Chapter 663 The Benefits of Bai Picking Up, $8 Billion(1/2)
Chapter 663 The benefits of picking up for free, 8 billion US dollars
Hu Yang put down the microphone, waited for a while, and then continued: "Lao Yu, start buying Amazon stocks immediately. At the same time, don't wait for the delivery date of the put options. Sell them all."
Calculated from the current point of the Dow, the space below is actually not too big. Maybe it is a few hundred points, maybe a thousand points, but it is also possible that there will be a retaliatory rebound at any time.
Hu Yang had no interest in betting on the last bit of profit, so he directly ordered Yu Hongbo to settle the matter.
Hu Yang bought a total of 40 million put options, with a premium of US$5 per option and a target price of US$75.
When the price of the underlying stock falls below $75, the deeper it falls, the higher the premium price will be.
Yu Hongbo sold all the warrants, and the final average price was actually US$68 each. After excluding the cost of US$5 per ticket and the handling fee, these warrants achieved a total net profit of US$2.48 billion.
By this time, the victory has been locked. As for the 40 million shares of Amazon stock, you can buy them slowly. It's just that the price is higher or lower, and it will not affect the overall situation.
"Mr. Hu, Mr. Chen's phone number."
Hu Yang ended the call with Yu Hongbo, and Wu Xinhui handed over the phone.
"Master Chen, are you done?"
"Of course, I almost operate at the same time as you. Hehe, this order is quite profitable. Everyone is really happy."
Chen Jialin laughed and didn't say anything too specific, but Hu Yang could almost guess it.
In view of everyone's timely communication, there is really not much difference in operation time.
"Well, now you and Mr. Xia can increase your efforts. I estimate that many companies in Europe will have an increasingly difficult time. I won't talk to you now, I have to get some sleep."
Hu Yang has always had a tacit understanding with Chen Jialin in their cooperation over the years.
It’s hard to say too much about some things on the phone, but the meaning has been conveyed in place, which is to speed up the acquisition.
This time, shorting U.S. stocks is really not the most important thing. At most, it can be regarded as a convenience to gain some benefits.
The most important thing is to take advantage of the financial crisis that originated in North America to acquire some companies that I have admired for a long time at low prices.
Of course, there is no need to worry about large enterprises. They may not be able to carry it. Even if they cannot, due to many reasons, it is impossible to agree to let Huijia Group acquire it.
Europe is better than North America in terms of domestic prevention, but there are also many rules and regulations that are not easy to break.
But for some small and medium-sized enterprises, the problem is not big.
For example, some small-scale precision machinery companies, although not very famous, often have a few unique skills.
For another example, some European companies also have their strengths in some semiconductor material technologies.
These small but sophisticated technologies are exactly what Populus euphratica needs.
"Mr. Hu, go and have a rest. We'll be delayed for a while, but it's almost dawn."
Wu Xinhui tidied up the study room and saw Hu Yang still sitting there meditating, so she whispered a reminder.
"Oh, okay, you go and take a nap too. You don't have to get up too early in the morning. We can get to the company at ten o'clock."
Hu Yang yawned, then got up and went back to sleep.
Three days later, Yu Hongbo came to Hu Yang's office with a cheerful face.
"Boss, all 40 million shares of Amazon stock have been bought back, with an average transaction price of $43.
Our previous selling price was US$95 per share, excluding various expenses. This made a total profit of US$2.08 billion.
I did the math and found that this time we made a profit of US$3.6 billion on Dow futures, a profit of US$2.48 billion on put options, and a profit of US$2.08 billion on Amazon stock by selling high and buying low, for a total profit of US$8.16 billion.
Excluding bank loan interest of US$25 million and various taxes and fees of approximately US$35 million, the net profit is basically US$8.1 billion.”
Yu Hongbo had prepared the information before he arrived. The transaction records of shorting US stocks this time were listed in detail in the ledger.
Funds have been transferred from securities and futures accounts to Huijia International Investment's U.S. dollar account in Xiangjiang.
Hu Yang has asked Huijia International Investment to repay the US$5 billion loan it borrowed.
When I borrowed the money, I agreed that it would be a short-term loan, with a maximum loan period of no more than six months, and that I could repay it in advance.
Hu Yang thought that negotiations with Europe would still take some time, and the specific amount of funds needed was still unknown. Whether or not a loan was needed would be decided at that time.
"Lao Yu, you did a great job this time. You and your team also worked hard. It was not easy to stay up late for several months.
In this way, you can take a good rest for a while. I will give you 20 days of paid leave. You can take your family out to have fun. In addition, I will ask the finance department to give you a bonus of 25 million yuan as a reward."
Hu Yang smiled and nodded, feeling very satisfied with Yu Hongbo and his team.
"Boss, this all depends on your strategizing. We are just following your orders and cannot deserve your praise."
Yu Hongbo felt happy in his heart, but he still had to be modest.
"Haha, you old Yu! Well, I'm not the kind of boss who takes credit for everything. So, you don't need to compliment me like this.
