Chapter 190: Chapter 167 Chen Cheng, Be Serious_2 Chapter 190: Chapter 167 Chen Cheng, Be Serious_2 “Then, you co forward as an independent investor and offer her 2 billion.”
Chen Cheng, upon hearing this, said, “Doesn’t that seem to lack a bit of logic?”
“What’s wrong?”
“Look, CGG finds no profit in it, high risks, and is unwilling to acquire.”
Chen Cheng paused, “If I, as an independent investor, rashly put forward 2 billion, wouldn’t i Xiang be suspicious?
She may be in need of cash, but she’s not foolish.”
Wen Shulin said, “Not bad, you’re becoming more vigilant.”
She continued, “That’s why you need to make her raise the stakes, to increase the proportion of share she’s offering.”
Chen Cheng frowned, deep in thought: “Increase the proportion of shares offered?
I’m afraid i Xiang won’t easily agree to that.”
Wen Shulin took a sip of coffee and said, “That’s where your negotiation skills co in.
You need to make her understand that this is the only way to secure enough funding to get Xingye Products out of its difficulty and achieve long-term developnt.”
Chen Cheng nodded, “That’s not going to be easy.”
Wen Shulin lifted her coffee, “Is she not planning on 6.5%?
Try to see if you can get 8%.”
Chen Cheng heard the number and did so quick calculating in his mind.
Though the difference is only 1.5%, in reality, with a fixed total capital stock of 30.7 billion, an 8% share would require 2.456 billion.
And Jin Baogen had only loaned Chen Cheng 2 billion, which leaves a gap of 0.456 billion.
Never mind whether Xingye Products’ stock price might rise after overcoming its difficulties, from the current point of view, that 0.456 billion gap is not a small sum.
“There’s quite a gap,” Chen Cheng said.
Wen Shulin calmly stated, “This number is the threshold that Mr.
Jin and I decided upon after discussion.”
“If you really can acquire 8% of Xingye’s shares with 2 billion, you’ll be the second-largest shareholder after i Xiang’s father Xingye Osuke.”
Wen Shulin added, “In business, what matters is having a voice.
If throwing down 2 billion doesn’t carry any weight, might as well deposit that money in the bank and earn interest.”
Chen Cheng caught the underlying aning, “Your and Mr.
Jin’s intention isn’t just to lend i Xiang a hand, right?”
Wen Shulin smiled faintly, “Of course, the business field is a battlefield; there’s no such thing as pure assistance.”
“Xingye has a joint iron ore venture in the northern Brazilian State of Pará.” Her voice lowered again,
“More crucially, as the global infrastructure construction continues to heat up, especially with the surging demand for steel from erging economies, the steady rise in iron ore prices brings significant potential for profit growth to Xingye Products.”
“However, due to recent financial strains at Xingye Products, they are unable to fully invest in further exploration and developnt of the iron ore, leading to an inability to fully unleash production capacity, missing out on nurous market opportunities.
This presents an excellent window for our involvent.”
The glint of astuteness in Wen Shulin’s eyes sparkled as she continued,
Chen Cheng’s nostrils flared slightly.
“This ti, we’re not only going to help Xingye Products solve its imdiate financial woes.
More importantly, we’re looking to use this opportunity to deeply participate in the iron ore’s developnt and managent.”
Wen Shulin gazed intently at the space between Chen Cheng’s brows, “As the second-largest shareholder, you’ll have enough influence to drive this process and ensure our interests are maximized.”
Chen Cheng said, “When I first heard they had mining operations, I was puzzled; where would you find mines in Japan?”
Wen Shulin smiled faintly, “This mine has been under investnt starting with her grandfather Xingye Xiong Yi.”
She paused, “It should have been in 1997 when Brazil enacted a decree allowing private and foreign capital involvent.”
Chen Cheng’s brows lifted, Wen Shulin spoke slowly: “So, this 2 billion is not rely for purchasing shares; it will act as a lever to move this iron mine.”
Chen Cheng further inquired, “What benefits can CGG hope to extract from this?”
This question hit the nail on the head, Wen Shulin gently set down her coffee cup, her fingers tapping on the tabletop as though setting the rhythm for the forthcoming explanation.
“Firstly, if you successfully get involved with Xingye Products, becoming the second-largest shareholder, that breaks Xingye’s longstanding rigid stance against outside funding.”
“And at the right mont, CGG will acquire the shares you hold,” Wen Shulin bluntly said,
“This way, CGG can not only indirectly control a portion of Xingye Product’s shares but also, through your investnt behavior, send a positive signal to the market about our outlook on Xingye Product’s future developnt, drawing more investors’ attention and potential follow-up investnt.”
“With CGG’s endorsent for credibility, Xingye’s stock price will rise, thus the shares you bought at a low price will appreciate in value?” Chen Cheng questioned back.
“You’re only seeing the first layer,” Wen Shulin smiled.
“The first layer?”
“As I said before, Xingye Products’ iron ore project is the key to our strategy.
With you as the second-largest shareholder, CGG will have the chance to gain more internal information about the iron ore project through you, including exploration data, developnt plans, and potential market opportunities.”
Wen Shulin confessed, “Through this cooperation, we will be able to expand our market footprint in Brazil and across South Arica as a whole.”
“Brazil, being one of the largest economies in South Arica with abundant resources and huge market potential, holds significant importance for our future global expansion strategy.”
Chen Cheng took a deep breath, the breadth of insight and scale of the entire strategic investnt left him sowhat shaken.
After a mont of silence, he slowly said, “This really is a grand strategy; I had no idea it was this complex.”
“Those who do not plan for the entire world cannot sche for a single region.”
Wen Shulin said these words, then paused, her gaze deep as she looked at Chen Cheng.
Reviews
All reviews (0)