In addition, British Motor Group will form a joint venture with TRW Capital to establish TRW British Motor Sales and Service Company, and both parties will hold 50% of the shares each.
TRW British Auto will obtain the distribution rights in China for Bentley, Aston Martin, Jaguar and Land Rover under the British Motor Group. TRW British Auto will invest in acquiring the previous dealers of these brands in China, and will build new TRW British Auto 4S stores in more cities in the future to expand the sales scope of these car brands in China.
At the same time, TRW Auto will also be responsible for the promotion and marketing of the above brands in China.
Currently, Tianhe Capital is still negotiating with Jiangsu Province on the acquisition of Nanjing Automobile. Naturally, it is not convenient for Barron to come forward on this matter, because Tianhe Capital is a Chinese company...
However, through this cooperation between Tianhe Capital and British Motor Group, it can be demonstrated that Tianhe Capital has an unusual relationship with British Motor Group, and can provide some support for its acquisition.
In addition to these, the agreement signed this time also includes that O2 Telecom will cooperate with mobile companies in its global business to provide mobile communication services for its Chinese users' overseas communications and overseas people in China.
SEM Group will also reach a series of cooperation with CCTV, Dragon TV and other TV stations on program introduction and copyright purchase.
Finally, Argos Holdings will complete the acquisition of the remaining shares held by the family of Supor founder Su Zengfu, privatize and delist Supor, and invest in building a new production plant in China. In addition to continuing to use Supor's trademark logo in China, small kitchen appliances sold by Argos Retail Group in the European market will be sold under the Argos brand.
Next, Barron arrived in India with Brown.
Compared with his time in China, Barron was very low-key in India. He only attended some reception parties and did not conduct too many business negotiations.
Apart from the cooperation between United Energy Group and Indian companies on the export of oil and gas products, he is not very interested in other investments in India.
After all, India's business environment… those who understand will understand.
Even many American companies have suffered setbacks here, and their investments in India have eventually become India's assets…
Barron doesn't think he is that lucky.
His attitude towards India is that they can cooperate in the financial field, as India's stock market has performed quite well for some time; they can also do business, but the other party needs to pay first and then deliver the goods; as for industrial investment, forget it.
…
When Baron left the United States, Avago had already submitted its listing application to the SEC and Nasdaq, and officially began the IPO listing process.
At present, it seems that the process is relatively smooth. When Barron went directly to the United States from India, Avago had already started its pre-IPO roadshow.
In this IPO, Avago will publicly issue 37.5 million shares, all of which are newly issued shares, accounting for 15% of the total capital after listing.
According to the agreement between Barron and Chen Fuyang at the time, if Avago Group could successfully go public through an IPO, Chen Fuyang would receive a reward of 4.25 million shares. These shares accounted for 2% of Avago's shares before its IPO.
And after that, provided that he can perform his duties satisfactorily, he will also receive a stock reward of 2.25 million shares per year.
Therefore, after Avago went public, Rich23 Capital held 208.25 million shares, accounting for 83.3%; Chen Fuyang held 4.25 million shares, accounting for 1.7%.
The issue price of Avago's stock is tentatively set between US$32.5 and US$34. At present, it seems that investors' enthusiasm for investment is still relatively high. If calculated at US$34 per share, Avago, which was acquired by Rich23 Capital for approximately US$2 billion, will have a market value of US$8.5 billion, and Rich23 Capital's holdings will be worth US$7.08 billion, with a return on investment of more than 250%!
Of course, Rich23 Capital itself was a full acquisition, without using leverage, and did not specifically "slim down" Avago...
From this perspective, compared to the original time and space, private equity funds KKR and Silver Lake Capital used capital operations until Avago went public, and the 12-fold profit they made after clearing out their stocks was nothing.
"How does it feel, Dick?"
In New York, Barron met with Chen Fuyang, president of Rich23 Capital and president and CEO of Avago, who looked in good spirits.
"Great, Your Highness. Wall Street investors are very enthusiastic. I can feel that the current market sentiment is completely different from that of five years ago, or even three years ago. Coming to Wall Street, I can clearly smell the scent of a bull market everywhere."
Chen Fuyang shrugged and said to Barron:
"But I don't know if it's my illusion, but I also feel a vague sense of crisis. Perhaps it is the right decision to list Avago now. I believe the stock price after the listing will be very optimistic."
It has to be said that Chen Fuyang's success in capital operation in his previous life did not seem to be without reason. Just through his words, his keen sense of financial conditions made Baron secretly praise him.
"I also think now is the best time, but it's not just for Avago, it's also for other companies now. So although it's a good opportunity to go public, it's not yet a good opportunity to expand. I think we should first strengthen our own business."
The last time the two met, Chen Fuyang talked about his interest in LSI, a memory chip company in San Jose, Silicon Valley.
But as Baron said, the bull market atmosphere now permeating the market not only affects Avago, which is about to go public, but also other companies - the market value of those companies will be estimated with the most optimistic attitude.
Therefore, relatively speaking, now is not a good time for acquisitions - it is often when a crisis comes and many companies are in financial crisis that it is the best opportunity for acquisitions.
Baron was somewhat worried that after obtaining the funds raised from the IPO, Chen Fuyang would be unable to hold back and would immediately initiate an acquisition of LSI. It was unclear whether this would be successful, but at least the acquisition price would be much higher.
The companies that Barron acquired are somewhat different because if he doesn't seize the opportunity to acquire most of them now, there will be no good opportunities later.
But Barron knew that LSI did not have much capital support behind it. Therefore, it was only after the subprime mortgage crisis that the company ran into financial difficulties, thus providing a good opportunity for acquisition.
Because the subprime mortgage crisis will have a huge impact on the entire American financial system, many banks are unable to take care of themselves, let alone lend money to others during this period. Therefore, for the semiconductor industry, which has a great need for financing, it is inevitable that it will get into trouble without strong capital support.
"I understand, Your Highness, rest assured."
Hearing Barron's words, Chen Fuyang nodded and said so.