Huawei's communications empire, which is valued at US$7.5 billion, naturally has a shortage of US$120 million, which can be achieved through corporate bonds and bank loans.
The purpose of lending money is entirely to the outside world, especially to Harbor, to win over Logic, a powerful ally, to build momentum.
It fits the logic perfectly. Mobile phones are indispensable without the support of Huawei. During the period when Huawei only made OEM machines, it was at least the honeymoon period.
Lu Fei called Xu Xin, who was busy with the A-share reform, to Pengcheng from the Shanghai Stock Exchange and sent her to participate in the three-party negotiations on behalf of the Three Body Fund.
The loan repayment period and annualized rate are considerable, but it is so simple that Xu Xin would not be invited.
"Didn't the deal come to fruition?" Lu Fei was not surprised, everything was expected.
"Not yet. I politely offered to hold a meeting to discuss it."
Xu Xin frowned in confusion, "Why do you think of Huawei's virtual restricted shares? Isn't the nature of this stock similar to logic? It cannot participate in management, has no voting rights, and cannot be transferred. The key is that Huawei is not listed. No matter how highly valued the shares are, they can only be repurchased."
“Don’t look at it, it’s nothing, the rate of return is quite high.”
Lu Fei waved his hand. The average annual income of Huawei's virtual restricted shares is more than 20%, which is not inferior to the Madoff Fund.
The key logic is that for mobile phones to go overseas, we must have good dealings with operators in various places and use Huawei's channels to get twice the result with half the effort.
"Nine times out of ten, there is no chance. Huawei's virtual restricted shares can only be purchased internally by employees."
Xu Xin joked: "Are you from Huawei?"
"It's impossible. Even if we jointly establish a wafer fab with Logic, we will only be partners at most."
Ren Zhengfei sat in the chairman's office, facing Sun Yafang, Xu Zhijun and other close associates, and said righteously:
"The "Huawei Basic Law" stipulates that virtual restricted shares can only be purchased by internal employees, and all outside investments are rejected. No one, including me, can violate it!"
"But Mr. Ren, if, I mean, if Mr. Lu is allowed to intervene, will future mobile phones tend to use Huawei's 3G?"
Xu Zhijun said bluntly: "With Logic's current brand and R&D capabilities, mobile phones are likely to sell well at home and abroad. Hundreds of millions of people around the world have a Logic mobile phone, and Huawei's communication patents are in the mobile phone. How many billions of business is this?" "
"Maybe it can also help us conquer overseas markets. Mobile phone manufacturers and communication manufacturers complement each other."
Sun Yafang added: "Actually, if we make mobile phones directly..."
Ren Zhengfei slapped his hand on the table and said in annoyance: "Huawei doesn't make mobile phones. If anyone mentions making mobile phones again, I will leave."
The conference room was silent for a while, and everyone looked at each other in shock. No one had ever seen the boss get so angry.
"So Mr. Ren, it is better to allow Mr. Lu to join Huawei."
Xu Zhijun strongly said: "If the logic is successful, we can learn from experience in transforming our terminals into mobile phones in the future. Even if we don't do it, we will try our best to reach strategic cooperation. Regardless of whether we do it or not, it will be the same for wireless communications and even HiSilicon chips." Good news."
Ren Zhengfei couldn't help but said: "Even if we open the door for Mr. Lu's convenience, in what name will we do it?"
"We have discussed this and customized an honorary consultant position specifically for Mr. Lu."
Sun Yafang showed a knowing smile: "But 100 million is too much. Huawei can provide virtual shares worth up to 50 million. The other 50 million can be used without cash, but with logically equivalent virtual shares."
"What do you mean, equity swap?"
Ren Zhengfei glanced around the think tank, called Lu Fei without objection, and truthfully told Lu Fei the results of the meeting and discussion.
Either borrow money honestly, cross-shareholdings between Logic and Huawei and become half-brothers, or not borrow at all.
"Mr. Ren, virtual shares of equal value are not acceptable."
Lu Fei smacked his lips. Logically, even if the price is higher, in the eyes of Goldman Sachs and other Wall Street, it is only two to three billion US dollars, which is completely unequal to Huawei's valuation, so he proposed to change it to an equal share, which is equivalent to——
50 million can buy up to 0.0867% of Huawei, and Huawei can only buy up to 0.0867% of logic.
Don’t underestimate the mere 0.0867%. According to Academician Ni Guangnan, Huawei’s valuation exceeds 1.3 trillion. Although there are exaggerations, it is absolutely certain that it will exceed one trillion, and it is likely to be worth 80 or 90 billion.
The phone fell into silence for a while, and after a while, Ren Zhengfei's voice came out:
"Deal! But Mr. Lu, you have to think carefully. This share will not be released until Huawei's 3G overseas customs clearance is successful. I can't tell which year or month it will wait."
Lu Fei smiled and said: "I will also send this sentence to you, Mr. Ren. Logic's mobile phone may only be PPT."
"Hahaha, then we are evenly matched, each other!"
