Reborn as a Hong Kong Tycoon

Chapter 676 Reduction of Bright Assets (Two in One)

"Qingzi, these two proposals are proposed by Goldman Sachs and Citigroup to acquire Bell Labs' mobile communication technology. Let's take a look together."

Lin Baicheng handed one of the two documents to Haruko Mori while speaking, and kept the other for himself to read.

"Okay, Makoto."

This is a good thing for Haruko Mori, of course she can't refuse.

The study fell silent, and Lin Baicheng and Mouri Haruko looked at the documents seriously.

What Lin Baicheng looked at was Goldman Sachs's. He didn't know the content of Citigroup's acquisition plan, but from Goldman Sachs' plan, he learned why the Telephone and Telegraph Company suddenly intervened in the acquisition.

It has to be said that Wall Street's capital is deeply rooted in the United States. Lin Baicheng still doesn't know the reason. Goldman Sachs found out in just a few days, which shows the strength of the other party's network.

The reason why the Telephone and Telegraph Company intervened in this acquisition was because a vice president of the Telephone and Telegraph Company was optimistic about the future development prospects of mobile phones. The other party persuaded the company's board of directors to agree to retain the project and continue to invest in Bell Labs research this project.

"There are so many smart people in this world!"

Seeing this, Lin Baicheng couldn't help but feel a little helpless.He knew that it would be impossible to acquire Bell Labs' technology patents related to mobile phones this time, because the telephone and telegraph companies were not short of money.

Lin Baicheng is also not short of money, yes, maybe he can stun the telephone and telegraph company with a premium of several times, but it is better to buy some related technologies from other companies and develop them by himself.

Lin Baicheng continued to read. He believed that since Goldman Sachs sent this acquisition plan, it was impossible to say that the acquisition would not be successful. If Goldman Sachs was not sure, it would not send the acquisition plan, but would directly tell him that it was impossible.

After a while, Lin Baicheng finished reading Goldman Sachs' acquisition plan, and Mori Haruko also finished reading Citigroup's acquisition plan at this time, and the two exchanged and continued to read.

After reading the two acquisition plans, half an hour has passed.

Putting down the document, Lin Baicheng said, "Qingzi, which plan do you think is better?"

Haruko Mori said: "The two acquisition plans are very similar. They both think that the vice president of the Telegraph Company who intervened in this acquisition is very important, and they both think that they can unite with this person's competitors to attack this person at the board level. If this person leaves the Telephone and Telegraph Company, at least this person will not have the energy to intervene in this acquisition, and then they will go to Bell Labs to talk."

"Although Goldman Sachs and Citigroup will join forces with different people, since they have said so, I think they should be sure. This does not affect Cheng Jun's choice."

"So, if you ask me which acquisition plan is better, I think the two plans are similar. The specifics depend on the execution capabilities of Goldman Sachs and Citigroup, and see who can get things done."

"However, if I had to choose, I would end up choosing Citigroup."

Haruko Mori's last addition, directly settled on Citigroup.

"Is it because Citigroup doesn't charge front-end handling fees?"

The so-called front-end handling fee refers to the fee charged by the institution to the entrusting party before the start of the acquisition. This fee refers to the fee that must be paid to the institution even if the acquisition fails.

The agency requires the entrusting party to pay the front-end fee. First, it is to let the entrusting party show its firm attitude towards the acquisition. After all, even if the acquisition is unsuccessful, it has to pay this fee. If the attitude is not firm, no company will send the money in vain; To make up for the loss of the organization's sacrificed energy, even if the acquisition fails, the organization has made efforts, and even used human resources. This fee is used as compensation for the organization, and the organization will not get nothing.

Citigroup does not want this front-end handling fee, which shows Citigroup's confidence in the success of the acquisition and its desire to cooperate with Lin Baicheng.

"Not at all."

Haruko Mori shook her head slightly, and said, "Citigroup doesn't charge front-end handling fees, and obviously wants to win this acquisition entrustment, so I have reason to think that in the next negotiations, Citigroup will charge a lower entrustment fee."

"In addition to the reason that Citigroup charges lower fees, I think that under the same conditions, Cheng Jun, you should choose to cooperate with Citigroup."

"Chengjun has a lot of cooperation with Goldman Sachs now, but it is not enough to have Goldman Sachs as a partner. If Chengjun, you have always only had Goldman Sachs as a partner, no one can guarantee whether Goldman Sachs will be with you. Charge higher fees during the cooperation, or one day you suddenly don’t work hard, leaving you with no other choice, Mr. Cheng.”

