My Age of Investment

   Chapter 1173 Ratchet Clause

  Xu Tingyin came to the second phase of the International Finance Center to visit Xia Jingxing with a sad face.

   Hengtai's listing plan was stranded again.

   Encountered the unfortunate financial crisis, the money supply suddenly tightened, and the housing price also fell, causing the capital flow of Hengtai to have problems again.

  Because the company often invited some Hong Kong Island stars to come over to cut the ribbon and go to the cave when the company's real estate was opened, Xu Tingyin met a friend - Boss Yang of King Entertainment.

   After the other party knew about his business difficulties, he introduced him to hoeing big D together with Zhu Yutong and Liu Dianxiong, founders of Zhu Dafu, one of the four major real estate families, and approached the rich circle of Hong Kong Island by playing cards.

  Xu Tingyin played cards with this group of people for a period of time, serving tea and water like a little brother, and serving the big brothers comfortably.

   But these people just don’t want to pay for help.

   Just when Xu Tingyin was beginning to feel a little disheartened, news suddenly came from the market that Xia Jingxing defeated Li Huangtai and made tens of billions of Hong Kong dollars.

   Considering that Vision Capital already holds a lot of Hengtai’s shares, Vision Capital is not the best investor for this round in Xu Tingyin’s mind.

   But the big D will never accept him, and Xia Jingxing kept singing triumphantly.

   After thinking about it for a while, Xu Tingyin still came to the door with a shy face.

   After hearing Xu Tingyin complaining, Xia Jingxing frowned, "Hengtai's cash flow is so tight, and the asset-liability ratio is as high as 95%, why didn't you come to me earlier?"

  Xu Tingyin sighed and said: "Oh, this is mainly because I am too optimistic, I have been thinking that I will be rich when I go public, and I don't want to trouble you, President Xia.

  You've helped me a lot, I'm really sorry to bother you again. "

  Xia Jingxing looked at Xu Tingyin with a smile, and somewhat guessed some of the other party's true thoughts.

  Most of the belts were looking for a large circle outside, but they found that they couldn't raise funds at all, so they had to come to eat the grass of Vision Capital again.

   Worried that Xia Jingxing might have heard some rumors, in order to show sincerity, Xu Tingyin simply took the initiative to talk about the big D meeting.

   Two months after hearing that Xu Tingyin poured the tea, Xia Jingxing smiled and asked, "You are so low-profile, they still don't want to invest?"

   "I feel that they are still willing to invest, but the financial crisis broke out. The longer they wait, the better the conditions for investing in shares."

   Xu Tingyin shook his head again and again, "But Hengtai can't afford it now, so I have to come to you for help."

   Seeing that Xu Tingyin was so frank, Xia Jingxing did not continue to ask more about the big D meeting.

   He remembered that several wealthy members of the Hong Kong Island in the previous life picked up a big bargain. When the financial crisis broke out, he invested in Hengtai at a low price. Hengtai went public more than a year later and made a lot of money.

   However, before the formal investment, they inspected or deliberately delayed Xu Tingyin for three months.

   Xu Tingyin is also stupid. He doesn't know how to hold such thick thighs, so he ran to hold the stinky feet of Hong Kong Island's richest people.

   He wouldn't covet Hengtai's control, so Xu Ting was overthinking him.

   Now that Xu Tingyin came to the door to ask for help, Xia Jingxing decided to save him.

  Because he had invested 400 million US dollars in Hengtai before, he originally planned to transfer this part of the equity to CIC, but CIC resolutely did not, and felt that there was no investment value.

   This time coincided with the financial crisis. Blackstone and Morgan Stanley, which CIC invested in before, suffered serious losses, and their investment actions became more and more conservative.

   Therefore, Xia Jingxing had no choice but to continue to hold this part of the equity, and planned to wait for Hengtai to go public and then slowly sell it.

   "How much do you plan to raise? How much is the valuation?"

  Xu Tingyin saw that Xia Jingxing didn't speak for a long time, and thought it was over. When he heard the other party's inquiry, he immediately replied excitedly, "Funding 600 million US dollars, and the valuation is 4 billion US dollars."

