Winning the new financial era

Chapter 329 Acquisition of Barclays

"Mr. Zhang, Chewy's valuation quotation is very high, at least $20 billion.

I have seen their operating and financial data. Since its establishment in 11, it has been in a state of loss, and the proportion of loss is still expanding.

Pate Holdings Group doesn’t have much capital now, and only the 2.5 million US dollars just raised in the account, I think it’s too risky to spend 1 million US dollars to invest in Chewy! "

Lu Fenghai also came to the United States. After inspecting several pet e-commerce companies, he came to Los Angeles to report the situation to Zhang Yida.

20 billion US dollars, the valuation is higher than Patenet, Zhang Yida can't help but frown, he can't afford it!
Then asked Lu Fenghai: "What about Vet First Choice?"

Lu Fenghai nodded, "This company is called "Veterinarian First Choice" in Chinese, and it provides technical support for veterinarians and pet hospitals. I think it can complement Pet Holdings Group's business.

First of all, Petter Pet Hospital will use some of their technology.

In addition, if it is possible in the future, Patenet can also establish a joint venture with them to use the advanced technology preferred by veterinarians to serve pet hospitals and pet doctors in China.

And their current valuation is not high, only $5 million! "

Zhang Yida thought about it. He remembered that these two companies were both listed in 19. The market value of the former reached as high as 140 billion U.S. dollars, and the latter was 45 billion U.S. dollars.

Investment now, in three years, one will increase by 7 times, and the other will increase by 9 times.

"So," Zhang Yida said, "invest 1 million US dollars in Chewy, and invest 5000 million US dollars in veterinary first choice."

Lu Fenghai smacked his lips, and said worriedly: "We only have 2.5 million US dollars in our account now, and we are still a start-up company. Is it too much to spend 60% of the funds for strategic investment?

Pate Network still needs to develop, and supporting the expansion of Pate Pet Hospital requires a huge amount of funds. "

Zhang Yida nodded, "What you said makes sense! But isn't Pet Holdings going to acquire Dogford soon?
After the merger and acquisition is completed, there will be an extra cash cow immediately, which can share tens of millions of dollars in net profit every year.

Moreover, Petnet's losses are already narrowing, and the only thing that needs to be considered is the pet hospital.

The remaining [-] million US dollars, plus Dogford's annual dividend of tens of millions of US dollars, is enough for its expansion.

Big deal, just another round of financing next year or the year after. "

Lu Fenghai also wanted to dissuade Zhang Yida, don't be so desperate, what if the investment fails?That's not a pain in the ass.

But Lu Fenghai thought about it again. With the backing of Ruixiang Industrial Fund and Mr. Zhang's rich industry, even if the investment fails, it should be fine, right?

"That's fine! Then I will follow your instructions and vote!"

Zhang Yida said again: "By the way, you should discuss Beckham's endorsement contract as well!"

"Okay," Lu Fenghai was a little surprised, "Mr. Zhang, how did you manage to deal with Xiao Bei?"

"What about Xiaobei?" Zhang Yida laughed, "Although he is a star, he still needs to eat!"

"What about the endorsement price?" Lu Fenghai asked again.

Zhang Yida said: "Let's go according to his market price! The signing time is... three years!"

"Okay, okay, stop talking!"

Zhang Yida stood up and said to Lu Fenghai: "I leave these things to you! I'm going to Singapore, and the acquisition of Barclays' Singapore wealth management business by Yimin Wealth has finally come to an end!"

"Barclays, the second largest bank in the UK?"

Zhang Yida nodded, "Yes, that's it!"

Lu Fenghai was a little unbelievable, and asked: "Such a big bank can't do it?"

"It is said to focus on European and American businesses and shrink business in other regions."

Zhang Yida spread his hands, "I'm afraid the real reason is that the old capitalist countries can't do it!"

He also said with emotion: "This bank was established in 1690, when China was still in the 30th year of Emperor Kangxi. It has been prosperous for so many years, but it has also begun to decline."

Lu Fenghai said with a smile: "In the 21st century, we still have to look at China and Asia."

……

Marina Bay Sands Hotel, Singapore.

Witnessed by many media, Ding Siyao signed his name on the acquisition agreement, exchanged contract documents with Barclays Singapore President Cliff, and took a photo together.

The flash lights under the stage were all on, and many reporters were taking pictures, many of them were from China.

Although Yimin Wealth only acquired a small amount of the business of Barclays Bank, it was considered a headline-grabbing news for domestic reporters.

They even thought about the titles, and they called them: "Yimin Wealth Acquires Barclays in Singapore", "A Three-year-old Company Acquires a 300-Year-Old Barclays", "British Veteran Bank Exits Singapore, New Chinese Listed Company Start Overseas Mergers and Acquisitions"...

Barclays Singapore President Cliff left after signing the contract, leaving behind his deputy and Ding Siyao to hold a press conference.

Cliff's deputy is a middle-aged Chinese-looking woman named Sun Yanjia, who looks a bit like Sun Yanzi, who is popular in mainland China.

In fact, she is the eldest sister of Stefanie Sun. She was born in 1975 and her ancestral home is Shantou. She is currently the vice president of Barclays Bank in Singapore.

Sun Yanjia said to Ding Siyao: "President Ding, President Cliff left beforehand, and I will attend the press conference next."

