The pointer of time is turned back in 2008, the subprime mortgage crisis broke out and global stock markets plummeted.Adhering to the principle of requiring shareholders to announce more than 5% of the equity changes since it entered the Paris Stock Exchange in 1993, LVMH seized the opportunity and took advantage of loopholes in the financial management rules to quietly buy 492% of Hermes stocks in the secondary market.The layout begins.
Relying on Arnault's precise vision and the rise of the Chinese market, LVMH quickly got rid of the economic crisis and recovered its vitality first. Then it secretly stored cash. Through five years of preparation, it accumulated a large amount of cash flow. In the meantime, it actually acquired some other top luxury brands. In the second half of last year, LVMH signed stock price betting agreements with three investment banks, with the target scale of 171% of Hermes' shares.
On October 22, 2016, the end of this year, the two betting agreements will expire, and LVMH bought 9.8 million shares from two investment banks.
According to regulations, the day after the betting agreement takes effect, LVMH must report to the French Financial Markets Administration (AMF), and the news will be received in the market at that time, and this century-old acquisition case will officially begin.
By October 24, another betting agreement will expire, with 3 million shares.So far, three bets allowed LVMH to gain 171% of Hermes' stock.In addition, 492% of the previous secret purchases were bought, a total of 2202%.As soon as he returned to the villa, Yàn Ni, who directly explained the Hermes acquisition case through PPT, looked at Zhang Weihao very much, and was really guessed by this guy.
Although such a betting agreement is top secret, as long as it is predicted in advance, it is not without traces. It is still easy to lock in and find some truths hidden behind it.
First of all, Arnault and LVMH have been secretly preparing cash flow. These clues can be found through the annual and quarterly reports. After all, there must be a reason why so much cash is stuck and not used to pay dividends. With Arnault's previous style of conduct, he naturally targeted some other top luxury brands. But what many people could not imagine was that he targeted Hermes, and he planned to acquire it in this way.
Although Yàn Ni is called Abin, she had already known Zhang Weihao's true identity from Tang Zichen, so she was very curious about the relationship between Zhang Weihao and Tang Zichen. After all, it was said that Tang Zichen had obtained the fate of immortality and was lovers with Lu Zu in his previous life. In order to save her from becoming an immortal, Lu Zu specially reincarnated and descended to the earth.
In fact, many people are looking for the whereabouts of the reincarnated king of Lu Zu, but they can't find anyone, as if they appeared out of thin air. Yàn Ni did not doubt that Zhang Weihao and Tang Zichen had that kind of relationship. After all, no matter how outstanding Zhang Weihao is, he cannot compare with the immortal brother who is reincarnated by the immortal. However, Yàn Ni could see that Tang Zichen attaches great importance to Zhang Weihao. Maybe after Tang Zichen ascended, this would be her designated successor.
Some domestic bigwigs have similar ideas, but they are not Zhang Weihao, but Wang Chao, so they attach great importance to the cultivation of Wang Chao and intend to serve as a backup plan. When Tang Zichen is about to ascend, they will let Wang Chao inherit Tang Zichen's legacy.
First of all, we confirm that there is indeed a saying that ascends to become an immortal, and then explores the secret of becoming an immortal through Wang Chao. After all, immortals are almost equal to immortality. Many powerful and powerful people care about this most. This is undoubtedly the closest time they have to become immortality and ancestors.
Let’s talk about the situation on Hermes, can we not know at all?
The first family in the luxury industry Hermes Group is a typical century-old family business.After listing in 1993, Hermes' annual revenue increased from $82 million to $2 billion, and Forbes estimated that at least five family members are now on the global billionaire list, and has been passed down for 200 years and six generations. After Jean Louis Dumas' death in 2010, his nephew Exel Dumas was appointed CEO in 2014.
In the history of six generations of power changes, except for Patrick Thomas (who served as CEO for 8 years between Jean Louis Dumas and Exel Dumas) who had no blood relationship with the family, most of the time, the position of corporate CEO is still firmly controlled by the Hermes family.
Although Hermes Group is a listed company, it has a family culture as unbreakable as a castle.
Specifically, Hermes has an 11-member family executive committee that selects new CEOs, presidents, and other key positions from the next generation of family members.
In order to adhere to the principle of democratic centralism, the Executive Committee usually maintains 4-5 non-family members to maintain fairness and justice.
But according to former employees, if 3-5 people are discussing one thing, as long as the family members say yes, no one dares to object.
Executives who are not family members rarely make strategic or brand decisions without any of the offspring of the Hermes family.
The Hermes family believes that if the family loses control, the company will also lose its personality and tradition.
In order to ensure family influence, the company's board of directors is also mainly composed of family members; the CEO must have close ties with the family (the sixth generation has more than 40 family members); members of the three branches of the family (Dumas, Piersh and Grande) are reasonably allocated to different levels of jobs.