  Xia Jingxing said with a smile: "The previous year's valuation was US$5 billion, and now the valuation has dropped. According to the ratchet clause, you need to compensate the losses of the previous round of investors."

  Xu Tingyin has consulted the legal affairs, and is fully prepared for this, and his face has not changed at all: "The financial crisis is so serious now, it is very lucky to have investment in, how can I dare to expect the valuation to rise.

  People, learn to judge the situation.

  Mr. Xia, you can rest assured that we will recalculate the last round of corporate valuation in accordance with the signed agreement.

   Before Vision Capital invested 400 million US dollars, accounting for 8% of the shares, and the post-investment valuation was 5 billion US dollars.

   Now all the shares are calculated according to the post-investment valuation of 4 billion US dollars.

   The $400 million in the previous round plus the $600 million in this round is a total of $1 billion, accounting for 25% of the shares. "

   After saying that, Xu Tingyin was bleeding in his heart, but he still pretended to be very happy and satisfied on his face.

  If there is no **** ratchet clause, he has found someone to do the calculation. After two rounds of financing, the total shareholding ratio of Vision Capital is only 21.8%.

  After activating the ratchet clause, Envision Capital's shareholding ratio increased by 3.2%, all of which were cutting his flesh.

   There is no way, who made Hengtai's valuation lower.

   More than a year ago, people invested in Hengtai at a post-investment valuation of US$5 billion. Now the valuation has been reduced to US$4 billion. If there is no such protective clause, the investment institution will suffer losses.

  The so-called self-financing is all bullshit.

   He feels that the venture capital industry is too deep.

  If the entrepreneur is weak and has no right to speak, they can be pinched as they want.

   As an entrepreneur, not only can he not protest, but he must also have a smile on his face as he is now.

  If Xia Jingxing was upset, he would have to go back to **** with those Hong Kong Island tycoons.

   He now gets annoyed when he sees the cards.

   In the past two months, he has played all the cards of his life, and he never wants to touch it again.

  Liu Tianxiong doesn't know if it's because he's bored, or because he has a physical problem, so he arranges to play a few rounds of golf, and it's better to try new ways than playing cards every day!

   Don't understand the joy of life! Xu Tingyin secretly complained in his heart.

  Xia Jingxing made up his mind and invested a total of 1 billion US dollars before and after, and is expected to take 25% of the equity of Hengtai.

   The return on investment is definitely not as good as Ahri, but it’s still a pretty good investment. It’s no problem to earn a few hundred small goals.

Instead of letting Hong Kong Island's rich people take away the dividends from the mainland real estate market, and then fly away with the money to invest overseas, it is better to pocket the profits themselves, and then use the backhand to invest in China, take it from the people, and use it for people and achieve common prosperity.

   "Okay, I'll arrange for Hanergy's President Chen to contact you. You can talk to him about the specific agreement."

   "That's great, thank you Mr. Xia!"

  Xu Tingyin smiled all over his face, knowing that this was stable, and the rest were just some details.

   When he looked at Xia Jingxing with a light-hearted face, like Xia Jingxing who made a six-dollar deal, he sighed in his heart that Mr. Xia is indeed a person who does big things, and the pattern is much bigger than that of Hong Kong Island's richest people.

  Those people who are stingy, always reveal a little family spirit when they do things.

   In the future, Hengtai will become bigger and stronger. He will be like President Xia, holding hundreds of billions of funds, turning his hands into clouds, and turning his hands into rain...

   As for the trillion, that goal is too big, and I don’t dare to think about it for the time being.

  Xia Jingxing called Chen Hong and asked him to go upstairs to pick up Xu Tingyin.

  The business of Lehman Asia is now almost completely shut down, so he handed the financing case of Hengtai to the newly acquired company, just to make the best use of it.

   In addition, it is worth mentioning that Lehman Asia has now officially completed the name change, changed to Envision Securities, and is still responsible for securities brokerage, investment banking, fixed income and other sectors.

   (end of this chapter)