Ding Siyao nodded to her, and sat down on the stage with her.

A reporter raised his hand and asked, "Hello, Mr. Ding, I am a reporter from the South China Morning Post.

As soon as Yimin Wealth was listed on the New York Stock Exchange, it acquired the wealth management business of Barclays Bank in Singapore and Hong Kong. Does it mean that Yimin Wealth will start its international business in an all-round way? "

Ding Siyao nodded, "Yes, after Yimin Wealth went public, we have obtained sufficient development funds, and we will actively develop international business.

While helping high-net-worth clients in mainland China with global asset allocation, it will also help overseas clients invest in mainland China.

As we all know, China has achieved economic take-off in the past 20 years, a large number of wealthy people have emerged, and it also contains huge wealth opportunities.

Yimin Wealth is willing to be this investment bridge to help overseas clients invest in Mainland China. "

Another reporter stood up and asked, "Mr. Ding, I am a reporter from the Global Times.

How will Yimin Wealth help overseas users invest in Mainland China? "

Ding Siyao explained: "Yimin Wealth cooperates with a wide variety of financial institutions such as Chinese public funds, securities private equity funds, equity private equity funds, trusts, insurance, industrial investment funds, real estate funds, etc.

We will customize a personalized and comprehensive wealth management plan according to each client's wealth status and wealth management needs..."

Zhang Yida sat in the audience and asked the executives of Yimin Wealth sitting beside him: "I heard that at the last moment of the second round of bidding, how many of UOB and others gave up?"

The executive nodded and replied: "Yes, Mr. Zhang. Maybe our bid was relatively high, but several other banks thought it was higher than their reserve price, so they finally gave up."

"3.2 million US dollars, buying 1800 high-net-worth clients and 183 billion US dollars of assets under management, isn't that a high price?
It is not like the domestic market that mainly provides distribution channels for wealth management products to sellers to earn commissions for consignment products.

In this foreign wealth management model, asset management fees are charged to the buyer, that is, the customer.

Assets of 183 billion U.S. dollars, a management fee rate of 1%, and a yearly income of 1.83 million U.S. dollars! "

The executive shook his head, "Mr. Zhang, it is true that there is such a high asset management income, but the expenses are also huge!

For a team of financial planners of the same size, the wages in Hong Kong and Singapore are several times higher! "

Zhang Yida always felt that things were not that simple, but he couldn't tell why, so he stopped asking.

The reporter asked Sun Yanjia again: "Mr. Sun, does Barclays' sale of its wealth management business in Singapore and Hong Kong mean that it will gradually shrink its business back to Europe and the United States and give up the Asian market?"

Sun Yanjia frowned, and replied lightly: "This is just Barclays' business adjustment, and the outside world does not need to interpret it too much.

Abandoning some sideline businesses is just to focus more strength and resources of the group on the banking business. "

Another reporter asked: "According to reliable sources, Barclays Bank will announce the completion of the sale of its Italian retail business and its Iberian credit card business in the next few days. Does Mr. Sun have this matter?" "

Sun Yanjia replied bluntly: "Then you should ask the colleagues in the Italian branch, I am only in charge of the business in Singapore."

"Hello Mr. Sun! Barclays CEO Jes Stanley has promised to complete the sale of 2017 billion pounds of assets by the end of 350 to improve the bank's capital level.

What is your opinion on this matter? "

……

Zhang Yida also laughed at the audience. Barclay's retreat was even more exaggerated than he had imagined.

Selling wealth management business, selling retail business, anyway, all kinds of businesses are being sold.

However, a skinny camel is bigger than a horse, and a bank of this level will not fail for a while.

After the press conference, Zhang Yida and Ding Siyao had a meal together.

At the dinner table, Zhang Yida asked, "Does Barclays require the purchase price to be settled in cash at once?"

Ding Siyao nodded, "Yes! They are short of money now, and assets and businesses all over the world are being sold!

I heard it was caused by low interest rates in Europe and regulatory pressure.Not only them, many established European banks are selling assets.

If they want to live like our domestic universe, they can only live in the next life! "

"Well, the European economy is dying!"

Zhang Yida drank the red wine and asked again, "When will the delivery start?"

"It will officially start in three days, and Barclays will make the final match with us."

Zhang Yida asked, "Have you understood the client's situation?"

Ding Siyao shook his head, "The company hasn't sold you yet, how could they provide you with customer information?"

Zhang Yida thought for a while, and then asked: "If the client withdraws during the handover and the asset management scale drops, what should we do if this happens?"

Ding Siyao smiled and said, "If that happens, there will be a supplementary agreement.

Moreover, the acquisition payment should be made after the customer and asset handover are completed before the remaining payment is made. "

"Don't worry, the Chinese chaebols in Southeast Asia have all invested in Ruixiang Industrial Fund, and Yimin Wealth is also the LP of Ruixiang Industrial Fund.

These high-net-worth clients, if they say they are rich, are indeed very rich, with assets of tens of millions of dollars per capita.

But it depends on who you compare with!

Chinese chaebols with assets of billions of dollars all invest in Ruixiang Industrial Fund, and they can invest in mutual funds with Chinese chaebols.

There are not many opportunities like this!I think they should cherish it! "

Zhang Yida nodded, "That makes sense, I hope so!"

(End of this chapter)