Reborn as a tycoon in Hong Kong

"Mr. Lin, the negotiations with Rolls-Royce have finally made some progress."

"Rolls-Royce no longer insists on a selling price of 200 million pounds and has begun normal business negotiations."

When Lin Baicheng contacted Wei Li again, Wei Li told him that the negotiations on the British side had made progress.

Although the Hutchison Whampoa team headed by Willy has reached an agreement with the Prime Minister's Office, and Rolls-Royce is currently a state-owned enterprise, the management of Rolls-Royce is not so obedient. The other party has to sell Bentley cars. , offering a high price that Hutchison Whampoa could not accept.

200 million pounds, including the 120 million pounds of debt borne by Bentley Motors, which means the total selling price is 320 million pounds, which is about 800 million U.S. dollars in U.S. dollars.

The transfer price of 320 million pounds was a huge sum of money in the early 1980s.

The problem is that Bentley's profit last year was only 11 million pounds, and the year before last was only 10 million pounds. It seems that the price-to-earnings ratio is only 30 times. Considering the high-tech technology in the automobile industry, this price-to-earnings ratio is not high.

But this is not the case. Take Bentley's profit of 11 million pounds last year as an example. This is the profit from car sales after deducting employee salaries and other expenses, but it does not deduct the debt that Bentley has to repay every year.

The debt of 120 million pounds, because it is a state-owned enterprise, the interest rate of bank loans is not very high, only 6% annual interest rate, and the annual debt repayment is 7.2 million pounds.

As a result, the final net profit is only 2.8 million pounds, which is the money Bentley made in its pocket last year.

If calculated based on the net profit of 2.8 million pounds, the transaction price of 320 million pounds has exceeded the price-earnings ratio of 100 times, and it will take more than 100 years to earn back the capital.

Of course, the net profit cannot be calculated based on 2.8 million pounds, because if the debt is paid off, the company's annual net profit will be as high as tens of millions of pounds, and the price-earnings ratio will only become 30 times.

As an acquirer, Hutchison Whampoa cannot calculate the valuation based on Bentley Motors’ annual net profit of tens of millions of pounds; similarly, as a seller, Rolls-Royce certainly cannot accept Bentley Motors’ annual net profit calculation of 2.8 million pounds. Valuation.

Therefore, excluding debt, Hutchison Whampoa is absolutely unable to accept a price of 200 million pounds. If Rolls-Royce insists on selling at a price of 200 million pounds, there is no need to talk more.

Now, Rolls-Royce has made a concession.

Lin Baicheng listened and said: "Since Rolls-Royce has made concessions, let's have business negotiations with Rolls-Royce. The final transaction price must not exceed the bottom line."

"Don't worry, Mr. Lin, I will always remember it." Wei Li responded.

Lin Baicheng: "When negotiating with Rolls-Royce, remember to keep an eye on Bentley. What Hutchison Whampoa wants is a complete Bentley, including factories, R\u0026D departments, technology patents, etc. No matter which part is missing, Bentley It’s not worth the high price, you know what I mean?”

Wei Li responded: "I understand, I will arrange for someone to keep an eye on it, and Mr. Bingley will also keep an eye on it."

"We can't completely rely on White Wade Bentley. We have to have our own people to keep an eye on it. No one can guarantee whether White Wade Bentley will be bribed."

Lin Baicheng reminded aloud that it is true that Hutchison Whampoa has reached a cooperation with White Wade Bentley, but the cooperation has not been truly finalized and Bentley Motors has not been acquired. As long as the price is right, White Wade Bentley is completely betrayed. possible.

This is an acquisition worth hundreds of millions of dollars. If Rolls-Royce had tampered with it and allowed Hutchison Whampoa to acquire an empty shell or a weakened Bentley Motors, and if Hutchison Whampoa had lost hundreds of millions of dollars in the acquisition, Rolls-Royce can buy White Wade Bentley for tens of millions of dollars, but Lin Baicheng cannot guarantee that White Wade Bentley will not be tempted.

Wei Li immediately said: "Mr. Lin, what you taught me is that I will make corresponding arrangements."

"After the acquisition negotiations are completed, I will entrust a third-party company to calculate the assets. I believe there will be no problem in this way."

Since Lin Baicheng said he would do it, he would invite a third party to conduct an audit. He was not sure whether Wei Li had any problems in this huge acquisition. Telling Wei Li clearly was also a reminder to Wei Li to let him know what he wanted. Things cannot be done.

