In the cruising dream and reality six months after Huiyuan Head of the Xinli, had to face the harsh reality. Zhu Xinli, smart already aware of the financial crisis sweeping the globe in the background, could not find Coca-Cola Had such a good buyer.
Huiyuan "default" Coca-Cola "If (and Coca-Cola sign) and then 20 days later, Huiyuan Juice (1886.HK) can only sell 3.0 billion Hong Kong dollars. "By the end of March, a very close personal friendship with Zhu Xinli, who told our reporter, signing his agreement with Coca-Cola, Zhu Xinli, the end of 2008 with private chat, it was revealed on the true valuation of Huiyuan Juice.
After the withdrawal of the Coca-Cola, 30 billion, is a potential buyer on the valuation of Huiyuan are given. Earlier, rumors of companies interested in acquiring Huiyuan Juice include unity, Danone , And the state capital background COFCO, China Resources Group and the State Investment Group.
"But this valuation and the psychological price falls far short of Zhu Xinli, Huiyuan even present numerous difficulties, Xinli, not at this time to sell at this price." The former official said, by recent contact with Huiyuan He that Zhu Xinli, still want to continue to be on its own.
Miss the "good buyer"
"The reason why the high premium on acquisition of the original Coca-Cola is the overall strategy for China to consider: the acquisition of Huiyuan, a direct competitor to further widen and PepsiCo In the field of non-carbonated beverages gap, which can guarantee the absolute leader, in the future for a long period of time, Pepsi, Coca-Cola on the formation of repressive situation. "An insider told this reporter Huiyuan said.
Time by bringing together up to and Huaping Ji Jin, Pepsi, Danone, Coca-Cola's bid were 10 yuan / share, 11 yuan / share, and 12.2 yuan / share.
Addition to "super premium" Zhu Xinli, Coca-Cola also promised a certain sort of "harsh" conditions.
"Coca-Cola sign in to see the part with the terms, I have to admire the smart Zhu Xinli. Coca-Cola is basically no account of any cheaper." Zhu Xinli, the aforementioned person close to the reporter said, even at such a high-priced acquisitions, Huiyuan most of the land and factories, is still available for lease in the form of Coca-Cola to use. "In other words, Coca-Cola one-off payment of 17.9 billion Hong Kong dollars, still have to pay up to several hundred million dollars per year lease fee, this trick can be said once and for all."
But also because of Huiyuan prevailed in the debate in terms of the financial crisis intensified, Coca-Cola's internal opposition is growing. "This year in February, I have been in contact Zhu Xinli, the family, they said, when Coca-Cola board of directors has been very strong opposition, and purchase a greater risk of miscarriage."
The source said, although not to judge, Coca-Cola is in the process of the Ministry of Commerce rejected the "do work", but it is certain that the ruling of the Ministry of Commerce will meet within Coca-Cola, "Coca-Cola has long been felt within the group The acquisition cost of 17.9 billion too high. "
This person seems to reject the acquisition of Commerce, the Coca-Cola's statement also some unusual. "Not even a regret that statement directly to respect the official's decision, not consistent with the practice of Coca-Cola, Coca-Cola has long note 'inadvertent acquisition'."
From 17.9 to 3 billion
From Coca-Cola to buy Huiyuan was rejected by the Ministry of Commerce, will seek to sell on the Xinli, Huiyuan's news, it spread widely in the industry. This is not difficult to understand
. In September 2008, the Huiyuan Juice adopted more defensive strategies, Zhu Xinli, has put more energy and resources into the original planning "upstream", at present, funds and markets Huiyuan faces the dual pressures of competition.
"Huiyuan has done a lot to prepare for the merger, if not sold, will bring a lot of loss." Huiyuan, a former reporter, said the senior core, "the most crucial is the price."
"Zhu Xinli, Huiyuan do not want to sell fake, but the question is, do not want to sell we will be able to sell at good prices to." Zhu Xinli, the closer who also said the reporter.
Out in the Coca-Cola, the Taiwan Food Giant Uni-President Enterprises, was the outside world that are most likely to buy Huiyuan Juice. In 2005, the unification was one of Huiyuan's strategic investors, but subject to Taiwanese companies investing in the mainland at that time shall not exceed 40% of their net worth, will be transferred to Danone shares.
In the "Coca-Cola to buy Huiyuan," was rejected a few days after the head of the Uni-Luo Zhi-Xian on the media have expressed interest in Huiyuan, "Huiyuan is a very good investment objectives."
2007 year, a unified continent assets listed in Hong Kong, basically solved the financial constraints of enterprises. In the face of Coca-Cola and Master Kong Step in advancing the field of fruit juice, unity is also an urgent need "strategic alliance" to achieve the breakthrough in the juice drink market.
"But because of unity of former shareholders of Huiyuan, so the price of Huiyuan unity is very clear." Zhu Xinli, the closer who told reporters that "unity of the entire valuation of Huiyuan Juice, almost 3.0 billion Hong Kong dollar also so, even with the premium, is expected from the Xinli, so different, in the short term, unity and Xinli hard to reach an agreement. "
As Huiyuan, Danone's second largest shareholder, is also considered a potential acquirer. "Danone was very much like the overall win, because Danone had not well with Xinli Cooperation , And either can only reach out. "
But can also clear up the true value of Huiyuan. "Danone had the high bid for Huiyuan, just to raise prices, if we really want to buy, prices are sure to reach out Zhu Xinli, the psychological level." The source said.
As for the rumors of the three state owned groups, the state's investment and development companies already have a lot of juice assets?? SDIC juice stock limited (600962.HK), COFCO and China Resources Group also has Wyatt were living juice China Resources Snow Breweries and other beverage assets.
This, March 31, 2009, Ning, chairman of COFCO, said, "We have an agreement Coca-Cola", not Coca-Cola agree that the food is unable to acquire Huiyuan. The National Investment Development Corporation, a responsible person said, do not intend to develop through joint recombination in beverage business. China Resources Group, which was not responded.