Dreaming back to 1949, the great powers were there to deceive us
Chapter 241: Matryoshka-style shareholding (1)
Everyone has their own cognitive limitations.
This cognitive limitation may be limited by a person's knowledge and experience, or it may be limited by the times.
For example, when China resumed its stock market, many people could not understand what stocks meant!
For example, at the beginning of reform and opening up, Chinese companies were acquired by foreign capital. Everyone thought that after being acquired by foreign capital, they could use its strong financial strength and brand effect to grow and develop the company.
In fact, after foreign capital acquires a brand, it often puts it on the shelf until the brand completely disappears.
It is regrettable that foreign capital has used this method to strangle many Chinese national enterprises in the long river of history.
Tianfu Cola, Beibingyang, domestic hand cream nurse, etc., all died out in this way.
There is no charity in business activities.
If you lose control of your business, you will be at the mercy of others.
The Japanese were also unable to understand Liu Yuan's tactics due to their limited cognition!
After Sidao Real Estate received an investment of 1,700 million yuan, Liu Yuan presided over a shareholders' meeting to discuss the next stage of development plans.
The Fukushima subsidiary of Shidao Real Estate is certainly not satisfied with being limited to Fukushima, they want to expand.
There were four representatives attending the meeting, including Liu Yuan, Allen from Mibang International, Tom from Sky Capital, and George, the manager of Hummingbird International.
Hummingbird International is the alias of the major local noble families in Fukushima.
At the beginning of the meeting, Liu Yuan spoke first.
"Gentlemen, our company's registered capital is 3,000 million. We currently lack 800 million from the parent company of Four Islands Real Estate. I have already submitted an application to the head office, and it will be deposited within a few days."
When George heard this, the corners of his mouth twitched.
Hummingbird International paid 1700 million to get 30% of the shares, while Four Islands Real Estate only paid 800 million but got 60% of the shares!
No matter how you look at it, Hummingbird International is the one being taken advantage of.
Liu Yuanke didn't know that George had such a rich psychological activity. Even if he knew, he wouldn't mind. Anyway, it was clearly written in our agreement that we were selling shares.
The valuation of our company is more than 5800 million, and 30% of the shares is 1700 million!
"Today's meeting will first determine the company's organizational structure, including the Board of Directors and Supervisory Board, and appoint a CEO. Second, we'll develop the company's development plan. Now, let's proceed with the first item..."
In fact, there is nothing to discuss about the company's organizational structure and personnel appointments. Since Sidao Real Estate holds a controlling position, the only candidate for chairman and CEO is Liu Yuan.
Out of the need for balance, George was elected as vice chairman, Alan as supervisor, and Tom as financial supervisor!
On the board of directors, Four Islands Real Estate holds two seats, and the other three companies hold one seat each.
In fact, in Japan, the board of directors should be called the 'chairman of the board of directors' and the chairman of the board is called the 'president'.
But Japan is emulating the United States, so the Four Islands Real Estate still uses the US rules in setting up positions.
After the organizational structure and personnel appointments were completed, Liu Yuan continued,
"Next, let's discuss the company's future development plan. I'll start with some ideas."
Liu Yuan gave a wink, and Frank immediately handed several documents to the other three people.
The document was in pure English and the people present were all Westerners, so they had no difficulty reading it.
Seeing that they had almost finished reading, Liu Yuan said,
"It's obvious that Japan's real estate market is at its lowest point in history, and Japan's economy is already showing signs of recovery. I don't need to elaborate on what this means! This is a once-in-a-lifetime opportunity, and we can't let this era go to waste!"
Seeing them nod in agreement, Liu Yuan continued,
"The company has ample funds, so I've decided to embark on a new investment plan! After consultation with Mr. Zhao Zhi from the head office, he's agreed to let us invest in other subsidiaries of Four Islands Real Estate, but the stake in any one subsidiary cannot exceed 5%. So far, I've already negotiated with two subsidiaries, Osaka and Wadu. The Osaka subsidiary is offering a 5% stake for 512 million US dollars. The Wadu subsidiary is offering a 1% stake for 505 million US dollars. The next shareholders' meeting will be for a vote on these two investments."
Liu Yuan looked at the expressions of the other three people and continued,
"If the company wants to grow and develop, it must enter Japan's core economic circle. Now is a golden opportunity!"
Allen, the representative of Mibang International, asked first,
"If we invest in these two companies, the company's development capital will be seriously insufficient. Does Mr. CEO have any solution?"
The one who answered this question was Frank, who smiled and said while smoking a cigar,
"There's no real estate company that doesn't have debt. If Japan's economy weren't so bad and banks weren't severely short of reserves, we would also be taking the loan route."
