Mr Chen would tree investment in green beer mystery: Or will reduce Zijin mining equity

May 10, Qingdao Beer (600600.SH, hereinafter "Green ticket") announced that Fojiand Industrial Group Co., Ltd. (hereinafter referred to as "Xinhua") Chairman of the Mr Chen would tree acquisition of 7.01% of Green beer, become the company's third largest shareholder. For Green Beer chairman Jinzhiguo, "Double Gold Love" officially kicked off.　　Prior to this, Mr Chen would tree for the industry's concern is mainly two: first, as a director of the Zijin Mining (2899.hk,601899.sh) of the listing, the second is a high price of 1 billion yuan from the grand dug a well-known professional managers-Tang June.　　Of course, a stake in green beer, is also Tang June joined Xinhua after the first big.　　However, the industry is slightly surprised that the Mr Chen would tree, as a personal identity, if entered through offshore company identity, not only can avoid a lot of unnecessary red tape, but also save the total turnover of up to 15% of the tax.　　Buy a stake in green beer, will become Mr Chen would tree reduce profit near hundredfold Zijin Mining equity of the Prelude?　　A first-line investigation of Tang June's shot: "Copy" Buffett's initial step?　　As a professional manager of the star, Tang June like "show". But from April 2008 Tang June to become the president and CEO of Xinhua, the outside world more see is how he had stepped forward to the current success, which includes Tang June's own "My success can be copied," a book.　　For Tang June how to help Xinhua and his boss-Mr Chen would tree "copy" success, more than a year has been like smoke and mirrors. May 10, Green Beer issued a notice, the former third largest shareholder of the group plans to take the remaining 7.01% of Tsingtao Beer, 2.5685 U.S. dollars per share of the total price of $235 million, sold to a Mr Chen would tree investors.　　As a result, the Green beer control may be Shang Japan Asahi Brewery (hereinafter referred to as "Asahi Beer") alarm temporarily lifted.　　14:30 that day, Tang June with the new book "Tang June Diary-the value of 1 billion of life," appeared in the Wangfujing bookstore six-storey multi-function hall, to participate in the launch reader meeting. "We've only talked for less than 4 hours. "The opening of Tang June's so Frank" was familiar.　　Yes, more than a year ago, he said he and Chen Fashu talk for 5 minutes, decided to leave the grand. Mr Chen would tree "airborne" because of "Buffett's investment classic is Coca-Cola and Procter and Gamble, we want to replicate this model, so the investment concept is positioned at three: the first is to invest in the industry related to people's livelihood, the second is the investment target is the top three of all industries, the third is the investment target is state-owned holdings. In our eyes, green beer is very consistent with our investment philosophy, it is in China is the state of Coca-Cola in the United States, is related to the people's livelihood, one of the three major Chinese brands, only the appreciation of the possibility of devaluation.　　Tang June said.　　In any case, the process of the takeover was dramatic. March 12, Cheng, the first high-profile Chinese president of Budweiser Group ("Budweiser"), said after selling 261.6 million shares of Tsingtao beer to Asahi, Budweiser has no intention of continuing to sell the remaining 7.01% of the green beer shares.　　Budweiser was founded in July 2008, when the world's largest brewery, the group of beer, was the owner of Budweiser, the US brewery giant, "AB", at a premium of about 52 billion dollars.　　Cheng's stance, the industry's concern is that Asahi beer will be a total of 27% per cent of the shares of Budweiser into the bag, its stake will be close to the first major shareholder of Green beer-Qingdao state-owned Assets management Office 30.89% of the Green beer holding rights. Less than two months, Cheng words are still ringing, the result has a big reversal.　　Cheng not only submitted his resignation report to Budweiser InBev, the Mr Chen would tree became the third largest shareholder of Green beer. Chen Fashu started with the timber business, then involved in a number of areas such as department stores, mining, tourism and so on.　　December 23, 2003, Zijin Mining on the HKEx listing, Mr Chen would tree also from the 2004 Forbes China's Rich list 111th (134 million U.S. dollars) jumped to 2005 56th (290 million U.S. dollars).　　Relative to the industrial operation supported by meager profit, the capital market's overnight wealth is obviously more and more attractive to Mr Chen would trees. "Chen always does not like to do industry, has been studying Buffett, and Chen's overall investment philosophy is very simple-not to do short-term, hope to have long-term return, so we want to make him into China's Buffett."　　Tang June said that this is his own from the grand transfer of Xinhua are important mission. "Buffett's classic investment is Coca-Cola and Procter and Gamble, we want to replicate this model, so the investment concept is positioned at three: the first is to invest in the industry related to people's livelihood, the second is the investment target is the top three of all industries, the third is the investment target is state-owned holdings In our eyes, green beer is very consistent with our investment philosophy, it is in China is the state of Coca-Cola in the United States, is related to the people's livelihood, one of the three major Chinese brands, only the appreciation of the possibility of devaluation.　　Tang June told the China Business newspaper reporter. and Xinhua are "Looking at" green beer, the same is in the summer of 2008, the British Bo high prices to buy AB day.　　