#实话实说#
The big thunder on Wang Jianlin's head was finally demolished.
Recently, Wanda Commercial Management announced that PAG will work with other investors to reinvest in Zhuhai Wanda Commercial Management at the expiration of its investment redemption period in 2021.
When the VAM agreement is about to expire, this news is undoubtedly shocking for Wang Jianlin.
After all, seeing that the New Year's Eve is about to begin, Wanda's listing application has still not been approved. If the VAM agreement signed in 2021 is implemented, Wang Jianlin will face a big bill of 38 billion, and now Wang can finally put his heart back in his stomach.
As the saying goes, good things come in pairs, and Wang Jianlin has another good news, in the new agreement between Wanda and Taimeng, there is no longer a "bet" content, and Wanda's listing is finally no longer Lao Wang's "tight spell".
Seeing this, you must be wondering, what is the origin of this Taimeng, why is it not only willing to let Wang Jianlin go, but also give Lao Wang so much support? Who is the big man behind Taimeng?
Let's talk about it in detail, this man who let Lao Wang go.
Fight to fame: Acquisition of First Bank of Korea
Headquartered in Hong Kong, PAG is a well-known private equity giant in Asia, boasting more than US$50 billion in assets under management.
The big man behind PAG is Wang Jianlin's "white knight" Shan Weijian.
69-year-old Shan Weijian, the same age as Wang Jianlin, he is definitely a powerful person, but because he usually has a relatively low-key style, although he has invested a lot in the mainland, there are not many people who know him except for the private equity circle.
According to public information, in the 90s of the last century, Shan Weijian returned to China after studying in the United States, and first worked at JP Morgan Asia.
In 1998, Shan joined Newbridge Capital as a partner and began his private equity career. Xinqiao Capital is a U.S.-backed equity investment institution with more than $1.7 billion in assets under management.
After entering Sinbashi, Shan Weijian soon ushered in the first opportunity: the acquisition of the equity of the First Bank of Korea.
At that time, during the Asian financial crisis in '98, the First Bank of Korea urgently needed investors to take over the restructuring, and Shan Weijian started negotiations with the South Korean government on behalf of Shimbashi.
After a marathon of difficult negotiations, Shimbashi defeated HSBC and successfully won the stake in the First Bank of Korea.
Five years later, the First Bank of Korea was back on track, and Shimbashi sold its shares and successfully exited, reaping huge returns, and Shan Weijian became famous.
M&A deep development: become a legend
What made Shan Weijian a legend was the Xinqiao merger and acquisition of Shenzhen Development Bank.
After China's accession to the WTO in 2002, domestic banks were faced with the task of reforming. At that time, the non-performing assets of Shenzhen Development Bank were as high as 10 billion yuan, and the Shenzhen Municipal Government intended to sell its equity, but there were few receivers.
In the face of no one being optimistic, Shan Weijian made a decisive move to take over Shenzhen Development Bank, which was the first time that a foreign-funded institution controlled a commercial bank in the mainland.
As a result, the Wall Street Journal also described the deal as "making history."
After Xinqiao became the owner of Shenzhen Development Bank, it did not only make simple financial investment, but led the operation of Shenzhen Development on the business side, helped it get out of difficulties, and finally sold its equity to exit at a profit.
In 2006, Xinqiao merged with TPG, a private equity firm, and Shan Weicheng became a senior partner of TPG.
In 2010, TPG transferred its equity in Shenzhen Development to Ping An of China, which became the largest financial acquisition in China at that time, and TPG received 11.4 billion yuan in cash guarantee alone.
After this battle, Shan Weijian became a legend in Hong Kong's private equity industry, but he chose to "retire bravely" in the highlight moment, leaving TPG to join PAG and become a partner of PAG.
Heavy Mainland Enterprises: Becoming the "King of Private Equity in China"
After joining PAG, Shan Weijian's strategic focus shifted to mainland companies.
In the past ten years, PAG has invested not only in Wanda, but also in well-known companies such as Baotou Steel Group, Wilmar International, Lenovo, and Alibaba, and was once known as the "King of Private Equity in China" in the private equity circle.
Shan Weijian, who has a heavy position in the mainland, has also enjoyed the dividends brought by China's rapid economic development.
From 2019 to 2021, PAG's revenue was US$436 million, US$638 million, and US$737 million respectively, with a compound annual growth rate of 30.02%!
Of course, what made Shan Weijian famous in the mainland private equity circle was "leading" 21 institutions and enterprises to invest in Wanda in 2021.
According to the agreement at that time, Wanda sold 21.17% of Wanda Commercial Management's shares to many investors for 38 billion yuan. In addition, Wang Jianlin signed a VAM agreement with the investor to complete the listing before the end of 2023, otherwise he would repurchase shares and pay interest at an interest rate of 8%.
Of the 38 billion investment, PAG, led by Shan Weijian, accounted for 18 billion, almost half of all investments. It can be said that Wang Jianlin's fate is basically in the hands of Taimeng.
Shan Weijian's choice to let Wang Jianlin go at the last moment also has a lot to do with his investment style.
In the 13 years at the helm of PAG, Shan Weijian basically did not make financial investments, but mainly focused on control acquisitions, such as Yingde Gases, Zhenai.com, Universal Studios Osaka and other acquisitions.
When asked why he adopted this seemingly "thankless" strategy, Shan Weijian replied: Acquisition can only be profitable if it creates value, and the purpose of fighting for control is to change the management of the acquired company and ultimately increase the value of the company.
This is also reflected in the new agreement signed between Wanda and PAG, which previously sold 21.17% of the shares.
After the new agreement is signed, PAG and other investors will hold 60% of the shares, and Wang Jianlin will lose absolute control of Wanda.
But does this mean that PAG will move into Wanda to take over its operations? Will 69-year-old Shan Weijian end up doing business with Wang Jianlin, who is also 69?
All this will have an answer in the near future.