Reborn as a female internet celebrity in a county town
Chapter 99: The Complete Plan for the Acquisition of Tianshui Duck Industry!
Chapter 99: The Complete Plan for the Acquisition of Tianshui Duck Industry!
He Qiang didn't say anything, but asked, "Manager Lin, how do we plan to make the acquisition?"
"We can only gradually acquire chips from the secondary market."
Hearing this, He Qiang's heart sank.
That's like saying nothing at all.
Moreover, acquiring shares from the secondary market is too risky.
To acquire Tianshui Duck Industry, one must first obtain a 30% stake in Tianshui Duck Industry, then issue an acquisition offer, and convene a board meeting.
To gain absolute control and dominate the entire company, one needs to obtain more than two-thirds of the votes.
He does indeed have ways to secretly accumulate chips and then trade them when needed.
Especially now that the Tianshui duck industry is in complete chaos, both individual investors and institutions want to run away as soon as possible, so... as long as he is willing to pay a certain price, a 30% stake is entirely possible.
But what about the others?
"Manager Lin, it's not easy to get so many chips in the market. Not only does it require a lot of capital, but once they discover something is wrong, they will immediately hoard the chips they have, and then they will completely wear me down."
For example, after he took 20% of the chips, someone else found out and refused to sell.
What should he do?
To continue accumulating shares, one must relentlessly push the stock price upwards. Since the other side has leverage over them, they won't sell unless the stock price reaches their expected level.
He doesn't want any more chips? Then who's he going to sell all those shares to? Is he just going to sell them off to himself?
The losses back then were far more terrifying than they are now.
Anyone with a brain would understand the concern He Qiang expressed.
He brought it up to test Lin Lang and see which side Lin Lang was on.
Was it someone sent by Qin Dong to deliberately set a trap for me?
If Lin Lang said he should be more careful, then he was almost certain that Lin Lang was up to something.
"Combined with the first method..." Lin Lang said casually.
He Qiang remained silent for a full two minutes, then seemed to have figured it out. "Manager Lin means that I should sell off the shares while simultaneously accumulating them. Selling off the shares will trigger panic buying, which will allow me to accumulate 30% of the shares as quickly as possible?"
Lin Lang: "..."
Seeing He Qiang deep in thought again, seemingly pondering a solution, Lin Lang suddenly said, "Mr. He, you've misunderstood. I'm talking about the solution, not the operational process. What is the essence of the first solution?"
"Huh? It's... buying low and selling high, day trading, to reduce costs."
"They're there to support the market!"
He Qiang: "..."
In that instant, he felt as if his entire brain had been electrocuted.
Because... he knew what Lin Lang meant.
Now I understand why Lin Lang mentioned the first method first; he was laying the groundwork for the second method.
The second approach is not to gather 30% of the chips and issue an acquisition offer, but rather... to adopt the attitude of merger and acquisition.
As long as he shows any intention to acquire Tianshui Duck Industry, then... someone will inevitably stop him, or rather, others will not let him get it so easily.
Then, naturally, that will force those people to step in and support the market.
This is an open conspiracy, the kind with no solution!
Unless someone knows his specific holdings, as long as he shows some intention, then... the stock price will definitely be driven up.
It has nothing to do with whether they are willing to hand over Tianshui duck industry to us; it's solely for the sake of profit.
I've essentially handed them a huge opportunity to make money.
It's like in a vegetable market, you know there's someone who won't be satisfied until they get a ton of apples, so... you can team up with someone else and take away more than half of the three tons of apples in the market, making it impossible for the other person to collect even a ton.
If they can't get even a ton, the apples they've collected are completely worthless and can't be sold.
So... even if it's just one pound of apples short in the end, the other party is even willing to pay the price of more than a thousand pounds of apples at the beginning.
This process can be divided into fifty steps.
Once the other party has a thousand kilograms of apples, in order not to lose everything, they will offer an additional thousand kilograms of apples at double the price.
Then, you can sell 500 jin to the other party at twice the premium.
At this point, the other party possessed 1,500 jin, and their maximum premium for the remaining 1,500 jin was four times that of before.
In that case, we can sell another 250 jin to them.
The remaining 250 jin will push the other party's maximum premium to eight times.
In this way, the cycle can continue indefinitely.