Mr Chen would tree authorized Tang June and other people to the green beer in-depth research, they through the Internet, reports, including market research and other ways to the green beer ownership structure, profitability, leadership team and so on. Chen Sum Jinzhiguo (chairman of Green Beer) is the classmate of Ceibs Emba, they understand each other, have more private contact opportunity. Most importantly, we think that the management team of green beer is very good in the state-owned enterprises.　　Tang June said. However, according to Chen Fashu and Tang June investment must become the top five shareholders of the enterprise, Xinhua all on the green beer for a moment "no".　　Tang June said: "We have been waiting for opportunities, and even consider through participation in targeted additional into the green fatigue" of course, then Chen Fashu and Tang June did not know Budweiser Ying Bo to sell green beer equity. Tang June was aware of the opportunity until the Asahi brewery January 23, 2009 bought a 19.9% stake in green Beer.　　"With the Budweiser contact is one months ago, we commissioned Green beer to convey our wishes, but the Budweiser British Bo to this noncommittal, just say can consider."　　Tang June revealed. However, Green Beer said: "The change in the stake is Budweiser beer and Chen Fashu between the commercial transaction, Tsingtao Beer show respect." "Natural person identity shares: Mystery to be solved" but, it is also counterintuitive, Mr Chen would tree should be the first person to do so. If Chen Fashu in Hong Kong to register a BVI ("offshore") company, only need to spend HK $ thousands of, can be exempted from large tax, and in this form into green beer, individuals have to pay 15% of the tax.　　Wang Jizhou, who helped hundreds of domestic companies go public, said it was impossible to judge Chen Fashu's purpose.　　May 7, Chen Fashu, Tang June and Budweiser InBev sat at the negotiating table, after less than 4 hours of negotiations, Mr Chen would tree became green Beer's third largest shareholder.　　The process of negotiation is also full of drama. The price negotiated by Budweiser InBev is HK $21.5/share, the previous day's close of the shares of Green beer.　　But the purchase price of Tang June is 19.71 Hong Kong dollars, which makes Budweiser InBev feel difficult to accept. "The chief negotiator at Budweiser didn't think we were going to sign that day, he just wanted to get in touch with us because he had to finish the negotiations at 14 o'clock and get back to the United States on a 16:00 flight to celebrate her birthday." He said to me again and again, ' Don, you said I should not go back today, people here do not understand me, think I should not go back, you in the United States for a long time, you should understand me.　　"Mr. Tang said that through negotiations he concluded that the reserve price of Budweiser was HK $20/share.　　But Chen Fashu and tang June do not want to appear any variables, so, Xinhua and Budweiser Ying Bo both sides each step, 19.83 Hong Kong dollars/shares into the final transaction price. "Budweiser's chief negotiator gives his boss a phone call every 5 minutes to ask his boss for advice, but the phone hasn't been connected, and at last he took the liberty of signing a contract with us." "In Tang June's opinion, the chief negotiator is also based on his years of experience in the negotiations, after all, Chen Fashu out of the price is higher than the previous Budweiser sold to Asahi Beer of HK $19.78, compared with the 20 Hong Kong dollar/share price of the total turnover of more than 2 million U.S. dollars of the difference, Less than 1% of the total trading price.　　Moreover, when InBev first bought Green beer, it was only HK $ three or four per share.　　[Secondary page title = navigation short title =]　　[Secondary page title = navigation short title =]　　[Secondary page title = navigation short title =] In addition, he will leave Budweiser on July 31.　　Tang June's mouth "he", is the Budweiser InBev and Xinhua are trading the chief negotiator.　　It is noteworthy that this Chen Fashu to "individual investors" rather than the name of Xinhua shares of Green Beer, so that the announcement, the industry has to guess whether this "Mr Chen would tree" is the richest man in Fujian Mr Chen would tree. "For me, whether as a natural person or a XinhuaAll the nominal participation in green beer, meaning is equivalent, after all, Chen always represents the Xinhua all.　　Tang June said. In the opinion of Wang Jizhou, chairman of the capital, this is a logical. Chen Fashu is Hong Kong resident status, Budweiser transfer is green Beer's H shares, the identity of the two sides correspond.　　If you buy with a Chinese company, the formalities will be cumbersome. "But it's also counterintuitive, Mr Chen would tree should be the first person to do that." If Chen Fashu in Hong Kong to register a BVI (British Virgin Islands, British Virgin Is., meaning "offshore") company, only need to spend thousands of HKD, can exempt from large tax, and in this form into green beer, individual to pay 15% tax.　　Wang Jizhou, who helped hundreds of domestic companies go public, said it was impossible to judge Chen Fashu's purpose.　　In fact, in the shares of Zijin Mining (601899.SH), the Mr Chen would tree also retains the same two identities: Chen personally controls 3.41% of the shares that Zijin Mining has already issued, and his absolute holdings, Xinhua, holds 13.16% of the shares issued by the Zijin mining industry.　　In this regard, a number of analysts from the industry that, because the Zijin mining market price of only 0.1 yuan/shares, at present, more than 8 yuan/shares, or even the highest up to 11.55 yuan/share, nearly a hundredfold profit space, Chen now the intention is very strong. "Whatever the way it is, it is definitely the use of the Mr Chen would tree's own funds."　　