I just want to enjoy life

Chapter 745 752300 billion joint acquisition of British power grid

At this time, Lin Haocang said to Zhou Ting: "Later, in my name, you will send an email to those big clients who have made additional investments..."

Li Ze from the Li family invested 80 billion before, and later invested 100 billion, a total of 180 billion to Sky Capital.

Hengsheng Bank invested 150 billion before, and added 350 billion later, for a total of 500 billion.

Yingda Bank invested 250 billion before, and added 500 billion later, for a total of 750 billion.

Huifeng Bank invested 350 billion before.Add 1650 billion later, for a total of 2000 billion.

Rich people from Singapore, Malaysia, and Indonesia invested a total of 100 billion yuan, followed by 300 billion yuan, for a total of 400 billion yuan.

Liang Bixia invested 14 billion before, followed by a follow-up investment of 50 billion, a total of 64 billion.

Huang Huizhong, Zheng Hongbiao, Huang Zhixiang, Lin Guotai, and Li Wenzheng invested a total of 100 billion before, and added 300 billion later, making a total of 400 billion.

He Qiong invested 35 billion before, and added 50 billion later, for a total of 85 billion.

It adds up to a total of 3000 billion additional investment!

Lin Haocang felt that it was necessary for him to thank these people for their trust and support.

Zhou Ting quickly said: "Okay, chairman, I will send them a thank you letter later."

Lin Haocang nodded, and then took Zhou Ting to the restaurant.

After lunch, Lin Haocang took Zhou Ting to the elevator.

At this moment, his cell phone rang, and when he opened it, he found that it was Li Ze calling, and Lin Haocang answered the call immediately, "Mr. Li, what's the matter?"

On the phone, Lize said excitedly: "Representatives of EDF Group are going to Jiangdao soon, come over to have tea at 2 pm, hey, let's have a good chat"

Hejiang Infrastructure, a subsidiary of their Li family, is a company dedicated to transportation, energy and infrastructure materials. Jiangdao Electric Lighting is one of Jiangdao's main power suppliers, and both belong to Hejiang Industrial.In recent years, many Jiangdao public service companies have encountered development bottlenecks, so Hejiang Industrial has set its sights on overseas markets to expand profit margins.

The sale of the British power grid has aroused great interest from the Li family. In addition, Li Tiancheng believes that the global economy has begun to bottom out. His father told him that no matter what project, as long as it is in a country with a stable political situation and legal protection, it is possible to invest. The key Look at the rate of return and robustness of investment projects.It is estimated that the return on investment of the British power grid is as high as 15%, and the success of the acquisition will double the business of Hejiang Infrastructure in the UK.

Faced with the hesitation of the new CEO, Puglio, Li Ze immediately struck out after gaining the support of Lin Haocang, and knocked down the McGonagall Group in one fell swoop with a purchase price that was a premium of 27% over his assessed price.

Hejiang Industrial formally delivered the acquisition offer in the form of an irrevocable offer letter to EDF.This move is Li Tiancheng's fifth investment in the UK, and it is also the largest overseas acquisition in Hejiang Industrial's history.

The main business of Hejiang Infrastructure includes energy and infrastructure materials. Jiangdao Electric's specialty is energy infrastructure projects. Hejiang Infrastructure will jointly develop the energy infrastructure business with the help of Jiangdao Electric's advantages.Hejiang Infrastructure has cooperated with Jiangdao Electric Lighting many times in business, not only because of the synergistic benefits, but also to save tax expenses.As early as 94, his father brought Felixstowe, the first container port in the UK, under his banner.

In the past 7 years, Hejiang Industrial has begun to plan a huge territory of British public utilities: in August 04, Hejiang Infrastructure acquired the tap water supplier Cambridge Water in full for 8 million pounds.
05年6月，和江基建以5.575亿英镑收购北方燃气网40%的股权，同时江岛电灯以2.773亿英镑收购该公司19.9%的股份，和江实业共持有北方燃气网59.9%的权益。

在09年11月，和江基建和江岛电灯增持北方燃气网的股份至88.4%，涉资约7580万英镑，在10年5月，和江基建以2.2亿英镑收购电力供应商SeabankPower50%的权益，在 6月将其中25%权益转售江岛电灯。

After the joint acquisition with Sky Capital, Hejiang Industrial will control about 25% of the UK's power grid distribution market, about 10% of the natural gas supply market, and 5% of the water supply market.