If you divide it into enough pieces, even the last apple can fetch a premium of hundreds or even thousands of times.
Of course, they often don't get to that point. Most likely, when there are still a few dozen kilograms left, they negotiate with the other party and ask them to pack up and buy all the apples they have.
In this way, they snatched two and a half tons of apples from the market. The real core value was that 1,000 jin (500 kg), but they could actually sell it for the price of five or six tons of apples.
He Qiang didn't realize what was happening until the waiter started serving the food.
He felt his heart beating faster.
To be honest, in all his years at New City Capital, he has never been as excited and thrilled as he is today.
Because he felt that this was the first time he had truly come into contact with market competition.
It's like a beggar suddenly having the right to sit on the throne; even if he dies, he'll feel it was all worth it.
Not to mention there's a very high probability of winning.
"Manager Lin, this is..."
He still had some questions to ask, since even though it was an open scheme, it wasn't guaranteed to succeed.
Lin Lang said, "President He, please have something to eat first. After you've eaten, we can talk some more..."
"Okay, okay, let's eat first."
He Qiang finally understood what Lin Lang meant by taking the initiative.
He has always been in a very passive position, passively losing money, passively being abandoned by Tianshui Duck Industry, and being cheated by Qin Dong.
Throughout the capital market, he has always been passive.
In investing, even with analysts and traders, I've never been able to fight against market trends; I've always been passively following the market.
Even though he had hundreds of millions of yuan, which would have been enough to manipulate the market, he never did it.
His lack of ability was one aspect, but the main problem was that he didn't even dare to think about it. He had no concept of trading in his mind and subconsciously felt that it wasn't something he should be involved in.
He felt full after just a few minutes.
However, Lin Lang was still eating, so he could only keep him company.
Lin Lang knew what He Qiang wanted to ask. But he had to give He Qiang some time to summarize it himself; otherwise, if he had to explain it all to him, He Qiang might not be able to remember it all.
Just like in class, no matter how many times the teacher explains it, you still won't know it on the exam.
In practice, this is very difficult to do.
It's not that just because He Qiang announced a merger, other companies suddenly started to drive up prices.
Even though the concept of mergers and acquisitions has been written into the fundamental principles of economics and will inevitably be triggered, others will still have to consider cost factors and time factors.
After all, Tianshui duck industry can only survive for a limited time. What if it gets delisted?
The laws of Heaven are not immune to influence or suppression...
Half an hour passed in total, and Lin Lang asked, "Mr. He, how does it taste?"
"Ah? Great, very good. In my opinion, the food in Tianshui County is the most flavorful in the entire Xinyang City, and it best represents the taste of us Xinyang people..."
He Qiang spoke with great certainty, as if it were always true.
"President He, I know you've been thinking about this, and you feel there are still four issues that need to be resolved."
He Qiang: "..."
Four questions? Not two?
He came up with two ideas.
Lin Lang: "The first problem is that others might not follow. That's possible, right?"
"Correct."
"Then let's take it. It doesn't matter when they follow, it's all the same. If they still don't follow after we've collected 30%, then we'll just take over Tianshui Duck Industry. The whole thing will probably only cost around 500 to 600 million... Mr. He, do you think it's a loss to take over Tianshui Duck Industry for 500 to 600 million?"
"Well... to be honest, it's not that we're losing money, it's just that the financial pressure is too great."
Lin Lang continued, "What if I could help sell 50 to 60 million or even 100 million worth of goods every year?"
"That's not a loss! Even spending a billion to buy it wouldn't be a loss!"
If they can recover their cash flow and acquire Tianshui Duck Industry for five or six hundred million yuan, that would be a huge profit.
Based on the foundation of Tianshui's duck industry, it is entirely possible to obtain benefits elsewhere and negotiate terms with others.
Qin Dong didn't mean he didn't want to negotiate with others; rather, Tianshui Duck Industry simply didn't have the strength to do so.
"So, don't worry about others not following. As long as President He says he wants to cooperate with our Big Fish Media, others will definitely follow. I'm also willing to help President He out and spread the word the moment you raise your paddle."
"Huh? Raise a sign? Aren't we supposed to get 30% together before raising a sign? At least it should be close to that..."
Lin Lang: "??????"
Is He Qiang really that unconventional?
Are you planning to do so many illegal things? Aren't you afraid of getting caught?
