Chapter 1229: Take the opportunity to sell for a big price
The share transfer did not go well, and even if Adams's sudden intervention made Nokia's top management vigilant and anxious, the negotiations were still a little difficult to carry out.
It's just that the negotiations came to an impasse as soon as they came up, because Yang Dongxu was too ruthless. As soon as it came up, the price was raised very high, not to mention, and it was bitten and did not mean to let go.
The person who replaced Nokia's parent company in equal amounts, and also took a stake in Nokia's mobile phone business, paid him 3.36 billion euros for the difference.
Yang Dongxu owns a total of 26.3% of Nokia's mobile phone business shares, and also holds the power of the general agent in Asia. At the beginning, Nokia mobile phones were optimistic about the Asian market, but not the Chinese market.
Because the Chinese market gave the West the impression of being a poor and backward country at that time, and mobile phones were obviously not something that ordinary people could consume.
So Yang Dongxu stood up and won the agency of this mobile phone that no one is optimistic about the market, and signed a military order for this. If the annual sales of the mobile phone business cannot meet the minimum requirements of Nokia's head office, then the price difference needs to be supplemented by Yang Dongxu himself.
After signing this agreement, everyone thought that Yang Dongxu was crazy, and in order to save face for his country, he even used his own money to fill it in. But now it seems that this decision has undoubtedly made many people who watch jokes feel a pain in their faces.
In the first two years of signing this agreement, Yang Dongxu was indeed losing money, and had to spend tens of millions of dollars a year to fill the hole in substandard mobile phone sales.
But since the domestic economy began to exert force, people made money and could consume mobile phones, Yang Dongxu turned around in an instant from loss to profit, and the annual profit is increasing at a rate of 50%+.
Last year, Nokia's mobile phone sales and exports in China reached a staggering 10.7 billion euros, of which 20 million units were sold in China, with net sales of 6.3 billion euros, and Yang Dongxu's net profit earned 1.876 billion euros.
Nokia's parent company's telecommunications business is a bull and is currently an absolute international giant. But this bull is far from reaching the peak of Nokia's rapid transformation into a telecommunications business empire after the collapse of the mobile phone business in later generations.
As a result, a few years later, Nokia's mobile phone business collapsed, although because of its successful transformation into a telecom giant, the decline of the mobile phone business was not just the loss of an arm. But now the profits of the mobile phone business account for one-half or more of Nokia's total profits.
Therefore, Yang Dongxu did not make money by replacing the shares of the parent company with the shares of the mobile phone business, but lost money. In addition, Nokia's senior management also bit the coveted domestic mobile phone agency and did not let go. So Yang Dongxu insisted on the 3.36 billion sky-high compensation agreement.
Replace the shares of the parent company at the same price, and Yang Dongxu not only only has the right to dividends this time, but also holds all the rights to the shares in his hands.
So if it is replaced at equal value, plus his previous 5.36% stake in Nokia's parent company, his share in Nokia's parent company will reach a staggering 31.36%, which is the absolute majority shareholder.
Except for signing the agreement, he can no longer receive dividends from the current booming Nokia mobile phone business. and lose all rights to the mobile phone business company.
Even if he wants to reorganize Nokia's board of directors, these shares are enough, knowing that Nokia's parent company is now the second largest shareholder, which only occupies 12.32% of the company's shares.
So it's not just a matter of making up the difference, once the share swap is complete. Mr. Yang will be in power at Nokia, although he has not indicated that he wants to become chairman.
Moreover, it is also made clear in the replacement clause that after the completion of the share swap, it will not interfere in the mobile phone business, but will make every effort to develop Nokia's emerging telecommunications business, and create another heavy-duty fist for Nokia.
But no one can ignore the 31.36% stake there, not to mention the sky-high compensation agreement of 3.36 billion euros.
So the negotiations came to an impasse as soon as they came up, but Yang Dongxu was obviously not in a hurry. Even without Adams' step, he was in no hurry.
Because in recent years, Nokia's domestic sales will continue to increase by 50+%, that is to say, he has earned 1.876 billion euros through Nokia mobile phones in the past few years, and this year's profit difference can even reach an astonishing 2.8 billion euros.
This is only the profit from mobile phone sales, if you add that Nokia currently sells about three-quarters of the world's mobile phones, he is OEM, then he will double the money he makes from Nokia alone in a year.
You must know that last year, Nokia's global cumulative sales volume has exceeded 200 million, and this year it is not a problem to add another 100 million on this basis.
So Yang Dongxu is not in a hurry at all, anyway, the negotiations drag him on every day, and he is making money without any losses. Although he dragged on for a day, he would play for a day with the time of Nokia's telecom business in the global layout, and he was not in a hurry.
After all, Nokia's foundation is too thick, and when Apple was born in the last life, Nokia's mobile phone kingdom collapsed instantly. Nokia quickly adjusted and decisively gave up the mobile phone business to the telecommunications business.
With the patents in hand and the excellent telecommunications business, the annual profit after the successful transformation is definitely incomparable with the current one. At its peak, Nokia's mobile phone business made an annual profit of more than $80 billion. After the transformation, it was unable to adapt for a while, and the annual profit continued to decline, and finally came to about 26 billion US dollars after the undervaluation period.
