vrcanaries Chapter 604: Something Else
Chapter 604: Something Else
Attracting investment has always been a matter of great concern to local governments, and attracting foreign investment is the top priority.
Investment in manufacturing is the most popular type of investment at the local level, because manufacturing can create jobs and generate tax revenue. These are precisely the two problems that local officials need to solve the most.
At that time, in China, the service industry was underdeveloped, the real estate industry had not risen, and there were no big technology companies. They could only obediently develop the manufacturing industry and earn money through production in a down-to-earth manner. industry enterprises.
This is probably like you who have no money to speculate in stocks and real estate, so you can only be a worker honestly.
High-end manufacturing is the most popular investment in the manufacturing industry, because while solving employment and creating tax revenue, it can also bring higher added value.
With the level of technology at the beginning of the 21st century, Volvo's construction machinery is a high-end manufacturing industry in any country.
It was also for this reason that when Olaf arrived in Qinghe, he was immediately warmly welcomed by the locals. Qinghe City almost enshrined Olaf as an ancestor, hoping that Volvo could implement the investment.
Qinghe City held a special welcome party for Olaf, and Li Zhongwei, the new leader of Qinghe City, also attended in person.
Mr. Olaf, you are welcome to visit Qinghe, and Volvo Group is also welcome to invest in Qinghe! Li Zhongwei said.
Mr. Li, thank you very much for hosting the welcome ceremony for me. Olaf said directly without detours;
Prior to this, our Volvo Group has sent people to Qinghe many times for investigation, hoping to acquire a company as our Volvo production base in East Asia. I am here this time to implement this matter.
That's great. We also very much hope that Volvo's investment can be implemented as soon as possible. Li Zhongwei was overjoyed, and then said: Mr. Olaf, if you have any needs, you can directly ask them, and we will try our best to help you solve them. question.
Thank you very much. Olaf expressed his gratitude again, and then said; Mr. Li, after our Volvo inspectors returned to Sweden, we have reported the details here to the group management. Our management, for Qinghe City Fukang Construction Machinery Company is very interested.
Beverly Engineering? Li Zhongwei was stunned for a moment, thinking to himself: Did I hear wrongly, didn't the inspectors from Volvo come here to buy a heavy machinery factory? How did it become Beverly Engineering?
So Li Zhongwei opened his mouth to confirm: Mr. Olaf, are you talking about Fukang Engineering Company?
That's right, it's Fukang Project. Olaf nodded seriously.
Li Zhongwei was afraid that the foreigner in front of him would make a mistake, so he reminded: Mr. Olaf, we have two construction machinery companies in Qinghe City. One is the Fukang Engineering Company you mentioned, and the other is a heavy machinery factory.
I'm talking about Fukang Engineering. Olaf continued; At last year's exhibition in Dubai, I had contact with Fukang Engineering. I think it is a company with relatively potential, so we have the opportunity to acquire Fukang Engineering. intention.
I see. Li Zhongwei nodded. Since Olaf had contact with Fukang Engineering, it became reasonable for Volvo to acquire Fukang Engineering.
Li Zhongwei went on to say: Mr. Olaf, we welcome Volvo's investment, but Fukang Engineering is not a state-owned enterprise, but a private company, and they are privately owned.
Therefore, we in Qinghe City have no decision-making power, and can only help matchmaking. As for whether Fukang Engineering is willing to accept the acquisition, or whether the acquisition will be successful in the end, it needs to be negotiated by both of you, and I have no right to interfere here.
Olaf nodded: I understand this. I hope that Mr. Li can help me contact the person in charge of Fukang Engineering so that we can talk in detail.
no problem,
I will contact the chairman of the Fukang factory as soon as possible. Li Zhongwei agreed, and then said: Mr. Olaf, you can rest for a few days to get used to the environment here. Once I have news from my side, I will notify you immediately!
Li Weidong received a call from Li Zhongwei.
Volvo wants to invest in our Fukang project? Li Weidong was stunned for a moment, and then immediately asked: Aren't they going to buy the heavy machinery factory? Why is it our turn?
Who knows! We also thought that Volvo's target was a heavy machinery factory. Who knew that during the welcome meeting, Volvo's representative proposed to acquire your Fukang Engineering.
Li Zhongwei went on to say: I also feel quite puzzled, so I checked again and again. According to Volvo's representative, last year, they went to Dubai for an exhibition and met your company. They thought your company had great potential, so they had an acquisition plan. Intend.
I see. Last year, we went to participate in the construction machinery exhibition in Dubai. Li Weidong continued to ask: Leader, what is the attitude of the city?
