Chapter 1146 - Something Fishy
Chapter 1146 – Something Fishy
Feng Yu told Jeff Bezos about his direct funding decision, and Jeff Bezos knew Feng Yu is just informing him and not discussing him. Although direct funding requires the Board of Directors’ consent and Feng Yu is not a board member, Ralph is Feng Yu’s representative on the board.
Feng Yu is still the major shareholder of Amazon, and if Jeff Bezos disagrees, Feng Yu can replace him anytime. Their initial agreement is Feng Yu will support Jeff Bezos to be the company’s Chairman. Still, it also stated that he will be replaced if he made a severe mistake or harmed the shareholders’ interest.
Furthermore, Feng Yu can inject funds into the company and dilute Jeff Bezos’s shares, but Feng Yu did not do that. If Jeff still opposes this proposal, he will be asking for trouble.
Jeff Bezos immediately called for a Directors’ meeting and announced the company is running low on the fund. The company needs additional funding, but this is not the right time to get listed. All internet companies are not doing well on the stock market now.
So, the company decided to receive direct funding and issue some non-voting shares to repay its debts and expansions.
Those few minor shareholders, though, the company is going to get listed. They don’t know whether they should support the company’s decision to get listed now, as the market is not in favor of tech and internet companies now.
But when the shareholders heard this will be direct funding, they did not oppose it. Jeff Bezos must have found an investor to invest in Amazon, but they also have other ideas. As the current shareholders, they should have the priority to invest if the company requires direct funding.
The shareholders knew it was the major shareholder Feng Yu who had opposed the company to get listed. This is because Feng Yu felt this company can make high profits in the future, and he doesn’t want to share the earnings with others.
All the shareholders trust Feng Yu because of his reputation. The company is doing well, and it is only a matter of time before they get high returns.
Those shareholders who had sold their Amazon shares in the past might have made lots of money these few years. They even laughed at the current shareholders for holding on to their shares. But they will regret it in the future!
……
“What did you say? Those minor shareholders also want to buy non-voting shares?! Didn’t you tell them that these shares are priced much higher?” Feng Yu was surprised by what Ralph told him.
Although this direct funding is for the Fu Family, and Feng Yu had given them some discounts, but the share prices are still very high. It might not be as high as eBay’s shares, but it is much higher than its market value.
Those minor shareholders are still willing to buy these shares?! They had been grumbling about the company not getting listed all this while.
“Boss, this is because you had sold all your Microsoft shares but never sell any of Amazon’s shares. This gave them high confidence in this company.” Ralph explained.
Feng Yu has a good track record in investment, and all the companies he invested in have been making high profits.
Ah……
Feng Yu had not thought about this. Seems like he can only sell lesser shares to the Fu Family now. But those minor shareholders, including Jeff Bezos, do not have much money. Jeff Bezos even have to sell his house, bonds, etc., to raise money to buy Amazon’s shares in the past.
Although Jeff Bezos is highly paid these few years, he will not have much savings after buying back his house and car. The other minor shareholders are not as extreme as Jeff Bezos. None of them has net assets of over 1 billion USD without taking their Amazon shares into consideration.
“Alright. The existing shareholders should have priority for direct funding, and this is a reasonable request.”
“Boss, can I also buy the shares?” Ralph looks at Feng Yu eagerly.
“Of course. Do note that Amazon will not be listed in the next two to three years, and you will not be able to sell them off. But don’t worry, if you need money, you can sell your shares to me.”
“If you don’t sell the shares, I will also not sell.” Ralph replied cunningly.
“Hahaha… you ah… Go and tabulate the total number of shares they want to buy and let me know. I need to get the total figure before I inform the Fu Family.”
The next day, Ralph was looking terrible when he reports to Feng Yu.
“What’s wrong?”
“Boss, something is wrong. This is too fishy! Look at the number of shares they want to buy. It is more than 50% of the shares we are issuing.” Ralph showed a chart to Feng Yu.
More than 50% of the shares?! This is impossible.
Those minor shareholders do not have net assets of more than 100 million USD together. The total value of the shares that will be issued is more than 1 billion USD, 25% of the company’s total value.
How did they raise over 500 million USD? Feng Yu don’t even believe they can raise 50 million USD.
Feng Yu looked at the chart, and it is indeed fishy. These shareholders’ total assets are less than 10 million USD each, but they want to invest more than 100 million USD. Even if they had gotten loans from the banks, they would not get so much money.
“Do you know what is happening?” Feng Yu frowned.
“Boss, I still don’t know the reason, but there are only two possibilities in this scenario. First, they manage to raise a large sum of money, but this is quite impossible. The second possibility is someone is buying our Amazon shares through them!” Ralph replied.
Feng Yu also ruled out the first possibility. It might be possible if one of them raise a large sum of money, but it’s not possible for all of them to raise fund at the same time.
The second possibility that someone is trying to acquire Amazon shares is more convincing. This person must be quite daring to invest in internet companies during this time. Still, this person should also know Amazon is going well and is getting profitable.
Even if Amazon did not get listed, one can get high returns from the dividends or sell off the shares after it got listed. If Amazon really got listed, they will get higher returns.
Acquiring Amazon shares through minor shareholders is very simple. For example, a person can sign a loan contract and give them money to buy Amazon shares. But there will be a clause stating the repayment deadline.
The shareholders will not repay this loan, and they must use their Amazon shares to repay this debt. This way, Amazon shares will be legally transferred to someone or a financial institute who wants to buy Amazon shares but cannot get them.
These financial institutes will surely give these minor shareholders some benefits for helping them buy Amazon shares.
You all are trying to use this underhand method on me?!
Feng Yu has a ferocious look in his eye. “Ralph, go and find out who is behind all these. The direct funding of Amazon will be suspended temporarily as there is no hurry. We are still negotiating to acquire those companies. Suppose those shareholders try to use their status as shareholders of Amazon to threaten you. In that case, we will not let them off lightly!”