80. Chapter 80 Integration Plan
Chapter 80 Integration Plan
”What’s the idea?”
Dong Jianyuan immediately had a bad feeling.
Chief Lu said solemnly: “Let your two companies merge directly!”
”Merge?!”
The expressions of Kang Chi and Dong Jianyuan changed slightly immediately…
Who merges who?
Silicon Technology merges Dahan Silicon?
Kang Chi would definitely not accept this, and since they have already developed a floating belt single crystal furnace, Chief Lu should not have made such an excessive suggestion…
So, it should be Dahan Silicon that merges Silicon.
But where does Dahan Silicon get so much money to buy Silicon? “I know this may be a bit difficult for you.”
Before the two of them could react, Chief Lu said earnestly:
”First of all, Dahan Silicon Industry has an unstable foundation and is short of funds. Although Silicon Technology has a strong foundation, its current technical shortcomings are obvious, which may make it difficult to have a perfect merger plan.”
”But what I want to say is that in this silicon wafer battle, we are the weaker party and it is inevitable to be damaged. It is just a matter of how much, but we can try to reduce and share the damage to ensure that our semiconductor industry as a whole can develop steadily and healthily.”
After hearing this, Kang Chi and Dong Jianyuan couldn’t help but fall into deep thought.
In fact, Chief Lu’s meaning has been made very clear.
To reduce the damage, we must concentrate our efforts to rapidly develop the silicon wafer industry. And the most effective way to concentrate our efforts is resource integration.
It is just that during the integration process, the interests of Dahan Silicon and Silicon Technology may be damaged to a certain extent.
This is actually to let them help the entire semiconductor industry to share the damage.
From Kang Chi’s perspective, he has an absolute technical advantage and certainly does not want his shares to be diluted. But if he really buys Silicon Technology, with the talents, facilities and other foundations they have accumulated over the years, Dahan Silicon can indeed achieve a surge in strength in the short term.
From the perspective of Silicon Technology, although they are big and powerful,
As a technology company, their technological weakness is destined to lead to their disadvantaged position in this integration, even being eliminated is entirely possible.
Kang Chi thought for a moment, then looked up and said, “I want to hear your advice first.”
Chief Lu nodded, then stood up and paced while saying: ”I can make a general suggestion here. As for whether you can accept it, you have to discuss it among yourselves.”
”First, Mr. Dong will give an estimate of Silicon Technology after returning, and then the state will directly lend money to Dahan Silicon Industry, and Dahan Silicon Industry will complete the acquisition of Silicon Technology. Shencheng Silicon Industry Group can discount and hold a maximum of 10% of Dahan Silicon Industry, and will not interfere with any decision of Dahan Silicon Industry in the future.”
”At the same time, Dahan Silicon Industry guarantees that in the future, when silicon wafers are in short supply, the shipment volume to Shencheng Silicon Industry Group must be guaranteed to be more than 50%.”
After listening to Chief Lu’s bold plan, both Dong Jianyuan and Kang Chi could not help but feel a little shocked.
For Kang Chi, this is equivalent to the state directly paying money to help him buy the entire Silicon Technology!
The price was just to sell 10% of Dahan Silicon’s shares to Shencheng Silicon Industry at a discount, and to guarantee more than 50% of the supply to Shencheng Silicon Industry.
This price was much smaller than he expected.
The main reason was that Chief Lu’s hand was too big. He almost bet all his treasures on Dahan Silicon Industry, forcing it to complete this industry integration.
This is definitely a great love for Kang Chi!
Well, although from the perspective of the country, this is nothing more than a game of switching from the left hand to the right hand, the value of Silicon Technology is obvious, and they are not afraid that Dahan Silicon Industry will not be able to pay back the money.
Unless Kang Chi is not doing well and Silicon is directly destroyed…
But this possibility, at least for now, is still very low.
And Chief Lu actually has no better choice except to bet all his treasures on the combination of Kang Chi + Yan Hui. For Dong Jianyuan, the situation does not seem so bad.
First of all, the original intention of Shencheng Silicon Industry Group to establish Silicon Technology was to reduce dependence on foreign countries and reduce risks in the silicon wafer supply chain.
As for making money from silicon wafers…
HeWe dare not even think about it for now.
Silicon wafer R&D is the most thankless link in the semiconductor industry chain. The R&D investment is huge and the rate of return is low. Anyway, up to now, Silicon Technology has been losing money. Shencheng Silicon Industry Group has to pay a large sum of money every year to keep Silicon alive.
It feels a bit tasteless and a pity to throw it away.
And now the upper level directly pays money to help Dahan Silicon Industry buy Silicon, which is equivalent to throwing away this mess while protecting the principal.
And being able to hold a maximum of 10% of Dahan Silicon Industry’s shares,
is equivalent to being out, but not completely out, at least retaining a possibility of long-term benefits.
Finally, the guarantee of 50% shipment volume can also largely eliminate their worries about silicon wafer supply after selling Silicon.
It can be said that Chief Lu has taken into account all the concerns of Kang Chi and Dong Jianyuan!
Kang Chi couldn’t help but sigh, is this the leader’s overall view?
But now there is a biggest problem, that is, what is the valuation of Silicon Technology? If this valuation is too high, Kang Chi will definitely find it difficult to accept, and if it is too low, Shencheng Silicon Industry Group will definitely not be happy.
This is the detail that Chief Lu said before, which they need to negotiate on their own.
Dong Jianyuan pondered for a moment, and then said: “This matter is of great importance. I need to make a phone call to discuss it with President Chen.”
Chief Lu nodded, so Dong Jianyuan stood up, left the reception room and made a phone call.
Kang Chi thought about it, and it seemed that Dahan Silicon Industry also had a shareholder…
Although he didn’t have much say, it was more or less necessary to say hello in advance for such a company event.
So after explaining the situation to Chief Lu, he went to the corridor and called Zhang Qing.
“… This is the situation. If the merger is really completed, our shares will be diluted in proportion, but the total is only 10%. According to the dilution ratio of 96% for me and 4% for you, you will only lose 0.4%.”
”Well, I definitely have no objection!”
When Zhang Qing heard this, her eyes suddenly turned into crescents.
If the merger is really achieved, the valuation of Dahan Silicon Industry will definitely increase several times, but she can still have 3.6% of the shares…
Shencheng Silicon Industry can only hold 10% of the shares!
Is there any better investment than this? Zhang Qing increasingly feels that the 40 million yuan invested at the beginning is too worthwhile!
“Ahem, don’t be too happy. Money doesn’t come from the wind. This may mean that Dahan Silicon will be burdened with tens of billions of debts…”
”It’s okay. I believe you!”
After reaching a consensus, the two quickly hung up the phone. When Kang Chi returned to the reception room, Dong Jianyuan had already sat back in his seat.
”We, Shencheng Silicon Industry, support this integration plan.”
”Dahan Silicon Industry has no problem either.”
”Very good.” Chief Lu clapped his hands in satisfaction and said, “Then you should hurry up and finalize the details and complete the enterprise integration as soon as possible. If you encounter any conflicts that are difficult to adjust, just come to me.”
”Okay, got it. Thank you, Chief.”
There will be another update later today. Don’t think I’m too short TT (End of this chapter)