Reborn in 2014: A One-Man Tycoon

Chapter 415 Preparing for the Merger

"Mr. Meng, how much longer? I can't hold on much longer."

Seeing Meng Chuan and Ying Die arrive, Shen Yue said, somewhat flustered.

Before the Lunar New Year, Meng Chuan demanded that Shen Yue increase Shang'an Real Estate's debt to 200 billion yuan by March.

Shang'an Real Estate's actual assets are only over 700 billion yuan.

The market value is inflated, reaching between 1200 billion and 1300 billion.

However, its liabilities are also around 1100 billion.

Shang'an Real Estate's debt has now expanded to 2100 billion yuan.

Because Shen Yue directly obtained loans of nearly 1000 billion yuan from several banks.

The problem is that this 1000 billion yuan is currently just sitting in Shang'an Real Estate's account and is not being used.

They still have to pay interest to the bank for nothing.

Shen Yue really had no idea what Meng Chuan was up to.

Shen Yue also called Meng Chuan to ask, but Meng Chuan told her to calm down.

"Don't rush. How much do you know about what's been happening with the Liu Group lately?"

Meng Chuan didn't answer but asked a question instead.

"The stock price of Liu Group is indeed overvalued, and the rumors on the Internet are not entirely unfounded. I'm afraid the real estate industry won't last long, and many real estate companies will go bankrupt."

Shen Yue's analysis is quite fair.

In fact, anyone in the real estate industry knows that a bubble has already formed, and a collapse is only a matter of time.

However, real estate is a pillar and lifeline of the national economy.

Once it collapses, the chain reaction will be too great.

Therefore, the real estate bubble was simply being forcibly contained by the government.

Take Shang'an Real Estate as an example.

Given An Real Estate's current operating status, it simply does not qualify for bank loans.

Despite her efforts, Shen Yue still managed to complete the paperwork and secure the loan.

The reason is that the loan policy for real estate companies has relaxed the review process in an unwritten way.

If the review process were to be as strict as before, more than 90 percent of real estate companies nationwide would not be qualified to receive loans.

Many real estate companies will go bankrupt if they can't get loans.

Once one real estate company goes bankrupt, it will be like setting off a string of firecrackers, igniting a chain reaction.

Real estate companies have now become so powerful that they are difficult to control, and some are even being manipulated by policymakers.

The Liu Group is very likely to become the first to collapse.

Therefore, all real estate companies are now paying attention to the Liu Group.

The same goes for Shen Yue.

"Then you should know that the Liu Group is my brother-in-law's company, and I also have shares in it."

Meng Chuan looked at Shen Yue and said:

"You should understand that the Liu Group's finances are actually much better than Shang'an Real Estate, or even better than most real estate companies."

"If the fire started by the Liu Group is ignited, the ensuing chain reaction will cause countless real estate companies to suffer."

"And Shang'an Real Estate will inevitably be the first to be affected."

Meng Chuan looked at Shen Yue and spoke the most heartbreaking truth.

Shen Yue actually understood the current situation of Shang'an Real Estate better than Meng Chuan.

However, Shang'an Real Estate was a company she had worked hard to acquire.

She really didn't want to give up; she just didn't want to face reality.

"Mr. Meng, just state your purpose directly! I am the chairman of Shang'an Real Estate, but as you know, I am just an employee."

Shen Yue said with a hint of helplessness.

"Merger, merger with the Liu Group, is the only way out for Shang'an Real Estate."

Meng Chuan said with certainty.

With the current oversupply and severe bubble in the housing market, there is no longer a need for so many real estate companies.

Only a handful of real estate companies will survive this fierce market shakeout in the future.

Therefore, going it alone is no longer competitive.

They either go bankrupt and are forced out of the game.

The only way to break through the encirclement is to enhance competitiveness through mergers, acquisitions, and consolidations.

"President Meng, you promised me you would save Shang'an Real Estate!"

Shen Yue was still somewhat unwilling, and she looked at Meng Chuan with a pleading expression.

At Shang'an Real Estate, even if Shen Yue is not the best, she is still the chairman.

She enjoyed the feeling of being able to command and control.

They crave the sense of accomplishment of developing a company single-handedly.

Once the merger takes place, Shang'an Real Estate will cease to exist.

"Shang'an Real Estate has not disappeared; it has simply been merged into the Liu Group. You will still hold 10% of the shares in the Liu Group. Liu Dong is the chairman, and you are the vice chairman, overseeing the marketing department, engineering department, design department, and cost management department."

Meng Chuan said.

These core departments were all handed over to Shen Yue for management, so Shen Yue still has a lot of power.

However, since she wasn't the top leader, Shen Yue was naturally dissatisfied.

However, Shen Yue is a smart woman.

She knew that since Meng Chuan had come today, he was there to inform her, not to discuss anything with her.

Meng Chuan brought it up in a consultative tone simply out of respect for her.

“Since President Meng has already said so, I accept it. But I don’t understand, if President Meng had this plan all along, why did he still want me to increase Shang’an Real Estate’s debt?”

Shen Yue asked, puzzled.

She genuinely couldn't understand the purpose behind Meng Chuan's bizarre move.

"You don't need to understand. Just be prepared, wait for my notification, and then I'll announce the merger."

Meng Chuan smiled but did not explain.

Because Meng Chuan couldn't explain it, he couldn't possibly admit that he had made a mistake in his judgment.

Meng Chuan's initial goal was to increase Shang'an Real Estate's debt to attract the attention of foreign capital.

Then, using Shang'an Real Estate as bait, they waited until foreign capital began shorting Shang'an Real Estate.

Let Shang'an Real Estate and Liu's Group merge again, and then they'll take advantage of foreign capital!

The plan can't keep up with the changes.

Foreign capital didn't take the bait; instead, they turned their attention directly to the Liu Group.

But it's alright. Although the process was beyond Meng Chuan's expectations, the result was the same.

In the end, they'll all merge anyway, and it'll all be a trap for foreign capital.

If the goal is achieved, why explain so much?

Since Meng Chuan didn't say anything, Shen Yue could only keep quiet.

After explaining some important matters to Shen Yue, Meng Chuan took his leave and left Shang'an Real Estate.

Having finally come out, Meng Chuan didn't want to go back so soon.

It's a good opportunity to "inspect" my own "territory".

Meng Chuan first went to the Hongda Medical Supplies Production Plant.

Mr. Ye happened to be there as well; all of Hongda Medical's production lines are now in operation.

More than 4 million masks are now being produced every day.

However, only about 2 million masks can be sold every day.

In other words, half of them can only be stored as inventory.

Mr. Ye is now very worried every day.

Meng Chuan asked him to slow down the expansion of sales channels and focus all his efforts on the listing of Hongda International.

"Mr. Meng, Hongda International mainly deals with supermarket supply chains, and its scale is still relatively small, making it difficult to go public."

General Manager Ye reported to Meng Chuan:

"But as you know, the stock market has been somewhat volatile recently, and many companies are hesitant to go public, which has led to a relaxation of the review process."

“I’ve almost finished all the paperwork, and we can go public anytime soon. But are we really in such a hurry? Shouldn’t we reconsider…”

President Ye looked at Meng Chuan with some uncertainty.

He genuinely hoped that Meng Chuan could postpone the IPO process.

"I'm not considering it anymore, let's go public next week. Also, when the announcement is made, please clearly put Dream Shadow Capital and my name on it, and I'll hold one percent of the shares!"

Meng Chuan said.

It's time to play our cards right!

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like