Extraordinary Genius-Chapter 1304 - Many benefits of a cooperation
Chapter 1304 – Many benefits of a cooperation
Budweiser’s Asia President, Schneider, had come to Bing City Beer to negotiate. They had done their research, and Bing City Beer is the market leader in the Northeast. They are also the oldest beer brand in China. If they can acquire Bing City Beer, they can easily take over the Chinese market.
Controlling the Chinese market is equivalent to controlling the whole Southeast Asia market. This will be advantageous for their sales in Asia.
Budweiser planned to get a stake in Bing City Beer and then slowly acquire them. Their target is full ownership or at least own the controlling shares.
Budweiser has strong financial backing and should have no problem acquiring a brewery worth around three to four hundred million USD.
Schneider was enjoying his coffee in the meeting room when a few men entered. How come there is a young man among them? Is he a translator? But why is the translator walking in front, and Bing City Beer’s Chairman seems to be looking at him respectfully? Is he not a translator?
Feng Yu sat opposite Schneider, who is in his fifties and is slightly plump. He looks gentle and friendly but has sharp eyes.
“Are you Schneider? Budweiser’s representative for this negotiation?”
Schneider is unhappy as he felt this young man is rude and arrogant. Other than addressing his name directly, his tone is also unpleasant.
“Zheng, who is this? What is his position?” Schneider looks at Bing City Beer’s Chairman, Zheng Jiawei.
“Let me introduce myself. This is Feng Yu. He is also going to invest in Bing City Beer. I believe I don’t need further introductions as you should have heard of him.”
Feng Yu? Who is that? Schneider was about to ask when he remembered this name. Feng Yu? The World’s Richest Man?
There are rumors that the World’s Richest Man is in his thirties and comes from China, Bing City. This guy must be him. No wonder he sounds so arrogant.
Schneider quickly stood up and extended his hand. “I didn’t expect to meet you here. Sorry for not recognizing you earlier.”
Feng Yu shook Schneider’s hand. “Stop with the greetings. You want Budweiser to enter into a cooperation with Bing City Beer, right? I will tell you my conditions and see if you all can accept them. First, this cooperation between Budweiser and Bing City Beer will be strategic alliance cooperation. Both parties will exchange 10% shares. We will also exchange techniques, sales channels, management, branding, production, and other cooperation.”
Schneider is confused. “Mr. Feng, I don’t mean to be disrespectful. But swapping shares is unfair. Budweiser’s market value is almost 12 billion USD, and Bing City Beer’s value is less than 400 million USD. Our value is 30 times more than you all, and how are we going to exchange shares?”
“Simple. I will use cash to top up the difference. Tai Hua Holdings will make up for the differences. It’s only around 1 billion USD.” Feng Yu replied casually as if 1 billion USD is 10 USD.
Schneider is speechless. To the World’s Richest Man, 1 billion USD is nothing. He had heard Feng Yu’s Wind and Rain Consulting in Hong Kong owns tens of billion USD worth of futures and shares and has tens of billion USD reserves.
“Mr. Feng, we are here to discuss Budweiser’s investment into Bing City Beer, and we have no intentions of letting others invest in our company. We are the world’s biggest brewery and have the world’s top brand, Budweiser. Our profits...”
“Your shares had fallen 22% last year and 19% the year before. Bing City Beer’s share prices had increased by 31% and 17% the year before. This shows that investors are not confident of Budweiser and choose to dump your shares during the financial crisis. But our Bing City Beer is different. During that financial crisis, most people still hold on and buy our shares.” Feng Yu interrupts Schneider’s boasting.
What profits? Budweiser’s sales had been declining in North America over the past two years. This is also the reason why they want to enter the Asia market to increase their profits.
Schneider is slightly embarrassed. He did not expect Feng Yu to be so prepared and got all the figures. But all these are not secret, and he is facing Feng Yu.
“Mr. Feng, although our share prices have fallen, our profits and sales had increased. So, we have no intentions to sell our shares.”
“Yes. Your profits and sales are increasing, but the growth rate has slowed, and the profit margin is falling. All these are the truth, and you should know what will happen to your company’s shares after I invest in you all. Whatever shares Buffett buys, that company’s share price will shoot up. This is because of his and the investors’ trust in him. Who do you think investors will trust? Buffett or me? Most of the people’s assets on <Forbes> list had shrunk in the past two years, and I am the only person whose assets have increased.”
Schneider thought for a while. If Feng Yu invested in Budweiser, it would be beneficial to all the shareholders and investors.
“I also own the best beverage sales channel network in China and Asia. Even Coca-Cola and Pepsi’s combined sales in China cannot be compared to one of my subsidiaries. If we swap shares, I can let Budweiser and Bing City Beer reach out to every Province in China. You all will need to invest a sum of money and at least three years to achieve this.”
“Mr. Feng, are you a shareholder of Bing City Beer? I thought Beidacang and Bing City Government are the only shareholders of Bing City Beer.
“I am a shareholder of Beidacang. Also, Bing City Beer is going to issue shares and acquire other breweries in China. I have the priority for private placement.”
Schneider finally understands what is going on. Feng Yu is closely related to Bing City Beer, but he doesn’t dare to decide. This can only be decided by the Board of Directors or even the shareholders!
“Mr. Feng, can we stop the negotiations temporarily? I need to report to my headquarters first and wait for their decision.”
“Then you better hurry up. Budweiser is not the only overseas brewery that wants to cooperate with us. Heineken also wants to work with us.” Feng Yu hinted.
“Sure... sure...” Schneider knew Budweiser’s sales in China would be seriously affected if Bing City Beer and Heineken cooperate. They might even be kicked out of the Chinese market.
