The negotiators on both sides took their seats.
Gu Bai slightly straightened his body and spoke directly, "Regarding this acquisition negotiation, the two companies have conducted a week of written consultation. Our Black Swan Group, to demonstrate sincerity, has increased the original acquisition amount from 350 million to 400 million. If you have no objections to this price, we can proceed directly to the next step of detailing."
As soon as Gu Bai finished speaking, Liu Gan cut in before Ai Shengnan could respond, "Chairman Gu, you are too kind. Since we invited your group for further negotiations, we naturally accept your offer."
Just as Gu Bai nodded, preparing to let Mr. Shao take over the negotiation, Ai Shengnan sneered and said to Liu Gan, "Director Liu, are you satisfied with a re 400 million? Is this the result of you joining forces with all shareholders to undermine my authority?"
Liu Gan’s smile vanished instantly.
"President Ai, if you have any dissatisfaction, you can address it afterwards. This is eting ti; please do not carry personal emotions, and don’t let Chairman Gu see YW beco a laughingstock!"
Ai Shengnan sneered and ignored him, instead turning to Gu Bai and saying, "Chairman Gu, I can accept Black Swan Group’s acquisition of our YW, but this price needs to be adjusted."
Gu Bai displayed a hint of amusent and asked with a smile, "What adjustnt does President Ai think should be made?"
"The offered 400 million clearly does not reflect YW’s value. I hope Chairman Gu and your team can propose a reasonable price."
"How much do you think YW is worth?"
"800 million!"
With Ai Shengnan’s quoted price, Gu Bai laughed out loud with exasperation.
YW’s current valuation is only 600 million, primarily due to YW’s brand value. After all, in the magazine sector, readers don’t care who operates the company, only the quality of the magazine.
In this regard, it must be acknowledged that YW does very well, with high reader retention. In terms of magazine sales alone, it can offset part of the loss. However, YW’s deficit is due to Ai Shengnan’s relentless pursuit of perfection. Over the years, as a fashion magazine, YW has never promoted any ubiquitous big brands but rather discovered small brands’ clothing and costics endorsents, thus maintaining its magazine reputation but significantly lacking in profitability.
The annual profits cannot satisfy YW’s promotional needs.
This has led to YW running at a loss for five consecutive years.
Gu Bai admires such idealists but does not intend to be taken advantage of.
The company is not yet listed, so the valuation is given a reasonable number by major investnt banks; however, once an acquisition is initiated, it rarely aligns perfectly with the valuation, often resulting in a premium or below-valuation offer.
It is evident that YW Company currently does not match its valuation in terms of value. Gu Bai offered 400 million to save so trouble, but if he wanted to be strict, 350 million would suffice.
Gu Bai stood up expressionlessly.
"President Ai, to be honest, I wouldn’t have personally attended this level of acquisition, but to show sufficient respect to your YW Company, I ca to host this negotiation. I believe you can see my sincerity.
However, I do not feel your sincerity from YW.
If that’s the case, I think this negotiation can be declared a failure."
With that, Gu Yi behind him pulled his chair back, and Gu Bai turned towards the door, with Mr. Shao following with a frown.
The responsibility for YW’s acquisition affairs fell upon Mr. Shao, but he didn’t expect such a major mistake; Ai Shengnan’s quote didn’t show any intention of accepting the acquisition.
Gu Bai tolerating this much certainly wouldn’t do him any good.
Thinking of this, Mr. Shao glanced coldly at the YW personnel opposite him.
Seeing Gu Bai ready to leave without hesitation, Liu Gan quickly stood up and ran to Gu Bai to urge him to stay, "Chairman Gu, please don’t rush to leave. We shareholders find the 400 million offer to be very sincere, and as for Ai Shengnan’s opinion, it’s just personal and does not represent the company!"
Liu Gan did not even address her as President Ai anymore, calling her simply Ai Shengnan, indicating he was ready for a confrontation.
Ai Shengnan sat at her place, watching the scene coldly, and said, "I hold 55% of YW’s shares, with more than half of YW’s managent rights. My offer is the company’s offer!"
Liu Gan ignored his image, pointing at Ai Shengnan and said, "Ai Shengnan, you’ve agreed to the acquisition agreent and now you’re reneging! Do you not regard the board of directors at all!"
Gu Bai had exhausted his patience and said impatiently, "Since your company hasn’t reached a consensus, there’s no need to continue the negotiations. I’ll give you three days to consider it. If no agreent is reached within three days, this acquisition will be canceled."
It’s not that Gu Bai didn’t have other options besides YW.
Fashion magazine companies are prevalent dostically; as long as you have money, plenty of companies will co knocking.
