly communication with Envision Securities, hoping that Envision Securities would be more gentle.

The two parties quickly reached a consensus (exchange) and decided to pass the blame to foreign investors together. Hualco was also deceived and was a victim.

As a result, an interesting scene occurred at the press conference.

Envision Securities introduced the acquisition plan it designed for Hualco in a straight-forward manner, while Hualco kept apologizing and included the three major foreign investment banks.

“Envision Securities deeply regrets and regrets the economic losses caused to Hualco and the country.

However, we firmly deny the unfounded accusations that have been placed on Envision Securities. We are an investment bank with a high sense of social responsibility and a bottom line of ethics.

From the day we were founded, our corporate goals and vision have been to “help Chinese-funded companies go overseas safely and allow outstanding companies to enter the world stage.”

In the Hualco case, although we tried our best, the result was still unsatisfactory and caused misunderstandings among many people from all walks of life who were concerned about the matter.

Therefore, on behalf of Envision Securities, I decided to donate all the US$15 million in financial advisory fees received from Hualco to Project Hope. "

As soon as Chen Hong's words came out, it immediately aroused heated discussion among the reporters who came to attend the meeting.

It seems that I really misunderstood Envision Securities!

They seriously designed an acquisition plan with a very high success rate, even if it was not adopted by the entrusted Fang Hua Aluminum, and it was even criticized by netizens. Now in order to prove their innocence, they don’t even want financial advisory fees, and they have to donate them. .

The impact of the Envision Securities press conference gradually spread.

Netizens who knew the truth began to apologize and sing praises to Envision Securities.

In just a few days, there was such a huge reversal in public opinion about the shocking acquisition, attracting many netizens who had not paid attention to the matter.

The experience of Envision Securities makes everyone feel sympathy, and it has the color of a tragic hero!

He wanted to contribute to the country, but was not taken seriously, and was later misunderstood by netizens.

Even though the world slandered him, he still maintained a pure heart and donated almost 100 million yuan to Project Hope.

It doesn’t matter if you don’t make this kind of money!

Although Xia Jingxing did not show his face or speak during the whole process, everyone knew that this was definitely his handiwork, full of the Xia family's local tyrant style.

After this incident, Envision Securities was successfully cleared, turned defeat into victory, and showed its face in front of the people across the country, gaining goodwill.

However, Xia Jingxing doesn't value these, because Vision Securities is currently mainly engaged in tob business.

Through this incident, many companies that plan to go overseas or are about to go overseas have noticed Envision Securities!

This is a professional investment bank that comes from the same school as Vision Capital. It has a professional level that is not inferior to that of Wall Street, but its moral bottom line is higher than that of Wall Street.

Compared with them, domestic investment banks are much less experienced in confronting the cunning Wall Street financial institutions.

To a certain extent, Envision Securities has become a financial institution that is scarce and difficult to copy.

The best partner for going overseas, no one else!

Hualco is a negative example. It did not listen to the earnest advice of Envision Securities, and then fell into the trap of the foreign devils!

As the highest level investment bank in China, CICC has twice participated in Hualco's overseas acquisitions, but its performance can only be described as immature and unable to protect overseas companies.

In this case, even a fool knows who to choose as his bodyguard when traveling.

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