"Mr. Zhang, Chewy's valuation is very high, at least US$2 billion.
I have seen their operating and financial data. From the time they were established in 2011 to the present, they have been losing money, and the loss ratio is still expanding.
Pate Holdings Group doesn’t have much capital right now, it only has the US$250 million it just raised, so I think investing US$100 million in Chewy is too risky!”
Lu Fenghai also came to the United States. After inspecting several pet e-commerce companies, he came to Los Angeles to report the situation to Zhang Yida.
At 2 billion U.S. dollars, the valuation was higher than that of Pate.com. Zhang Yida couldn’t help but frown, he couldn’t afford to invest!
Asked Lu Fenghai again: "What about Vet First Choice?"
Lu Fenghai nodded, "This company's Chinese name is "Veterinary First Choice", which provides technical support to veterinarians and pet hospitals. I think it can form complementary businesses with Pate Holding Group.
First, Pet Pet Hospital will use some of their technology.
In addition, if possible in the future, Pet.com can also establish a joint venture with them to use the advanced technology preferred by veterinarians to serve pet hospitals and pet doctors in China.
And their current valuation is not high, only US$500 million!”
Zhang Yida thought about it and remembered that both companies were listed in 2019. The former had a market value of US$14 billion and the latter US$4.5 billion.
If you invest now, in three years, one will double by 7 times, and the other will double by 9 times.
"In this way," Zhang Yida said, "invest US$100 million in Chewy and US$50 million in Veterinary First Choice."
Lu Fenghai smacked his lips and said with some worry: "We currently only have 250 million US dollars in funds on hand, and we are still a start-up company. Isn't it too much to spend 60% of the funds for strategic investment?
Pate.com still needs to develop, and supporting the expansion of Pate Pet Hospital requires huge amounts of funds."
Zhang Yida nodded, "What you said makes sense! But isn't Pate Holdings about to acquire Dogford?
After the merger is completed, there will be an additional cash cow, which can share tens of millions of dollars in net profits every year.
Moreover, Petnet's losses have been narrowing, and the only thing that needs to be considered is the pet hospital.
The remaining 100 million U.S. dollars, plus the tens of millions of U.S. dollars in annual dividends from Dogford, are enough for its expansion.
At worst, we can just raise another round of financing next year or the year after."
Lu Fenghai also wanted to dissuade Zhang Yida from being so desperate. What if the investment failed? It wouldn't be a big deal.
But Lu Fenghai then thought about it. With Ruixiang Industrial Fund and Mr. Zhang’s rich industry as the backing, even if the investment fails, it should be fine, right?
"Okay then! Then I will vote as you tell me!"
Zhang Yida added: "By the way, you should also negotiate Beckham's endorsement contract!"
"Okay," Lu Fenghai was a little surprised, "Mr. Zhang, how did you manage Xiao Bei?"
"What about Xiaobei?" Zhang Yida said with a smile, "Although he is a star, he still has to eat!"
"What about the endorsement price?" Lu Fenghai asked again.
Zhang Yida said: "Let's go according to his market price! Let's set the signing period as...three years!"
"Okay, okay, no more talking!"
Zhang Yida stood up and said to Lu Fenghai: "I'll leave these things to you! I'm going to Singapore. Yimin Wealth's acquisition of Barclays Singapore's wealth management business has finally come to an end!"
"Barclays, the second largest bank in the UK?"
Zhang Yida nodded, "Yes, that's it!"
Lu Fenghai was a little unbelievable and asked: "Can such a big bank not work anymore?"
"It said it would focus on European and American business and shrink its business in other regions."
Zhang Yida spread his hands and said, "The real reason is that the old capital countries are no longer able to do it!"
He added with emotion: "This bank was founded in 1690, when China was still in the 30th year of Emperor Kangxi's reign. After so many years of prosperity, it has begun to decline."
Lu Fenghai said with a smile: "In the 21st century, we still have to look at China and Asia."
…
Marina Bay Sands Hotel, Singapore.
Witnessed by many media, Ding Siyao signed her name on the acquisition agreement, exchanged contract documents with Cliff, the president of Barclays Singapore, and took a photo together.
Flash lights were on in the audience, and many reporters were taking photos, many of them from China.
Although Yimin Wealth only acquired a small part of Barclays Bank's business, it was still very newsworthy for domestic reporters.
They even thought of the title, and they called it: "Yimin Fortune acquires Barclays in Singapore", "A three-year-old company acquires Barclays with a history of more than 300 years", "Old British bank exits Singapore, new listing in China"
The company starts overseas mergers and acquisitions"...
Barclays Singapore President Cliff left after signing the contract, leaving his deputy to hold a press conference with Ding Siyao.
Cliff's deputy is a middle-aged Chinese-looking woman named Sun Yanjia. She looks a bit like Stefanie Sun, who is popular in China.
In fact, she is Stefanie Sun's eldest sister. She was born in 1975 and is originally from Shantou. She is currently the vice president of Barclays Bank Singapore.
Sun Yanjia said to Ding Siyao: "Mr. Ding, President Cliff has left beforehand. I will attend the press conference next."
