"Okay, great! Contact Mr. Montgomery immediately to prepare the contract text, and immediately fly to Yanjing City to sign the formal contract. We can't make any more mistakes, and we must handle things as safely as possible."
"Chairman, I'm going to do it now."
Director of the Secretariat Department Yu Chengde nodded in agreement and left in a hurry.
Wang Yaocheng looked at the two fax documents in his hand in a good mood and smiled happily.
The first faxed document was an official letter from the National Association of Securities Dealers and Exchanges, which is the governing body of the Nasdaq market and represents the official opinion of the Nasdaq market.
A formal response to Red Hat’s accusations in an official letter;
After investigation, Microsoft acted in compliance with market rules when it entered into the merger and acquisition case of Netscape. Red Hat's accusation was not established, and the request for an injunction was dismissed.
This outcome has long been foreseen, but this round of procedures is still unavoidable.
As one of the most powerful companies in the world, Microsoft has an experienced legal team. It is impossible to make stupid mistakes in corporate mergers and acquisitions, leaving a little pigtail to Red Hat.
It is true that in just two days, it is impossible for any company to collect enough chips in the market to change its controlling stake. No one can do this.
Use different branches to absorb the floating chips in the market for a long time, and control the right to speak without showing off. Finally, make efforts to carry out equity delivery in the bulk trading market, touch the sign line, and publicly issue continuous sign announcements.
This is a common practice in corporate mergers and acquisitions, and it is also a very effective merger and acquisition technique, with no procedural problems at all.
Red Hat's strong protest is just a small splash on the Nasdaq market. It will disappear soon and no one will care.
As the dust of the merger and acquisition settled, Mr. Stephen Ballmer officially became chairman, and Red Hat had almost no way to fight back.
According to the price performance of the Nasdaq stock market, Netscape's positive performance turned negative, with its stock price falling rapidly from its peak of US$157.2 per share to US$141.6 per share.
This stock price level is still much higher than the original level of 80 to 86 US dollars per share. Netscape's total market value has also reached 14.1 billion US dollars, showing strong confidence in the market.
In the original history;
When Netscape was founded 16 months ago, it had no profit at all, but its market value reached US$7.1 billion on the day it went public, and exceeded US$20 billion by the end of the year. Jim Clark, one of the founders of Netscape, is a legend in Silicon Valley.
Internet thinking was largely created by Netscape.
After Netscape, no one measured a technology company by its profit margin. It was a very low idea and meant that you were completely out of touch with the wave of the information revolution. People started talking about the number of users and clicks.
Today, history has been changed beyond recognition.
Netscape's latest third-quarter report disclosed a net profit of US$45 million. Compared with the first-quarter report of US$26.5 million and the second-quarter report of US$34.8 million, it still maintained a rapid growth of more than 30%.
Compared with the same period in history, the growth rate is an astonishing seven times, showing extremely eye-catching performance and will surely trigger a new round of investor enthusiasm.
This kind of brilliant performance that has been carefully prepared will reach its peak in the fourth quarter and will not be sustainable in the future.
Although Netscape raised a large amount of funds in the public market, it did not invest heavily in dedicated enterprise server groups. Instead, it adopted a leasing method, paying a high price of more than 13 million US dollars per quarter.
By 1994, communication companies will significantly increase leasing costs, ranging from 30% to 50%. Microsoft will have a headache in the specific negotiations.
Building an enterprise-class server with super data exchange capabilities to handle tens of millions of data accesses can easily cost hundreds of millions of dollars in the current era of high memory prices.
Wang Yaocheng would never do such a stupid thing of being used as a wedding dress by others.
All he has to do is drain Netscape's cash pool, leaving a hole-riddled mess for his powerful successor.
The true situation of the company is known only to a very small number of people in power.
There is a problem of information asymmetry here. Netscape's investment intentions, profits and losses, and other specific operating conditions can only be reflected in year-end reports. The Nasdaq market is ignorant of this.
The market is extremely enthusiastic about high-tech network companies, and the enthusiasm is getting higher and higher. The entry of the powerful Microsoft Corporation is unanimously welcomed by the market, and is considered to be a real benefit to Netscape.
The principle of leaning against a big tree to enjoy the shade is applicable everywhere.
There is every reason to believe that before the end of the year, Netscape's stock price will have a new round of climb and will never fall below its original historical level.
And this will be Wang Yaocheng's best opportunity to sell out his Netscape stock and obtain the ideal huge profits.
For the controlling shareholders and senior executives of listed companies, there are no lock-up period provisions in U.S. laws and SEC regulations, which means you can sell whenever you want.
