Return to 88: Starting from Marrying My Sister-in-law

Sun Yansheng's words about "switching shares" fell in the carpeted study, and the air seemed to freeze instantly, with only the occasional soft crackling of firewood from the fireplace.

Lu Yang's knuckles tightened imperceptibly for a moment as he gripped the wine glass, and the polite smile on his face vanished completely, his eyes turning icy cold.

"10% of the prodigy's shares?"

Lu Yang's voice wasn't loud, but it carried a heavy weight, each word like an ice bead hitting the floor, even tinged with obvious sarcasm: "President Sun, do you know what you're saying?"

He slowly put down his wine glass, the dark red liquid swirling within, reflecting his somber expression.

A huge sense of absurdity and a hint of anger at being insulted surged within me.

The child prodigy is about to complete its Series C funding round, with a target valuation of at least $50 billion. An IPO is imminent, and its future prospects are limitless.

What is Wan Yan Electronics like now?
All that's left are those patents he insisted on applying for back then, which are practically worthless in the context of the domestic patent system where patent rights are not respected. Apart from these patents, the remaining value is probably not even worth a hundred million US dollars.

In other words, the difference between the two is at least 50 times, and this does not include the fact that after the Series C financing, Little Prodigy will soon go public in the United States and be listed on the New York Stock Exchange, which will be another dream opportunity for any investor to get rich and cash out.

The above does not even include Wan Yan Electronics' liabilities.

In summary...

Sun Yansheng attempted to exchange his mere 20% stake in Wanyuan Electronics for Lu Yang's 10% stake in Xiaoshentong Electronics. What is this if not a pipe dream?
This is no longer a simple transaction; it's a blatant act of taking advantage of someone's misfortune, taking advantage of their determination to succeed!

Sun Yansheng, however, did not think so. Ignoring the unpleasant look on Lu Yang's face, and with a smug look on his face as if he had Lu Yang completely under his control, he said, "President Lu, is there anything wrong with this? Wanyan Electronics is something you are determined to have. As long as you can get this 20% equity of Wanyan Electronics in my hands, you can bypass President Jiang and directly take over Wanyan Company. Such an important thing is not worth more than the tiny bit of Little Prodigy's shares in your hands, is it?"

Sure enough, Lu Yang's thoughts could not be hidden from these old foxes in the business world.

The VCD patents don't seem to have any use right now, but they will definitely be used in the future.

Although the World Trade Organization (WTO) has not yet entered the mainland, that mysterious eastern continent, it is only a matter of time.

As a shrewd businessman, how could Sun Yansheng not have taken all of these things into account?
Therefore, the somewhat exaggerated price was set after careful consideration, as they were certain that Lu Yang would not tolerate Wan Yan Electronics, which held the VCD patent, falling into the hands of others.

"damn thing!"

Lu Yang was afraid inside, but he calmly said, "Mr. Sun, from what you're saying, you're sure you have me wrapped around your finger, and you think I have no choice but to buy the shares you hold, right?"

Mr. Sun nodded, which was taken as an admission.

If they're already trying to extort money, and they don't even dare to admit it, how can we talk anything further?
Lu Yang said with a sneer, "The value of Little Prodigy's shares, based on the valuation given in the Series C financing, is currently being negotiated with Pengcheng."

The offer from investors represented by Mr. Hong, head of Goldman Sachs Asia, was US$5 billion. Even at that price, 10% of Little Prodigy Electronics' shares would be worth at least US$500 million.

That's a full five hundred million US dollars. Converted to Eastern currency, that's worth at least 30 billion yuan. And right now, Wan Yan Electronics' valuation in the domestic market isn't even estimated at 10 billion yuan.

You want to trade a 20% stake in a company with a total valuation of less than $1 billion, which is declining, for a 10% stake in a company I own that is worth at least $500 million, is on the rise, and is about to go public. Do you think that's unreasonable?

Based on the data above, judging solely from the panel, this person is practically trying to trade a pile of dog poop for the gold in his hand.

Sun Yansheng also put away the smile on his face. "President Lu, you came to me, not the other way around. If you think my price is too high, you can always bargain."

snort!
"But if you think I shouldn't have spoken up, then go ahead."