As for why focusing intently on YW, the reason is simple—its potential is enormous.
Compared to other fashion magazine companies, YW’s acquisition cost is the lowest and its valuation potential ample, while those already very famous have acquisition prices that easily exceed one billion, making YW’s cost-effectiveness exceedingly high in comparison.
Speaking from a business perspective.
No matter how you look at it, YW is the most ideal acquisition target.
But if we really can’t reach an agreent, then there’s nothing else to do. Can I force a sale?
Just as Gu Bai was about to leave, Liu Gan steeled himself, glanced at Ai Shengnan, and said to Gu Bai, "Chairman Gu, please wait a mont!"
Gu Bai turned his head, looking at him with a puzzled expression.
"Since Ai Shengnan doesn’t agree to the acquisition, I will sell all of my 20% shares to your group in a private capacity."
After Liu Gan spoke, the other shareholders sitting nearby hesitated for a mont before saying one after another, "I have 5%, and I can sell it as well."
"..."
"..."
Gu Bai looked sowhat surprised by YW shareholders’ reactions, not expecting YW’s internal conflicts to have reached this level.
As for Liu Gan and the other YW shareholders, their thoughts were simple: selling their shares to Gu Bai to recoup so losses is better than holding onto them and facing potential bankruptcy due to the company’s ongoing losses.
But Ai Shengnan’s actions now are equivalent to cutting off their financial paths, forcing them to stay tied to this sinking ship in their eyes.
With Liu Gan leading the way, the other shareholders naturally couldn’t sit still.
Gu Bai, though interested in the drama played out by YW’s high-level managent, still shook his head and refused Liu Gan.
"Director Liu, although our company is interested in collaborating with yours, it goes against our company’s developnt goals, so I’m afraid I have to apologize.
From the beginning, our Black Swan Group intended to acquire YW to beco a subsidiary, not to invest, which you believe is clear to you. Now that most of YW’s managent rights are in President Ai’s hands, what use would acquiring your shares be to ?"
Liu Gan understood Gu Bai’s point and said again, "Chairman Gu, it has co to this stage, so I will be straightforward. In March last year, our YW Company underwent an internal capital injection, and the agreent requires that if the company fails to turn from loss to profit within two years, Ai Shengnan must voluntarily relinquish part of the managent rights to the investnt shareholders.
According to the equity law, this agreent will still be effective even if the shares’ holders change, aning that as long as Chairman Gu acquires our shares, by March next year, you will control most of YW’s managent rights! These managent rights include voting rights in the board!"
As for the subsequent words, even if Liu Gan didn’t spell them out, everyone understood.
Once YW’s managent and voting rights fall into the hands of Black Swan Group, with Gu Bai’s capital, it would be incredibly easy to oust Ai Shengnan.
These words were practically an unexpected delight for Gu Bai.
"Oh?
If that’s the case, I think there’s room for further discussion."
With that, Gu Bai turned to Mr. Shao and said, "Then, regarding the acquisition of Director Liu’s and these YW directors’ shares, you will be responsible."
After hearing the conversation between Gu Bai and Liu Gan and others, Ai Shengnan, who had been maintaining her composure, couldn’t hold it anymore. She stood up and reproached Liu Gan, "Liu Gan, revealing company confidential docunts is illegal, you know that?"
Liu Gan sneered coldly at Ai Shengnan.
"Which rule in the agreent prohibits disclosure to others? Ai Shengnan, we’ve accompanied the company through five consecutive years of losses, and we’ve already been more than kind! Now you want to drag us down with you just because you’re intent on going down yourself?"
"The company is the culmination of years of effort for all of us; are you truly willing to hand it over just like that?"
"That was your hard work, not ours. We’re just investors. Year after year, how much longer do you want us to play along with you?"
Listening to their conversation, Gu Bai felt like he was becoming a villain of sorts.
Just as he was about to leave, he was called back once again.
But this ti, the person who called out was not Liu Gan but Ai Shengnan.
"Chairman Gu, are you interested in having a conversation with ? Even if you buy their shares as they say, even if I leave YW, the company will beco an empty shell without value. I believe this isn’t your intention, is it?"
"How do you want to discuss this?"
Ai Shengnan stood up, walked to Gu Bai’s side, and invited, "We can go to my office. Don’t worry, it won’t take much of your ti, Chairman Gu."
Seeing this, Gu Bai nodded as well.
Gu Bai was unsure if YW Company would follow its developntal path without Ai Shengnan. If he could keep Ai Shengnan, the benefits to him would be considerable.
"Mr. Shao, please wait a while with Director Liu and the others."
After saying that, he walked shoulder to shoulder with Ai Shengnan towards the general manager’s office.
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