Reborn Xiangjiang as a Tycoon

Chapter 640 Hutchison Whampoa Management’s London Trip (3)

The first day of March, London.

After five days of research, Wei Li and others had a more detailed understanding of the technology, patents, factories, finance, management and other aspects of the Bentley brand.

Bentley Motor Company was founded in 1919, but as early as 1912, the Bentley family had already raised funds to introduce French sports cars, improved the sports cars, and began to enter the automobile industry.

In 1919, the Bentley Company was officially established. However, the company's capital at that time was only 200,000 pounds, which was inherently insufficient. Therefore, although Bentley cars were invincible on the Le Mans track in the following years, they were still on the verge of collapse in the early 1930s.

It went bankrupt and was eventually merged into Rolls-Royce.

Bentley's technology is not bad, otherwise it would not be invincible on the Le Mans track, nor would it enter the eyes of Rolls-Royce. After being acquired by Rolls-Royce, and with the support of Rolls-Royce, Bentley

The 1940s and 1950s ushered in a peak period of development.

After the 1960s, Bentley began to decline. In the 1970s, it was nationalized along with Rolls-Royce, and its operating conditions became worse and worse.

Fortunately, both Rolls-Royce and Bentley make luxury cars, which are high-end in the industry. The mid- to low-end car market in the UK is occupied by Japanese cars, and the high-end car market is only affected to a certain extent. Therefore, Rolls-Royce and

Bentley's situation isn't too bad.

In recent years, Bentley's annual sales have been around 9,000. The domestic price of Bentley in the UK is 30,000 pounds per unit, and the export price is 32,000 pounds per unit. The annual revenue is more than 700 million US dollars.

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Like Rolls-Royce, Bentley cars are also hand-made, so the car factory has a large number of employees and extremely high labor costs. Adding in R&D costs and deducting various taxes, the annual profit is only more than 30 million US dollars.

If the Bentley brand can make more than 30 million U.S. dollars in net profit every year, that's not bad. If we calculate the valuation, because of the importance of the automobile industry, we can estimate a valuation of 500 million U.S. dollars.

But the problem is that due to historical reasons, Rolls-Royce has extremely serious debts. The Bentley brand also has debts. The interest that has to be repaid every year on the huge debt is unbearable for Rolls-Royce, so that after paying off the interest, the company's profits are left with nothing.

Not much.

Therefore, Rolls-Royce's current situation is very serious. There is not much profit left every year, so naturally there will not be much investment in research and development. And technology will become obsolete. If a large amount of money is not invested in research and development, it will become obsolete.

As technology is updated, the company's car sales will only get worse and worse, and its revenue and profits will decrease, which will only lead to more serious consequences.

Of course, Rolls-Royce's situation is not good, but technology is still quite strong in this era, and it is definitely at the forefront of the world. As long as it can pay off its huge debt, the company is still very likely to come back to life and create greater glory.

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Because of the time difference, Wei Li contacted Xiangjiang this morning and prepared to report to Lin Baicheng. However, she learned from Qin Lan that Lin Baicheng was playing outside. If it was not a very urgent matter, she would meet the big boss after the game.

The boss said that he would definitely contact Wei Li when he has time.

Wei Li was going to report the research report on Bentley cars to Lin Baicheng, so it didn't matter if it was a little later, there was no rush.

But in the morning, Thiessen White from the Trade Department and Vancouver Thompson from the Prime Minister's Office came to find Weili first.

"Weili, I think you have a clearer understanding of Bentley now. I wonder what your thoughts are now?"

"Hutchison Whampoa still hopes to acquire Bentley Motors, but there are some things that need to be agreed before the acquisition."

Wei Li, who has already received certain authorization from Lin Baicheng, can talk to Thiessen White and Wyatt Thompson first. Anyway, the result will not be reached right away.

"Bentley Motors is at the top of the entire automobile industry in terms of technology and reputation. If Hutchison Whampoa wants to acquire Bentley Motors, in addition to the normal transaction price, it must also bear some responsibilities."

Vancouver Thompson spoke out and said that he represents the Prime Minister's Office and he is fully aware of Prime Minister Mrs. Thatcher's requirements.

After hearing this, Weili nodded and said: "After these days of research, I found that Rolls-Royce's debt is extremely serious. Bentley is one of the brands of Rolls-Royce. This time we acquired Bentley Motors, so

What I hope to acquire is a Bentley without the burden of debt."