Li Zhongwei answered: Of course we hope that Volvo's investment can land in Qinghe, Volvo is a large international group, and it is also a world leader in construction machinery technology.
We in Qinghe do not have such a large international company, nor do we have any advanced manufacturing industry. If we can introduce Wall's investment and technology, it will be a good thing for the development of our Qinghe.
However, Fukang Engineering is a private enterprise after all, so whether you are willing to accept Volvo's investment and the specific conditions of the investment should be negotiated by you. I am just trying to build a bridge here.
Volvo is willing to invest. Of course, I welcome it very much. It is also a good thing to be able to introduce foreign advanced technology to improve our own level and promote the development of the enterprise.
Li Weidong made a statement first, and then continued: But I don't know what kind of conditions Volvo can offer, so it's hard to promise anything now. I don't think it's better than this. Please arrange for me to meet with Volvo's representative. See you, we'll talk about it later when we meet.
That's exactly what I mean, Chairman Li, if you can, let's find a time to let Volvo's representative visit your factory, and let's find out what he has to say by the way!
After the call ended, Li Weidong fell into thinking.
Volvo's technology is of course very advanced, if Volvo's technology can be introduced, then Fukang Engineering's technology research and development will at least save ten years of detours!
The question is how much equity Volvo wants to take away. If the equity they want does not exceed 30%, even if they don’t pay a penny, I am willing to hand over 30% of the equity just by being willing to take out the technology.
I'm afraid that Volvo is more greedy, wants more than 50 shares, and wants to control the entire Fukang project. In that case, I can only reject Volvo!
Under Li Zhongwei's matchmaking, Olaf came to Fukang Engineering.
After visiting as usual, Olaf was invited to the reception room.
Mr. Olaf, what do you think of our Fukang project? Li Weidong asked.
Your company is a very good company. Although there is still a certain gap between your company and European companies in terms of production technology and hardware. But we can see that your company's management is very good, and the workers' operations are also good. Very proficient, this is an essential element of an excellent company. Olaf said.
Thank you Mr. Olaf for your compliment! Li Weidong continued to ask: I heard that Volvo intends to invest in our Fukang project. I wonder if it is true?
Li Weidong's meaning is very clear, since you have all seen the product, you should tell me whether you want to buy it or not!
Olaf immediately replied: Our Volvo Group intends to establish a production base in Asia, so we are very interested in acquiring Fukang Engineering. I come to China this time to finalize this matter!
Are you talking about acquisition? Li Weidong asked immediately.
Acquisition is also a kind of investment! Olaf replied immediately.
Li Weidong chuckled, and then asked: Does Volvo want to acquire a full share? Or only buy a part of the equity?
It's best to be able to acquire a wholly owned company. If not, buy most of the shares. Olaf replied.
Mr. Olaf, what are you talking about most of? Li Weidong continued: I don't think this number should be lower than 51, right? Otherwise, Volvo would have no control over the enterprise!
Olaf was also very honest, he said: Of course we Volvo Group needs the control of the enterprise, and 51% of the equity is far from enough for us.
Because what we pay is not only money, but also technology investment. We bring technology, and there are investment risks, so we need more equity to ensure our investment income!
So that's it! Li Weidong narrowed his eyes slightly, and his mind turned rapidly.
After a few seconds, Li Weidong quickly came to a conclusion: It seems that we are not really planning to acquire Fukang Engineering!
Li Weidong knew that Olaf was playing tricks, so he didn't have the heart to receive Olaf. After he responded a few words casually, he said:
Mr. Olaf, you must have been hungry after you have been investigating all morning. I specially prepared a sumptuous lunch for Mr. Olaf, all of which are local specialties in Qinghe. In addition, I also asked someone to prepare a few cans of herring for you. Canned food, I hope you like it!
Canned herring? Is it our Swedish canned herring? Olaf asked in surprise.
Yes, I asked someone to bring them from Sweden, but the quantity is not very large! Li Weidong nodded.
I can have one or two cans, let us relive the taste of my hometown, I am very satisfied! Mr. Li, thank you very much! Olaf bowed slightly to Li Weidong.
Li Zhongwei next to him looked at his watch subconsciously.
It's just eleven o'clock, isn't it too early for dinner? This Swede came to invest, and others would be eager to talk about investment. Why is Li Weidong rushing to let people eat? Is it just to show off? What is that canned herring? By the way, what is this canned herring? Is it delicious? Do you have to set aside an hour in advance to eat it?