Family members have absolute control when it comes to making and changing major decisions of CEO and company.
Only when a pass rate of 75% can be performed.
Of course, if you want to have a long-term foundation, it is far from enough to focus on corporate culture. You must also reasonably design the equity structure.
In the early 1990s, with the increasing number of Hermes family members, the demand for monetization of family members became stronger and stronger.
In 1993, with the unanimous approval of the family, Hermes sold 25% of its shares and listed it publicly on the Paris Stock Exchange.
This means that each adult family heir receives an average of 200 million euros (about 1.6 billion yuan) in huge wealth.
But at the same time, nearly 80% of the shares are still in the hands of 56 family members, of which 6 family members hold 5% to 10% of the shares.
The advantage of listing is that family members are allowed to buy and sell stocks, thereby avoiding disputes among family members due to the equity value.
However, listing of a family business means dilution of equity and may face the potential risk of losing control.
After witnessing how Arnolds had driven the former power of the Vuitton family (Bernard Arnold successfully seized control from the Louis Vuitton family and controlled 64% of the voting rights of LVMH with a 48% capital expenditure ratio), in order to prevent the Hermes family from suffering similar attacks, he carefully designed the company's equity and management structure, dividing the company's equity into a Russian doll-style group consisting of six holding companies.
On them is a two-layer management structure (sciété en cmmandite paraactins organizational structure), which is commonly referred to as the A+B model:
A is a limited liability partner, responsible for the daily management of the company and cooperation with the outside world (of the 11 board members, non-family members currently occupy 4 seats), and the limited liability partner (public shareholder) is only responsible for the company's debts based on the amount of funds they contribute.
B is an unlimited partner and has the right to appoint or remove the position of executive chairman (general manager), decide on the company's major financial matters (guarantee, mortgage, loan, etc.) to make decisions, and exercise one-vote veto.
And only the descendants of the third generation of Emil Morris Hermes can enter B to exercise all power.
Although the spouse of the direct offspring can also enter B, they only have the right to gain.
In other words, family members retain Hermes' permanent management and governance rights.
In addition, after Hermes went public, in order to avoid diluting voting rights, by formulating the company's articles of association, non-family shareholders and divorced family members can hold shares, but have no voting rights.
So far, family members hold a total of 63% of Hermes' equity and 72% of the voting rights.However, although Jean Louis Dumas provides perfect protection for Hermes' management and governance rights through the joint-stock and joint-stock company structure.But what is secret is that the market circulating shares and the stocks scattered in the hands of many family members are the back doors of Hermes' equity castle's weak defense.
Relying on Arnault's precise vision and the rise of the Chinese market, LVMH quickly got rid of the economic crisis and recovered its vitality first. Then it secretly stored cash. Through five years of preparation, it accumulated a large amount of cash flow. In the meantime, it actually acquired some other top luxury brands. In the second half of last year, LVMH signed stock price betting agreements with three investment banks, with the target scale of 171% of Hermes' shares.
On October 22, 2016, the end of this year, the two betting agreements will expire, and LVMH bought 9.8 million shares from two investment banks.
According to regulations, the day after the betting agreement takes effect, LVMH must report to the French Financial Markets Administration (AMF), and the news will be received in the market at that time, and this century-old acquisition case will officially begin.
By October 24, another betting agreement will expire, with 3 million shares.So far, three bets allowed LVMH to gain 171% of Hermes' stock.In addition, 492% of the previous secret purchases were bought, a total of 2202%.As soon as he returned to the villa, Yàn Ni, who directly explained the Hermes acquisition case through PPT, looked at Zhang Weihao very much, and was really guessed by this guy.
Although such a betting agreement is top secret, as long as it is predicted in advance, it is not without traces. It is still easy to lock in and find some truths hidden behind it.
First of all, Arnault and LVMH have been secretly preparing cash flow. These clues can be found through the annual and quarterly reports. After all, there must be a reason why so much cash is stuck and not used to pay dividends. With Arnault's previous style of conduct, he naturally targeted some other top luxury brands. But what many people could not imagine was that he targeted Hermes, and he planned to acquire it in this way.
Although Yàn Ni is called Abin, she had already known Zhang Weihao's true identity from Tang Zichen, so she was very curious about the relationship between Zhang Weihao and Tang Zichen. After all, it was said that Tang Zichen had obtained the fate of immortality and was lovers with Lu Zu in his previous life. In order to save her from becoming an immortal, Lu Zu specially reincarnated and descended to the earth.
In fact, many people are looking for the whereabouts of the reincarnated king of Lu Zu, but they can't find anyone, as if they appeared out of thin air. Yàn Ni did not doubt that Zhang Weihao and Tang Zichen had that kind of relationship. After all, no matter how outstanding Zhang Weihao is, he cannot compare with the immortal brother who is reincarnated by the immortal. However, Yàn Ni could see that Tang Zichen attaches great importance to Zhang Weihao. Maybe after Tang Zichen ascended, this would be her designated successor.