Rolls-Royce as a whole has a debt of more than one billion pounds, and its liabilities have almost caught up with the company's assets. How dare Hutchison Whampoa touch such a huge debt. More than one billion pounds, converted into Hong Kong dollars, is more than 10 billion Hong Kong dollars.

"Part of the entire Rolls-Royce liability is due to Bentley Motors, so this part of the liability needs to be borne by Bentley Motors. The specific details must be negotiated between you, Rolls-Royce and the Bentley family."

“When Rolls-Royce was nationalized, the state made a promise that once Rolls-Royce or Bentley is privatized, the original controlling party will have priority to buy back the shares at the time of nationalization based on market value. Before being nationalized

, the Bentley family holds 15% of the shares of Bentley Company, so if Hutchison Whampoa wants to acquire Bentley Motors, it must communicate with the Bentley family."

After Bentley was acquired by Rolls-Royce, it did not mean that Bentley disappeared, but that Bentley became a subsidiary of Rolls-Royce, and Bentley still operated independently.

"There is still such a historical legacy."

Weili couldn't help but frown after hearing this, thought for a while and asked: "Mr. Thompson, may I ask if the Bentley family has any idea of ​​acquiring Bentley Motors? Or, will the Bentley family prevent us from acquiring Bentley Motors?"

"The Bentley family has no right to prevent the government from selling Bentley cars. The Bentley family may be interested in acquiring Bentley cars, but the Bentley family absolutely cannot afford the money."

Vancouver Thompson thought for a while and said that the Prime Minister still hopes to achieve the sale of Bentley this time, so it is better not to let Hutchison Whampoa think that the acquisition is difficult.

Weili said: "In this way, it is necessary for us to communicate with the Bentley family before officially launching the acquisition."

Vancouver Thompson warned: "The Prime Minister supports the sale of Bentley, but the attitude of Rolls-Royce management is also very important."

"Thank you Mr. Thompson for the reminder."

Weili nodded to express his understanding, and then changed the topic: "Mr. Thompson, I wonder what responsibilities we have to bear in addition to the normal purchase price for acquiring Bentley Motors?"

"Weili may or may not know that the Prime Minister is currently privatizing state-owned enterprises, and the sale of Bentley is based on this policy."

"No matter what, Bentley Motors is profitable every year and is a high-quality asset. Therefore, if Hutchison Whampoa wants to acquire Bentley Motors, it must support the Prime Minister's privatization policy of state-owned enterprises and at the same time privatize and acquire several state-owned enterprises that are not very profitable.

As a balance."

This was a more formal negotiation, so Wyatt Thompson did not beat around the bush, but made it clear so that Weili could understand what he meant.

This kind of acquisition must be consensual between both parties. Otherwise, even if it can be concealed now, the real situation will be found out soon after Hutchison Whampoa investigates the relevant companies, and Hutchison Whampoa can completely regret it at that time.

There is no point in that except wasting time.

"How many companies does Hutchison need to be privatized?"

Regarding this kind of thing, Lin Baicheng and Wei Li had guessed it before coming, so Wei Li was not surprised or resisted.

Seeing that Weili did not object immediately, Wyatt Thompson could not help but feel relieved, and then said: "Hutchison Whampoa needs to privatize five companies, and the number of employees in these five companies cannot be less than 10,000."

"This is impossible! It is absolutely impossible for He Huang to agree to such conditions!"

Weili immediately shook his head after hearing this. Ten thousand employees is not a problem. The total number of employees of the Bentley Motors brand is tens of thousands. But the problem is that Bentley Motors makes money, and as Vancouver Thompson said just now, what will happen next

The enterprise taken over has poor performance and is a non-performing asset. The company's annual profit is likely to be negative.

With 10,000 employees, the employee salary alone is at least one to two million pounds per month. The employee salary can be as high as two to three million pounds, and the annual salary payment is between 20 and 30 million pounds.

This is only employee salary, not counting the losses caused by the company's operations. If it is really acquired, Hutchison Whampoa will fill it with two to three billion Hong Kong dollars every year. No matter how big the net worth of Hutchison Whampoa is, it will not be enough to compensate like this. Sooner or later, it will be dragged down.

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"Weili Taipan, since Hutchison Whampoa wants to acquire Bentley Motors, it needs to cooperate with the Prime Minister's state-owned enterprise privatization policy. Otherwise, high-quality assets like Bentley Motors will not be acquired by Hutchison Whampoa. Domestic capital will definitely not be targeted.

few."

