Chapter 828 - Capable person
Chapter 828 – Capable person
Li Jingwei rushed into Zhou Dawei’s office angrily. Even the secretary outside could not stop him.
“Mayor Zhou, is the city going to sell Jianlibao? How am I not aware of this?” Li Jingwei was the one who plotted this, but he is here to question the Mayor.
“Old Li, where did you hear this? Who is going to sell Jianlibao? We are just going to set up a joint venture with foreign direct investors. This will increase Jianlibao’s scale, and furthermore, Jianlibao has a shortage of funds now and you wanted the city to help. Now, I am helping you settle this problem.” Zhou Dawei calmly replied and pulled Li Jingwei to the sofa.
“Joint venture? Even if it is a joint venture, you should inform me first. After the joint venture, will it be those foreign investors making the final calls? What about me? I had made significant contributions to Jianlibao over the years. What will I get in return?” Li Jingwei asked.
“Old Li, who says after the joint venture is set up, the foreign investors will have the final say? You will still be Jianlibao’s General Manager, and nothing will change.” Zhou Dawei said.
“Mayor Zhou, we don’t need foreign investors to invest. The management team and I can raise a sum of money. Sell some of the shares to us, and I promise we will bring Jianlibao to greater heights.” Li Jingwei said.
However, Li Jingwei knew the City Government will not agree to his request.
Zhou Dawei replied. “Old Li, where will you all get the money? We cannot do let you repay the amount over 3 years, as you proposed. This will be using Jianlibao’s money to purchase Jianlibao’s shares. Do you think the City will agree? Furthermore, what did the 4 deputies you hired do? They are the ones who caused the cashflow problems in the company. Didn’t you say that if no new fund is injected into the company, Jianlibao will be bankrupt? What will happen to the workers if this happens?”
“Mayor Zhou, you think I am the one who caused this crisis for the company? I had told you all not to withdraw so much money from the company, but you all never listen to me. If the City returns the money to the company, Jianlibao will solve all its financial problems.”
Li Jingwei knew the funds had already been distributed to all the departments and were spent. The government departments had spent over their budget last year, and the funds they received were used to pay their debts.
Li Jingwei knew the City Government does not have money and deliberately said this.
“Old Li, what’s the meaning of this? Are you saying I caused Jianlibao to be in this situation? Who are you to speak to me this way?!” Zhou Dawei was furious.
Zhou Dawei looked at Li Jingwei angrily and said: “You will still be the General Manager of the company, and we will increase your salary and benefits after we got the investment.”
Li Jingwei took a deep breath. This was why he wanted to move Jianlibao out of Sanshui Government. Increase salaries and benefits? I want the company’s shares!!!
“What is the city going to do?”
“We will let the foreign investors invest 40 million USD in exchange for 40% shares.” Zhou Dawei replied confidently.
“No way! We will be making a loss!”
“Huh? Loss?” Zhou Dawei asked.
“Our Jianlibao’s fixed assets are worth more than 400 million RMB. Although we have some debts, we should also be worth 350 million RMB. We may look like we had gotten a good deal from them, but Jianlibao is set to make high profits in the future. They can recover their investment in 3 to 4 years. How can we let them have their way?”
“What should we do then?” Zhou Dawei asked. “We just sell them the shares? The outcome will also be the same. The money will still be invested in Jianlibao. Also, we are not able to get much from selling the shares. What if they want to move Jianlibao out of Sanshui?”
“Mayor Zhou, I have a suggestion. We can use Jianlibao’s shares to set up a new joint venture company with them. This new company can be located elsewhere, but Jianlibao will remain in Sanshui. This way, we will get more funds for Jianlibao’s growth!” Li Jingwei said after a short pause.
“Use the company’s shares to set up a new joint venture company? What do you mean? I have never heard of this before.” Zhou Dawei was confused.
“That means we will use 90% of Jianlibao’s shares as capital to set up the joint venture with them. They will have to increase their investment to match the value of our shares, and we will own 51% of this new company, and they will own 49%. This way, we will get more than 300 million RMB of funds. We can even adjust our accounts, like hide our debts to the distributors and our outstanding salaries to the workers. I am confident we will get 500 million RMB from those investors.”
“How much? 500 million RMB?” Zhou Dawei’s eyes opened wide.
“That’s right. 500 million RMB. The company will have sufficient funds to develop and our sales, profits, and tax will increase.” Li Jingwei was slowly persuading Zhou Dawei into his trap.
“Old Li, you are really our Sanshui’s hero.” Zhou Dawei patted Li Jingwei’s shoulders.
Sanshui’s hero? This is how you treat a hero? Look at how the other local governments treat the people who had made contributions to their state-owned enterprises.
“This new company will be a joint venture, and we will be the majority shareholder. I want to be the Chairman and the General Manager of the company.” Li Jingwei said his condition.
“No problem. Other than you, no one is capable enough for these two positions! Old Li, the city is right to choose you. You are indeed someone capable. Prepare a proposal for us. I will speak with Secretary Xu first.”
Li Jingwei stepped out of the office and sighed. He was utterly disappointed with these government officials and does not regret what he did!
……
“We have made a decision. We will use 90% of Jianlibao’s shares, and you all will use 500 million RMB to set up a joint venture company, Chinese Beverage Group. We will own 51% of the shares and you all will own 49%.” Li Jingwei said.
“Manager Li, where did you get these figures? A few days ago, we can get 40% shares with 40 million USD. 500 million RMB is equivalent to more than 60 million USD. How can it be 49%?” Fu Guangzheng pretended to ask angrily.
“This is because the city’s leaders are not familiar with Jianlibao’s assets and made the wrong evaluation. This is the latest Jianlibao’s valuation report, and it is worth more than 500 million RMB.”
Xu Sicheng and Zhou Dawei were pleased. The invested amount is more than they expected. Old Li really has his ways.
“But why is it only 90% of the company’s shares? Base on this valuation report, you all should be investing 100% of the company’s shares.” Feng Yu tapped on the table and asked in English.
The translator explained to Xu Sicheng and Zhou Dawei, and they turn to look at Li Jingwei. How should they explain this?
“Our brand has value, and have you all taken this into consideration? This is our bottom line, and if you do not agree, this cooperation is over!” Li Jingwei firmly said.
Xu Sicheng and Zhou Dawei panicked. Why is Old Li so firm? Will the negotiations be called off? Those businessmen had met Le Baishi, and what if Le Bashi offers better conditions?
Fu Guangzheng looked at Feng Yu and the rest. Feng Yu picked up the glass of water and put it back on the table without drinking. Fu Guangzheng immediately understood him.
“We need to consider this before we give you a reply.”
“Of course, but please hurry up. Maybe in another few days, Jianlibao’s value will increase.” Li Jingwei thundered.
In Feng Yu’s heart, he had agreed to this proposal, but he got to put up his pretenses. He will be attacking the US beverage industry with the Chinese beverage alliance!