Chapter 364: Merger and embracing regulation

"This is the third day of negotiations, and we don't want to have any more unnecessary discussions about the business adjustments after the merger."

"Independent brand operation is currently the most competitive M&A solution, and it can help us avoid the risk of commercial monopoly from a legal perspective."

"Aren't small shareholders human beings? If you call Xie Jingxing over, if he sees the opposition of all small shareholders with his own eyes, he won't dare to act on his own, right?"

It drizzled in the morning. Raindrops flowed along the large glass windows, leaving winding trails of water. The air-conditioning in the room slowly suppressed the increasingly fierce verbal battle.

The shade was filled with a bit of dampness and dullness. Su He sat in the corner in a low-key manner, resting his legs on the computer and typing away on the keyboard.

If this hotel suite is compared to a battlefield, the left and right sides are the pre-war command posts of Zhang Tao and Wang Xing respectively. The M&A teams of both sides would send people to report on progress from time to time, and then return to the battlefield to get the latest instructions.

Neil Shen and Martin Lau have already left, leaving only Bao Fan and a few small shareholders standing here with stern faces and legs crossed, looking like big bosses who have nothing to do with the matter.

The specific acquisition agreement has been almost discussed, and the only issue that remains to be resolved is the issue of comprehensive integration of business and independent operation of the brand, which he cannot control even if he wants to.

This involves the vital interests of all parties. If you interrupt and get criticized, wouldn’t it be very embarrassing for the underworld boss?

"Everyone have lunch first, and then continue in an hour."

Another whole morning passed, Su He turned off the computer and announced a lunch break. The people who were originally arguing suddenly became like deflated balls, some holding their foreheads with one hand or slumped over.

It’s too tiring. This kind of large-scale M&A project forced by investors is a sea of ​​fire and a mountain of swords for the M&A team.

The general public jokes that people in the financial industry make money by talking, and migrant workers in the financial industry also enjoy making fun of themselves in this way.

But there is a threshold to being good at talking. I have to listen to and read the news broadcast text for ten hours every day for three consecutive days. This is what everyone feels now.

Moreover, the working conditions are no different from being in prison. The fitness area at the end of the entire floor was temporarily converted into a buffet restaurant, and people eat, drink, defecate and urinate on this floor.

"How is it? Is everyone adapting?" Su He walked to the dining table with a tray in hand.

Zhang Tao's expression was exhausted and he forced a smile and joked, "After getting to know the M&A work closely, I have come to admire Ms. Su more and more. She is truly a heroine."

"I should say thank you for your understanding and support. The business overlap between New DAE and Meituan is very high, which makes the merger very complicated at the technical level."

Su He looked at the new executives in front of him without leaving a trace: "I can clearly feel everyone's centripetal force, which is a good thing for the merger itself."

"Everyone is eager to integrate the market and move towards the next stage of strategic goals."

No one really regards her as an M&A consultant. The polite words of the executives are a firm statement to the major shareholders, that is, we will fully integrate the business and we are confident that we can make more money!
Su He didn't care and just listened silently. Three days was enough time to understand the actual situation. He just wanted to get positive confirmation before making a final judgment.

The direction of the 20 billion US dollar merger and acquisition case will be influenced by the few words she says. This world is a huge makeshift team, and the structure of an industry is determined by the subjective behavior of a few people.

"Mr. Zhang, let's have a small meeting at 3:30 pm."

After a few discerning executives finished their meal and left first, Su He faced the man who had fallen into madness and issued a separate notice.

Zhang Tao was slightly stunned and bit off a piece of his dry lip skin: "What meeting?"

"The two of us, Mr. Liu and Mr. Shen, will also come over to synchronize the project progress." Su He explained apologetically.

Zhang Taoteng was furious: "I'll go get ready."

After saying this, he suppressed his impatience, stood up and walked away. What else is there to discuss? Are we going to discuss making Wang Xing the chairman?
Xie Jingxing should give him more trust and support. Instead of worrying about various M&A risks that would make the team exhausted from a negotiation deadlock, it would be better not to do the M&A at all.

Keep fighting until Meituan is completely defeated.

The saying "a journey of a hundred miles begins with a single step" sounds nice, but in reality, it just means that when people see the dawn of making money, they become eager for quick success and become timid, and are unwilling to fight to the end with the founder. In essence, they are just ordinary capital.

Zhang Tao suddenly felt that he had thought too highly of Xie Jingxing in the past. His true colors were revealed at the critical moment. His annoyance and anger turned into a long sigh in his heart. After completing the merger, it was time to re-examine the relationship between the two parties.

Investors should just sit back and wait for dividends and money, and stop worrying about the company's operations...

"48%." Su He whispered to himself.

This was the biggest factor that caused Zhang Tao to suddenly fall ill and completely lose his mind. The entire New DAE management team holds 48% of the voting rights and about 20% of the shares.