He turned away.

The look of farewell on your face vanished, and you silently counted: 1, 2, 3...

He dared to say that because he was gambling that the guy behind him wouldn't give up so easily.

Lu Yang stood there, stunned.

Then, seemingly lost in thought, after pondering for a moment, he suddenly burst out laughing, then decisively got up and walked outside.

He didn't even glance at that person.

Sun Yansheng was originally waiting for Lu Yang to back down. At least as long as he agreed to talk, there would be room for maneuver. Even if the final result was that he could get 10% of Xiaoshentong's shares, even if he got 20% off or even 50% off, it would be worth it as long as he got 5% of Xiaoshentong Electronics' shares.

But as they waited and waited, all they got was the person behind them get up and leave without saying another word. Was they really not going to talk anymore?
His expression changed slightly.

Only when Lu Yang had actually reached the door and opened his study door did he finally lose his temper, suddenly turning around and angrily questioning, "Why? Don't you want the shares anymore?"

Anxious.

It's good that you're in a hurry.

As Lu Yang reached the door, he gripped the doorknob tightly with one hand, turned around, and said with a smile, "Since President Sun has no sincerity, I will naturally have to find another seller. As for the 20% of shares you hold, you can keep them yourself. I will go find someone else."

"Wait a minute."

When Sun Yansheng heard Lu Yang say "find someone else," she immediately realized that she was not the only option for him.

There's another person in China who owns more shares than I do.

hateful!

He hurriedly shouted, "Don't think that just because you're bluffing, I'll be scared. This company is Brother Jiang's life's work, and he will never sell it to you. It's just me. China is not the main battlefield for my business layout. As long as you name a price, if it's reasonable, I will sell it to you."

Lu Yang shook his head. "No need. I shouldn't have come this time."

Especially at times like these, it's crucial not to lose your composure. Sun Yansheng asked incredulously, "Why?"

Lu Yang shook his head again calmly: "There's no reason. As a friend, I can remind you again, Mr. Sun: if I walk out of this door and return to China, and buy the 31% stake in Wan Yan Electronics held by Mr. Jiang, then the remaining 20% ​​stake in your shares will be completely useless. You don't have much time left, Mr. Sun."

As is widely known, 100% control of a company does not necessarily require owning 100% of the shares. In the division of power in a limited liability company, when the majority shareholder holds absolute control, exceeding 67% of the shares, it is equivalent to having absolute power of choice. This allows them to independently decide on all the most important matters related to the company, such as amending the articles of association, increasing or decreasing registered capital, merging, splitting, dissolving, or changing the company's form, etc.

Among the three major shareholders of Wanyan Electronics, Lu Yang was the largest shareholder, holding 49% of the company's shares. He was just a little short of gaining a majority stake and relative control of the company.

The other two major shareholders.

One is Sun Yansheng, who holds only 20% of Wanyan Electronics' shares, and the other is Jiang Wanli, who is stubborn and unwilling to admit defeat, and holds 31% of Wanyan Electronics' shares.

Of these two individuals, Lu Yang only needs to gain the support of either one to buy all of the other's company shares. Combined with his existing 49% stake, he can easily cross the line of absolute control and enjoy the right to manipulate the company at will.

Wouldn't the remaining minority shareholder be in a particularly awkward position then?

They couldn't win a fight, had no rights whatsoever in the company, and had to guard against the other party using tricks to kick them out through capital increases and share expansions.

By then, how much will those shares that are being held back and refused to be sold be worth?

Sun Yansheng paused for a moment, then suddenly ran over and closed the door, preventing Lu Yang from leaving. She carefully said, "Mr. Lu, I admit I spoke a bit loudly just now, and I shouldn't have offered such an outrageous price for you to haggle over. How about this, let's sit down and talk slowly. I promise I won't ask for an exorbitant price this time. We Chinese believe that since you've come all this way, you can't just leave empty-handed, can you?"

At this point, they realized they needed to play the "fellow countryman" card and remembered that they were Chinese.

Lu Yang narrowed his eyes and glanced at the other person's amiable appearance.

He didn't mention anything more, saying he shouldn't have come.