Li Zhongwei was full of doubts, and under the guidance of Li Weidong, he went straight to the hotel.
Then there are shredded onions, sliced tomatoes, potato chips, cream, cheese sauce, flatbread, and several large cans of herring.
Swedes don’t eat canned herring raw directly. They are usually served with onions, potatoes, cream, cheese and other accessories, or baked in the oven, or eaten directly with pancakes.
Seeing this set of guys eating canned herring, the eyes of Olaf and the Swedish assistants around him suddenly lit up.
Li Weidong said, Mr. Olaf, I won't bother you to enjoy the delicious food. We are in the next room. If you need anything, you can come to us.
Olaf bowed slightly and expressed his thanks again, while Li Weidong pulled Li Zhongwei, who was in a daze, and left the room.
As soon as he left the room, Li Zhongwei asked: Chairman Li, why did you drag me out? We are not allowed to eat with Olaf? Leaving the guests in the room by themselves, what kind of hospitality is this!
Li Weidong explained: Leader, you don't know that the canned herring in Sweden has a very smelly smell, and most people can't stand the smell.
There is a custom in Sweden to tell neighbors before eating canned herring, so as not to smoke each other. So many Swedes go to the wilderness to eat Swedish canned food, which is convenient for the smell.
We left these Swedes alone in the house to eat canned herring, but for them we were taking care of their habits, and it was too late for them to thank us!
Li Zhongwei nodded, and then said; Although this is his living habit, but after all, he is a guest, and he is here to invest, so we should do our best as landlords.
Chairman Li, you are still too hasty. Even if the canned herring is not tasty, you should take a symbolic bite, and then give a superficial compliment, so that both parties can save face.
Leader, it's not that I'm rash, I'm afraid that you ate that canned herring and spit out your breakfast! Li Weidong said with a smile.
Without investigation, there is no right to speak. After all, Li Zhongwei has never eaten canned herring, so he did not continue this topic.
Li Zhongwei changed his voice, and then asked: Chairman Li, it's only eleven o'clock, so it's too early for lunch, right? You don't want to eat an hour earlier just to invite the Swedes to eat this canned herring, right? ?”
I proposed to eat, of course not to let the Swedes eat canned food. Li Weidong sighed, and then said: If my judgment is correct, Volvo should not plan to acquire Fukang Engineering.
No acquisition? Are you saying that Olaf is playing tricks? Li Zhongwei frowned, and then asked: Chairman Li, what is the basis for your judgment?
Because Olaf mentioned investing in technology. Li Weidong replied.
Is there any problem with this? It is very common for foreigners to use advanced technology as investment. There are so many joint ventures in China, most of them have this situation. Li Zhongwei said.
But we are a private enterprise! Li Weidong spread his hands, and continued: Of course, I am not saying that private enterprises do not need advanced technology, but that our private enterprises have different views on investment.
For example, when Volvo came to invest this time, they made it clear that they wanted to get more than 50% of the controlling stake in order to gain absolute control of the company. Even better is a wholly-owned acquisition, so that the interests of the investment can be maximized.
From the perspective of commercial mergers and acquisitions, the pursuit of profit is understandable, but he wants to engage in wholly-owned acquisitions and then talk about technology investment. Isn't this a rogue for a private enterprise like ours?
Although our Fukang Project has the management and scientific research team's shares, the vast majority of the shares are still in the hands of Li Weidong. I said that this company is owned by me alone. Is this not an exaggeration?
If I want to sell the company to you, I will definitely care about how much money you give me. As for what technology you bring, what does it have to do with me? The enterprise is not mine anymore, even if the technology you bring can build an aircraft carrier, it has nothing to do with me!
Therefore, the most direct and only way to acquire our Fukang project is to directly negotiate money! However, Olaf is talking about technology investment there, which shows that he does not really want to acquire our Fukang Engineering!
It makes sense. Li Zhongwei thought about it carefully, and then nodded: Since Olaf didn't intend to acquire Fukang Engineering, he came here specifically for inspection! It seems that he has other plans!
Li Zhongwei rolled his eyes, and immediately thought of another possibility.
Li Weidong had already guessed that possibility, but Li Zhongwei is the leader after all, if Li Weidong behaved smarter than Li Zhongwei, wouldn't Li Zhongwei be very shameless.
So Li Weidong pretended to be puzzled and asked, The Swedes must have other plans, but what is their real purpose?
Li Weidong's question was really just right, and Li Zhongwei showed a calculating expression very cooperatively: What purpose can there be! To lower the price!
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