The lock-up period stipulated by law is the agreement signed between the company and early investors and employees during the IPO period. There are no relevant regulations at all after the listing.
Generally speaking
The common practice is that the investment bank that guides the listing will require the signing of a new contract to confirm the lock-up agreement after the company is listed. The lock-up period is usually between three months and six months, and some lock-up periods can be as long as one year.
Therefore, the lock-up period in the United States is a completely market-oriented behavior, the result of the game between companies and investment banks, and a voluntary restraint behavior by companies and investment banks in order to gain the trust of investors and increase valuations.
According to the six-month lock-up period agreement signed between Red Hat and investment bank Goldman Sachs, it has expired as of September 1993. Wang Yaocheng can transfer the shares he holds at any time. This is his right.
Another faxed document came from the Yanjing Municipal Government, confirming that Pacific Company had officially obtained the development rights for Block 1 on Chang'an Street and set a date to sign the contract.
After all the turmoil, it is gratifying to get such a result.
This includes the factors that led to the rapid rise of Red Hat in Silicon Valley. The name Wang Yaocheng has really entered the attention of big people. There is also the fact that Vice Mayor Liu Jianshe was impressed by Wang Yaocheng’s innocence and the overall design of the project is in line with Yanjing’s urban positioning.
Factors to strive for.
Maybe there will also be bonus points of private jets and Rolls-Royce cars that show off the strength, which will be the last straw that breaks the camel's back.
Various factors are intertwined here, and no one can explain the specific game. Wang Yaocheng has no intention of getting to the bottom of it. He just knows that the project belongs to him.
During this period of 1993, when the planned economy was transitioning to the market economy, the reform was moving into deep waters. Many things were specious and did not fully operate in accordance with the laws of the market economy.
A sound and standardized project bidding system has not been established. Development projects are still subject to leadership approval, and there are no standardized contract constraints.
The Pacific Plaza project is the perfect example;
When this investment project was negotiated with the district government, it was implemented without formal bidding and without the emergence of competitors. It was approved by superior leaders.
As for why no formal contract was signed?
It was because of some disputes on the part of the government, and the passing of blame, that it was delayed in the end.
The No. 1 Chang'an Street development block involves more than 40 units under various national ministries and commissions, 7 small street enterprises, and residential housing owned by each unit. There is no unified operating entity.
As an administrative agency, the Yanjing Municipal State-owned Assets Administration Bureau, which was established recently, cannot manage so many national ministries and commissions. It cannot collect benefits for itself, but it will cause trouble. Of course, it does not want to be troublesome, so it lives day by day in wrangling.
past.
Pacific Company's first-phase demolition payment of US$30 million arrived, and it was quickly divided up by various demolition units. Some units moved, some did not move, those who moved slower did not get it, and some are still reporting to higher-level units.
When it comes to making requests, it’s all messy and there are any situations.
No one really asked about signing the contract, and the State-owned Assets Administration Bureau was unwilling to take the lead in the matter, so the matter was delayed.
Later, the project was stopped, changed hands, stopped again, and finally returned to the hands of Pacific Company. There were twists and turns, and the endless bitterness and helplessness all stemmed from this.
It is not uncommon for developers with weaker capabilities to be dragged to death or crippled, which can be understood as the pain of reform.
The second fax report in Wang Yaocheng's hand was that the game finally had its final result.
The good news is that the third Pacific Plaza bid plan finally adopted by the Yanjing Municipal Government will be signed by the Municipal State-owned Assets Administration Bureau for a formal development contract.
The Pacific Plaza project is located in Block 1, Chang'an Street, covering a total area of 220,000 square meters, extending to Lugongfu Street to the south and Nanchizi Community to the west, with a total construction area of 1.8 million square meters. The investment scale is US$1.8 billion.
, the construction period is seven years.
The plan includes 16 high-rise office buildings (Pacific CBD), eight Chinese-style luxury apartments (Pacific Palace), two large commercial plazas (Pacific Supreme Plaza and Carrefour Supermarket), and one luxury five-star hotel (Pacific Kempinski
Hotel), a convention and exhibition center (Pacific International Convention and Exhibition Center), a Chinese classical park, a thousand-meter pedestrian street of ancient buildings, and an underground commercial street.
Compared with the original project plan, there are three changes in the plan.;
The first change is that the investment has changed from 130 yuan to 1.8 billion US dollars. Because the RMB exchange rate has depreciated from 5.5 to 8.27 per dollar, the investment pressure has been reduced.
The second change is the addition of an underground commercial street.