Wynn Thompson was not surprised by Weili's rejection. All he had to do was to get Hutchison Whampoa to agree to the conditions offered by the government.

"Even so, Hutchison Whampoa simply cannot afford to support at least tens of thousands of employees, not to mention that acquiring these companies will cost a lot of money."

Wei Li still shook his head. Although he had not yet communicated with the big boss Lin Baicheng, he was certain that if Ying Lun did not compromise on the conditions, it would be impossible for the big boss to agree.

Although you are likely to be suppressed after rejecting the Prime Minister, being suppressed is better than letting Hutchison Whampoa die slowly. Hutchison Whampoa currently has a market value of more than 40 billion Hong Kong dollars. Even if it is suppressed and only has a market value of 10 billion Hong Kong dollars, it is better than dying slowly.

.

Thompson said: "Weili Taipan, I think you can report it to Chairman Lin of Hutchison Whampoa. Maybe Chairman Lin will agree after thinking about it."

"I will definitely report it to Mr. Lin."

Wei Li nodded heavily and said: "Regarding these companies, I wonder if you can give me a copy of the relevant company information so that I can report to Mr. Lin."

"Of course, I've already brought the information."

As Thompson spoke, he took out a thick stack of information from the briefcase he brought.

"Mr. Thompson is really well prepared."

Wei Li took the information and put it aside for the time being. He didn't have time to read it now.

"This is what I should do."

Thompson said: "Weili Taipan, please tell Chairman Lin that as long as he is willing to cooperate with the Prime Minister's work, the Prime Minister will naturally feel his friendship and will not only help in this acquisition of Bentley Motors, but also Chairman Lin in the future."

Or if Hutchison Whampoa wants to invest in Britain, the Prime Minister will also provide corresponding help."

In this way, of course it is increasing the chips.

"I will tell Mr. Lin."

Wei Li nodded slightly, agreeing to the conditions to gain the Prime Minister's friendship, otherwise one can imagine the consequences of refusal.

"Then, I'll wait for the good news from Weili's class."

Thompson said no more. He had said all that needed to be said, and there was no need to say more.

"If Hutchison Whampoa increases its investment in England, it will be beneficial to both Hutchison Whampoa and Chairman Lin himself, and its influence will definitely increase. Therefore, Chairman Xilin can give it careful consideration."

At this time, the Director of the Department of Trade, Thiessen White, who had been silent next to him, also spoke up. When entertaining Weili and others, he would take the lead, and when it came to business negotiations, it would be Vancouver.

Thompson is the boss.

"Don't worry, you two. Since Mr. Lin sent me here this time, it has already shown that Hutchison Whampoa intends to invest in England."

Wei Li felt that it would be better to talk about some things, so he said: "Hutchison Whampoa's first target is the automotive industry, and Bentley Motors is the priority acquisition target. However, if the acquisition cost is too high, Hutchison Whampoa can change the acquisition target. If we enter the automobile industry,

If the cost of the industry is too high, Hutchison Whampoa can change its target and move into other profitable industries."

I said this mainly to express my attitude, lest the other party think that Hutchison Whampoa insists on Bentley cars, and the lion will open his mouth.

“There are many domestic industries, and Hutchison Whampoa is welcome to invest in any industry.”

What the Prime Minister wants is for Hutchison to privatize unpopular distressed state-owned enterprises, so it doesn't matter if Hutchison enters any industry.

Wei Li said: "I need to report to Mr. Lin on how to do it, so after I finish reporting to Mr. Lin, I will contact you two."

"Then we will wait for the good news from Weili Taipan."

Thiessen White and Vancouver Thompson knew that this was the end of their conversation for today.

"I'll send you two."

Wei Li sent the two of them out of the hotel.

After sending the people away, Weili called everyone in the team together, showed everyone the corporate information that Thompson brought, and asked everyone to compile a concise corporate report so that he could present it to the big boss.

report.

There is strength in numbers, and there are only a dozen companies in total, so it took more than an hour to sort it out.

Weili looked at it carefully first. Only if he understood it himself, could he easily answer the big boss's questions when reporting to the big boss, and not be confused about all the questions.

After reading it, Weili found that it was already lunch time, and it should be around seven o'clock in the evening over in Xiangjiang. But since the big boss didn't contact us now, it meant that the big boss was not free for the time being, so he could go and have dinner first.

, just leave one person waiting by the phone.

(End of chapter)