Chapter 759 Guangdong Development Bank

That year, the central bank approved the establishment of branches in Beijing, Jinling, Hangzhou, Chuncheng and Dalian.

Together with the Zhengzhou branch that had been opened before, it laid the foundation for the nationwide network layout of Guangdong Development Bank.

By the end of 2003, the loan balance of Guangdong Development Bank outside the province exceeded the loan balance within the province by 50.12%.

By the end of 2004, Guangdong Development Bank had 26 branches and more than 480 business outlets across the country, with total assets of 344.5 billion yuan, deposit balances of 300.5 billion yuan, and loan balances of 215.7 billion yuan.

This is the current background of Guangdong Development Bank.

And this bank with the worst financial situation and the highest non-performing asset rate among its peers has surpassed joint-stock banks such as Bohai Bank, Minsheng Bank, and Hua Xia Bank to enter the vision of Standard Chartered.

Mainly in order to change the current situation of Guangdong Development Bank, it was decided that the existing shareholders should use all the accumulated capital reserves and surplus reserves over the years to make up for losses.

And the shares held by them will be recalculated according to the ratio between the original share price and the purchase price of the newly introduced investors.

The original shareholders' equity of 3.5 billion yuan will be converted into about 1.8 billion shares according to the bidder's bid, which is about 2 times the premium. After the reorganization (the share capital is 12.5 billion yuan), they will hold 15% of the shares.

What does it mean?

That is, the original shareholders of Guangdong Development Bank will reduce their shares to 15%, and then take out 85% to attract foreign investment.

Through capital injection, the current predicament of Guangdong Development Bank with too high non-performing assets and poor financial conditions will be completely improved.

Moreover, Guangdong Development Bank clearly stated that the foreign party can have management rights and nominate the chairman and president.

Of course, the qualifications for the position still need to be approved by the China Banking Regulatory Commission - such conditions are obviously not given by CCB, BOC or ICBC, which are state-owned commercial banks.

It is precisely because Guangdong Development Bank became the first Hua Xia Bank to allow foreign capital to purchase a majority stake that this bidding has a milestone significance.

Now all domestic banks, whether state-owned or joint-stock.

The management of the bank is all appointed by the China Banking Regulatory Commission. Even if you are a shareholder, you cannot control personnel rights, let alone management rights.

Now Guangdong Development Bank has broken this rule.

Naturally, a large number of financial giants who were salivating over Huaxia Bank's industry flocked to the bank.

Xu Liang put down the information.

"There are many foreign institutions interested in GF now, right?"

Humphrey nodded, "At present, I know that almost all foreign institutions are very interested, but the more active ones are Citi, Societe Generale, and UBS."

Compared with Citi and UBS, Standard Chartered's influence is obviously weaker.

If you want to swallow GF from these giants, Xu Liang's help is indispensable.

Xu Liang nodded slightly and pondered for a while.

"GF is currently just rumored to have a shareholding reform. Is it true? We have to wait until things are implemented before we can decide. So, we don't have to be too anxious."

Humphrey nodded.

Xu Liang poured him a cup of tea.

"Don't worry, I will support anything that is beneficial to Standard Chartered's development, and this time is the same."

"Xu, thank you."

Xu Liang smiled and waved his hand, and took a sip of the tea in his hand.

"John, I heard that our respected Mr. Kirkland is a drug addict?"

John frowned, and a bad feeling arose in his heart.

"London police found contraband when checking a bar, and Kirkland just happened to be there."

"Really? But the news I received is that the London Metropolitan Police has launched charges against him."

Xu Liang put down the teacup and looked directly at Humphrey.

"John, Standard Chartered is a world-class bank with a long history and is developing rapidly. The position of chief financial officer is very critical, especially when we are going to acquire Guangfa and expand the Huaxia market.

I can tell you very responsibly that Huaxia, whether official or private, hates drug addicts.

Standard Chartered's involvement in such trouble will undoubtedly leave a very bad impression on people and affect Huaxia's business development, especially Guangfa's investment."

Xu Liang emphasized the word "Guangfa".

"So, I think Badu Kirkland is no longer suitable to continue to serve as the chief financial officer of Standard Chartered."

Looking at the man in front of him, Humphrey understood.

After completely controlling the board of directors of Standard Chartered, he couldn't wait to reach out to the management of Standard Chartered.

And he started with a high position like the chief financial officer.

Humphrey struggled in his heart.

He didn't want to compromise like this, otherwise one day, the man in front of him would eat up Standard Chartered bit by bit.

By then, even if he couldn't become a puppet, his control over Standard Chartered would be greatly reduced.

But he also admitted that the other party picked a good opportunity.

Badu Kirkland was accused of possessing contraband by the Metropolitan Police Department, which was a foregone conclusion. Even if he could be released on bail, he would definitely not stay in Standard Chartered.

And he wanted to use Xu Liang's power to take over Guangfa Bank, so he had to compromise.

Of course, the most important thing was that the other party controlled the board of directors.