Ren Zhengfei immediately invited him to serve as an honorary consultant to Huawei.
"Mr. Ren, we have come up with an idea. I would also like to invite you to be the honorary consultant of the Logic and Strategy Department. You don't have to go to work."
Lu Fei changed the subject: "There is another person from Huawei. I also want to invite her to Logic, but I have to ask for your opinion in advance."
"Oh, who?"
"Your daughter, Ms. Meng Xiaozhou, will be the president of Logic's Account Management Department."
"Hiss~"
Ren Zhengfei took a breath, good boy, you are still waiting for me here!
…………
Yanjing, Harbor Network Headquarters.
"Dong dong dong, Mr. Li."
The secretary knocked on the door and reminded the chief financial officer that Wu Mingdong had something urgent to see.
Li Yinan said "Please come in" while rubbing his Qingming point. After waiting for others to come in, he put on his glasses and asked:
"You came at the right time. After much thought, I still think the IPO price of HK$5 per share is too low. You can talk to the underwriters."
"The listing price in Xiangjiang will definitely be lower, but it will be relatively easier." Wu Mingdong controlled his emotions.
"No, we can't make do."
Li Yinan grinned widely, "The listing of Xiangjiang is just a springboard for Harbor. Our real goal is Nasdaq. Shares such as Shanda and NetArt can make the richest man in the mainland. Harbor is no worse than them!"
As he spoke, his mind was filled with thoughts of the day when Hong Kong Scenery was launched, when Huawei was slapped in the face, and the corners of his mouth rose crazily.
Wu Mingdong coughed a few times: "Ahem, I think it's better to let Harbor go public first. The situation has changed."
"What's the situation? Is there any new action from Huawei's Hong Kong Office?"
"That's right, Mr. Ren is going to kill him this time!"
Wu Mingdong said in fear: "Give an order to the office. It doesn't matter if you lose orders to ZTE or Cisco, but you will be punished if you lose orders to Harbor. All customers who are using our equipment will repurchase them. We also buy one and get one free. We will If you want to participate in the bid, our bid will be scrapped no matter what..."
"What! This means that Harbor must be killed at all costs!"
Li Yinan's heart skipped a beat and he stood up.
"According to the news from the people we bribed, the annual funding is fully 400 million."
Wu Mingdong's heart was trembling. You must know that Hong Kong's accounts receivable are only 400 million at most, and the firepower is not of the same magnitude.
"how so?"
Li Yinan swallowed his saliva, and the joy of being about to go public was instantly wiped out.
The reason why Harbor can surge forward and grow wildly is mainly relying on the capital of Wall Street. They sign a "betting agreement" with each other. Once Harbor cannot achieve sustained growth in sales, then the capital will obtain more equity.
If the bet fails, the management will undoubtedly lose control of Harbor, and the patented technology will be fully owned by the capital.
"Mr. Li, in the past two years, in order to rush to the market, we have braved the risk of vicious competition with Huawei and blindly expanded our optical network and NGN businesses. Our financial situation is not ideal. If we continue like this, we will only be dragged into the quagmire."
Wu Mingdong reminded: "It will only become more and more difficult to go public, so we might as well go public in Xiangjiang first. As long as we go public, we can continue to raise funds and have a steady stream of funds for development."
At this moment, there was a heavy knock on the office door.
Li Yinan was upset and said angrily: "What are you knocking on? You don't know that I am in a meeting with Mr. Wu!"
"Mr. Li, it's me, Lao Liu, and Mr. Yang."
As soon as he finished speaking, the two vice presidents rushed in and opened their mouths with bad news——
Huawei sued Harbor for intellectual property infringement. In addition to the two of them, Li Yinan himself was involved in the case.
"It's broken, it's broken!" Wu Mingdong's heart was beating wildly.
What technology companies fear most when going public is to be blocked by patent infringement lawsuits from hostile companies. If they are not handled properly, it will be impossible to go public and they must wait until the lawsuit is completely settled.
"Damn it, Huawei did such a great job!"
Li Yinan became so angry that he slapped his hands on the table and kept talking about his output to Ren Zhengfei.
Wu Mingdong and others looked at each other. It seemed that they were the traitors of Huawei who acted first, so they were silent in silence.
After Li Yinan finished scolding, Mr. Liu hurriedly dropped another piece of bad news——
Many Huawei employees who had agreed to change jobs have abandoned their jobs and switched to Logic. Logic has even reached out to the harbor to poach people.
"Why the hell is there any logic here!"
Li Yinan was furious: "At this juncture, what kind of trouble can Lu Fei cause?"
"Well, Mr. Li, Lu Fei is definitely not causing trouble, but Huawei and Logic seem to have formed an alliance."
While Mr. Liu was hesitating, he weakly revealed the bigger bad news.
"What!"
Li Yinan was so shocked that he couldn't stand it any longer and froze in place.
Logic and Huawei, two major technology companies, attacked me one after another. What kind of blessing is this?
(End of chapter)
