Leaving the Zheng Family, Xu Jiayin hurried to Phase 2 of Plaza Building to collect the agency authorization contract provided by Lu Liang.
"Mr. Xu, tell about the next plan."
Lu Liang glanced at the financial news.
At the mont they signed the contract with Old Xu, Hengtai Group also announced to the public that they currently hold more than 26% of New World shares.
This move is also to inform the outside world.
The stocks acquired by several financial institutions under Lu Liang’s na were all for Hengtai Group, which will fully support Hengtai Group’s acquisition of Zheng Family’s New World.
Once the news was released, Hengtai Group’s stock price soared.
Market value consecutively broke 400 billion, 420 billion, and finally reached 450 billion, about to break through 500 billion.
The financial market’s sense of sll is always particularly keen.
Even though New World also announced that Zhou Da Fu holds 41.5% of New World shares and will urgently convene a board eting to take anti-takeover asures.
But even with just Lu Liang alone, the four major families are already dizzy, and now cos a real estate tycoon—two people teaming up, the takeover of New World Developnt is just a matter of ti.
"Mr. Lu, they should want to use a poison pill," Xu Jiayin said in a deep voice.
The poison pill strategy was born in 1982. As soon as it erged, it was embraced by countless companies and hailed as the most effective anti-takeover asure in history.
When a company encounters a hostile takeover, especially when the acquirer’s shares reach between 10% and 20%.
To preserve its controlling stake, the company will issue a large number of shares at a low price. The goal is to decrease the acquirer’s share proportion, effectively diluting the equity, while also increasing the takeover cost, thereby preventing the acquirer from reaching a controlling stake.
The poison pill generally divides into flip-over and flip-in plans. The Zheng Family should choose the flip-in plan, which involves acquiring newly issued shares at a high premium, usually as much as 100%, while shareholders triggering such events are excluded from the buyback.
Back then, when Sina faced a takeover by Shanda, it used a poison pill strategy, forcing Shanda to reluctantly abandon Sina.
"Don’t worry about funding."
Lu Liang slightly nodded, acknowledging Old Xu’s speculation.
Unable to obtain chips in the secondary market, the Zheng Family is still arduously preparing more funds, indicating Old Xu’s guess was correct, preparing for the poison pill strategy.
Because the poison pill is a double-edged sword, increasing the acquirer’s cost and correspondingly increasing the company’s cost, the Zheng Family still needs substantial funds in reserve.
Xu Jiayin pondered for a while and added, "We need to secure 33.4% of the equity before they initiate the plan and enter the board to stop the poison pill strategy’s implentation."
New World’s board plans to convene tomorrow at 10:00 am. It’s now a bit past 3:00 pm, leaving them less than 19 hours.
In that limited ti, they must et two conditions: first, a total holding of 33.4% equity.
Secondly, they must gain the support of at least one board mber, enabling them to attend tomorrow’s board eting on that mber’s behalf.
Although they currently hold over 26% of shares, qualifying them for board entry.
Yet, the board is still controlled by Zheng Jiachun, who can completely block the shareholder eting process, preventing them from entering tomorrow.
Group directors are generally elected by a shareholder eting, and to enter the board, they must at least undergo a shareholder eting procedure.
Even if Zheng Jiachun doesn’t block the process, under normal procedures, they still certainly won’t be able to enter the board before tomorrow.
Lu Liang appeared contemplative, and Sun Yutao’s voice ca through the earpiece: "Mr. Lu, the chips held by retail investors in the market are only about 5% at most, and very difficult to acquire."
Wen Chao continued: "Although various families hold so shares in New World more or less, securing the last 7.4% requires support from at least three families."
"However, from my previous investigations, if we can gain the support of HSBC or Bank of China, we have a great chance to achieve these two conditions at once."
"HSBC holds 7.35% equity and has a board seat in New World; Bank of China does as well, though its holding is less, only 6.42%."
Lu Liang frowned: "HSBC holds 7.35%—this is not good news."
He said, "Increase the funding in the secondary market. By 4:00 pm closing, not a single share should be obtained by the Zheng Family."
According to the disclosed announcent, Zhou Da Fu holds 41.5% of New World shares, gaining HSBC’s support ans 48.85%.
If the Zheng Family’s shares exceed 50.1%, achieving absolute control, the difficulty factor for taking over New World will shoot up from the previous 7.
Though there are almost no chips left in the secondary market, they can’t slacken even a bit; best if Zheng Family doesn’t get a single share.
Lu Liang is uncertain of HSBC’s stance, but he must prepare for the worst.
Assu HSBC supports the Zheng Family, they currently hold 48.85%, leaving only the last 1.25% to reach 50.1%.
Lu Liang called Li Junwei at the door: "Release the ssage, we can remain neutral, but supporting the Zheng Family ans being our enemy."
He intended for the final 1.25% equity to beco an insurmountable barrier for the Zheng Family.
"Quite audacious, but I like it."