After sitting back down, he crossed his legs and said, "I value Wan Yan Company at 100 million US dollars. As for its VCD patents, we haven't received a single cent in patent fees yet, so we can discard them... After calculation, 20% of the equity is only worth 20 million US dollars. If we convert it to RMB, I'll be generous and add another 10 million, making it 150 million. How about that?"

The other party made the exorbitant demands first.

You can't blame him.

His calculation was correct: 150 million RMB. Indeed, if you don't count the patents, 20% of Wan Yan Electronics' equity is worth that much. Moreover, if it weren't for these patents, even if they were given to him for free, he might not even give them a second glance.

And a company that is on the verge of bankruptcy, if it does not continue to receive investment, it will have no choice but to go through liquidation. If it loses even its patents, what value will it have?
Sun Yansheng's face flushed red instantly, as if he had been humiliated. "President Lu, if you're not being sincere, then there's no point in talking."

One hundred and fifty million, and the key is that the unit behind it is RMB, not USD.

Compared to the exorbitant acquisition offer he just made, isn't this an insult to him?

"is it?"

Lu Yang stood up and continued walking towards the study door with a calm expression. He said indifferently, "Since President Sun is unwilling to talk, let's just forget about it and not waste each other's time."

Sun Yansheng stared in disbelief at the shameless Lu Yang, who was once again threatening to stop talking and return to China to find someone else to talk to. It was a cliché, but…

For a while.

His expression was unfathomable.

Finally, gritting his teeth, Lu Yang gripped the doorknob with his left hand again, and just as he opened the door a crack, he said, "Wait a minute, you win. 1% of Little Prodigy's shares. I only want 1% of Little Prodigy's shares. If you agree, we can sign the exchange agreement now. But if you still don't agree..."

"I agree."

Lu Yang turned around, his face beaming with a particularly bright smile!
Before Sun Yansheng, who had just been interrupted, could react, he strode forward, grabbed the other's hand, shook it vigorously, and said with piercing eyes, "So, it's a deal?"

Sun Yansheng: Who am I? Where am I?
Despite it being his home turf, he suffered a crushing defeat, being led by the nose by the other party from beginning to end. He felt that this negotiation was a disgrace to his business career.

but……

Are you going to back out now?
It's no use. The other party has already grasped his weakness and knows that he can't give up this chance to escape to Jiang Wanli. One of them has to die, no, one of them has to stay behind to deal with Lu Yang, the absolute major shareholder of the company, in his entirety.

That's it.

1% is 1%, after all, it's 1% of a company valued at over $50 billion.

Judging from the current situation, we only need to wait for the Series C funding round before we can look forward to its listing in the US. If the IPO is successful, even this 1% equity stake might be enough to make us hundreds of millions of US dollars.

It's much better than holding onto the mere 20% stake in the barely surviving Wan Yan Electronics.

Besides, he has no choice but to sell these shares. If he doesn't sell, and the other party really leaves and returns to China, the person surnamed Jiang will sell his share.

How to do?
Facing an absolute majority shareholder who holds more than 80% of the company's shares, he, a minor shareholder with only 20% of the shares, can be manipulated however the other party wants. Moreover, the two sides have already broken off relations. In the end, let alone cashing out hundreds of millions, he can only take tens of millions and leave. He should be grateful that the other party did not kill him completely.

"Then let's do it this way. I'll have someone draft the contract. I hope that after Mr. Lu returns, he can achieve his goal of acquiring Wan Yan Electronics and leading it to reverse its previous decline and achieve the glory that we have always hoped for. I also hope that Mr. Lu will not forget our previous agreement and will place more chip orders with my company, C-Cube."

Things have come to this point, and he can only choose the option that is most advantageous to himself. As for his good friend Jiang Wanli... the united front they had previously reached, the alliance they had formed, and the agreements they had made to oppose this young man in front of him.

Well, these things were just verbal agreements, and now, in order to protect ourselves, we can only put them aside.

A dead Taoist friend is not a poor Taoist!
Lu Yang finally showed a satisfied expression. He picked up a bottle of Romanée-Conti red wine that Robert the butler had taken from the cellar earlier, poured a glass for himself and the other person, and raised his glass, saying, "Cheers to our cooperation."

What a brilliant move of turning the tables! (End of Chapter)