Chapter 604: Other plans

Attracting investment has always been a matter of great local interest, and attracting foreign investment is the top priority.

The investment in manufacturing is also the most popular investment by local governments, because manufacturing can create jobs and generate tax revenue, which are precisely the two problems that local officials need to solve the most.

In China at that time, the service industry was underdeveloped, the real estate industry did not rise, and there were no big technology companies. They could only develop the manufacturing industry obediently, and earn money by doing production in a down-to-earth manner. industrial enterprises.

This is probably like you who have no money to speculate in stocks and real estate, you can only honestly be a worker.

High-end manufacturing is also the most popular investment in manufacturing, because it can bring higher added value while solving employment and creating taxes.

With the level of technology at the beginning of the 21st century, Volvo's construction machinery, placed in any country, is a high-end manufacturing industry.

It is also for this reason that when Olaf arrived in Qinghe, he was immediately warmly welcomed by the locals. Qinghe City almost offered Olaf as an ancestor, hoping that Volvo could implement the investment.

Qinghe City specially held a 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 the welcoming ceremony you held for me. Olaf did not go around, but said directly;

Before this, our Volvo Group has also sent people to Qinghe for inspections many times, hoping to acquire a company as our Volvo production base in East Asia. I am here 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 put it directly, and we will try our best to help you solve it. question.

Thank you very much. Olaf expressed his gratitude again, and then said; Mr. Li, after our Volvo inspectors returned to Sweden, they have reported the details here to the group management. Our management, for Qinghe City The Fukang Construction Machinery Company is very interested.”

Fukang Engineering? Li Zhongwei was stunned for a moment, and thought to himself: Did I hear it wrong? The inspectors from Volvo came here before, didn't they want to buy a heavy machinery factory? How did it become Fukang Engineering?

So Li Zhongwei opened his mouth to confirm: Mr. Olaf, are you talking about Fukang Engineering Company?

Yes, it's the Beverly 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; I had contact with Fukang Engineering at the Dubai exhibition last year. I think it is a relatively potential company, so we have acquired Fukang Engineering. intention.

So it is. Li Zhongwei nodded. Since Olaf had contact with Fukang Engineering, it became reasonable for Volvo to acquire Fukang Engineering.

Li Zhongwei continued to say: Mr. Olaf, Volvo's investment is very welcome, but Fukang Engineering is not a state-owned enterprise, but a private company, and they are private.

Therefore, Qinghe City has no decision-making power and can only help matchmaking. As for whether Fukang Engineering is willing to accept the acquisition, or whether the acquisition can be successful in the end, you need to negotiate on your own. I have no right to interfere here.

Olaf nodded: I understand this. I hope Mr. Li can help me contact the person in charge of Beverly Engineering, so that we can discuss in detail.

No problem, I will contact the chairman of the Fukang factory as soon as possible. Li Zhongwei agreed,

Then he 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 as soon as possible!

...

Li Weidong received a call from Li Zhongwei.

Volvo wants to invest in our Fukang project? Li Weidong was stunned, and then immediately asked: Aren't they going to buy a heavy machinery factory? Why is it our turn?

Who knows! We also thought that Volvo's goal was a heavy machinery factory. Who knew that when the welcome party was held, the representative of Volvo proposed to acquire your Beverly Engineering.

Li Zhongwei went on to say: I also felt quite puzzled, so I confirmed it again and again. According to the representative of Volvo, last year, when they went to the Dubai exhibition, they met your company and thought that your company had great potential, so they acquired it. Intend.

It turns out that last year, we went to the construction machinery exhibition in Dubai. Li Weidong then asked: Leader, what is the attitude of the city?

Li Zhongwei replied: We certainly hope that Volvo's investment can be landed in Qinghe, Volvo is a large international group, and it is also a world leader in construction machinery technology.

We Qinghe have no such international large enterprises, and there is no 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, your Fukang project 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 yourself. I am just here to bridge the gap.

Volvo is willing to invest, of course I welcome it very much. It is also a good thing to be able to introduce advanced foreign technology to improve our own level and thus promote the development of the enterprise.

Li Weidong made a statement first, and then continued: But I don't know what conditions Volvo can give, so it's hard to promise anything now. I don't think it's better. Please arrange for me to meet with Volvo's representatives. See you, we'll talk in detail when we meet.

That's what I mean, Chairman Li, if you can, let's find a time and let the Volvo representative visit your factory, and by the way, we'll also check his words!

At the end of the call, Li Weidong fell into thinking.

Of course Volvo's technology is very advanced, if we can introduce Volvo's technology, then the technology research and development of Fukang Engineering, at least ten years of detours will be avoided!

The question is how much equity Volvo wants to take. If they don’t want more than 30% of the equity, even if they don’t pay a penny, I’m willing to hand over 30% of the equity.

I'm afraid that Volvo is more greedy and wants more than 50% of the equity and wants to control the entire Fukang project. In that case, I can only decide against Volvo!

...

Under Li Zhongwei's matchmaking, Olaf came to Beverly Engineering.

After the usual visit, 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 in place, and the operation of workers is also Very skilled, this is an essential element of a good company. Olaf said.

Thank you Mr. Olaf for your compliment! Li Weidong continued, I heard that Volvo intends to invest in our Fukang project. I wonder if it's true?

Li Weidong's meaning is very clear, since you have all seen the goods, you should give a word if you 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 came to China this time to finalize this matter!

You mean acquisition? Li Weidong asked immediately.