"The source of the huge sums needed for the acquisition, Tang June stressed that Xinhua is still exploring the best channels, including looking for bank loans, or Zijin mining, or find other ways."　　In this respect, Chen Fashu to borrow Tang June's mouth to express a "Buffett-style posture." Tang June said: "Although we can not give green beer to bring technical upgrade, but hope to be in the international vision, management mechanism and so on to bring the value of green beer." Our investment in green beer is not only financial investment, or a strategic investment, 5-10 years will not be changed hands, the annual rise 30%~50% will not be thrown. "This stance on green beer is undoubtedly a comfort."　　Over the years, green beer has been under a holding power may be Shang, especially in view of the current green beer delicate property rights structure, the Mr Chen would tree into the temporary can make the green beer peace of mind. Beer new war: Budweiser's next step "this year, we have to establish the National brand image of Harbin Beer, the main hit the high-end market, Harbin beer coverage of more than 300 markets, the annual total sales breakthrough 1.6 million tons."　　"Budweiser's words are meant to replace the first green beer in Budweiser's strategic position." For the outside "Green beer is just a cut mouth, Mr Chen would tree may take this into the beer field" speculation, Tang June flatly vetoed, he said: "In the wine business, green beer is our first investment object, is also the last one." In 3-5 years we will have more movements, acquisitions will continue to occur, the acquisition of objects to meet our three principles, but it must no longer be alcoholic enterprises. Now, we're in touch with the otherCompany. "for which companies are in contact, Tang June said that the listed companies, the current inconvenience disclosed."　　But he says Xinhua now has a 3-person investment team born in a bank, which is what the team has done in advance investigation and analysis. "They have some overseas backgrounds and have worked in some investment banks, such as BCG and McQuarry investment, at around 30, wagon.　　Tang June said. Judging from insiders, the latest in the June 16 Green Beer Shareholders meeting, Tang June will be stationed in green beer board.　　Although Xinhua will not be too involved in the specific operation of green beer, the person also believes that the domestic new round of beer war is about to be started.　　"Budweiser has a debt burden, plus a big backdrop to the economic crisis," "although InBev said they are not in a hurry to sell their own brands and have a lot to sell, in fact, the company is very short of cash and not many buyers, so it must be in a hurry to get tired," said a former senior executive. The funding shortfall for Budweiser came from July 2008, when the British lender used 45 billion of billions of dollars in loans after it bought AB 52 billion dollars.　　Of course, including AB in the domestic acquisition of a number of regional beer brands, Budweiser InBev in the country has Budweiser, Harbin, snow Tianjin, red beam, double deer, KK, Jinling, Baisha, Jin Longquan, such as more than 30 brands.　　There are indications that the integration of Budweiser is only just beginning. By selling a stake in Green Beer, Budweiser InBev received 902 million dollars in cash. But not only in China, May 7, the company plans to sell its second-largest brewery, Oriental Brewery, in South Korea to KKR, at a price of 1.8 billion dollars. The deal is still subject to approval by South Korean regulators and is expected to be completed by the three quarter of 2009.　　Carlos Brito, the Carlos Britto CEO, said at the annual shareholder meeting in late April 2009 that the company considered selling five or six of its brands.　　In China, Budweiser has placed high hopes on the two brands of green beer and Zhujiang beer, but a 2008 Chinese Ministry of Commerce has changed its mind. October 27, 2008, although the Ministry of Commerce did not prohibit the acquisition of AB by the British Bo, but the addition of 4 restrictive conditions: not to increase AB company in green Beer existing 27% of the shareholding ratio; if the shareholders of the company's controlling shareholder or controlling shareholder change, they must inform the Ministry of Commerce　　shall not increase the current 28.56% per cent shareholding of the company in the Pearl River Brewery, and shall not seek to hold the shares of China Resources Snowflake Brewery Ltd. and Beijing Yanjing Brewery.　　This limit means that Budweiser InBev in green beer and Zhujiang beer can only be a supporting role forever. "In this way, green beer on the InBev is meaningless, just an investment, lack of money, will certainly sell." The Pearl River will also be sold, only sooner or later.　　Said the former senior executives. At the same time, BudweiserInvestment in own brands is also increasing. According to Budweiser's earnings figures, both Budweiser and Harbin Beer have achieved more than 10% per cent sales growth in the 2009 quarter. In response to green beer, Budweiser domestic product chain will appear in the middle end of the situation, Budweiser's related people expressed different opinions: "This year, we have to establish the National brand image of Harbin Beer, the main hit the high-end market, Harbin beer coverage of more than 300 markets, the annual total sales breakthrough 1.6 million tons."　　"Under the meaning of the idea, Budweiser will use Ha beer completely replace the original green beer in the company's strategic position." This reporter Dong Jun Xu Chunmei has contributed to this article