At the same time the next day, Reed came and brought another person with him, and Feng Yu also called Li Zeju to express his position on behalf of Hutchison.
The specific contract details of the port construction must be discussed with Huang's professionals. Feng Yu's people may be able to review the legal contract, but there are some contract traps in it that they may not be able to see because they involve professional issues.
Anyway, we will eventually cooperate with Hutchison Whampoa, and the plan is to make Hutchison Whampoa the majority shareholder and the main manager. There is nothing inappropriate about Li Zeju appearing here.
"Feng, this is Li, right? I'm Reid, the negotiator this time, and next to me is Mark Eric, my assistant."
The so-called assistants must have been sent by Reed's boss, but each person is good at different directions. Eric should be in charge of negotiating the railway, but in name, Reed's decision is still the main one.
After someone brought coffee and tea, the four of them were left in the room.
"Feng, Li, my boss said that since you don't agree to each party holding half of the shares, you strongly demand controlling rights, but you can never agree to your shareholding ratio reaching 75%. In this way, we cannot guarantee our own interests. Not damaged.”
"Our bottom line is to hold at least 45% of the shares, and you will share the remaining 55%, but we must ensure that Hutchison Whampoa's shares are higher."
"You give up 35% of our absolute controlling rights. This is my bottom line." Feng Yu said calmly.
Many people mistakenly believe that more than 50% means they have absolute controlling rights. This is not absolute. Although you are definitely the chairman, you can't say anything.
Resolutions of the general meeting of shareholders need to be passed by more than half of the votes cast. However, major resolutions such as division, merger, dissolution, and amendment of the company's articles of association must be approved by more than two-thirds of the voting rights at the general meeting of shareholders. So 67% is the absolute controlling stake. I have the final say in the company, and I can make the company follow my ideas at any time.
If Feng Yu were a California consortium, it would be impossible to hand over absolute control to an outsider. Feng Yu and Hutchison Whampoa must have a community of interests. If the two of them joined forces, wouldn't they be able to separate their California consortium
Now, even if the port does not expand, there will still be business and it can still make money, but the profits will become less and less, and it will go downhill.
So they would rather make less money than give up all their power. Now if you are given a senior executive position and then turned around, who will they ask to reason with
Feng Yu made this condition clear and clear, eliminating the other party's concerns and seeking the best interests for himself. Since this port is going to be renovated, we will definitely be able to earn more money in the future. With one percent more equity, we can get a lot more money in the future.
Of course, this also depends on how much money they invest. Neither Feng Yu nor Hutchison Whampoa care about the investment amount. If they can acquire it all, they will not hesitate to pay a 30% premium. This is too important for Hutchison Whampoa's world port layout.
"Feng, do you know which ports and terminals we are partnering with this time? Do you know how much money you have to invest to dilute our equity to 35%?" Eric couldn't help but say .
Feng Yu glanced at Eric: "Oh, tell me, how much are your ports and terminals worth? Not only do we have to come up with money this time, you also have to come up with money, otherwise your equity may be diluted. It’s thirty-five percent.”
Hey~~ Feng Yu and Hutchison Whampoa plan to invest more than 10 billion U.S. dollars, or even 20 billion U.S. dollars, as long as there are so many ports that can be renovated for them.
How much does a small port cost? It's just a few hundred million dollars. What does this mean to Feng Yu and Hutchison Whampoa
Reed glared at Eric, complaining a bit about his talkativeness. I am the main person in charge of this negotiation. You are here to assist me in negotiating the railway. What are you talking about
"Feng, do we also have to pay? This seems a little different from what we imagined. According to the plan, we will provide five large terminals in the port to cooperate with you, each including berths, machinery and equipment, storage yards, Warehouses, etc., are worth at least 7 to 8 billion US dollars. If you want to become a major shareholder, then the premium is not too much, right? So your investment amount will exceed 10 billion US dollars?"
Even if those five ports are calculated based on the highest price of US$800 million, then they are only worth US$4 billion. In fact, Feng Yu knows that this quotation is already a premium. Now Feng Yu and the others are required to invest more than 10 billion US dollars, which is a huge premium. These guys are very greedy.
Feng Yu looked at Li Zeju, and Li Zeju said: "The ports you want to bring out are in Los Angeles, Seattle, San Francisco, Long Beach and Oakland, right? The locations of these five ports and terminals are good, but they are all very It’s old, and we estimate its total price to be no more than three billion dollars.”
"Now according to your statement, you seem to have calculated it as six billion US dollars. The premium is 100%, which is really a big appetite."
Li Zeju was a little angry. We really want to invest in ports in the United States, but we cannot be taken advantage of. The annual profit of the port is only a small amount, not to mention that we have to invest so much money.
Even for the sake of strategic layout, there is no such waste of money. Feng Yu didn't know much about these situations, but they knew everything about Huang, and even Huang knew every port in the United States very well.
"Reed, let me do a calculation for you. According to our plan to re-expand the port terminals, the equipment upgrade cost required for each port terminal will be as high as seven to eight billion US dollars, not to mention that we need a larger stack. A larger warehouse, a larger berth, and even some improvements to the water depth near the dock.”
"Total calculation, the cost of renovation of each port terminal may exceed 2 billion US dollars. Of course it will be no problem if we spend 10 billion US dollars, but the shares you hold will directly increase in value by nearly double. What do you think of such a business? Will we do it? So you also have to come up with a sum of money so that our investment is equivalent."
Reid and Eric looked at each other. The renovation cost of each port terminal is more than two billion dollars? This is far more than the value of a terminal. What kind of large port terminal are they going to build
Could it be that they also plan to annex other adjacent berths and storage yards? If this is the case, then the ports of the United States will be based on the west coast, which will definitely bring more profits, and their ports will become complete ports that never sleep.
It's just that the cost of revamping machinery and equipment is so high, which they absolutely cannot agree to because of the issue of workers' employment.
… (To be continued. If you like this work, you are welcome to come to Qidian.com () to vote for recommendations and monthly votes. Your support is my biggest motivation. Mobile phone users please go to m. to read.)