1155: Chapter 181: The Simple Five-Year Plan_2 1155: Chapter 181: The Simple Five-Year Plan_2 If there is a change in circumstances and they want to sell shares, the majority shareholder also has the right of first refusal.
Regarding the issue of resource valuation, everyone can talk privately with Bank President Rudolf.
Today, we’re only determining the general direction of investnt.”
Hudson said with an unchanging expression.
Having calculations is normal; if there weren’t any ulterior motives, it would actually be against human nature.
Wanting rights of speech is not a problem, as long as the price is right, everything can be discussed.
If one really has substantial financial power, even to the extent of acquiring the Near East Developnt Bank, he could sell it.
There’s no need for 23.6 million, even if it’s directly cut in half, Master Hudson would still sell.
The threshold for banks is mainly capital; as long as he has money in hand, he can recreate a Near East Developnt Bank whenever he wants.
Clearly, that’s impossible.
The value of the Near East Developnt Bank is significant only because it is deeply tied to Hudson.
Without him as the military leader, the value would have to be heavily discounted.
It is known that the bank’s net assets are not even close to two million.
The bigger the business deal, the simpler the negotiation.
Haggling over every penny is the business of underlings; influential figures don’t have the ti to personally haggle.
The financing share of six million was quickly divided up, with five million snapped up by mbers of the Southern Continent Chamber of Comrce.
Such enthusiastic purchasing is solely because Hudson promised a bank dividend yield increase of ten percentage points each year, with a maximum limit of seventy percent of net profits.
With the vast market of the Northern Mainland People at its disposal, the future financial prospects of the Near East Developnt Bank are clearly visible.
If developnt goes smoothly, this investnt could very likely recoup its cost through dividends within a few years, and then it’s pure profit.
On the other hand, the negotiation for resource-for-share exchange has reached a deadlock.
Unlike hard cash, the value of resource investnt is hard to accurately determine.
This annoyance did not last long, as a significant inflow of capital led to another increase in the expansion speed of the Near East Developnt Bank.
Within just a month, five more branches were launched.
Financial statents are looking impressive, leaving no room for investors to complain.
As a result of the expansion, the bank’s valuation continued to rise, causing all parties involved to lant they’ve been duped and to hurry into the investnt without further disputes.
The end result was that, within just three months, the valuation of the Near East Developnt soared to sixty-five million.
As a consequence, Hudson’s shareholding dropped from 100% all the way down to 46%.
He still held control, but investors could now use the shareholders’ eting to establish regulations that restrict the actions of the majority shareholder.
This outco was inevitable; with such a massive investnt, without the power to restrain the behavior of the majority shareholder, no one would dare to place their bets easily.
On paper, everyone made money, but in reality, the bank’s net assets weren’t even close to ten million.
But everyone was confident, simply because every loan that was put out was generating profits, without any cases of default.
In fact, apart from the high-risk operations in the Near East region, investors were more eager to see defaults in other areas.
All loans had collateral, and once there was a debt default, these assets would be auctioned off, with the shareholders conveniently becoming the buyers.
There’s just too much room for manipulation here.
The collateral always cos at a discounted price; the bank only needs to recover costs, and the rest is pure profit for the buyer.
The bank’s net assets may not be much, but the bank’s vault beca enriched.
The idle cash from various families in the Kingdom was deposited in the bank, and the amount rapidly inflated.
Most crucially, the ergence of a group of shareholders served as a major endorsent of the bank’s credibility, and the outside world’s recognition of the Near East Developnt Bank skyrocketed.
Gold Tickets are appearing more frequently in Kingdom trade transactions, and aside from a few conservative Nobles, most have accepted the use of Gold Tickets for bulk trade.
Especially in regions with severe cash shortages, the frequency of using Gold Coins is even higher, with a trend of it becoming a currency itself.
Initially, as soon as people got Gold Tickets, they would imdiately rush to the bank to exchange them upon expiration.
After a few inconvenient rounds and being charged a three-point high service fee, it beca clear it wasn’t worth it.
Particularly for rchants with high capital turnover, they couldn’t bear the high service fees and beca the first group to accept Gold Tickets passively.
…
The explosion of the financial sector directly alleviated the Kingdom’s cash shortage crisis and, by extension, greatly accelerated the economic recovery rate in various places.
Especially the Northern Border, which is ready to be developed, and the blank slate of the Near East, are the main forces in this round of economic recovery, with large construction sites everywhere.
During the period of rapid economic developnt, countless social contradictions are concealed, and the Kingdom’s situation is looking very optimistic.
Just after sending off the King’s Special Envoy, Hudson never dread that one day The Royal Family would also beco a loan client of the bank.
However, considering the large investnt his family made in the Snow Moon Territory and the larger Royal Family harvest from the war, the need for more construction funding is normal, and being short on money is to be expected.
As the Kingdom’s most powerful affiliated family, it was very simple for The Royal Family to seek a loan.
They specifically sent soone to Hudson to get the best loan interest rates.
Without a doubt, The Royal Family’s loan was definitely approved as a priority.
Aside from the mandatory collateral required by bank regulations, the loan interest rate was significantly reduced.
Ordinary comrcial loans have interest rates of tens of percent, and so short-term financing can even reach a one-point daily interest rate.
Yet, The Royal Family’s loan was granted an annual interest rate of just six percent.
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