Chapter 520 – Inducements Part 2 of 2
Liu Chuanzhi looked at Feng Yu and asked: “Manager Feng, you want to be the controlling shareholder of Lenovo?”
“If that’s possible, why not?”
Liu Chuanzhi shook his head: “This is impossible. Although Lenovo is registered as a private company, in reality, it is the same as those state-owned enterprises. There are many things in the company which I can’t tell you in detail. But it was impossible for you to get the controlling stake.”
“I only want to control stake, and you can have all the authority to run the company. Other than finance, I will not interfere with the management, operations, etc. The company can set up a board of directors, and I will support you to be the chairman!” Feng Yu pointed to Liu Chuanzhi.
What? Feng Yu was not after the authority? I will be the chairman of the company? Then why does he want to get the controlling shares? Liu Chuanzhi had never heard of someone who does not want to be in charge.
Was Feng Yu hoodwinking him or was he telling the truth?
Feng Yu saw Liu Chuanzhi doubting his words, and he laughed: “Chairman Liu, have you heard of Lehaha company?”
“Lehaha? The company that sells children health supplements? I had heard of this company before. Why?” Liu Chuanzhi was in a daze. Feng Yu changes topics too fast. We were talking about Lenovo, and he suddenly talks about Lehaha.
“I am the major shareholder of Lehaha. Lehaha does not have a board of directors, but there is an Executive Director to make the managerial decisions. This Executive Director is the former boss of Lehaha, Zhong Qingxian. I only have a title of deputy general manager there. I do not have any duties or responsibilities there. I only provide some suggestions to Zhong Qingxian and had never interfered with his decisions.”
Liu Chuanzhi looked at Feng Yu in shock. Feng Yu was also the biggest shareholder of Lehaha? This Manager Feng was involved in too many businesses!
Although Liu Chuanzhi was not in the health supplements industry, he knew that Lehaha’s sales were outstanding. Will a company with good sales have low profits? Feng Yu does not want to be the person in charge of such a company?
“Why? You don’t believe me?”
“Should I?” Liu Chuanzhi asked Feng Yu back.
“Since you know Old Jiang personally, you can ask him if I had ever interfered with the operations of Aiwa Electronics? Other than the finance department, Manager Jiang is the one who makes all the decisions on the hiring of staffs. He had never asked me about anything. The abilities of one person are limited. I cannot be monitoring all of my companies closely. In fact, I do not even want to manage any company. This is the same as Lenovo after I become the major shareholder. To you, 1 or 2 hundred million might seem to be a considerable sum of money. But I can afford to lose this sum!”
Liu Chuanzhi almost choked when Feng Yu said this. Feng Yu was too arrogant. Can afford to lose 1 or 2 hundred million?
But when Liu Chuanzhi thinks back, this was indeed true. This Manager Feng had too many businesses, and all the companies were racking in high profits. All the companies mentioned by Feng Yu had a market value of more than 200 million!
“Manager Feng, what are your plans?” Liu Chuanzhi narrowed his eyes and asked.
“Help me get the most shares out of my investment. As long as the total shares owned by both of us are more than 51%, we do not need to listen to the Chinese Academy of Sciences. To be honest, the leaders there do not know how to do business. If you are not in this company, I will never consider investing in Lenovo.”
Feng Yu had tried to poach Liu Chuanzhi over the phone previously. But Liu Chuanzhi had rejected him. This was because the Lenovo Company had agreed to issue shares to him. But the shares given to him could not satisfy him. Compared to the senior executives in Feng Yu’s company, Liu Chuanzhi was really disappointed with his leaders.
Now, Feng Yu had made things very clear. He needs Liu Chuanzhi to help him get more shares. Money was not a problem. After that, he will let Liu Chuanzhi the authority over the company and money.
There were two choices in front of Liu Chuanzhi. One was to help Feng Yu, and in the future, he will be the person with the most authority in Lenovo. Those officials, who knew nothing about businesses, could not interfere with his decisions. He will also gain personal benefits. Second, he does not help Feng Yu. Then after Feng Yu would resent against him. He would lose a great opportunity. All the plans and dreams in his heart will not be fulfilled.
“Manager Feng, you said that the senior engineers in your companies will get shares as rewards and bonuses?” Liu Chuanzhi had made his decision.
“Of course. Lenovo will be the same too. I will suggest this during the shareholders meeting. I cannot guarantee you how many shares all of you can get, but I think the 1% shares you owned is too little. It should be at least 3%. The rest of the pioneers should also get some shares as rewards.”
Liu Chuanzhi brightens up. Feng Yu was so generous to give them so many shares? He was calculating in his heart. The shares owned by the rest of the founders and him amounted to about 8%. He had wanted to fight for the clause that their shares will not be diluted after Feng Yu invested in the company. They wanted to maintain their 8% stake of the company. However, Feng Yu will be giving them more than they had expected!
But how should Liu Chuanzhi report to his leader in CAS? This was a problem. He had previously told his leaders that Lenovo needed only 50 million RMB to set up the computer division. How should he get the leaders to agree to let Feng Yu invest more than 100 million RMB?
Even with the CD-ROM technology, the leaders will also not agree to this. The company was still making profits and why should they allow someone to invest in the company and dilute their shares?
Seeing Liu Chuanzhi becoming quiet again, Feng Yu asked: “Chairman Liu, are you having some concerns?”
“It’s too difficult. Your investment is too big, and the leaders might not agree. The CD-ROM technology will not be sufficient to persuade them.”
“What if you tell the leaders that I am still the third biggest shareholders of Microsoft?” Feng Yu smiled.
“Huh? What did you say? The third biggest shareholder of what company?” Liu Chuanzhi thought he heard wrong.
“US, Microsoft. The company that made the Windows operating system!” Feng Yu explained.
“You…… You are a shareholder of Microsoft?”
“I am the third biggest shareholders. I do not own any equity shares and do not have voting rights. But it should not be a problem to form a partnership between Microsoft and Lenovo. Microsoft Windows is the most popular operating system for PC manufacturers. Microsoft had also produced much great application software. If we are able to collaborate with Microsoft to produce a Chinese version of those application software, how much profits do you think Lenovo will get?”
Liu Chuanzhi’s breathing became rapid. He could see the opportunity and profits if this deal goes through. If they could partner with this top software company, Microsoft, Lenovo would benefit a lot. Not only there were vast profits, but Lenovo could also increase their technologies. Liu Chuanzhi will have the confidence to take over the Chinese market!
“Manager Feng, I know how to negotiate with the leaders. Can you tell me what is the minimum amount of shares you want to own?”
“35%. The more, the merrier. I can pay more if required. If CAS is willing to sell me all their shares, I am willing to pay them 4 times the market value! I hope CAS’s proportion of shares will be lowered to below 50%.” With 35% shares in hand, Feng Yu could prevent one person or party to be the only voice in shareholders’ meeting. As for becoming the controlling shareholder, Feng Yu does not have too much hope.
If Feng Yu could be the controlling shareholder, it’s okay. But it does not matter if he does not become the controlling shareholder. Of course, if he could own more shares, he does not mind paying premium prices for those shares. He will get back 10 times the amount he spent today within 2 years.
“Fine. Manager Feng, I think we have reached an initial consensus. I hope you will be able to make a trip to Beijing to speak with the leaders from CAS.”
“No problem. It’s settled then.” Feng Yu smiled.