Some domestic bigwigs have similar ideas, but they are not Zhang Weihao, but Wang Chao, so they attach great importance to the cultivation of Wang Chao and intend to serve as a backup plan. When Tang Zichen is about to ascend, they will let Wang Chao inherit Tang Zichen's legacy.
First of all, we confirm that there is indeed a saying that ascends to become an immortal, and then explores the secret of becoming an immortal through Wang Chao. After all, immortals are almost equal to immortality. Many powerful and powerful people care about this most. This is undoubtedly the closest time they have to become immortality and ancestors.
Let’s talk about the situation on Hermes, can we not know at all?
The first family in the luxury industry Hermes Group is a typical century-old family business.After listing in 1993, Hermes' annual revenue increased from $82 million to $2 billion, and Forbes estimated that at least five family members are now on the global billionaire list, and has been passed down for 200 years and six generations. After Jean Louis Dumas' death in 2010, his nephew Exel Dumas was appointed CEO in 2014.
In the history of six generations of power changes, except for Patrick Thomas (who served as CEO for 8 years between Jean Louis Dumas and Exel Dumas) who had no blood relationship with the family, most of the time, the position of corporate CEO is still firmly controlled by the Hermes family.
Although Hermes Group is a listed company, it has a family culture as unbreakable as a castle.
Specifically, Hermes has an 11-member family executive committee that selects new CEOs, presidents, and other key positions from the next generation of family members.
In order to adhere to the principle of democratic centralism, the Executive Committee usually maintains 4-5 non-family members to maintain fairness and justice.
But according to former employees, if 3-5 people are discussing one thing, as long as the family members say yes, no one dares to object.
Executives who are not family members rarely make strategic or brand decisions without any of the offspring of the Hermes family.
The Hermes family believes that if the family loses control, the company will also lose its personality and tradition.
In order to ensure family influence, the company's board of directors is also mainly composed of family members; the CEO must have close ties with the family (the sixth generation has more than 40 family members); members of the three branches of the family (Dumas, Piersh and Grande) are reasonably allocated to different levels of jobs.
Family members have absolute control when it comes to making and changing major decisions of CEO and company.
Only when a pass rate of 75% can be performed.
Of course, if you want to have a long-term foundation, it is far from enough to focus on corporate culture. You must also reasonably design the equity structure.
In the early 1990s, with the increasing number of Hermes family members, the demand for monetization of family members became stronger and stronger.
In 1993, with the unanimous approval of the family, Hermes sold 25% of its shares and listed it publicly on the Paris Stock Exchange.
This means that each adult family heir receives an average of 200 million euros (about 1.6 billion yuan) in huge wealth.
But at the same time, nearly 80% of the shares are still in the hands of 56 family members, of which 6 family members hold 5% to 10% of the shares.
The advantage of listing is that family members are allowed to buy and sell stocks, thereby avoiding disputes among family members due to the equity value.
However, listing of a family business means dilution of equity and may face the potential risk of losing control.
After witnessing how Arnolds had driven the former power of the Vuitton family (Bernard Arnold successfully seized control from the Louis Vuitton family and controlled 64% of the voting rights of LVMH with a 48% capital expenditure ratio), in order to prevent the Hermes family from suffering similar attacks, he carefully designed the company's equity and management structure, dividing the company's equity into a Russian doll-style group consisting of six holding companies.
On them is a two-layer management structure (sciété en cmmandite paraactins organizational structure), which is commonly referred to as the A+B model:
A is a limited liability partner, responsible for the daily management of the company and cooperation with the outside world (of the 11 board members, non-family members currently occupy 4 seats), and the limited liability partner (public shareholder) is only responsible for the company's debts based on the amount of funds they contribute.
B is an unlimited partner and has the right to appoint or remove the position of executive chairman (general manager), decide on the company's major financial matters (guarantee, mortgage, loan, etc.) to make decisions, and exercise one-vote veto.
And only the descendants of the third generation of Emil Morris Hermes can enter B to exercise all power.
Although the spouse of the direct offspring can also enter B, they only have the right to gain.
In other words, family members retain Hermes' permanent management and governance rights.
In addition, after Hermes went public, in order to avoid diluting voting rights, by formulating the company's articles of association, non-family shareholders and divorced family members can hold shares, but have no voting rights.
So far, family members hold a total of 63% of Hermes' equity and 72% of the voting rights.However, although Jean Louis Dumas provides perfect protection for Hermes' management and governance rights through the joint-stock and joint-stock company structure.But what is secret is that the market circulating shares and the stocks scattered in the hands of many family members are the back doors of Hermes' equity castle's weak defense.
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