After dispelling most of Hu's doubts, the intentions of Jiagu Agriculture and Animal Husbandry and Goldman Sachs began to move closer. See 1 yarn 3 Chinese net

Qi Zheng either gambled big or not, and Hu Zhili was inclined to agree with Qi Zheng's plan.

Hu Zhili thought that he knew Qi Zheng's dependence, but he was more confident in winning the bet and winning the shares.

He admitted that the pig breeding level of Jiagu agriculture and animal husbandry is high, and in the case of losses in the whole industry, Jiagu agriculture and animal husbandry can still maintain considerable profits, which is not an exaggeration to describe it as outstanding.

But so what?

The bet is on vision and revenue growth rate. Even if the price of live pigs in Jiagu Agriculture and Animal Husbandry is higher than that of ordinary pigs, limited by the general environment, it cannot arbitrarily increase the price - in Goldman Sachs' judgment, the current pork market has not even bottomed out. In other words, pork prices may continue to fall, and it will be more difficult for Jiagu to complete the VAM in just two years.

This bet can be engaged!

The boss at the top determined the general direction, and the specific details of the cooperation were negotiated by the people below.

The gambling involving more than one billion yuan is, of course, not something that Qi Zheng and Hu Zhili can achieve with a touch of mouth.

In addition to the evaluation of the pig farm assets of Jiagu Agriculture and Animal Husbandry, Goldman Sachs has designed hundreds of restrictions on the most critical VAM indicators - Goldman Sachs is professional in this regard, and naturally will not leave a gap for Jiagu Agriculture and Animal Husbandry. For example, the most direct means of revenue growth is large-scale mergers and acquisitions, and if there is no limit, if Jiagu ruthlessly borrows money and merges aggressively, it will be easy to reach the conditions of VAM.

Goldman Sachs naturally has to have constraints on the above, and limit the blind expansion of Jiagu agriculture and animal husbandry by controlling the debt ratio.

There are many similar regulations, and these constraints are like shackles, which are ultimately put on oneself. Of course, Jiagu agriculture and animal husbandry have to bargain one by one and strive for the best conditions.

After several rounds of negotiations, Goldman Sachs and Jiagu Agriculture and Animal Husbandry reached an agreement on this round of financing:

Goldman Sachs provided $2.2 billion in low-interest financing to Jiagu Agriculture and Animal Husbandry's pig breeding subsidiary, secured by 40 percent of the pig farming subsidiary's equity for a two-year term. See. Wool, Chinese net

Two years later, if the CAGR of Jiagu Agriculture's pig breeding revenue falls below 120 and the debt-to-equity swap regulations come into effect, Goldman Sachs can convert the financing bonds into equity in the pig breeding subsidiary at a predetermined conversion price40.

And if Jiagu Farming's pig breeding revenue grows at a compound annual growth rate of 120, Goldman Sachs will waive all financing interest and allow Jiagu Farming to defer repayment for two years.

When Qi Zheng signed the agreement, the top management of Jiagu, including Wang Yuye, who was not in favor of gambling before, breathed a sigh of relief.

On the surface, this seems to be an unequal VAM agreement - Goldman Sachs loses, but it loses a little interest, which is a low interest, and the principal still has to be repaid after all, while Jiagu Agriculture and Animal Husbandry loses, and what is lost is the shares of real money and silver.

But actually...... It is indeed an unequal agreement.

But gambling is never fair – you have to borrow money from someone, and the conditions will of course be in favor of the creditor.

So why did everyone agree to bet in the end?

First, because he believes in Qi Zheng's judgment of the future trend, someone often opens his eyes to the sky, and he has not tasted defeat so far, and he has been convinced by Jiagu;

I don't know the difficulty of financing if I don't know how hard it is to get started.

In China, how many private enterprises begged their grandfathers to sue their grandmothers, or even cheated and abducted, but they could not find financing channels -- banks always like to be open to people who are not short of money, and as for the transfer of shares, they either cannot find investors to take over, or they are severely depressed.

In other words, the most common situation is that no one wants to sell themselves - in contrast, Jiagu Agriculture and Animal Husbandry can only pay some risks to get a large amount of financing, and the worst result is only to transfer part of the equity, and not even lose the controlling stake, I don't know how many people envy it.

For the senior management of Jiagu, the investment of this financing has really alleviated the financial pressure of the group.

Jiagu agriculture wants to expand its contract rice planting base and make arrangements for the future in the Far East, and it is a big money-swallower; Jiagu Commerce and Trade should continue to invest in the construction of a grain storage and logistics network, and it is also a big money-swallower; as for Jiagu Grain and Oil, Jiagu Dairy and Qingyuan Beer, which are under the Jiagu Food and Beverage Company, they are all in the stage of building a brand and cultivating a market, and it would be good to take care of themselves.

If it weren't for the fact that Jiagu Capital's hedge fund used the U.S. hurricane to milk the group last year, it would have been stretched thin.

Even if this financing can only be used for pig breeding in Jiagu Agriculture and Animal Husbandry, at least the headquarters will no longer need to invest in Jiagu Agriculture and Animal Husbandry, the largest spender this year, and the corresponding budget will be vacated, and other subsidiaries may benefit from it.

So, in general, the bet with Goldman Sachs can be called a take-from-each need.

Of course, for Qi Zheng, this is a business that is sure to make a profit.

No, when the first funds were credited, Qi Zheng called Li Dongliang, the person in charge of Jiagu agriculture and animal husbandry.

"Lao Li, Goldman Sachs' first fund has been credited, what are your plans?"

Li Dongliang was a little excited, and shouted in his heart, what else can he plan, of course, it is a large pig farm!

However, in front of the boss, he still tried his best to show a steady side: "Time is pressing, we must build a large pig farm, so we should start the site selection of the farm as soon as possible." ”

Qi Zheng nodded, agreeing with Li Dongliang's statement, but his purpose was not in this regard: "Site selection is very important, but now there is an opportunity to make quick money, you are responsible for following up on it......"

"Make quick money?" Li Dongliang, who suffers from "capital thirst disorder", was eye-catching.

......

Wang Hai is a professional pig trader in Jiangyou Province.

Pig dealers are a mysterious profession, the so-called pig dealers, are those pig collectors who are engaged in the purchase of commercial pigs.

In the era of pig raising in every household, the pig transaction is more of a one-to-one model, farmers slaughter a few pigs each time, generally sold directly to the butcher, the butcher has a special pig truck, there are also professional pig killing tools, according to the law to pull down the designated slaughterhouse for slaughter.

With more and more large-scale breeding, some professional pig collectors began to appear, taking advantage of the difference in pig prices in different regions, collecting pigs in their familiar areas, and transporting them to large city slaughterhouses for sale.

This kind of cross-regional pig transportation requires a certain amount of cash flow, and it is also necessary to train a certain broker to go offline and be responsible for finding pig sources.

Wang Hai is such a powerful professional pig trader.

But this year he didn't have a good time.

Because of the phenomenon of oversupply, the slaughterhouse is not active in collecting pigs, and the purchase price is also low, and it is becoming more and more difficult to do business.

Feedback to the pig source, such a purchase price, farmers are basically at a loss.

Now many of the farmers he cooperates with offline have greatly dampened their enthusiasm for raising pigs, and they have started to slaughter sows and give up the idea of raising pigs.

In this regard, Wang Hai has no way, no one does the loss-making business, and he can only watch the fertile sows being pushed into the slaughterhouse.

At this moment, he was refreshed by the large-scale purchase of fertile sows and piglets.

......