"If you have more Citigroup, Chengjun, you can have more choices in each cooperation. After Goldman Sachs knows that there is Citigroup as a competitor, it will definitely work for you with more care, and the fees charged will also be higher. It might become a little less."

"Therefore, I think Cheng Jun, you need to increase the number of partners on Wall Street, not only Citigroup, if you have the opportunity in the future, you can also cooperate with investment banks such as Morgan."

Haruko Mori expressed her thoughts. She and Lin Baicheng share a common interest, so she sincerely advises Lin Baicheng.

"You're right."

Lin Baicheng couldn't help but nodded after hearing this. In fact, he has always had such an idea, otherwise he would not let Citigroup join in the financing of New Century Software.This time is indeed a good opportunity to entrust Citigroup to acquire and deepen the cooperation between the two parties.

"I will ask people to negotiate with Goldman Sachs and Citigroup separately. Given that the fees are similar, I will choose Citigroup this time."

Although he wants to deepen cooperation with Citigroup, the premise is that Citigroup's fees cannot be higher than Goldman Sachs, at least they must be equal. It would be better if Citigroup's fees can be lower, so he also has an excuse for Goldman Sachs.

Deepening cooperation with Citi does not mean alienating Goldman Sachs. Even because the two parties have a good cooperative relationship for many times, this kind of cooperation should be strengthened. However, Lin Baicheng cannot let Goldman Sachs be the only choice in his cooperation with Wall Street.

The matter was thus settled.

Lin Baicheng then said to Haruko Mori: "Minor shareholders such as Goldman Sachs and Citigroup asked me to list New Century Software. Companies Listed."

"This is a good thing. Congratulations, Mr. Cheng, and your net worth will increase a lot."

Haruko Mori said she was happy, but she was a little puzzled in her heart. Since she has decided to list New Century Software, there is no need to tell her specifically, after all, she has nothing to do with this company.

"The main reason is that I now hold 75% of the shares of New Century Software. Even if the listing is diluted, at least 60% of the shares will remain. This shareholding ratio is a bit too much, at least from the outside world."

"Galaxy Games Company, my shareholding ratio on the surface is 58%. Judging from the company's current market value of more than 60 billion U.S. dollars, my shareholding ratio is worth almost billion U.S. dollars. This figure is a bit too high. It seems It's too conspicuous, so we can't make that mistake again this time."

Lin Baicheng didn't realize it before, but after the total market value of Xinghe Game Company exceeded 60 billion U.S. dollars, Lin Baicheng realized that his shareholding ratio was too high, and the value of his shares reached billion U.S. dollars, which is definitely a very conspicuous one. Numbers, after all he is a foreigner and not white yet.

Although New Century Software's market capitalization at the time of listing was at most a billion dollars, and basically impossible to exceed 20 billion dollars, if Goldman Sachs and Citigroup jointly hyped up the company's stock price, let alone as high as a hundred Even if there is only 50 billion without a market value, at least 60% of his shares are worth 30 billion US dollars.

In this way, the value of shares held by Lin Baicheng's two listed companies will reach nearly tens of billions of dollars. It's scary to think about it, and it will definitely arouse the jealousy of many people. Partner, he still wasn't sure if something would happen to him.

Once the black hands behind the scenes linked Lin Baicheng's identity with his wealth and made a big hype, causing the hostility of the American people and the poor's hatred of the rich, Lin Baicheng, who was a foreigner at that time, was very likely to be sacrificed.

Therefore, in order to prevent this kind of thing from happening, Lin Baicheng must reduce his shareholding and reduce the assets that can be easily detected on the surface.

"At the beginning, I didn't expect that the stock price of Xinghe Game Company could rise to such a high level. Now it seems that the number of shares held by you, Cheng Jun, is indeed a bit too conspicuous."

Regarding Lin Baicheng's words, Haruko Mori agreed very much. At the beginning, everyone really didn't think carefully enough, but who would have thought that Wall Street institutions would actually fry this stock more than three times in less than half a year.

You know, when Xinghe Games went public last year, the issue price was 16 US dollars per share, but now the stock price has exceeded 50 US dollars, which is a terrifying increase.