"Mr. Lin is still thoughtful."

Of course Wei Li heard the meaning of Lin Baicheng's words. It was impossible for him to ask Lin Baicheng if he didn't believe him. After all, he was a part-time worker, and smart people would not say such things.

Besides, since Lin Baicheng had told him, it meant that Lin Baicheng didn't completely disbelieve him, but just wanted to add an extra layer of insurance.

Lin Baicheng continued: "Now that Rolls-Royce's acquisition negotiations have made progress, you can arrange for people to contact the companies I have selected to acquire. Don't rush to acquire them immediately, make contacts first, Conduct research on relevant companies and factories, etc.”

"Okay, Mr. Lin, I will arrange for someone to follow up." Wei Li agreed.

For the acquisition of Bentley Motors, Hutchison Whampoa has an agreement with the Prime Minister's Office to privatize several state-owned enterprises that are not operating well and to take over the employees of related companies and factories. Lin Baicheng has already selected these targets.

The reason why there were no acquisition negotiations was that there was no progress in the acquisition negotiations with Rolls-Royce. Because it is an agreement to acquire Bentley Motors, and there has been no progress in the acquisition of Bentley Motors, there is of course no need to follow up on what comes with the agreement.

"If there's nothing else, let's do this for now."

After making sure that Wei Li had nothing else to report, Lin Baicheng ended the call with him.

That afternoon, Lin Baicheng took his personal secretary Catherine to a golf course in New York.

Although Lin Baicheng was not the last to arrive, he was not the first to arrive either. When he arrived, Phil Smith, Logan Rockefeller, and Barry Diller were already there.

Yes, today is a gathering of shareholders of Liberty Broadcasting Company, and Claure Rockefeller and Abigail Johnson are not here.

"Smith, haven't you and Anna gone on your honeymoon yet?"

Lin Baicheng asked Phil Smith. At the last party, Phil Smith said that he would go on honeymoon with Anna Nord in a few days. Unexpectedly, the couple came to the party again this time.

Phil Smith said helplessly: "The honeymoon can only be postponed temporarily. It has something to do with Ellen."

"It has something to do with me? How do you say this?"

Lin Baicheng was a little surprised when he heard this. What could it have to do with him?

"It's Galaxy Games!"

Upon seeing this, Phil Smith explained: "Starting from this month, Galaxy Game Company's arcades will no longer entrust me with sales in North America. Instead, they will find state-level agents on their own, canceling the general agent in North America and even the United States."

"In other words, my agency will lose this piece of profit, and now it can only compete with other agents for the arcade agent in a certain state. Now the company needs me to be in charge, how can I still be in the mood to go on a honeymoon? "

When mentioning this matter, Phil Smith was still a little depressed, because his agency did not sign a North American general agent contract with Galaxy Games, so Galaxy Games said that they would not give him a general agent, just one sentence.

The year before last, Phil Smith thought about signing a general agent contract with Galaxy Games in North America. But if he signed the contract, even if he didn't get a single machine, he would still have to pay Galaxy Games 10 million US dollars every year. , which is the total agency fee negotiated by the two companies.

Because the price was too high, Phil Smith kept putting it off. Later, when he saw that Lin Baicheng had no intention of changing agents, he simply pretended that the matter had never happened and took advantage of it.

But in this case, Phil Smith's agency has not signed an agency contract with Galaxy Games, and Galaxy Games can decide to change agents or end the agency relationship at any time.

Galaxy Games actually does not have an agency contract with any agents. Lin Baicheng does not charge agents a fixed annual agency fee. The reason why it did not sign a contract with agents in the first place was mainly to avoid being able to change agents at any time if the agent fails to act.

Compared with the annual agency fee, Lin Baicheng pays more attention to the market. He hopes that Galaxy Games can change agents at any time so as not to be stuck by agents.

"Smith, I told you this. I have to be responsible to the other shareholders of Galaxy Games. For the benefit of the company, canceling the general agent can increase the single selling price of arcade machines and increase revenue and profits. This is a trend. What must be done.”

Lin Baicheng shrugged upon hearing this. If he alone had the final say in the company, he would be willing to keep it as it is. He would rather make less money every year to maintain the stability of the broad market. It would be like spending money to buy peace.