Tom of Skydome nodded and said,
"According to Western conventions, a real estate company's debt ratio of less than 50% is considered reasonable. Considering Japan's financing difficulties, I believe the company can control its debt ratio to around 30%. The registered capital of Shidao Real Estate is 3,000 million. If all of this capital is raised, I think it would be reasonable to invest 1,000 million."
A slight curve appeared at the corner of Liu Yuan's mouth.
In terms of shareholding ratio, Four Islands Real Estate Corporation holds 60% of the shares and Sky Capital holds 5%. That is to say, even if the other two companies oppose the proposal, they still cannot influence the overall situation.
But Liu Yuan wanted to win the support of all shareholders, especially Hummingbird International, he said with a smile,
"Everyone, you don't have to worry about insufficient development capital. Our development will proceed gradually, not all at once. We won't spend all 3,000 million in cash all at once. As the property nears completion, we can recover some of the cash through pre-sales, leasing, and other methods. Furthermore, no matter how dire Japan's economy is or how insufficient its banks' capital is, we can still raise some funds. Furthermore, we can issue overseas bonds to raise some construction funds. All of these factors add up to a very considerable amount."
Frank stood up and continued,
"I have already talked to Huaqi, Huifeng and several local banks, and they can provide loans totaling 1300 million yuan!"
Several other people heard this and nodded slightly.
"Mr. CEO plans carefully before taking action. We have nothing to worry about!"
George, the representative of Hummingbird International, said after a brief moment of contemplation,
"Mr. CEO, since we've already anticipated the real estate recovery, why not just buy the land at the bottom and reap the benefits of the appreciation?"
Liu Yuan glanced at him and thought to himself that this man had some vision. No wonder he was elected as a representative by the local gentry.
"Of course we'll hoard land, but not too much! Four Islands Real Estate has already grabbed the most valuable pieces, so we have to leave some for other companies. Japan's recovery requires more capital. If we take all the benefits, will other funds come?"
Many hands make light work. Everyone present understands this truth!
Frank laughed.
"The more capital that comes in, the higher the land price will be. Gentlemen, we are rich!"
Seeing that George was still convinced, Liu Yuan smiled and said,
"Now let's start the vote. Those who agree to invest in those two companies, please raise your hands!"
Frank raised his hand first, followed by Tom and Alan.
Liu Yuan slowly raised his hand.
The four of them looked at George at the same time. The latter always felt that something was wrong, but he couldn't put his finger on it.
Under the gaze of everyone, he slowly raised his arms.
"Okay, unanimous vote passed!"
Liu Yuan stood up.
"The duck knows first when the river water warms in spring. The real estate market has been suppressed for too long and could explode at any moment! My suggestion is that if there are suitable projects, the company can allocate another 500 million yuan for investment!"
This is the second proposal.
Alan waved his hand and smiled.
"Mr. CEO, aren't you being too conservative? Including the bank's credit line, the company has 4300 million in available cash. Taking half of that out for investment isn't too much, is it?"
Tom echoed,
"Although it's a bit risky, there's still room for maneuver. I have a feeling this is a godsend opportunity for our company to achieve leapfrog development. If I miss it, I'm afraid I'll regret it for the rest of my life!"
George nodded,
"Since we have sufficient funds, we might as well take bigger steps!"
Liu Yuan was ecstatic in his heart, but he still looked a little embarrassed.
"Risk and reward are directly proportional. How about this: 500 million to hoard land, and 500 million to invest in other real estate. Let's vote!"
Once again passed unanimously!
Next, everyone started discussing the design bidding. They wanted to use this gimmick to promote the company.
……
After the meeting, Liu Yuan and Frank went their separate ways.
Liu Yuan went to Osaka to discuss the investment, while Frank visited various banks to apply for loans.
There is 2200 million US dollars in cash in the account of Sidao Real Estate, of course, most of it is gold, silver and jewelry.
The local gentry did not have much rice and could only use their property to pay for the shares.
Liu Yuan mortgaged these gold, silver and jewelry to the bank and obtained 1700 million in cash.
As for where the money of Mibang International and Tianqiong Capital comes from, the answer is cross-bridge financing.
This money will only stay in the account of Four Islands Real Estate for a few days. It will soon be transferred out and "invested" in other companies!
Frank's action went very smoothly because Four Islands Real Estate had land and a large amount of cash. Such a company was a favorite of banks!
On the other hand, Liu Yuan's investment was also very smooth.
Of course, good routines should be shared!
Under the guidance of Liu Yuan, the Osaka subsidiary repeated the path of the Fukushima subsidiary: raising land prices, attracting ethnic minorities to buy shares, holding investment meetings, and embarking on the road of overseas investment!
Therefore, the 512 million euros invested by the Fukushima subsidiary were invested by the Osaka company in the Kobe subsidiary, obtaining a 5% stake.
The Kobe subsidiary invested the money in...
The money is still the same money, but after going around in circles, each subsidiary company holds a large number of shares in each other!
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