Institutions such as Goldman Sachs certainly have reasons for speculating, not only because they are shareholders, but also because the risk of inflating the stock price is not high. To 4.3 times the price-earnings ratio.

Such a price-earnings ratio is not high, because the company's annual profit is relatively high. Goldman Sachs and other institutions even stated in their research reports that the current valuation is still at a low level, and the company is undervalued in order to continue to speculate on the stock price. After the sale expires, reduce holdings to earn more profits.

Lin Baicheng said: "So, this time I plan to transfer part of the shares to offshore companies and funds before New Century Software goes public."

"This will not only reduce the number of shares held by you, Chengjun, but also hold the shares separately. If each company holds no more than 5%, it will be much more convenient for you, Chengjun, to reduce your holdings." .”

Haruko Mori's eyes lit up, and she had to admit that this method is really good.

Lin Baicheng nodded: "The shares transferred to other companies or funds can be exactly 5%. After the company is listed, the shareholding ratio will be diluted to less than 5%. It will be easy to reduce the shareholding in this way."

Haruko Mori immediately asked, "Then Makoto, how many shares are you going to transfer this time?"

"I am going to transfer 45% of the shares. Of the 45% of the transferred shares, 10% can be transferred to Wall Street institutions such as Goldman Sachs and Citigroup. Let's take it as the price to buy them. In this way, my apparent holdings are only For the remaining 30%, the shareholding after listing dilution must be lower than 25%, and I will reduce the shareholding after the expiration of the sales restriction, and the shareholding ratio will be lower than 20%.”

The reason why Lin Baicheng said to buy Goldman Sachs and other institutions is because he knows that Wall Street institutions are not stupid. He suddenly sold a large number of shares before the company went public. IPO plan, so share some benefits and let them treat it as if they didn't see it.

Haruko Mori: "If you transfer the shares before the company's listing, they are likely to make a lot of money, so it should not prevent Makoto from transferring your shares."

"Qingzi, when you and Sister Fang are in charge of those capital investments, I plan to slowly transfer the shares of some companies under my name to offshore companies or funds, and reduce the proportion of my shareholding on the surface. To let the company go public, I don't need to transfer shares in a sudden rush, leaving too many traces."

Lin Baicheng expressed his thoughts, which came to him suddenly when he was preparing to let offshore companies participate in Blockbuster's financing a while ago. After that, New Century Software's preparation for listing made him more firm in this idea.

"Sister Shufang and I will handle this matter well." Mouri Haruko replied.

Nodding his head, Lin Baicheng changed the topic: "As for the candidate for the president of the Golden Fleece Company, how did you find it?"

"I have found a suitable candidate, and I am still in contact with other people. It is estimated that after finding three to five suitable candidates, Cheng Jun will conduct the final interview and decide the final candidate."

Haruko Mori replied that of course she would not just find one person and let Lin Baicheng decide whether to choose this person. It would be different from her making the final decision, and it would be a violation of Lin Baicheng's rights, and she didn't want to make a mistake because of it.

"I will stay here for another half a month or so at most, and you have to grasp the time well."

Lin Baicheng reminded that the candidate for the president of the Golden Fleece Company must be approved by him. Once he leaves the United States, it will be more troublesome to interview again.

Haruko Mori said quickly, "There will be no problem with the timing."

"It's fine if there's no problem."

Lin Baicheng believes that Haruko Mori can handle this matter well, so he doesn't say more.

"Cheng Jun, this time Bill Harveys didn't do what you told him well, how are you going to deal with it?"

The two chatted a few more words, and seeing that the conversation was about to end, Haruko Mori couldn't help asking.

"Ok?"

Lin Baicheng looked at Haruko Mouri after hearing the words: "Why do you care about this? You will know how to deal with it in a short time."

Bill Hawes is the director of Lin Baicheng's secretariat in the United States, and his position is very important. Therefore, he will not let Haruko Mori exert influence on the change of this position. He cannot let Haruko Mori's power continue to expand. Haruko Mori is no good.

That's right, this is not good for Haruko Mori, because if Haruko Mori's power is too great and Lin Baicheng feels threatened, Lin Baicheng will either suppress Haruko Mori or freeze Haruko Mori, and the relationship between the two parties will inevitably change. This is what he does not want .

Lin Baicheng hopes that Haruko Mori will always be his confidante and right-hand man, so he can't give Haruko Mori a chance, which is good for everyone.

(End of this chapter)