Go ahead and tell your men the good news, and let them rejoice with you."
Hu Yang cursed with a smile and waved Yu Hongbo away.
In fact, he knew that he was not a genius, and the extra knowledge in his mind was becoming increasingly insufficient.
What he relies on is the entire Huijia system and this capable and executive team.
...
Xia Bing and Chen Jialin stayed in Europe for another month. They contacted five companies and finally negotiated with three.
One of the precision machinery companies, the technology they possess is very meaningful to Bolong Optics. In the past, Bolong Optics and microelectronics equipment had a headache for suppliers of the mechanical parts of high-end photolithography machines.
Not only does Germany charge high prices, but it is also subject to restrictions from North America from time to time, so supply is intermittent.
However, domestic substitution is not satisfactory. The main reason is that the accuracy of the equipment is not enough, which will have some negative effects on the performance of the lithography machine.
The European company that Hu Yang acquired this time can just make up for the shortcomings of the previous one. The company has its own pride in the field of pneumatic bearings.
High-end lithography machines are very complex things. How else could they be called the “jewel in the crown of modern industry”?
Its structure is complex and divided into several subsystems. For example, its alignment system has very high accuracy requirements. During the movement, there must be no vibration at all.
Previously, Bolong's optical and microelectronic equipment failed to solve this problem, so it was controlled by German companies for a long time.
This time, after Hu Yang acquired this European company, he planned to find a suitable domestic precision machinery company for cooperation.
Of course, this matter is not urgent and requires careful investigation.
The other two companies acquired are companies in the semiconductor field. They are not among the top companies in the world in terms of technology, but they can just make up for the shortcomings of the Huijia system.
A total of US$8.7 billion was invested in this acquisition, which was considered a bargain.
Before the financial crisis, these three companies would not have been sold with US$18 billion. However, due to the impact of the financial crisis, the global economy was hit hard, and these companies really could not get over this hurdle.
For the US$8.7 billion acquisition, Huijia International Investment invested US$8.1 billion, which happened to be the proceeds from short selling US stocks. Nishite Technology contributed US$400 million, and Chen Jialin's own fund contributed US$200 million.
After signing the contract, the remaining matters were naturally handled by a professional team. Chen Jialin and Xia Bing took a business jet back to the deep sea.
“Mr.
These companies were the companies that Hu Yang wanted to acquire most within the circle he had circled at that time.
Needless to say, Xia Bing and Chen Jialin have also put a lot of effort into these companies, and their hard work has paid off. Now that Populus euphratica has achieved what he wanted, both public and private people should toast with a glass of wine.
"It's agreed that Mr. Hu will be the toastmaster. Please don't engage in wheel fighting. Come on, let's do it!"
Xia Bing is worthy of being a "hero among women". She took a sip after picking up the glass of wine.
Chen Jialin and Hu Yang fell one step behind, but they drank up their glasses immediately.
Originally, Yan Hanzhang and Gao Mingkang were planning to toast them respectively, but after hearing what Xia Bing said, they had no choice but to give up.
To be honest, no matter which one of them drinks with Xia Bing alone, they will just surrender. If they can't fight, who will drink with you, a "big wine barrel"?
Today, Meng Ruisong and Zhang Xiao also came here specially from Shanghai.
The acquisitions focused on Huijia International Investment are closely related to Xentong International and Bolong Optics, so they cannot help but ignore them.
"Mr. Meng, Mr. Zhang, this second drink will be represented by you. Anyway, it's just three glasses of wine, and then you can drink as much as you like."
Hu Yang did not continue to raise the cup and gave this opportunity to Meng Rusong and Zhang Xiao.
"Mr. Hu, you are a bit biased! How about you give me the power of the third toast?"
Yan Hanzhang didn't forget to join in the fun. They actually didn't have any rules when it came to drinking. They were just used to making noises.
"Hey, it's rare for the boss to toast in person. You took away the opportunity and didn't ask Mr. Xia and I if we would agree? Forget it, don't go back and forth, let's raise a toast together...
"
Chen Jialin felt that the atmosphere was not enough, so he suggested that everyone drink together and wish all the companies under the Huijia Group to glory.
Next, Hu Yang became a supporting actor, and Yan Hanzhang, Meng Rusong and Zhang Xiao chatted animatedly with Xia Bing and Chen Jialin.
Everyone is excited that Huijia International Investment has found a bargain in Europe this time.
However, mergers and acquisitions, especially international mergers and acquisitions, are not their area of expertise. But it does not prevent them from being willing to listen more.
But as we talked, the topic got sidetracked.
A group of people gathered around Chen Jialin, listening to him talk about the success of short-selling U.S. stocks this time. This matter was even more attractive than the previous topic. After all, they all invested money in Chen Jialin's fund.
This time, Chen Jialin bought $30 million in put options, or 6 million. He also opened 5,000 short orders on the Dow futures contract, investing $2.5 million.
To be continued...