"Oh, the representatives of EDF have come?" Lin Haocang was a little surprised, "Okay, I'll go there later."

After a short chat, the phone call ended.

Zhou Ting on the side asked curiously: "Chairman, what's the matter?"

Lin Haocang said with a smile: "This time, Sky Capital and Hejiang Infrastructure will jointly acquire a British power grid company."

"He Jiang Jijian? Is that the property of the Li family?" Zhou Ting was shocked.

Lin Haocang said with a smile: "Yes, their Li family is going to expand overseas, they have encountered a strong competitor, and they are short of money, so they are joining forces with us in the sky."

Zhou Ting suddenly realized, and quickly said: "This is a good thing, Sky Capital can diversify its investment!"

The two chatted while walking, and then came to the roof of the Sky Capital Center and boarded the helicopter.

Soon Lin Haocang and Zhou Ting came to the Changjiang Tower.

Lize and a group of senior executives were already waiting for Lin Haocang. Seeing Lin Haocang getting off the helicopter, Li Ze hurried forward and said, "Mr. Lin, here we come."

The two shook hands warmly and chatted as they walked.

Lin Haocang smiled and said, "Mr. Li, I didn't expect you to move so fast!"

Li Ze smiled and said: "Haha, Mr. Lin, with your financial support, of course there is a quick solution, and the business opportunity is fleeting."

In recent years, due to the development bottleneck of Jiangdao Public Service Company, Hejiang Industrial has set its sights on overseas markets.The transaction is an important step for Hejiang Industrial in the UK. For Hejiang Industrial, which already owns the British Cambridge Water Company and the Northern Gas Network, the acquisition of high-quality mature grid assets will enhance the business synergy of Hejiang Industrial.

After the successful acquisition, Hejiang Industry will control about 1/4 of the grid distribution market in the UK, with a transmission capacity of about 890 billion kilowatt-hours, about 780 million customers, and a service area of ​​29165 square kilometers, covering London, the east and southeast of the UK.The combined economic output of these regions accounts for around 40% of UK GDP.The power grid also serves as a common point for important public facilities such as London's four airports, the London Underground, the Channel Tunnel Link Railway, the London Stock Exchange, famous scenic spots, and universities. The power transmission business in these areas will bring stable income.

Moreover, Hejiang Industrial is actively taking the road of internationalization. In addition to meeting the needs of scale expansion, it mainly diversifies its investment risks through business globalization.Different markets are affected by the economic cycle differently, the degree of competition in the industry is different, and the market development stages are also different.Hejiang Industrial uses this geographic differentiation to increase its investment flexibility, reduce risk, and ensure satisfactory overall returns.About 60% of Hejiang Infrastructure's revenue before the merger came from Jiangdao Electric, 40% of its revenue came from overseas, and 75% of Jiangdao Electric's revenue came from Jiangdao.After the acquisition, it will greatly increase Hejiang Industrial's investment income from outside Jiangdao.

In addition, infrastructure and electricity are businesses with a long payback period, characterized by relatively low impact from the current economic situation and stable income, but relatively large capital investment.The British electricity market is known as the freest electricity market in the world, which is mainly reflected in the bidding of electricity companies to connect to the grid, while the part of the power grid responsible for electricity transportation relies on fixed electricity transportation fees, and the investment income is relatively stable.In a free market, being able to obtain stable returns through acquisitions will also help the development of other businesses of the group and reduce financial crises in times of difficulty.Faced with such an attractive cake, it is no wonder that international consortiums are also salivating.

The acquisition funds are as high as 100 billion U.S. dollars. Their Li family will not be able to spend that much money for a while, but with the support of Sky Capital, it can be won, and Sky Capital’s investment has always been a Major shareholders, handing over the management rights to partners, this is their favorite place for Li Ze.

At this time, Lin Haocang smiled and said: "Mr. Li, we will let go of cooperating with you, but we need to send five directors and five financial officers of Sky Capital!"

The estimated total acquisition capital is 800 billion, of which Li's family will contribute 500 billion and Sky Capital will contribute 300 billion. The amount is very large, and Lin Haocang needs to participate in the operation of the power grid company.