He thought he could further control the company, but Wang Xing has more voting rights in Meituan. What will be the outcome now?

Su He walked into a suite: "Boss Wang, would you like to chat for a few minutes?"

"no problem."

Wang Xing was very happy, and the other people in the room had already become numb and left the room without any curiosity.

"Your financial investors are more supportive of the comprehensive integration plan. The attitude of the strategic investors cannot be said to be supportive, but they are generally not opposed."

Su He got straight to the point: "Your situation is simpler than Xin Da's. The key lies in how you think."

"I hope to come up with a merger plan that satisfies everyone." Wang Xing'an is calm and composed, using gentleness to overcome strength.

Zhang Tao conspired to collude with most shareholders to force the emperor to abdicate. Since he failed to suppress the plot, he was destined to be eliminated.

Therefore, the psychological bottom line for him and the founding team was to fully integrate the business and come to Hong Kong Island to formally initiate formal negotiations. However, due to the complexity of the merger and acquisition, they gained independent operation opportunities far beyond their expectations.

Although Wang Xing's elimination was already decided, he was naturally happy to be able to help his old teammates get more benefits before leaving.

In short, no matter which M&A plan is used, sticking to independent operation is a bargaining chip to help old teammates gain benefits.

"We seek to make everyone happy, but we must also respect the facts. The biggest problem facing me now is that we can't delay it any longer, and the merger and acquisition is imperative." Su He emphasized weakly.

Wang Xing held the leg of his glasses and nodded in agreement: "Yes, we are actively promoting the process."

"You should know that now is the time when Meituan can sell at the highest price. Every day you delay, the deterioration of Meituan's own business and the attack from Koubei.com will make you less and less valuable." Su He turned to a warning.

Wang Xing remained noncommittal. This is Meituan’s biggest Achilles’ heel right now. The reason why small shareholders support the full integration of the business is that they are afraid that Alibaba will quickly defect.

To a large extent, it is not because they are afraid of not being able to beat Koubei.com, but because they are afraid that the valuation of the merger will be cut.

"I sincerely suggest that you and your founding team carefully consider giving up some of your business interests in exchange for financial returns and quickly complete the merger and acquisition."

Su He promised directly that he could give you a good price and asked you to stop making trouble.

Wang Xing was speechless for several minutes: "You should go and explain it to Zhang Tao."

"This is also what Mr. Zhang meant." Su He gave a brief response.

Wang Xing was instantly relieved. He communicated with Zhang Tao alone that whole day. Putting aside the specific business discussions, the attitude displayed in the latter's words and actions could be summed up in two words - inflation.

Zhang Lei used only two days to connect with his shareholders and easily took down Meituan, the result of his 15 years of entrepreneurial experience.

And a mere Zhang Tao has been able to push for a comprehensive integration of the business despite the strong pressure from both shareholders in recent days. It is not enough to describe him as bloated.

Sure enough, it was all an illusion. Su He's light words were sharper than a needle and easily pierced the inflated balloon.

"We'll have a small meeting at 4pm, the two of us and Mr. Zhang."

She sent out another notification, and then ended the communication without further delay. She returned to her room and turned on her computer, which showed the dense data recorded over the past three days. She was lost in thought for a long time before she took a deep breath and dialed the phone.

"Mr. Xie, the plan of operating independently for the time being is more feasible."

"Then execute it."

"Zhang Tao's idea..."

"Let him hear my thoughts first."

"I see."

Su He didn't have time to report the situation in detail. He hung up the phone with a few words and took out a document prepared before coming to Hong Kong Island from the password box.

Just as she was about to walk out of the suite, she paused for a moment, tilted her head to look at herself in the dressing mirror at the door, pursed her rosy lips and raised her eyebrows.

She closed the door and returned to her room to change into a suit, carefully tidying up her hair and smoothing out the wrinkles on her hem. Xie Jingxing had promised that he would definitely acquire Meituan, and that this project would belong to her.

He fulfilled his promise and she would execute it perfectly.

"Mr. Zhang, this is a brand new merger and acquisition plan."

Su He spread out the documents and said, "All shareholders of New DAE will re-register a holding company, acquire Meituan as a whole, and transfer the shares of New DAE held by them to Meituan."

"That is to say, after the transaction is completed, Meituan will hold 52% of the voting rights and 80% of the equity of New DAE."

Her tone rose and she concluded with disdain: "The new holding company owns 100% of Meituan."

"..."

Zhang Tao's face was full of confusion and he opened his mouth but couldn't make a sound.

He clearly controls 48% of the voting rights and 20% of the shares of New Danghe. Twenty minutes ago, he acquired Meituan as a winner and became the head of a monopoly enterprise in the local life service field.

Why did he suddenly reverse and become a small follower holding 20% ​​of the shares of Meituan's subsidiary?

Even the loser Wang Xing was not treated like this by Meituan’s shareholders led by Zhang Lei. This is not in line with business rules and is so vicious that it seems like a hostile takeover aimed at destroying New DAESH!