Ding Siyao nodded towards her and took a seat on the stage with her.
A reporter raised his hand and asked: "Hello, Mr. Ding, I am a reporter from the South China Morning Post.
Just after Yimin Wealth was listed on the New York Stock Exchange, it acquired the wealth management business of Barclays Bank in Singapore and Hong Kong. Does this mean that Yimin Wealth will fully launch its international business?"
Ding Siyao nodded, "Yes, after Yimin Wealth went public, we received ample development funds and we will actively develop international business.
While helping high-net-worth clients in mainland China conduct global asset allocation, it will also help overseas clients invest in mainland China.
As we all know, China has achieved economic development in the past two decades, with the emergence of a large number of wealthy people and huge wealth opportunities.
Yimin Wealth is willing to be this investment bridge and help overseas customers invest in mainland China."
Another reporter stood up and asked: "Hello, Mr. Ding, I am a reporter from the Global Times.
How will Yimin Wealth help overseas users invest in mainland China?"
Ding Siyao explained: "Yimin Wealth cooperates with a wide range of financial institutions such as Chinese public funds, securities private equity funds, equity private equity funds, trusts, insurances, industrial investment funds, real estate funds... etc."
We will customize personalized and comprehensive wealth management plans based on each customer's wealth status and wealth management needs..."
Zhang Yida was sitting in the audience and asked the Yimin Wealth executive sitting next to him: "I heard that UOB and others gave up at the last moment of the second round of bidding?"
The executive nodded and replied: "Yes, Mr. Zhang. Maybe our bid was relatively high, and several other banks thought the price was higher than they could afford, so they finally gave up."
"$320 million is not a high price to buy 1,800 high-net-worth clients and $18.3 billion in assets under management, right?
Unlike in China, it mainly provides sellers with financial product distribution channels to earn commissions on consignment products.
This foreign wealth management model all charges asset management fees to the buyer, that is, the customer.
With assets of US$18.3 billion and a management fee of 1%, the annual income is also US$183 million!”
The executive shook his head, "Mr. Zhang, you do have such high asset management income, but your expenses are also huge!
For a team of financial planners of the same size, the salary in Hong Kong and Singapore is several times higher!”
Zhang Yida always felt that things were not that simple, but he couldn't explain why, so he simply stopped asking.
The reporter asked Sun Yanjia again: "Mr. Sun, does Barclays' sale of its wealth management business in Singapore and Hong Kong mean that it will gradually shrink its business back to Europe and the United States and abandon the Asian market?"
Sun Yanjia frowned and replied calmly: "This is just a business adjustment by Barclays, and the outside world does not need to read too much into it.
Giving up some sideline businesses is just to focus more of the group’s strength and resources on banking business.”
Another reporter asked: "According to reliable sources, Barclays Bank will announce the completion of the sale of its Italian retail business in the next few days, and its Iberia credit card business will also be sold. Is this true, Mr. Sun?"
"
Sun Yanjia replied bluntly: "Then you should ask my colleagues in the Italian branch. I am only responsible for the Singapore business."
"Hello Mr. Sun! Barclays CEO Jess Stanley has promised to complete the sale of 35 billion pounds of assets by the end of 2017 to increase the bank's capital level.
What do you think about this matter?"
…
Zhang Yida also laughed in the audience. Barclays' retreat was more exaggerated than he imagined.
We sell wealth management business, we sell retail business, we sell all kinds of businesses anyway.
But a skinny camel is bigger than a horse, and a bank of this level won't fail for a while.
After the press conference, Zhang Yida and Ding Siyao had a meal together.
At the dinner table, Zhang Yida asked: "Does Barclays require that the purchase price be settled in full cash at once?"
Ding Siyao nodded, "Yes! They are short of money now, and their assets and businesses around the world are being sold!
I heard that it is caused by low interest rates and regulatory pressure in Europe. Not only them, many established European banks are selling off assets.
If they want to live like our domestic cosmic industry, they can only live in the next life!"
"Well, the European economy is in trouble!"
Zhang Yida took a sip of red wine and asked again: "When will the delivery start?"
"It will officially start in three days, and Barclays will make the final contact with us."
Zhang Yida asked: "Have you learned about the situation on the customer's side?"
Ding Siyao shook his head, "The company hasn't been sold to you yet, how can they provide you with customer information?"
Zhang Yida thought for a while and asked again: "If during the handover, customers withdraw and the scale of asset management decreases, how should we deal with this situation?"
Ding Siyao smiled and said: "If that happens, there will be a supplementary agreement.
Moreover, the remaining amount of the acquisition payment will not be paid until the handover of the customer and assets is completed.”
“Don’t worry, all the Chinese chaebols in Southeast Asia have invested in Ruixiang Industrial Fund, and Yimin Wealth is also an LP of Ruixiang Industry Fund.
These high-net-worth clients, if you say they are rich, are indeed quite rich, with per capita assets of tens of millions of dollars.
But it depends on who you compare with!
Chinese chaebols with assets ranging from billions to tens of billions of dollars all invest in Ruixiang Industrial Fund, and they can invest in common funds with the Chinese chaebols.
There are not many opportunities like this! I think they should cherish it!"