Li Ze smiled; "Of course there is no problem." He stretched out his hand and said, "Mr. Lin, please, let's drink tea first and talk about some details slowly!"

"Okay, please!" Lin Haocang said with a smile, "The funds will arrive today!"

····
Time passed slowly, and at 2 o'clock in the afternoon, representatives of EDF Group also came to the Yangtze River Tower!

"Ms. Irene, hello!" Li Ze stretched out his hand with a smile.

"Hello, Mr. Li." Irene, the executive director of EDF, was the leader of this trip, and the patent came to Jiangdao from France.

After exchanging pleasantries, Li Ze introduced: "Ms. Irene, this is Mr. Lin, my partner"

Looking at such a young Lin Haocang, I was extremely shocked. I didn't expect that Li Ze's partner was so young, and could come up with tens of billions of funds? ?

"Hello, Mr. Lin, nice to meet you," she said, holding out her hand.

"Hello, beautiful Ms. Irene." Lin Haocang smiled and shook hands with her.

Then everyone came to the conference room and began to discuss.

EDF Group is the largest power producer in Europe. In 08, it acquired the British Energy Group for 125 billion pounds and took charge of the British power network. It supplies power to major infrastructures such as the South of England, the London Metro, and the Channel Tunnel, covering 780 million people. , which supplies about 1/4 of the electricity in the UK, and is the largest electricity distributor in the UK.

According to the requirements of the European Union, in order to increase the UK's reliance on renewable energy from 2% to 15%, the UK power grid needs to implement a large-scale upgrade plan: it cost 12 billion pounds 140 years ago and 20 billion pounds 135 years ago. Power grid technical transformation and expansion of coverage.However, EDF's large-scale acquisitions in the early stage made it heavily indebted. The financial report in the first half of 10 showed that its profit dropped sharply from 09 billion euros in the same period of 31 to 16 billion euros, resulting in slow power grid construction, and some construction was delayed until 2018. It will take several years to connect to the grid, which undoubtedly hinders the UK's renewable energy development goals.Therefore, since October 09, EDF Group hopes to sell the British power distribution business to solve its debts.

Since EDF intends to sell the British power grid, in December of the same year, a consortium composed of Australia's Macquarie, Abu Dhabi Investment Authority and Canada Pension Plan, referred to as the Macquarie Financial Group, is also preparing to compete for this huge infrastructure deal.For more than a year, Puglio has been hesitant to sell the British power grid after taking over Gardner as the new CEO of EDF. The outside world speculates whether this deal can continue.In addition, due to the impact of the outbreak of the credit crisis, McGonagall's bid was conservative. In the second round of bidding, its bid was behind Hejiang Infrastructure, and it had to lose in the end.

The reason why Hejiang Infrastructure defeated McGonagall was because of the support of Sky Capital. This time, Sky Capital will cooperate with Helijia to jointly acquire 100% of the power grid assets of EDF Energy, the British power network business of EDF.

The negotiation went smoothly, and at 5 pm, everyone signed the acquisition agreement.

Hejiang Infrastructure Group Co., Ltd., Jiangdao Electric Lighting Co., Ltd. under the Li family, together with Sky Capital, repelled a consortium composed of Abu Dhabi Investment Authority, Canada Pension Plan Investment Board and Australia's Macquarie Group with 800 billion yuan to EDF Group. (EDF) has acquired 100% of the UK regulated and non-regulated grid assets of its UK electricity network business EDF Energy.

Of the transaction price, 70% will be paid by project financing, and the remaining 30% will be 40%, 22.5% and 37.5% by Hejiang Infrastructure, Jiangdao Electric and Sky Capital respectively. The three parties will fund and establish a new company, UK Power Networks, to manage UK power grid assets.This acquisition became the largest acquisition of UK assets by a Jiangdao listed company, and also the largest acquisition project in the history of Hejiang Industrial.

This transaction will be part of Hejiang Industrial's overseas expansion plan, enriching Hejiang Industrial's investment income from outside Jiangdao, and the market estimates that the rate of return is about 15%.

After signing the agreement, Li Ze was very happy and said gratefully, "Mr. Lin, thank you!"