But now, Galaxy Games is no longer Lin Baicheng's sole proprietorship. There are many shareholders in the United States. The Lin family's combined shareholding ratio is only 63%. The total shareholding ratio of U.S. capital and outstanding shares is 37%. It is so high. The ratio is enough for these capitals to protect Galaxy Games Company.

Listing on the US stock market already means spending money to buy Ping An, so Galaxy Games does not need to find a general agent to spend money to buy Ping An. Of course it is better to make more money.

"Alan, I'm not blaming you, I'm just a little sorry. After all, being a general agent is so profitable."

Phil Smith said out loud that the agency brought him a total of more than 50 million US dollars in profits the year before last and the year before last. This shows how profitable this general agent is. Nowadays, such good things no longer happen. How could he not regret it? .

If Lin Baicheng hadn't led Phil Smith to make a lot of money in other areas, Phil Smith and Lin Baicheng would have other cooperation. Otherwise, if the two had their own arcade agency relationship, then Phil Smith would definitely resist. After all, his interests are been greatly affected.

Even if he knew that the resistance would fail, Phil Smith would still resist. He would try his best to destroy the sales channels of Galaxy Game Company and prevent Galaxy Game Company from making money as much as possible. The arcade machines sold in the United States are all about destroying them as much as possible.

It's different now. Although the agency company has suffered a lot of losses, as long as it can win the agency rights of a big state, the agency company can still make a lot of money every year.

More importantly, Phil Smith and Lin Baicheng have cooperated in other places, and the interests involved are not small. Therefore, it is impossible for Phil Smith to break up with Lin Baicheng for the agency company that will no longer be able to make big money. Doing that would be unfair to him. Nothing good comes of it.

"Just don't blame me."

Lin Baicheng couldn't help but smile: "The management of Galaxy Games did this to increase the company's revenue and profits. Starting from the second quarter of this year, the company's revenue and profits will definitely increase significantly compared with last year. Smith, you, a small shareholder, You can also benefit from it.”

"The one who benefits the most is Alan, the company's major shareholder."

Phil Smith said with a smile, but he knew in his heart that Lin Baicheng was telling him not to sell his shares in a hurry. With such good support, Galaxy Games' stock price will definitely rise.

The management of Galaxy Games began to carry out more detailed agents in April to increase the company's revenue and profits. This is not only the case in North America, but also in Japan and other regions that can be affected by the United States. They are doing this at the same time.

In addition, the company has stepped up promotion of its anti-piracy software since the beginning of the year, and it has been quite effective. Combining two and two, if nothing unexpected happens, the company's revenue and profit this year will definitely be higher than last year, and it will be stable in the first half of the year. Steady and relatively high growth rate.

This is what Goldman Sachs and other Wall Street institutions want, and this is what Goldman Sachs and other institutions are promoting, in order to raise the stock price of Galaxy Games with good news, so that they can sell the stock at a higher price.

Not to mention the stock price, the company's increased revenue and profits alone are also beneficial to Lin Baicheng, the major shareholder. Therefore, Lin Baicheng did not object, but agreed.

Lin Baicheng waved his hand: "Haha, if I didn't sell the shares, the increase in the stock price would not be a benefit to me."

"The increase in book value is also a benefit, which means the same thing." Phil Smith said.

"lets change a topic."

Shaking his head, Lin Baicheng said: "There are changes at the agency. From now on, Smith, your career focus will shift to Zhonghe Game Company?"

“It was already shifting, and now it just makes me more determined about it.”

With that said, Phil Smith said to Lin Baicheng: "Alan, when the company is financing this time, I want to buy some shares of the company from you. Is it okay?"

"Of course, no problem. How much do you want to buy?"

Lin Baicheng agreed without thinking. He didn't care much about Zhonghe Game Company. The original investment was only 4 million US dollars plus the game idea of ​​"Western Cowboy", and the investment has long been paid back.

"I will buy up to 5% of the shares. We will discuss the details at that time."

Phil Smith said that he would not buy too many shares from Lin Baicheng, because that would only reduce Lin Baicheng's connection with the company, which is not advisable.

The main reason why Phil Smith wants to purchase shares is to increase his shareholding ratio in the company, become more legitimately the chairman of the company, and regard the company as his career.

If Lin Baicheng holds more shares in Zhonghe Games than Phil Smith, it will be a secret after all. Although the relationship between the two parties is very good, as a successful businessman, he should not leave serious hidden dangers in the core of his business.