The CEO, a core executive of the group second only to the CEO and COO, must be approved by the board of directors.

After struggling for a long time.

"Xu, I will discuss with the management after I go back and select a suitable candidate to take over Badu's position as soon as possible."

"Okay, I'll wait for your news."

The two chatted for a while, and Humphrey left.

After watching the car go away.

"Mr. Xu, do you really want them to recommend their own CFO candidates?" Lv Hui asked.

"How is that possible? Things can't be pushed too fast, otherwise it will only backfire.

We have already achieved our goal of replacing Badu Kirkland, and we can take our time to promote our own people."

Lv Hui nodded and handed over today's documents.

"Mr. Xu, this is the progress of Hanhua Pacific No. 2 Fund's purchase and sale of US subprime bonds and acquisition of Unocal received today."

Xu Liang took it.

It has been three months since Hanhua cooperated with Oppenheimer, JP Morgan and Goldman Sachs. In three months, they have sold $59 billion of subprime bonds.

Xu Liang also truly witnessed the huge network of relationships of the world's top investment banks.

"In another two or three months, Pacific No. 2 Fund will be able to get the money." Xu Liang thought.

Look at Unocal's information again.

"Has the stock price risen so high?"

Since Chevron joined the competition, Unocal's market value has been hovering around $12 billion, and it has skyrocketed to $14 billion in just one week.

Now it has risen to about 15 billion US dollars.

"Mr. Xu, should we close our position?" Lv Hui asked.

When Xu Liang acquired Unocal's shares through Hongyan, the latter's stock price was only about 10 billion US dollars, and now it has risen by 50%.

Counting the leverage used.

The rate of return has exceeded 100%.

"No, it's too early now."

Xu Liang shook his head decisively.

The Pacific side is not over yet, and more importantly, there are still players who have not entered the market.

"Has our acquisition of Delong not been approved by the higher authorities?"

"No, let's wait for notification."

"What about the Tang family?"

"The teams of Hanhua and Hongyan have already moved in and are currently doing due diligence." Lv Hui said.

"Notify me immediately after they finish their investigation."

"Okay."

Although he has been investigating Delong through Hongyan for nearly three years, he has not gone deep into Delong's internal affairs, and the details of some related transactions and even secret transactions are not very clear.

So this due diligence is very critical.

He must find out whether there are any hidden debts in Delong that he doesn't know about.

"By the way, after the No.1 store has almost finished its negotiation with JD.com, Liu Qiangxi will bring his team to join the due diligence of Denong supermarket chain and Denong seed industry, so that he can get familiar with it as soon as possible, so that he can get started after taking over in the future."

"Okay."

For Denong, his short-term plan is to develop agricultural chain retail terminals and seed industry.

In the medium term, it is to integrate three-dimensional fertilizer and get involved in the field of agricultural chemicals.

In the long term, it is to merge Hongyan's Fengshou Agriculture.

Let Denong Group become a "big agricultural group" with business scope covering planting, seed industry, deep processing of agricultural products, agricultural chemical products and agricultural chain, integrating upstream and downstream.

Da Qiangzi is the one he prepared to be the helmsman of Denong.

Lv Hui's mobile phone rang.

After answering it and listening for a while.

"Mr. Xu, Mr. Sha from Fuhua Real Estate is here."

"Let him come over."

Not long after, Sha Zhigang, who was in a hurry, pushed the door and walked in.

"Boss Xu."

Xu Liang waved his hand, "Old Sha, come and sit down."

After agreeing, Sha Zhigang sat down on the sofa opposite in a proper manner.

As Xu Liang became more and more successful, his business became more and more huge.

His majesty became more and more important.

Although he still maintained his original appearance and did not pretend to be profound, the people around him became more and more respectful to him.

Xu Liang experienced this change and could not help but sigh at the loneliness of being high up.

Of course, what he really valued was not loneliness, but standing too high and not being able to hear the voices below. Over time, it would become a fixed mindset and out of touch with reality.

That is what is commonly known as "floating".

At the beginning, Jack Ma was also a promising young man who guarded the manhole cover and was determined to let Chinese companies go to the world through the Internet.

But as he became more and more successful, more and more people said good things to curry favor with him.

At the beginning, he could still be alert and listen to the unpleasant but honest advice.

But over time, after hearing too many good words, it became a fixed mindset, which was the real big trouble.

This is also why the relationship between Emperor Taizong of Tang and Wei Zheng has been passed down for thousands of years and is highly praised.

For those who stand at the top, being able to listen to the words below and always keep the original intention in mind is really an excellent explosive trait.

"Mr. Xu, this is the financial report of Fuhua Group in January 2005."

Xu Liang picked it up and flipped through it briefly before putting it down.

He had read Fuhua's annual development report in 2004. Only two months have passed, and there are not many changes.

He did not call Sha Zhigang for this.

"How is the negotiation with Shunchi going?"

"It's almost done. 3.5 billion Chinese yuan to acquire all the assets of Shunchi."

Sha Zhigang said hurriedly.