Yimin Wealth’s asset entrustment management signing ceremony was relatively successful. At last count, 52% of the original Barclays Bank customers agreed to renew their contracts with Yimin Wealth.
The number of customers is about 930. Not counting additional investments by customers, Yimin Wealth has taken over approximately US$9.4 billion in customer assets from Barclays.
US$9.4 billion compared to US$18.3 billion, and 48.6% of customers were lost. According to the supplementary agreement, this part does not need to pay the acquisition fee.
At the end of the day, Yimin Wealth only needed to pay a total of US$188.68 million in acquisition funds to Barclays.
After deducting the deposit of US$64 million already paid, Yimin Wealth only needs to pay the final payment of US$124.68 million.
In addition, there are clients who are optimistic about Yimin Wealth and have made additional investments, but the proportion is not large, less than US$1 billion.
More people are adopting a wait-and-see attitude, wanting to see the return on investment of Yimin Wealth before making further plans.
Cliff shook hands with Zhang Yida with a dark face, "Congratulations, Mr. Zhang, you have got a big advantage."
Mr. Zhang smiled and said: "Mr. Cliff is happy to cooperate with us. If Barclays wants to sell things in the future, you can continue to come to us."
Cliff was scolded and didn't want to answer the question. He said goodbye and left directly.
At this point, the Barclays acquisition case has come to a successful conclusion!
It cannot be said that it is a complete success. Many customers have been lost. Although it has contributed to the reduction of transaction prices, Yimin Wealth will also charge a lot less management fees in the future.
"Where is Mr. Cliff?" Ding Siyao walked out of a hotel room and saw that Cliff, who had been talking to Zhang Yida just now, had disappeared.
"Leave with a lot of harvest!"
Ding Siyao smiled and said: "Full harvest? I think his face is as dark as the bottom of a pot!"
"Let's not talk about him! He is still an English gentleman! He is just a stingy man!"
After complaining about Cliff, Zhang Yida asked: "Have all the customer contracts been changed?"
Ding Siyao nodded solemnly, "Everything is done. All intended clients have signed new asset management contracts with Yimin Wealth."
She sighed again, "What a pity! Nearly 10 billion US dollars worth of assets have flown away!"
Zhang Yida shrugged and said: "It's not sweet to force a melon! Since people don't like us, we won't force it. I hope they won't regret today's decision in a few years!"
"Having said that, I always feel a little regretful."
Ding Siyao thought for a while and then said: "Anyway, we still have the information of these customers, and then we will send financial planners to slowly transform them.
Even if there are some stubborn people, there are some who can be brought back!"
"That's up to you!"
Zhang Yida smiled and praised again: "You have worked hard on this acquisition. You have obtained our most urgent financial license and... assets under management at the minimum cost.
Fortunately, the supplementary agreement was relatively well prepared, otherwise it would be us and not Barclays who should be crying now!"
"Mr. Zhang, you are so grateful! Before the acquisition, we hired a consulting firm, and the law firm we hired was the top law firm in Singapore.
Coupled with KPMG, this acquisition cost us millions of dollars just to hire these institutions.
If I still fall into this trap, then I won’t have the shame to be the CEO anymore.”
"Oh, by the way," Zhang Yida suddenly said, "As for the merger and acquisition fund, we can start designing products.
The underlying assets are the equity of financial companies such as banks, securities, and insurance.”
"Mr. Zhang, have you made any big moves recently?" Ding Siyao asked curiously.
…
In a high-end club in Singapore, Huang Hongnian handed Zhang Yida the detailed information of two banks and introduced to the latter:
"Yida, according to your request, I have identified two suitable targets:
One is permata bank, which is translated into Chinese as Gem Bank;
There is also Windu bank, which is translated into Chinese as Windu bank.
The former is headquartered in Jakarta, Indonesia. It was established in December 1954 and is the tenth largest bank in Indonesia.
In 2002, Gem Bank reorganized with four banks and currently has securities, consumer financial leasing, insurance, venture capital, investment, communications and other related subsidiaries.
It has 56 branches, 253 sub-branches, 312 Islamic office channels, 22 cash offices, 22 mobile cash offices, 6 payment points and 1,008 ATMs...
According to last year's financial report, the bank's total assets were US$16.3 billion and net profit was US$271.32 million.
Standard Chartered Bank and Astra Group currently hold a 45% stake in Gem Bank.
The latter, Windu Bank, is a commercial bank listed on the Indonesian Stock Exchange and headquartered in Jakarta.
As of the end of last year, Windu Bank's total assets were 10.09 trillion Indonesian rupiahs, approximately RMB 5.1 billion;
The total liabilities are 8.68 trillion Indonesian rupiah, approximately 4.3 billion yuan.
It has 77 branches throughout Indonesia, including 17 branches, 28 sub-branches and 32 cash outlets...
In addition, Windu Bank also holds 100% equity in Anda Bank Indonesia.