If that's what he thinks, then only two of the four questions I raised are left.
No, there's only one left now.
After all, He Qiang was already willing to break the rules to this extent, so the other two wouldn't be difficult for him.
"Mr. He, let's skip the second and third questions, since they probably don't exist on your end. Let's move on to the fourth question..."
He Qiang quickly said, "Manager Lin, wait a minute, how about we talk about the second and third points?"
"Uh... the second issue is to prevent the other party from blocking the last remaining channel. We can break the rules a tiny bit beforehand and find a reliable person to take a small amount during the shareholding increase period... If we successfully reach 30%, we don't need it. If we fall just a little short... we'll take it back..."
He Qiang: "..."
Wait, is Lin Lang really that rule-abiding?
That's nothing!
No wonder Lin Lang said that this problem did not exist for him.
"What about the third one?"
"The third thing is that after the acquisition offer is issued, according to the regulations, the shares that are willing to be sold must be acquired at the highest point of the stock price within six months... In order to stabilize the stock price and prevent it from rising indefinitely, so... we need to find some people to suppress it..." Lin Lang's voice trailed off at the end.
"Cough cough... I understand, I understand..."
He Qiang coughed to ease the awkwardness.
Isn't this normal operation?
Unauthorized position holding?
So what if it's a violation?
Lin Lang didn't dwell on this point and continued, "Actually, the fourth point is probably what President He is most worried about. That is, others are unwilling to sell you too many shares. Even if you own 40% or 50%, or even more extreme, 60%, you still won't be able to completely control the entire Tianshui Duck Industry."
"Yes, that's my biggest concern."
What if he issues a takeover offer after holding 30% of the shares? What if Qin Dong and his group are only willing to sell him 20%? In that case, he would have to spend at least 700 to 800 million yuan just to become the major shareholder of Tianshui Duck Industry.
A major shareholder who can't even pass important resolutions?
To humiliate him, that group might give him 60% of the shares. They would still hold more than 30% and could still trip him up during important decisions.
"Mr. He, to be honest, the reason I gave up my lucrative job in Shanghai to start my own business back home is because I know that even if I earn hundreds of millions in Shanghai, I'm still just an ordinary person. If something unexpected happens, no one will bail me out or give me a chance to make a comeback. Before I met you, Mr. He, I had my eye on Tianshui Duck Industry after learning about their financial fraud..."
"You had the idea back then? And why?"
"Because I know that Tianshui Duck Industry will suffer a terrible fall! At most, by the second half of next year, Tianshui Duck Industry will be insolvent, and given that it has already been designated as a special treatment stock (ST), it will most likely be required to delist and undergo bankruptcy reorganization. However, at that time, the structure of Tianshui Duck Industry will also collapse. Although it can be acquired at a very low cost, it will cost a lot of money to rebuild the existing structure afterward."
Even so, I'm willing to take it over. Because other industries in the county are basically saturated, making it difficult for me to get involved.
He Qiang nodded; it was indeed too saturated.
This is true not only in Tianshui County, but throughout the entire Xinyang City.
As long as Lin Lang has the ability to make money, it's just a matter of time; if three years isn't enough, then five; if five years isn't enough, then ten...
He fully understood Lin Lang's idea.
"Manager Lin, this is related to that previous matter..."
Lin Lang said, "Actually, no matter how you handle it, the voting rights will be multiplied. After all, some people have bought shares in Tianshui Duck Industry but haven't logged into their securities accounts for years and won't trade at all. Even if it comes down to a fight to the very end, there might still be 10% or even more shares that won't budge. Plus, the shares held by some official institutions in the county are basically unmoved. Once President He gets 30%, at most another 20% will be enough to achieve absolute control..."
"Yes, 50% is definitely enough."
The previous 60% was just a simple proportional calculation, which is different from reality.
However, he knows about this, and others will know too, and they will definitely try their best to block this point.
Lin Lang said, "As long as President He gets 30% and issues an acquisition offer, I will give President He 20% of the voting rights at the board meeting."
"Of course, we're just chatting casually, friends chatting. I really like the car that President He brought. I'll buy it in the name of Dayu Media. Although Dayu Media has only earned more than 20 million in the first month since it opened, and still has to pay out several million in costs, buying a car is not extravagant."
Lin Lang added another sentence.
(End of this chapter)
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