But this 26 billion is also lying down to make money, and at the same time, this is the profit that they did not lay out as soon as possible and were seized by other telecom companies, although the transformation was successful, but they lost the opportunity.
At present, 2G is the mainstream in the global communication market, and 3G is beginning to appear, and 4G is just a concept. After 2008, Nokia's mobile phone business declined rapidly, and it happened to be at the peak of the 3G business, but Nokia got on the bus halfway.
In the end, he finally climbed into the 4G car, and he was not the boss, and then after a few years, 5G technology was faster than the 3G to 4G transition time, and he was not given time to deal with it at all, so he could only eat his old book. But people are also among the world's top 500 companies, and their annual profits are still 260 US dollars, killing more than ninety percent of the world's companies.
So Yang Dongxu is not in a hurry now, even if he is a little late in the layout of telecommunications, he is making money anyway. And there is also a Huaxia Telecom in China that is quietly developing.
He only had to replace the shares of Nokia's parent company, in fact, he also took a fancy to Nokia's strong technology and patent reserves in the telecommunications industry.
If he could win them all, he wouldn't have to worry about Apple or other telecom companies' technology. Directly launch 3G technology, even if you can't catch up, you can take the first train of 4G technology, and at the same time greatly reduce the research and development of 5G technology.
However, he did not play too hidden, because he showed a strong interest in Nokia's telecommunications technology when he first came into contact with Nokia many years ago.
Over the years, he has used his capacity as a shareholder to buy these technologies from Nokia. So now those shareholders of Nokia, even if they see Adams getting involved, are not in a hurry, and they have discovered this.
Except for Nokia, there is no company that can provide Yang Dongxu with such cutting-edge telecommunications technology and patents. Whether it is the United States, other European countries, or even Japan, South Korea, etc., which are the best telecommunications technology in Asia. At this point, the attitude towards Huaxia is to adopt the means of blockade.
So as long as Yang Dongxu doesn't get the Nokia Telecom technology and those patents, they are not afraid of him running away. Therefore, this is a game of patience depending on who can't hold back first.
Therefore, after the negotiations reached an impasse, Yang Dongxu continued to take his family to start his European tour in style, and did not spend time in Finland.
"In fact, in my opinion, even if they are willing to make up the difference, we still suffer from the share conversion agreement, and they just see that you want Nokia Telecom technology, so they have no fear. After lulling the little guy to sleep on the plane, Zhou Ya picked up the share swap contract drafted by the company's team according to Yang Dongxu's intention and said.
"Now it seems that of course we have suffered losses, not only but also big losses. Nokia's net sales for the year are now 41.1 billion euros. Almost half of that comes from the mobile phone business.
This proportion is still increasing, and it is estimated that in another two years, the net sales of the mobile phone business will account for two-thirds or more of Nokia's net sales.
Of this net sales, 6.3 billion euros came from China this year, accounting for one-seventh of the net sales of Nokia's mobile phone business.
This share conversion plan is not only a stake in the mobile phone business, but also we have to give up the agency of Nokia mobile phone in China, which is definitely more than 3.36 billion euros. Yang Dongxu said with a smile.
"Then you ......" Zhou Ya looked at her husband puzzled.
"There's no way, even if I've been digging all kinds of domestic telecommunications technology over the years. But after all, the technology of the Soviet Union is outdated, and the starting point is not low when standing on their shoulders.
It can be compared to telecom giants such as Motorola, Ericsson and Nokia, which have been constantly developing and developing. Our technology is still at an absolute disadvantage, and it takes more time to catch up, and what I'm missing most now is time.
So the 3.36 billion is actually the reason I filled it in. Its real purpose is to make Nokia's side feel that I am still reluctant to deal with the mobile phone business.
But in order to develop Huaxia's telecommunications business, this transaction had to be made. So it doesn't matter if the money is going to end up or not, but they have to come up with some top-notch telecommunications technology to offset it. Otherwise, it's too cheap for them, because Nokia's mobile phone business is really profitable in the next few years, or super profitable. ”
"How many years from now?" Zhou Ya grasped the point of her husband's words.
"In a few years, Nokia's mobile phone business will die ugly. Yang Dongxu smiled mysteriously.
"How is that possible?" Zhou Ya exclaimed, he felt that his husband was joking.
Although he has lived in the countryside for a long time, it does not mean that she knows nothing about things outside. Nokia has been growing by leaps and bounds in recent years, but the foundation is very solid. can crush the United States Motorola and Ericsson under the ravages of the world, and the global mobile phone also deserves the existence of N0.1.
If the foundation was not stable, with the United States like to engage in espionage activities and seize all kinds of blackmail from other companies, Nokia would have finished playing a long time ago.
Therefore, this company that has grown rapidly and developed step by step is extremely solid, Zhou Ya did not see the slightest possibility of falling.
"It's because everyone thinks they can't, so they can sell it at a good price. Yang Dongxu's smile couldn't help but feel a little proud, this feeling that everyone was drunk and I was sober alone can greatly satisfy the vanity of pretending to X.