Old Xu grinned with narrowed eyes and called his assistant waiting outside to spread the ssage.
Although Hengtai doesn’t have much business in Xiangjiang, it does have considerable business on the mainland among the local elite.
At this mont, anyone who dares to support the Zheng Family is making an enemy of the Hengtai Group, a fight to the death.
He threw caution to the wind, intending to risk everything on one bet, not even considering the possibility of failure, because success was the only option.
anwhile, at Yiyun Villa.
The once bustling base of the Earth Association had quickly beco deserted, leaving only the Zheng Family mbers and a Westerner.
"Mr. Qi, has Lu Liang discovered our intentions?"
Zheng Jiachun furrowed his brow, looking at the stock chart.
He couldn’t pinpoint when it started,
But obtaining shares had beco increasingly difficult.
Especially in the last few minutes, not a single share was obtained; there was capital, yet the trades always failed.
Whenever a block of shares appeared in the market, it was instantly snapped up, the trade speed unbelievably fast.
No market supply matched with a price, New World’s stock price soared, quickly breaking 70 Hong Kong Dollars, with the market value approaching 200 billion.
"The quantitative model being used by Tianxing is from Huanfang Technology. It seems their AI technology surpasses that of HSBC."
Qi Yaonian’s face darkened, his complexion turning an eerie shade of pink. Even though he was British, he had lived in Hong Kong for many years, and had given himself a Chinese na.
"We’re just 1.05% short, a re 26.25 million shares," Zheng Jiachun gritted his teeth, wishing he could buy each share at 100 Hong Kong Dollars.
Just a little more, and the Zheng Family’s direct or indirect holding of New World’s shares would reach 50.1%, achieving absolute control.
But in this market, having a higher bid does not guarantee shares. It heavily depends on the seller’s asking price and the order submission speed.
Their order submission speed was always slightly lagging, even when using the model employed by HSBC.
Lu Liang’s assumption was correct; the Zheng Family indeed imdiately contacted HSBC and smoothly gained their support.
Qi Yaonian, as the Executive CEO of HSBC, also declared that they would fully support them in their anti-takeover strategy.
"Mr. Zheng, we can no longer pin our hopes on the secondary market," Qi Yaonian sighed.
With so few circulating shares and the market about to close, acquiring more than 20 million shares was now impossible.
He spoke gravely, "The urgent task is to win over the support of other shareholders before Lu Liang does."
Since Lu Liang entered Xiangjiang, drawing away their vice president, HSBC had been watching Lu Liang closely.
Over ti, Qi Yaonian also understood Lu Liang’s intention; he wasn’t here to join forces, but to dominate the market.
During the handover of Xiangjiang, HSBC had already been weakened by the Bank of China, and allowing Lu Liang to run rampant in the Xiangjiang market might forever lose HSBC its stronghold.
So when Zheng Jiachun approached him, HSBC decided to intervene to aid, stopping Hengtai Group’s acquisition of New World.
HSBC stopping Hengtai’s takeover was akin to Lu Liang assisting Hengtai in acquiring; it was not just for profit but for power.
The struggle between these two sides mirrored the current international situation, should the S3 season kick off, it would certainly not occur dostically, but in a third country battlefield.
Although the battlefield was in a third country, the outco of the war could decide who the next era’s leader would be.
Therefore, HSBC could not stand by.
Zheng Jiachun stepped aside to make a call, but one call after another turned his face increasingly grim.
The refusals from the He and Huo families were within expectations, as both had entered politics and rarely engaged in comrcial activities.
Moreover, once they learned that HSBC chose to support New World, standing against Lu Liang, it was doubtful they would agree.
After all, with HSBC’s involvent, the nature of the situation had changed, likely leaving a political stain on them.
Even the Wu Family, inheritors of the Ship King’s legacy and Hong Kong’s largest landlord, as well as the Lei Family, overseeing various transportation ans, subtly declined.
So said they were busy, others were resting, promising to call back later.
Their attitudes were all unexpected by Zheng Jiachun.
It wasn’t until he contacted a longti close friend, Li Shen Hui of the Lee Kum Kee Group, that he unveiled the truth.
Just recently, Lu Liang tead up with Xu Jiayin to leak news that whoever supported the Zheng Family would be their enemy.
Although this ssage was overwhelmingly domineering, displeasing many, they instinctively chose to comply.
Lu Liang can be likened to a financial nuclear weapon, not only known as the King of Cash in Shanghai, but his fa also spread internationally. The sales success of Tianxing Automobile and his renowned overseas events made his golden reputation shine even brighter.
Xu Jiayin, known as Emperor Xu across the ages, is also the nation’s First Rich, rising from the real estate industry. The mainland real estate market is a key strategy for countering US stocks, with real estate related industries numbering in millions, and downstream suppliers all within Hengtai Group’s network.
One targeted online, the other offline.
Their combined efforts enforced an all-out blockade on the Zheng Family; unless a state-backed entity intervened, no one dared to provoke them lightly.
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