It's complicated Let me tell you from the background. Shuanghui Group is a large-scale food group focusing on meat processing, with total assets of more than 6 billion yuan, sales income of more than 20 billion yuan in 2005 and net profit of 654.38+007 billion yuan. In addition, the Group holds 3.57 15% shares of the listed company Shuanghui Development, with a market value of 3.389 billion yuan. On April 26th, 2006, Hong Kong Rotex Limited (subsidiary of Goldman Sachs Group), which was authorized by Goldman Sachs Group and Dinghui China Growth Fund II to participate in the bidding on behalf of the above two companies, won the bid for Shuanghui equity auction with RMB 20,654,380+billion, and obtained 65,438+000% equity of Shuanghui Group, indirectly holding 35,765,438+05% equity of Shuanghui Development. At this point, Goldman Sachs has acquired 0/00% equity of Shuanghui Group/KLOC, which shows that Shuanghui Group is no longer a China company. Please see the following report in China Times on June 6, 2009, 165438+ Goldman Sachs began to enter Shuanghui Group, which is the beginning of the mystery. Now, everything goes on. According to foreign media 1 1.4, Goldman Sachs has agreed to sell half of its shares in Shuanghui Group to CDH, a private equity fund, for a total price of about/kloc-0.5 billion US dollars. After three years of investment, according to the calculation of the reporter of China Times, the net profit of Goldman Sachs exceeded 65.438+0.5 billion, and now it has rushed back. Goldman Sachs is just a simple financial investor, or a bridge for Shuanghui Group's MBO. What kind of role is CDH? Question165438+1October 4th, it was reported that Goldman Sachs had agreed to transfer half of its shares in Shuanghui Group to CDH Investment, with a total price of about10.50 billion USD. In addition, Goldman Sachs also plans to sell the remaining shares in the near future, which will eventually reduce Goldman Sachs' shareholding in Shuanghui Group to about 5%. According to the reporter's understanding, at present, both Goldman Sachs and CDH * * * hold 0/00% equity of Shuanghui Group, of which Goldman Sachs holds 46% equity of Shuanghui Group. According to this calculation, Goldman Sachs will transfer a 23% stake in Shuanghui Group this time. In this regard, Goldman Sachs, CDH and Shuanghui all declined to comment on the reporter of China Times. However, according to the reporter's understanding from people familiar with the matter, this transaction may exist, but there may be some discrepancy between the specific amount of equity transfer and the transaction amount. In fact, since Goldman Sachs and CDH entered Shuanghui Group, what Goldman Sachs and CDH did was a good deal. In 2006, the government of Luohe City, Henan Province, the major shareholder of Shuanghui Group, which only held shares of listed companies with a market value of 3.389 billion yuan, was listed and transferred to Shuanghui Group at a reserve price of 654.38 billion yuan. In the end, Rotex, a joint venture invested by Goldman Sachs and CDH, beat its competitors by 2 billion yuan (about 250 million US dollars) and successfully acquired 0/00% equity of Shuanghui Group/KLOC. At that time, Goldman Sachs held 565,438+0% shares in Rotex, and CDH held 49% shares. After investing about 654.38 billion yuan in Shuanghui Group, Goldman Sachs and its partner CDH began to make a lot of profits in Shuanghui Group and its subordinate Shuanghui Development (77.94, 0.00, 0.00%) in the following period. In 2006, Shuanghui Development Annual Report, a listed company under the Group, gave a high allocation plan for every 65,438+00 8 yuan shares. Its dividend ratio accounted for 87.88% of the net profit of the consolidated statement of the year. After that, in 2007 and 2008, its dividends accounted for more than 80% of its net profit. Relevant statistics show that in the three years since Goldman Sachs and CDH entered Shuanghui, they have received 686 million cash only from dividends, and the investment cost has been recovered by more than 30%. In addition, Goldman Sachs holds about 23% of the shares of Shuanghui Development through Shuanghui Group and Rotex. According to the closing price of1October 5th 165438+47.86 yuan, the current market value of its shares in Shuanghui Development has reached more than 7 billion. Even according to the current rumored transaction price, if the price of Goldman Sachs holding half of the shares is $65.438+0.5 billion, then the equity of Shuanghui Group held by Goldman Sachs is worth about $300 million. According to this calculation, excluding the market value of Shuanghui Development equity currently held by Goldman Sachs, Goldman Sachs earned about 654.38+0.5 billion people in the past three years, excluding investment costs, including dividends. "There is no such thing as a free lunch." Since Goldman Sachs and CDH took office, the whole thing is obviously not as simple as investing and making money. In 2006, the State-owned Assets Supervision and Administration Commission of Luohe City, Henan Province, the major shareholder of Shuanghui Group, set strict auction conditions. One of them is that "the transferee or its related parties shall not directly or indirectly engage in the slaughtering of pigs, cattle, chickens and sheep and related high and low temperature meat processing industries in People's Republic of China (PRC) and China, nor shall they be the controlling shareholder or the largest shareholder of such enterprises". However, as early as 2002, Goldman Sachs and CDH had jointly invested in Yurun. Until now, Goldman Sachs and CDH have each held a seat on Yurun's board of directors. However, at the end of the auction, Goldman Sachs and CDH, which had invested in Yurun, somehow took control of the situation. Before the transfer, in 2005, the total assets of Shuanghui Group had reached 7 billion yuan, and the sales income was 21100 million yuan. The brand value of Shuanghui alone reached 65.438+00.636 billion yuan. The reserve price of 65.438 billion yuan makes all the sales of Shuanghui Group look like a big sale. According to the 2008 annual report of Shuanghui Group, the corporate legal representative of Shuanghui Group is Wanlong, a veteran of Shuanghui Group. According to public information, the listing of Shuanghui at that time was first proposed by Bandung. After CDH actually controls Shuanghui Group, "who is the actual controller behind CDH" is still a mystery. But the only thing that is clear is that CDH will own more and more shares of Shuanghui Group. At the same time, Goldman Sachs is fading out. It is reported that Goldman Sachs and CDH have cooperated many times before investing in Shuanghui Group. Yurun, Mengniu, Focus Media and later Huang Ming Group were all jointly invested by them. On October 8th, 2007 10, after entering Shuanghui, Goldman Sachs reduced its shares in Rotex from 5 1% to 46%, and CDH's shares in Rotex changed from 49% to 54%. CDH became the actual controller of Shuanghui Group and realized the smooth transfer of the actual control right of Shuanghui Group. After making a lot of money, Goldman Sachs first tacitly handed over the control of Shuanghui Group to CDH, and then sold its equity to CDH. Goldman Sachs is more like a bridge. This bridge section may be related to the MBO of Shuanghui Group, which once made a lot of noise. As early as 2002, Shuanghui Development has been paying high dividends for eight consecutive years. At that time, some outsiders questioned that it was a blood transfusion for management. According to industry calculations, Yuhai Investment, established by Shuanghui executives, earned about 654.38+69 billion yuan through high dividends from 2003 to 2005.