Against the backdrop of the debt crisis in Europe and the United States and rising global inflation, this M&A case gave Hejiang Industrial a shot in the arm for overseas mergers and acquisitions, reducing investment risks with global business operations, and investing in public utilities to benefit Hejiang Industrial.In addition, Hejiang Industrial is in good financial condition. The public believes that it will continue to expand its overseas public business capabilities, and mergers and acquisitions will also bring growth momentum to the group's profits.
If the early integration is smooth, the merger will bring better returns. First, about 60% of Hejiang Infrastructure’s revenue before the merger comes from Jiangdao Lighting, and 75% of Jiangdao Lighting’s income comes from Jiangdao. In order to expand the British investment market, breakthrough development The bottleneck is that Hejiang Infrastructure has gas and water projects in the UK. The acquisition further diversifies the local business and enriches the overseas investment portfolio. Through these attractive assets, it can promote revenue growth. Second, the power grid is a business with a long payback period. The gross economic product of the areas covered by the power grid accounts for about 40% of the UK's GDP, and many important public facilities in the area will bring stable income to the power transmission business.90% of the acquisitions are regulated assets with a low return on assets, and the return is stable and ideal; the remaining non-regulated businesses, including airport power supply and tunnel business, have a higher return rate and are estimated to bring in 6000 million to 7000 million per year. million pounds of earnings before interest, tax, depreciation and amortization.Third, the British anti-monopoly regulators and the public are not worried about this transaction. The main reason is that the British government needs to meet the 2020 renewable energy development goals, and the merger process is less obstructed by private and regulatory agencies.

Lin Hao smiled faintly and said: "Mr. Li, we are all win-win, and I also thank you for taking me to participate in this grand acquisition!"

Hearing Lin Haocang's humble words, Li Ze immediately became more grateful to Lin Haocang, and felt that Lin Haocang was very, very worthy of his trust.

At this time, Irene, executive director of EDF, smiled and said: "Mr. Li, Mr. Lin, I hope you can operate better than our EDF in the UK electricity market!"

"As a lesson from the past, you and Jiang Jijian should speed up the upgrade of the power grid after the merger!"

In the past, in order to meet the UK's renewable energy development goals, the power network operated by the French Electricity Group was under pressure to upgrade. The Suffolk power network alone is upgrading two substations. Each upgrade project costs more than 100 million pounds. This will be In 08, EDF purchased part of the shares of British Energy Group and American Constellation Energy for 125 billion, and then had to sell the British power grid due to high debts due to excessive investment.

The UK is known as the world's free electricity market and is highly competitive.In order to increase market competition, the British Conservative Party planned to split the six major power companies in the UK in 09 to reduce energy consumption of consumers.Although this transaction did not cause the British public to worry, it will become very difficult for Hejiang Industry to acquire the grid business on the basis of occupying 25% of the grid distribution market in the UK.

In terms of management, EDF Energy had a bad customer service record and was fined 200 million pounds by the UK industry regulator, the Office of the Gas and Electricity Market, which shows that its management needs a change.Although Jiangdao was once a British colony, its management is similar to British management, but in cross-border mergers and acquisitions, integration is still the key.This time, EDF Group urgently needs to sell assets before the end of 10, which is a rescue-style merger and acquisition from the existing information.In a rescue M&A, the acquired company is on the brink of financial disaster, but the acquirer seldom continues to serve as the original company managers; on the other hand, the acquired company is a disappearing company. When a large number of managers are replaced, middle managers and employees Fear and gossip spread among the management, and employees are very worried that the acquirer will take layoffs to solve the original problem.

Thinking of this, she said again; "Mr. Li, Mr. Lin, I hope you take the time to overcome the resistance of the acquiree; eliminate the acquirer's over-reliance on some managers of the original company. In addition, we need to pay attention to the corporate culture matching of the acquirer and the acquirer." degree, so that the intangible assets of both parties can also achieve a synergistic effect, and then refine the corporate culture of the new company to adapt to the new market competition…”

Li Ze said with a smile; "Ms. Irene, thank you for your reminder, we will do all of this well."

Irene nodded, and suddenly said to Lin Haocang: "Handsome Mr. Lin, you must contact me when you come to France!"

Lin Haocang chuckled: "I will definitely!"

In the evening, a press conference was held, and the Li family announced the 800 billion acquisition, which shocked Asia!

However, at the press conference, according to Lin Haocang's request, Li Ze did not mention Sky Capital.

(End of this chapter)