Extraordinary Genius Chapter 825

Extraordinary Genius

Chapter 825 - Strategy and conditions

"ManagerLi, you are saying that you will let foreign investors invest in Jianlibao andthen restructure it to a shareholding? Are you sure you can do it?" Feng Yualso hope this would happen, but it should not be easy.

Li Jingweiput up 3 fingers and said. "First, I am the General Manager of Jianlibao.Although the company belongs to the country, I still have some say in thecompany. At least I can make most of the employees and management team to stayon my side. Secondly, this will be a political credit and the local governmentleaders will be very interested. It is almost time for the leaders.h.i.+ptransition and the leaders need some results to get their promotion. Sanshui isa place where no foreign investors will be interested in. Lastly, Lehaha has toget involved in this plan as Jianlibao wants to buy Lehaha's tea beverageformula. Don't worry. We will be producing carbonated tea beverages. It will bedifferent from Lehaha's products."

"Tell me thedetails." Feng Yu was excited. Li Jingwei had got everything planned.

"First, Iwill tell the leaders Jianlibao must cooperate with Lehaha because the USmarket loves tea beverages. If Jianlibao can introduce a tea beverage productin the US, the company will get enormous profits. But the leaders might notagree, and Jianlibao and Lehaha might have to exchange some shares. But thenumber of shares cannot be a lot.

Feng Yufrowned. Lehaha and Jianlibao exchanging shares? He got to discuss with ZhongQingxian about this, as Zhong Qingxian might not agree. But if Feng Yu toldZhong Qingxian that Lehaha can use Jianlibao's distribution channels to sellits products to the US, Zhong Qingxian might agree. Although Feng Yu does notinterfere with Lehaha's management, he still Lehaha's biggest shareholder andZhong Qingxian should listen to him. If Zhong Qingxian still does not agree,Feng Yu will use his own Lehaha shares for this deal.

"Thefirst step of the plan is exchanging shares, Lehaha selling tea beverageformula to Jianlibao and Jianlibao will help Lehaha enter the overseasmarkets?"

"That'sright. The second step will need at least 3 foreign companies to invest in ajoint venture with Jianlibao. This joint venture will be Chinese BeveragesEnterprise, and Jianlibao will use some of its shares to invest in this venturefor 51% of the company shares."

Feng Yualmost burst out laughing. Chinese Beverages Enterprise sounds majestic, andthose government officials will be interested. Furthermore, this venture willattract foreign funds and will give them political credits.

"Afterthat, it will be straightforward. Those foreign companies will merge and boughtover by you. Lehaha will sell its Jianlibao's shares to you, and you will havethe controlling stake of Jianlibao. With the controlling stake, we can moveJianlibao out of Sanshui to Guangzhou and will have the final say in thecompany."

LiJingwei paused and took a big puff of his cigar. He blew out a cloud of smokeand continued. "In this plan, only I can persuade the leaders to agree. If Idon't agree, I will lead all the employees on strike and stop the company'soperation. That's why I want to sign a confidential agreement with you. Youmust promise that after getting the controlling stake of Jianlibao, you willsell a portion of the company's shares to my team, and it must not be less than10%!"

Li Jingweiis telling Feng Yu that without me, this plan will not succeed. Even if you canpersuade the government leaders, I can also stop it. I will help you gaincontrol of Jianlibao, but you must let me run the company and also sell aportion of the shares to me.

But 10%of the company's shares is a lot. Li Jingwei is greedy, and Feng Yu knew histeam cannot afford it. Even if Li Jingwei got a loan from Li Ning and thebanks, he would not raise enough. Is he going to borrow from Venture Capital?

"ManagerLi, after I get the controlling state, you will buy 10% of the company'sshares. I will not talk about where you are getting your money. This 10% ofshares should not be coming from me alone. Are you able to convince the localgovernment to sell you their portion of shares?"

If all10% of the shares are from Feng Yu, Li Jingwei and the local government willhave the controlling stake of Jianlibao when they combined their shares. Since FengYu will have the controlling stake, why should he give it up? After all, FengYu and Li Jingwei do not know each other well. In Feng Yu's previous life, LiJingwei went to jail because he misused the state-owned enterprise's funds.Feng Yu had to take precautions against someone like him.

"ManagerFeng, you can rest a.s.sured that I will make sure the local government sells offa portion of their shares. I will even let all of Jianlibao's staff get someshares!" Li Jingwei said with a ferocious look in his eyes.

Give allthe employees shares? Li Jingwei should be going to gather all the company'sstaff to go against the local government. But that's his problem as long as myshares will not be lessened.

Also, LiJingwei is old and will be hospitalized in the future. Feng Yu believes that LiJingwei will handover his authority after he fell sick, as he will not let thecompany, he built from scratch to be gone.

Furthermore,Jianlibao's a.s.set value is not high. Only its brand is worth something and ifLi Jingwei can let the local government overlook the brand value, Feng Yu willrecover his investment. Keeping a factory in Sanshui and donate a bit of moneyto the local government will be enough as repayment.

Feng Yustill have a trick up his sleeve to ensure Li Jingwei will listen to him.

"ManagerLi, Jianlibao's fixed a.s.sets are currently worth more than 300 million RMB?Even if all the profits are handed over to the local government, after thejoint venture, Jianlibao's a.s.sets will increase by several folds. You and yourteam might need to pay at least 60 million RMB for the 10% shares. I am curiouswhere are you going to get the money?" Feng Yu smiled and asked.

LiJingwei's face changed. "Don't worry. I am confident I can get a loan. If Ireally can't get the loan, I hope you will agree to let us pay back ininstallments. I will not touch Jianlibao's money!"

LiJingwei wants to persuade the government to increase the salaries of themanagement and then get a loan for the remaining amount. This should be enoughto purchase the 10% shares. If all else fails, he will pay back ininstallments.

"Installmentsare also using Jianlibao's funds to buy Jianlibao's shares?" Feng Yu asked. Inhis previous life, many of the state-owned enterprises got privatized usingthis method. It might be legal, but this method is still questionable.

"ManagerFeng, you do not agree to my terms?" Li Jingwei was slightly mad. He had madeit clear that he will help Feng Yu gain control of Jianlibao and will give upthe controlling stake of the company he built. Yet, Feng Yu was still notsatisfied?!

"No, no,no… Manager Li, you misunderstood me. Actually, I feel that you should berewarded with some shares, and I am willing to lend you the money to purchasethe shares. The interest will not be higher than the banks, and you all arealso not able to get such a big loan from the banks." Feng Yu said.

LiJingwei was stunned. What Feng Yu said was totally different from what heexpected. Feng Yu's offer sounds more attractive than his proposal.

"ManagerFeng, what are the conditions?"

Feng Yusmiled. Dealing with smart people is so easy.

"ManagerLi, you are not young. If your children are good at management, they can enterthe board of directors or by the General Managers in the future. But if theyare not good, then you must give up the position of director and GeneralManager after you retire. I hope you will understand. Zhong Qianxian and I alsohave this agreement." Feng Yu smiled.

Feng Yu'scondition is not harsh at all. He is only worried that Li Jingwei will have toomuch influence on the company and will create problems after he retires. It'sbetter to make things clear to prevent Li Jingwei from refusing to give up hisauthority in the future.

Li Jingwei thought for a while and nodded. "Alright. I agree!"