Chapter 1111 Opposition
Shenghua Building, Song Yuanchao's office.
Li Daqi, Qin Zhengguo, Gu Jie, Xu Hui who came from Hong Kong and Song Yuanchao himself, the five of them sat and discussed the issues concerning Shi Lei's company.
Because this matter came suddenly, and Li Daqi and others happened to be in Shanghai, Song Yuanchao called them together to discuss it.
In fact, Shenghua’s current board members include more than just them. With the expansion of Shenghua over the years, the number of board members has increased. Some strategic cooperation capitals or companies have held part of Shenghua’s shares in recent years and have joined Shenghua.
But compared to the five people present, the others are outsiders, and they are the real insiders.
In addition, Song Yuanchao is the major shareholder of Shenghua. Although he reduced some of his shares in the past few years, he still holds the largest proportion of shares in the board of directors. If the four of Li Daqi are added, they can completely decide on Shenghua's decisions. This is a world of difference compared to Shi Lei and his company.
"This is the situation. Let's all share our opinions." Song Yuanchao briefly explained Shi Lei's visit and the current situation of his company, then lit a cigarette and spoke.
Everyone looked at each other in bewilderment for a moment; this news was truly too unexpected for everyone.
Xu Hui frowned and thought for a while, then asked first: "Director Song, is it true that Shi's company is currently under a hostile takeover?"
"It's confirmed. After Mr. Shi's visit, I asked someone to do an investigation. There is indeed a capital in the secondary market that is buying a large amount of their company's shares. In just a few trading days, the company's stock price rose by nearly 40%. This increase is quite astonishing."
"Is it one share of capital or several shares of capital?" Xu Hui continued to ask.
Song Yuanchao understood what she meant by asking this, and handed her the information he had prepared long ago, motioning her to look at it: "From the perspective of the acquirer, the acquisition was carried out through multiple accounts, but I believe the capital behind it is from the same company. This is the information compiled by the professional financial professionals at our Shenghua Capital, and it is also their judgment."
Xu Hui took it and looked at it carefully. She quickly finished reading the contents and handed it to Li Daqi who was sitting on her left.
Li Daqi took a look at it and said nothing, then continued to pass the information down. After a while, everyone had seen the information.
It was Xu Hui who spoke first.
"How much investment will it take if Shenghua gets involved?"
Song Yuanchao said a number, and everyone's eyes widened immediately. This number was not small, definitely not tens of millions or hundreds of millions, it was much more than that.
"So many?" Li Daqi couldn't help asking.
"Shi Lei's company is quite special. It is a mixed-ownership company. He and the board members do not hold a large proportion of shares. Moreover, the company has a large proportion of shares in the secondary market. In addition, with other equity structures, a small amount of capital would not be effective if we wanted to intervene."
"That's too much. What was Shi Lei thinking? How did he let his company become like this? Logically speaking, his company was doing quite well. How could he have been so careless about this matter?" Li Daqi shook his head. He couldn't understand how someone as smart as Shi Lei could have ended up like this.
"Mr. Li, Mr. Shi's company has its own particularities, and there are some things he cannot decide. I have learned about his company. In fact, Mr. Shi already has a plan to solve this problem. If he had been given more time, the issue of shares would no longer be a hidden danger. Unfortunately, his time was too short, and he also ignored the situation in the secondary market, which led to the current problem." Xu Hui said something fair. She gave everyone a general introduction to the equity structure of Shi Lei's company and Shi Lei's original plan. After listening to Xu Hui's explanation, everyone finally understood.
"If our Shenghua can come up with this amount of money, it wouldn't be a loss to intervene." Gu Jie suddenly said this. Seeing everyone's eyes on him, Gu Jie smiled and said, "Don't forget that I invested in the Eighth District Commercial Company. I still have some understanding of the operation of the stock market. I also understood what Brother Song and Sister Hui said just now. Although Shi Lei's company is facing difficulties now, there is a saying that it is often an opportunity in this situation."
"Tell me more specifically." Qin Zhengguo, who had been silent all this time, interrupted and lit a cigarette while listening with interest.
Gu Jie changed his sitting position and leaned forward slightly: "First of all, let's figure out why Shi Lei's company was acquired. If Shi Lei's company has no value, or their stocks have no benefits, then the acquisition will not exist."
This sentence made Qin Zhengguo even more interested, and his eyes lit up for a moment.
Gu Jie's reason is very simple. It is precisely because Shi Lei's company is profitable that it will encounter a hostile takeover in the secondary market. There are several main points. First, Shi Lei's company is well managed, the company's asset structure is very good, and the projects currently owned by the company are all profitable. Overall, it is a high-quality company.
Secondly, due to the equity plan planned by Shi Lei before, his company's stock price has been underestimated in the secondary market, which has also caused a mismatch between his company's stock price and actual share value. Although it seems that the current price of acquiring his company's shares from the secondary market has increased a lot and the cost of acquisition has also increased a lot, judging from the authenticity of its stock price, there is still a lot of room for growth.
