Things in Singapore are also getting more and more interesting, and Zhou Shi flew here. Speaking of Singapore, it's a really good place, at least for most of the rich. In addition to Singapore's personal income tax, which is negligible, there is no capital gains tax, gift tax and inheritance tax, and the consumption tax is only 7%. As for corporate taxes, it is more complicated, but it is still very low compared to countries such as the United States and China, and it is important to know that they are taxed on the profits of companies. And the company has a capital gains tax rate of 0% and a dividend distribution of shareholders of 0%. It's exciting to think about, so Friends Southeast Asia is headquartered in Singapore.

When he arrived in Singapore, Zhou Shi also got detailed information. While KKR and Silver Lake Capital acquired Avago for a total cost of $2.715 billion, the transaction consideration was $2.66 billion. However, several institutional investors invested $1.3 billion directly, of which $1.05 billion was common stock and $250 million was convertible preferred stock. The remainder was financed by debt, including $1 billion in bonds issued in the U.S. market and $415 million in long-term bank loans. It is a typical leveraged buyout, and a well-known domestic actress wants to carry out a similar transaction in China, but unfortunately she is ruined. Of course, these are not the main points, the point is that KKR and Silver Fox Capital have very strong control over the company, and they directly determine the 8 directors and indirectly determine the president of Avago, which has influence on 9 people on the board. Not only that, but they also take care of all the major matters related to the company's operations.

If Mr. Zhou had known about Anwarco's subsequent acquisitions, he might have guessed some of Mr. Chen's ideas, which were to try to make the board more complex and give him more power. In the previous life, on August 6, 2009, Avago shares were publicly listed on the NASDAQ market in the United States, and KKR and Silver Lake Capital, which led the acquisition, recovered part of their investment, and their shareholding ratio decreased from 80% before the listing to 63.8% on December 1, 2009, and in 2010, KKR and Silver Lake Capital made a large number of shipments, and their shareholding ratio dropped to 39%, and later their shareholding ratio was reduced to 8%. Among them, Chen Fuyang has always firmly occupied the position of CEO, and his heroic nature is undoubtedly revealed.

Although Zhou Shi didn't know these details, with the distribution of power by Anwar Gao, he knew roughly what was going on, and the experience of thousands of years of infighting gave him a wealth of knowledge. Avago's businesses include wireless communications, wired infrastructure, industrial and automotive electronics, and consumer and computer peripherals. It has maintained its leading position in the market in the fields of optocouplers, infrared transceivers, optical communication devices, printer ASICs, optical mouse sensors and motion control encoders. Overall, it's a good company, but Zhou Shi doesn't see much value in the acquisition. Chen Fuyang is not an expert in the semiconductor industry.

Seeing Zhou Shi's hesitation, Chen Fuyang came to Zhou Shi again.

"I'm not a semiconductor person, but I know how to make money and operate!" This reason is not enough, Zhou Shi has never joined the semiconductor industry to make money, and the speed of making money in this industry is not as fast as the financial market. His purpose is clear, which is to improve the country's semiconductor level. The trade war between China and the United States, which was in full swing in his previous life, told him that at a critical moment, national interests and personal interests are unified. In many cases, even normal business competition requires the power of the state. As a clear example, Cisco could not compete with Huawei, so it used the power of the government to exclude it from the American market. Over time, the exclusion and suppression of Huawei has also become politically correct in the United States. Many of Zhoushi's enterprises, especially Friends, are located in such marginal areas. Even though it now has a leading concept and advanced technology, and a safer network environment than Facebook, the friend network still lags behind Facebook, and from time to time some negative news breaks out, such as security risks, easy to leak personal privacy, such as Chinese background, personal information is easy to be used, and illegal profit-making activities are carried out.

"This reason doesn't appeal much to me, making money is the most basic requirement, and I have a lot of options. If there are no advantages in other aspects, I am afraid that ......" Zhou Shi

"My future development strategy is mainly to grow the company through mergers and acquisitions! Every merger and acquisition will have a spin-off, which is an opportunity, an opportunity for Galaxy Capital and Tianhe Securities. Chen Fuyang hesitated for a moment and made a killer move. Did this M&A maniac start his crazy road at this time?

Zhou Shi closed his eyes, opportunity, this is indeed an opportunity, maybe those goals that are inconvenient for him can be achieved through Anwargo.

"If the interests of Galaxy Capital can be protected, I can agree. "Zhou Shi

"No problem!" Chen Fuyang replied decisively

It is not difficult to protect the interests of Galaxy Capital, but it is not easy to say that it is not easy to say, and it is impossible to directly form a written clause: it is stated that Tianhe Securities must participate in future acquisitions. It's more about getting your own, for example, through board seats.

After Zhou Shi agreed, with the cooperation of Chen Fuyang, James began to act. The target is the remaining 25.9% of KKR and Silver Lake Capital (simplifying the equity distribution here, separating the equity ratio of the two major private equity funds, when in fact, their equity is now under the same tax haven company).

Galaxy Capital acquired a stake in Avago at a market value of $2.8 billion, and things are going well. As it was a leveraged buyout, the parties contributed only US$1.3 billion. According to Galaxy Capital's offer, in less than 3 years, their real rate of return exceeded 100%. And at the height of the next major crisis, no one would be disgusted with having more money in their hands. Even if Temasek is facilitating their acquisition of Singapore's licensed semiconductors as soon as possible, the same funds can play a bigger role in their hands and make more money. For example, in the banking reforms of previous years, sovereign funds like Temasek, which cannot do more than give more help to state-owned banks than money, can also participate in it. Even if Zhou Shi was reborn a few years earlier, relying on his status as a private entrepreneur, it would be impossible for him to have that qualification.

There is no difficulty in the acquisition, but it is impossible for the major shareholders to have no opinions, and the people of Silver Lake Capital finally came to the door.

KKR, the barbarian at the door, his three founders are all from Bear Stearns, a veteran investment bank that fell in the financial crisis, and even KKR is made up of the first letters of the names of the three founders, Kohlberg-Kravis-Roberts. The amount of money they manage is close to $150 billion.

Silver Lake Capital is a private equity firm focused on leveraged buyouts and growth capital investments in technology, technology, and related industries. Its investments include well-known companies such as Broadcom, Dell, Alibaba, NXP Semiconductors, Skype, EMC, Symantec and Seagate Technology.

Galaxy Capital, as an upstart on Wall Street, especially its hard-to-hide Chinese background, has made KKR and Silver Lake Capital full of interest. What's more, at the height of the financial crisis, showing a local tyrant who is not bad for money, everyone will be curious, and they are the same!

(End of chapter)