Acquisition is also an investment! Olaf replied immediately.

Li Weidong laughed and then asked, Does Volvo want to acquire it wholly? Or just acquire a part of the equity?

It's best to acquire a wholly-owned asset. If it doesn't work, acquire most of the equity. Olaf replied.

Mr. Olaf, how much are you talking about? Li Weidong continued: I think this number should not be lower than 51%, right? Otherwise, Volvo will have no control over the enterprise!

Olaf is also very honest, he said: We Volvo Group of course need control of the company, and 51% equity is not enough for us.

Because we are not only paying money, but also investing in technology. We bring technology, and there are investment risks, so we need more equity to ensure our investment returns!

So it is! Li Weidong's eyes narrowed slightly, and his brain turned rapidly.

A few seconds later, Li Weidong quickly came to a conclusion: It doesn't seem to be really coming to acquire Fukang Engineering!

Li Weidong knew that Ola was playing a fake role, so he didn't have the heart to receive Olaf. After a few words at will, he said:

Mr. Olaf, you have been investigating for a whole morning, and you must be hungry. I specially prepared a sumptuous lunch for Mr. Olaf, all of which are local specialties of our Qinghe. In addition, I also specially prepared a few cans of herring for you. Canned food, hope you like it!

Canned herring? Is it our Swedish canned herring? Olaf asked in surprise.

Yes, I asked someone to bring it from Sweden, but the number is not very large! Li Weidong nodded.

I can have one or two jars and let us relive the taste of my hometown. I am very satisfied! Mr. Li, thank you very much! Olaf bowed slightly towards 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 is investing, and everyone else is 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? Have to set aside an hour in advance to eat it?”

Li Zhongwei, with his stomach full of doubts, went straight to the restaurant under the guidance of Li Weidong.

Then I saw shredded onions, sliced ​​tomatoes, potato chips, cream, cheese sauce, flatbread, and several large cans of canned herring.

Swedes eat canned herring, not directly raw, usually with onions, potatoes, cream, cheese and other accessories, or bake it in the oven, or eat it directly with a cake.

Seeing this set of guys eating canned herring, Olaf and several Swedish assistants around him suddenly lit up.

Li Weidong said: Mr. Olaf, I won't disturb 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 left the room with a confused Li Zhongwei.

As soon as he left the room, Li Zhongwei asked, Chairman Li, why did you pull me out? We are not allowed to accompany Olaf to dinner? Throwing the guests in the room is what kind of hospitality!

Li Weidong explained: Leader, you don't know, the canned herring in Sweden is very smelly, and most people can't stand the smell at all.

There is a habit in Sweden to tell neighbors in advance before eating canned herring, so as not to smoke them. Therefore, many Swedes go to the wilderness to eat canned Swedish food, which is convenient for dispersing the flavor.

We leave these Swedes in the house and eat canned herring alone, but for them it's taking care of their habits, and they thank us that it's too late!

Li Zhongwei nodded, and then said, Although this is people's living habit, but it turns out that they are guests, and they are here to invest, so we should do our best as a landlord.

Chairman Li, you are still too hasty. Even if the canned herring is not delicious, you should take a symbolic bite, and then praise it on the surface, so that the face of both parties is passable.

Leader, it's not that I'm sloppy, I'm afraid that you ate that can of herring and even spit it out for 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 just eleven o'clock, it's too early for lunch, right? You don't want to eat this canned herring specially to invite the Swedes to eat an hour earlier, right? ?

I offered to eat, of course, not to let the Swedes eat canned food. Li Weidong sighed and continued: If my judgment is correct, Volvo should not plan to buy our Fukang Engineering.

Don't buy it? You mean Olaf is playing false? Li Zhongwei frowned, and then asked: Chairman Li, what is the basis for you to make this judgment?

Because Olaf mentioned investing in technology. Li Weidong replied.

Is there any problem? It is very common for foreigners to use advanced technology as investment. Most of the domestic joint ventures 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 we private enterprises have different views on investment.

For example, when Volvo came to invest this time, they made it clear that they would get more than 50% of the controlling stake in order to gain absolute control of the company. It is even better to acquire wholly-owned assets, so as to maximize the benefits of the investment.

From the perspective of commercial mergers and acquisitions, the pursuit of interests is understandable, but he has to engage in wholly-owned acquisitions and talk about technology investment. For a private enterprise like us, isn't this a rogue?

Although our Fukang Engineering has the management and scientific research team's shares, the vast majority of the shares are still in the hands of Li Weidong. It is not an exaggeration to say that this company belongs to me alone?

If I were to sell you a business, I would definitely care how much money you gave me. As for what technology you brought, what does it have to do with me? The company is not mine anymore, even if the technology you brought can build an aircraft carrier, it has nothing to do with me!

So if you want to acquire our Fukang project, the most direct and only way is to talk about money directly! However, Olaf is talking about technology investment there, which shows that he does not really want to acquire our Beverly Engineering!

It makes sense. Li Zhongwei pondered it carefully, and then nodded: Since Olaf is not here to acquire the Fukang project, he also came here to investigate! It seems that he has other plans!

Li Zhongwei rolled his eyes and suddenly thought of another possibility.

Li Weidong had already guessed that possibility, but Li Zhongwei was a leader after all. If Li Weidong was 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 is really just right. Li Zhongwei cooperated with a scheming expression: What else can you do! To lower the price!

——————

The Winter Olympics are coming, Chinese athletes come on!

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