Anda Bank is headquartered in Surabaya, Indonesia and was founded in 1958. As of the end of last year, the bank's total assets were 1.9 trillion Indonesian rupiah, approximately RMB 950 million;
Total liabilities are 1.68 trillion Indonesian rupiah, equivalent to approximately 840 million yuan.
It has a total of 30 branches in Indonesia, including 8 branches, 17 sub-branches and 5 cash outlets."
Zhang Yida said with a smile: "Isn't it buy one get one free at Windu Bank?"
Huang Hongnian waved his hand, "Even if you buy one and get one free, both of them are small banks that are not popular."
"Take a look! Which one to choose? The advantage of Gemstone Bank is that it is large and has full financial licenses such as securities and insurance.
Windu Bank is small and has all the privileges expected of a bank, so the purchase price is not high."
Zhang Yida pondered for a moment and said: "From the bottom of my heart, I prefer Gemstone Bank, but are Standard Chartered Bank and Atela Group willing to sell their shares?"
Huang Hongnian said with a smile: "It doesn't matter whether you are willing or not. As long as you can afford the price, they will definitely sell it. Businessmen are all a group of people who are driven by profit!"
Zhang Yida nodded and asked again: "The net profit of Gemstone Bank is more than 200 million US dollars a year, what should be its valuation?"
Huang Hongnian gestured with five fingers.
…
"Hello Mr. Winster!"
Under Huang Hongnian's introduction, Zhang Yida met Bill Winster, CEO of Standard Chartered Bank Indonesia.
Bill Winster is about fifty years old, slightly bald, tall, and has a typical Anglo-Saxon appearance.
Wearing a decent suit, with a faint smile on his face, he said: "Mr. Zhang from China, I have heard of your name.
I heard that Barclays suffered a big loss in your hands? It sold its wealth management business in Hong Kong and Singapore for less than US$200 million?"
Standard Chartered Bank is also a bank run by the British. Doesn’t it have something to do with Barclays?
With doubts, Zhang Yida replied calmly: "We are only acting in accordance with the contract!
The customers and assets that Barclays handed over to us were only a little more than half of the original ones, and the churn rate was very serious.
We are also very sorry for this. It is also a loss to Yimin Wealth."
Winster waved his hands repeatedly, "No~No~, Mr. Zhang, you obviously misunderstood me.
The relationship between Barclays and Standard Chartered Bank is not good. They have always boasted that they have a long history, which is two centuries older than our bank.
To be honest, I have been unhappy with those arrogant guys for a long time.
Seeing them make a big mistake makes me feel happier."
"Haha, really?"
Zhang Yida stopped going around in circles and directly stated his purpose, "Mr. Winter, I want to acquire the 45% of Gemstone Bank shares held by your bank. I wonder if your bank is willing to part with it?"
Winster was not surprised at all. Huang Hongnian had already briefly explained the matter when he made an appointment with him.
"Yes! As one of the top ten banks in Indonesia, Gem Bank has hundreds of branches and business outlets covering most parts of Indonesia.
Mr. Zhang’s Ruixiang Group is engaged in financial technology. I believe that after you take control of Gemstone Bank, you will definitely make this excellent bank even better."
A few words of ecstasy can't make Zhang Yida faint. He knows that Winster is just talking about chips.
"Yes, Gemstone Bank is indeed a bank with excellent performance. Our Ruixiang Group has also listed it as one of the best acquisition targets!"
Zhang Yida's meaning is also very clear. You are just one of the spare tires. Don't give me any "unusual goods to live in".
Winster seemed not to understand and continued: "In Indonesia, there are currently not many private banks the size of Gem Bank. The others are either state-owned banks or the treasures of Chinese chaebols."
Huang Hongnian said with a smile: "This is a bit serious. The treasure of our family is the papermaking industry, but the bank does not pay much attention to it."
Winster knows the operating model of Chinese consortiums. Industrial expansion must have its own bank as the core financing channel.
Wouldn't he believe what Huang Hongnian said? In all the years he had been working in Indonesia, he had never seen any Chinese chaebol sell a bank, and he cared for everyone like a treasure.
Winster looked at Zhang Yida and said, "Mr. Zhang, if you really want to acquire Gemstone Bank, our Standard Chartered Bank can provide this convenience.
We don’t want the price to be too high, just a valuation of US$4.7 billion with a price-to-earnings ratio of 10 times.
We can transfer all the shares we hold to you based on this valuation."
Zhang Yida shook his head, "This is too high! Indonesia's financial infrastructure is still very backward, and many people don't even have bank cards.
The money earned by Gemstone Bank is basically invested in infrastructure construction.
And the business growth rate is also very slow, last year’s business growth rate was less than ten points, right?”
Huang Hongnian also supported: "The price-earnings ratio of 10 times is indeed too high. The bad debt rate in Indonesia's banking industry is very high. I think a price-earnings ratio of 5 times is more appropriate."
Winster's eyes widened and he shook his head repeatedly, "The price-to-earnings ratio of 5 times is too low. This price cannot convince my superiors.
Our headquarters will not approve this transaction."