Goldman Sachs' VAM agreement has also caused great controversy within Jiagu. See 1 yarn 3 Chinese net

I have to say that one thing has been pinched by Goldman Sachs, and Jiagu Group's current thirst for funds has reached a critical point.

The group's funds are not endless, and it is necessary to take into account the investment of its various companies and the layout for the future, and this year's capital chain has begun to tighten.

In particular, Jiagu agriculture and animal husbandry.

Jiagu Agriculture and Animal Husbandry has a heavy task this year - the 10,000-head ranch plan can be smoothly carried out with the investment of the group's headquarters and the loan support of local banks, but to take into account the group's pig farm expansion plan, the financial aspect is a little stretched.

The main reason is that this year's pig market is really sluggish, most pig farmers have been operating at a loss, although Jiagu agriculture and animal husbandry will not lose money, but the revenue will inevitably be affected - pig farms are not even good loans.

Therefore, when Qi Zheng wanted to hear everyone's thoughts, Li Dongliang of Jiagu Agriculture and Animal Husbandry first expressed his conditional agreement.

"In 04, the price of pork has risen, and a large number of farmers have increased production, so that this year there was an oversupply and the price fell. ”

"Obviously, a new round of the pig cycle has begun. ”

Pig prices show a typical cyclical change, and a cycle lasts about 4 years. Past experience has shown that pig prices are mainly determined by the supply of pigs, which in turn is mainly driven by breeding profits.

When the profit of pig breeding declines and enters a continuous loss, part of the production capacity is withdrawn, the supply of live pigs is reduced, which leads to the repair of pig prices; Look at 1 gross 2 lines 3 Chinese net

Li Dongliang said: "In the next two or three years, pig prices will inevitably rebound. If I have enough investment, I am sure that I will achieve a shining performance. I think it's okay to bet, but the betting indicator set by Goldman Sachs is a bit high, so it's best to lower it appropriately through negotiations......"

Ding Xian from the strategy department shook his head and said: "Goldman Sachs is not stupid, it is impossible for him to agree on a gambling target that we can easily achieve." 200 million US dollars, which is converted into 1.6 billion yuan! Even if we lose the bet, Goldman Sachs' debt-to-equity swap only requires 30 shares, even after another three years of development, it can be regarded as a premium shareholding, and everyone has to say that Goldman Sachs is kind. ”

"If the price of pigs rises ideally, we win the bet, which is equivalent to getting an interest-free loan. Goldman Sachs clearly wants to tempt us with money, asking for 30 shares, and it has not stepped on our bottom line, Goldman Sachs is indeed a capable person!"

Everyone present nodded silently.

If Goldman Sachs asks to bet on more shares, Jiagu may not hesitate to refuse. But the shares of 30 will not make Jiagu turn his face, but it is like a fish in the throat.

As for the shares, to be honest, if Jiagu can take a stake in other companies, Goldman Sachs can naturally take a stake in Jiagu's subsidiary.

If we ignore the blessing of Qi Zheng's spiritual array, the development of financing through the transfer of shares is the most normal thing for private companies. What's more, the pig breeding company is just a subsidiary of the Jiagu Group, and the investment of foreign capital will not have much impact on the group.

Of course, if the development is good, no one wants to transfer shares, but isn't Jiagu agriculture and animal husbandry short of money now?

Goldman Sachs also sees an opportunity in this pig cycle. Moreover, international capital is more realistic in terms of investment, and knows how to obtain value-added profits through the combination of capital and industry. Wang Yuye does not agree with this kind of betting, in his opinion, the company develops steadily, even if it is slower, but it is more stable. So he looks at Goldman Sachs' curve stake from a different angle.

"China's pig industry enterprises are generally relatively small, the strength is relatively weak, foreign capital through equity financing can quickly intervene, not much money can control the terminal market, this is where the opportunity lies. ”

"Due to the low concentration of pig breeding and processing industries, even large-scale or large-scale acquisitions will easily not constitute a monopoly. The most obvious is that China's top three meat processing enterprises account for only 37% of the country's total market share, such as Goldman Sachs' acquisition of Shuanghui and Yurun's participation, will not form a monopoly. However, the regionality of pig breeding and consumption is enough to allow it to gain control or influence on prices in local areas. ”

"If Goldman Sachs takes a stake in our pig farm in Jiagu, their influence on the pig industry chain in Min, Jiangyou and Jiangnan provinces will be further strengthened, which is really not a good thing. ”

"More importantly, in the current relationship with the global economic lifeline of several major industries, such as energy, finance, minerals, telecommunications, etc., China has maintained a high degree of vigilance for the entry of funds, especially the entry of foreign capital, and is highly concerned about industrial security issues, except for agriculture, the country still maintains a greater open attitude, many mergers and acquisitions in the industry basically do not have any threshold restrictions on foreign investment. But as a leader in the industry, we can't ignore the conspiracy of foreign capital!"

When it comes to the issue of industry safety, everyone is silent.

Jiagu has always been respectful of foreign investment, and even carried the banner of sniping at foreign capital in the soybean crisis, and now discussing the issue of accepting foreign investment, it is indeed a bit uncomfortable.

Qi Zheng's fingers looked rhythmically at the table, listening to everyone's opinions, and at the same time mobilizing the ups and downs of the pork market in his memory for reference.

It can be seen that everyone thinks that the most ideal result is to reach a compound annual growth rate of 100, and no one thinks that it can reach 150.

But Qi Zheng knew that Jiagu had the opportunity to use Goldman Sachs' financing for a few years.

Qi Zheng thought for a few minutes and made a decision in his heart.

He coughed lightly, attracted the attention of several people, and said: "Goldman Sachs wants to bet with us, you can, but you have to listen to me on how to bet." ”

......

When he met Hu Zhili again, Qi Zheng first made his own conditions: "Mr. Hu, I can accept the bet with Goldman Sachs, but the specific conditions need to be adjusted." ”

Hu Zhili was happy at first, and then sat up straight: "You say." ”

Qi Zheng said calmly: "With the equity of 40% of the pig breeding subsidiary of Jiagu Agriculture and Animal Husbandry as collateral, but Goldman Sachs wants to provide $300 million in low-interest financing, and this period is shortened to two years." ”

"If the CAGR of Jiagu Agriculture's pig breeding revenue falls below 120 within two years, the financing bonds will automatically become convertible bonds, and Goldman Sachs can convert the bonds into 40 equity in the pig breeding subsidiary at a predetermined conversion price. ”

"If the CAGR of pig breeding revenue reaches 120, the nature of this financing remains unchanged, Goldman Sachs will forgive all interest on this financing and allow Jiagu to defer repayment for two years!"

Qi Zheng took the initiative to raise the gambling index, and Hu Zhili's eyes flashed: "It seems that Mr. Qi is very confident in the pig market!"

......