As for the third point, once the stock price reaches a certain level, you can become the majority shareholder of the company and thus completely control the company. From the perspective of the effort and the return, it is completely worth it.
"Investing billions to control a company with a market value of tens of billions or even more, this deal is a win-win. Besides, even if our ultimate goal is just to be a white knight and help Shi Lei by acquiring shares, don't forget that the shares you get are real."
"Shi Lei himself said that if this thing can be done, his company's stock price will rise sharply, at least to a price that should match the company's value. In this case, the initial investment will have a return of at least several times or even more than ten times. How can such a deal not be successful?"
"Yuanchao, what do you think of the three points that Lao Gu mentioned?" Qin Zhengguo excitedly reached out to put out the cigarette butt and asked Song Yuanchao hurriedly.
Song Yuanchao pondered for a moment and nodded, "There's nothing wrong with what Lao Gu said. I've had people analyze this situation. This outcome is very likely. Even if the stock price doesn't rise to such an exaggerated level in the end, it probably won't be a problem to double it several times."
As soon as he finished speaking, Qin Zhengguo slapped his thigh and said, "Then why are you still hesitating? Not only can we make Shi Lei owe us a favor, but we can also make a fortune by taking this opportunity. Only a fool would not do such a deal!"
"Lao Qin, you are too naive!" Li Daqi poured cold water on him.
"What do you mean?" Qin Zhengguo turned his head and looked at Li Daqi.
Li Daqi frowned and said, "I admit that what Lao Gu said just now makes sense, but I always feel that something is wrong with this matter. After all, Shi Lei and Yuan Chao are just nodding acquaintances, and they have no contact with the few of us present. Why did he find us Shenghua?"
"I thought you had some brilliant ideas, but you're talking about this after all this fuss?" Qin Zhengguo laughed, "Hasn't Yuan Chao explained this? Shi Lei doesn't want Liu Da to get involved. After all, competitors are enemies. What if Liu Da gets involved and eventually beats back the acquisition capital and doesn't leave? Wouldn't Liu Da take the opportunity to take over Shi Lei's company and become the master? But it's different with us. It's true that Shenghua is engaged in real estate, but real estate is not Shenghua's main business, and Shenghua's development plan doesn't include the idea of continuing to expand the real estate business."
"Besides, the good reputation of Yuan Chao is there, so Sheng Hua can be assured that Shi Lei will be the white knight. Isn't this a simple truth?"
Li Daqi shook his head: "This explanation sounds reasonable, but why did it have to be our Shenghua? Also, if we intervene, the secondary market will inevitably be a fierce battle. We haven't figured out who is behind the capital that is involved in Shi Lei's company. In this case, if we act as a white knight, we may offend people."
"What's wrong with this? In the business world, everyone relies on their own abilities." Qin Zhengguo said carelessly. He didn't care about it at all.
Instead, Xu Hui seemed to be thinking about something. She thought for a while and asked Song Yuanchao, "Mr. Song, I remember you said just now that Mr. Shi had asked the local government for help, but the local government refused, right?"
Song Yuanchao nodded.
Xu Hui continued to ask: "Then have you asked the local government why they refused?"
Song Yuanchao recalled and said, "Boss Shi said that the local government is relatively conservative, and such a large amount of capital investment is not something that a few local leaders can decide on their own. From these perspectives, the local government rejected his request."
This statement also sounds reasonable. Shenghua also cooperates with local governments and is very familiar with the practices of local governments, including some state- owned enterprises. In many cases, they are indeed relatively conservative and rarely willing to take risks. After all, local governments are different from state-owned enterprises and private enterprises. Once there is a rash or mistake in decision-making, the owners of those eyes behind the scenes will make trouble. In this case, it is better to do less than more, and everything should be based on stability, and never take any risks.
"Look, I told you, this matter is just that simple." Qin Zhengguo said, "He definitely can't rely on them. He also has his own concerns when he looks for Big Liu and Shi Lei, so after looking around, there are only a few people who can help him."
"We have strong strength in Shenghua, and Yuanchao has a good reputation. With Da Liu's introduction, it is normal for Shi Lei to come to us for help. Besides, in the secondary market, everyone relies on their own abilities. We are only invited by Shi Lei to help. Even if this white knight succeeds in the end and destroys the acquisition of his company by other capitals, what loss will they have?"
Qin Zhengguo swept his eyes over the crowd and laughed, "The stock price has gone up, and the other party won't suffer a loss if they fail to complete the acquisition. The huge profits are there, so how can this be considered as offending anyone?"
"I object!" Seeing that Gu Jie was very moved by Qin Zhengguo's words, Xu Hui and Song Yuanchao were also thoughtful, Li Daqi immediately expressed his attitude with a serious expression.