Zhang Tao's Adam's apple moved as he wanted to say something, but the words that came to his lips expressed doubt, anger, and confusion, but not confrontation.

"This transaction does not require an investment vote, you just need to sign." Su He's knuckles made a muffled sound as he clicked the thick document.

Zhang Tao came back to his senses and pounded his fist on the table: "Su He, what do you want to do? You are threatening me by doing such shameless and unscrupulous behavior!"

"There are still two hours until half past three for you to think about it."

Su He lowered his voice unconsciously: "Actually, I really hope you can continue to be naughty and impulsive, sign this deal, and then I will personally get you out."

"You have no right to kidnap Xie Jingxing and make decisions from the beginning to the end. No one can do that!" She blurted out sharply and resentfully.

Zhang Tao was extremely shocked. Indeed, if he just signed, Wang Xing next door would open champagne to celebrate without hesitation.

But is Xie Jingxing really willing to let the other party take the position? This should be the extreme pressure in the negotiation, or it can be regarded as a compromise product in which both parties take a step back.

——The merger between New DAE and Meituan immediately integrated their businesses in an all-round way. He reduced his shareholding and voting rights, and Xie Jingxing maintained the actual control.

The exchange of interests is full of calculations. Zhang Tao can think of various ideas, but they definitely do not include the hysterical revenge from a mad woman.

So, who is the impulsive one...

"After the merger, New DAE and Meituan will operate independently for half a year, and after half a year, the data integration business will be fully connected."

"During this period, Zhang served as the company's chairman, and Wang Xing remained the CEO of Meituan."

"Meituan's overall valuation is $90 billion, with Grapefruit Capital backing the buyback of Wang Xing's personal shares and Alibaba's shares."

At 3:45 p.m., Su He read out the key M&A terms one by one. Liu Chih-Ping and Shen Nanpeng, who were attending the meeting online, had no objection. This was the solution they wanted.

Including the vicious merger and acquisition plan proposed by Su He, which was also tacitly approved by them.

Just as Zhang Tao thought, if things really didn't work out, he would kick him to the second-tier subsidiary to hold shares and reduce his control over the company from the equity level.

As for resentment and revenge, perhaps Su He did it intentionally based on rational judgment and exerted extreme pressure.

Moreover, Liu Chih-ping and the other person did not hear her passionate speech, and it was even more impossible for Zhang Tao to reveal it on his own initiative. However, he was unwilling to gamble from the bottom of his heart.

"Since the meeting is going smoothly, let's just ask Mr. Wang to join and confirm it. We will try to complete the M&A process before September." Su He actively presided over the meeting.

Zhang Tao looked at her smiling expression, which gradually merged with the extremely fanatical face she had just shown in private, and all his ambitious impulses were quietly crushed into ashes.

Compared with the ferocity and paranoia of capital players, he is still far behind.

…………

"Hello, Mr. Xie. Please say hello to everyone."

"Hello, everyone from the CCTV audience, I am Xie Jingxing, and I am very happy to meet you all at today's celebration event."

The sky is clear and cloudless, the capital city is full of bright colors, and the ten-mile-long street is prosperous.

Xie Jingxing, who had flown back from Europe, was dressed in a formal suit, with a smile on his face that he had practiced hundreds of times, and he nodded slightly in greeting. The scene was particularly noisy and lively.

He briefly accepted a two-minute live interview and then followed the staff as they walked quickly toward the center of the long street.

"Mr. Xie, everyone is discussing that there is a high probability that Meituan and New DAE will merge into one company, which will cause concerns about market monopoly. What do you think about this?"

"Monopoly? There is no monopoly. Whether it is New DAE and Meituan, Alibaba or Baidu Nuomi, they are all excellent representatives of enterprises in the market. Their competition promotes the growth of the entire industry, which is welcomed by the public."

"But Mr. Xie, at present, Xinda E and Meituan are continuing to engage in a subsidy war. Many professionals believe that this kind of competition will destroy the market."

"There's nothing much to say. Whether the problem you mentioned exists or not, Xinda E is willing to make timely adjustments and conduct self-inspections."

"So, Mr. Xie, do you admit that subsidies and burning money are indeed malicious commercial competition and commercial monopoly?"

“We actively embrace regulation.”

Xie Jing Xing did not respond directly. He walked into the concierge passage and gently waved to the reporters who were anxious to catch up. He walked up the stairs easily, and the ID card on his chest swayed gently with the rise and fall of his shoulders.

——Xie Jingxing, Chairman of Xiyou Asset Management Co., Ltd.

【Embracing regulation, Xinda E and Meituan reject vicious competition and jointly maintain a good market ecology.】

At the same time, the official Weibo accounts of Xindai and Meituan quietly announced the merger when all the attention on the Internet was focused on Beijing.

(End of this chapter)