The third change is that the construction period is reduced from eight years to seven years, the construction project time is shortened by one year, and the quality requirements are higher.
overall
The architectural style of the Pacific Plaza project is mainly based on the Ming Dynasty, which is consistent with the overall architectural style of Yanjing City. It incorporates the grandeur of the Qiang Han Dynasty and the beauty of the Tang Dynasty. It embodies the essence of Han architecture and is a large-scale building complex in a pure Chinese classical style.
.
Double eaves and overlapping peaks, beautiful scenery everywhere
The overall Pacific Plaza project adopts the design team's plan as the main design team of Professor Liu Hanmo of Huaqing University, which represents the highest level of domestic architectural design.
Really illustrates that statement;
Only what is national can be considered world-wide.
Wang Yaocheng thought about it. The initial development capital of US$220 million was allocated from Red Hat, plus the US$30 million in start-up capital paid last year. It would not be a problem to support the smooth progress of the project.
Calculate the money you have at your disposal. In addition to Hong Kong securities accounts,
There were originally US$540 million in Red Hat's account. After discovering changes in Netscape's stock, most of the remaining US$282 million in Netscape's account was gradually withdrawn from Netscape.
In the end, Netscape only retained more than two million yuan in liquidity in its account.
The total funds in Red Hat's account reached 820 million U.S. dollars, and 220 million U.S. dollars were allocated to promote the Pacific Plaza project, and it still holds a huge sum of 600 million U.S. dollars.
The Huaizhou eight-inch wafer production base has entered the equipment installation stage, and the project has a final payment of approximately US$100 million that needs to be paid before the end of the year.
Calculated in this way, Red Hat has a total bank loan of US$1.4 billion from Citibank. It can retain US$500 million in liquidity in the account, which can be used for Yahoo's second round of IPO financing and other mergers and acquisitions and development projects. The capital is still sufficient.
It is impossible to use all your own funds for real estate development projects. Most of them rely on bank loans. Having 30% of your own funds is already very sufficient.
In this way,
The US$250 million for the Pacific Plaza project, excluding the total demolition payment of US$120 million, and the earthwork project was handed over to its own Pacific Construction Company, the remaining funds are sufficient to meet the preliminary construction needs of the project.
When you are reborn into this world, you have to leave something behind.
The Pacific Plaza project entrusts Wang Yaocheng with a beautiful dream, and it can bring stable income. It is a chicken that lays golden eggs, and there is no reason to let it go.
Instead of letting the Swire Group make money, it is better to keep it in your own hands and let the Swire Group rest wherever it is cool.
One characteristic of Swire Group's development projects is that they are slow.
Take Taikoo Shing, Hong Kong as an example;
In early 1970, Swire Dockyard moved to Tsing Yi Island and was renamed "United Dockyard". In 1972, Swire Properties was established to develop real estate on the original site.
From 1975 to 1985, Swire Properties built two high-end properties, Sea View Garden and Sea to Sky Garden.
From 1982 to 1992, Phases 1 to 4 of Pacific Center were completed respectively, becoming the largest shopping mall in the Eastern District of Hong Kong Island.
A Taikoo Dockyard has still not been fully developed after twenty years, embodying the essence of long-lasting water.
The Swire Group is a veteran Hong Kong businessman with serious procrastination problems. The No. 1 Chang'an Street project in Yanjing City was left in his hands and could not be completed in 20 years.
The 16-year overall development plan was submitted, and the leaders who originally supported the Swire Group were dumbfounded;
this……
Are you kidding me?
If you think about it carefully, no one dares to imagine that the core of Chang'an Street in Yanjing City is always lined with scaffolding.
In 2016, almost a generation has passed. Not to mention political achievements, everything has been ruined.
The Swire Group adheres to the British's always arrogant and stubborn attitude, and it is difficult to communicate, which is a key factor in the turnaround of this project.
Don't be afraid of opponents who are like gods, but be afraid of teammates who are like pigs.
In the final analysis, what Wang Yaocheng should really be grateful to is this group of rigid-minded British guys who stubbornly and rigidly preserve their own traditions and are completely out of touch with the ever-changing land of China.
What's most popular right now?
It is the spirit of pioneering cattle, the speed of Shenzhen building one floor every day, and the spirit of the special zone that is determined to reform and innovate. It represents profound changes from the inside out and the determination to develop. It rises against the east wind of reform and cannot adapt.
All must be eliminated.
The impetuous desire for leapfrog development is reflected at all levels of the economy, with everyone from top to bottom eager to achieve dazzling results. The real estate bubble in the island province is just a microcosm of this.