Extraordinary Genius - Chapter 524 – Successfully invested in Lenovo
It was very crowded at Beijing Lenovo today. Many cars were parked outside the entrance. There were even reporters from Hong Kong waiting outside.
A businessman will be investing in Lenovo and Lenovo had announced that it was planning to be listed. However, there was no fixed date.
Lenovo Company was China’s largest IT company. It had the most significant scale and the most funds. Why did such a successful company let others invest in them? They heard that it was a newly set up company that had invested in Lenovo. The name of the company was Wind and Rain Holdings.
Many were thinking if this Wind and Rain Holdings had something to do with Wind and Rain Brand, which was owned by Tai Hua Trading, Wind and Rain Electronics, and Wind and Rain home appliances?
But there was a lack of information. There was no way for the reporters to find out about this. It was the first time they heard of Wind and Rain Holdings, and they could not find out who was the person in charge.
Wasn’t this Lenovo Company supported by the Chinese government? This company was enjoying special privileges from the government. Why did they sell their shares to Wind and Rain Holdings? Was this Wind and Rain Holdings a government-owned enterprise?
In the meeting room, Feng Yu and Director Li signed two contracts. One was for Feng Yu’s investment in Lenovo, and the other was for Feng Yu’s purchase of CAS’s Lenovo shares.
There was a vast difference between both contracts. But CAS was the party that gained the most out of both contracts.
During the meeting with all the CAS leaders, Director Li had announced that the CAS will accept Feng Yu’s conditions and agree to Feng Yu’s investment. The CAS will also sell some of their shares to Feng Yu. Deputy Zhao immediately expressed his disapproval.
But Deputy Zhao was the only one opposing to this investment, and his reason was unconvincing. Feng Yu’s offer was too good, and this was suspicious. Since when private companies’ businessmen were so noble to spend so much money to support China’s IT industry.
Director Li slowly replied that this Manager Feng was the biggest shareholder of Bing City Machinery Company and had met with the Chief Architect and Iron-fist Zhu. If Feng Yu was not so noble, why would the top 2 leaders of China meet him?
Deputy Zhao could not rebut Director Li. In CAS, there were rumors that Feng Yu was actually donating to CAS through this investment. If you do not believe this was actually a donation, you can ask the professors from Beijing University. Feng Yu had funded many professor’s research at the university. Some of Beijing University’s professors were also holding positions in CAS.
If CAS leaders did not agree to such a lucrative deal, they would be too stupid. They would have wasted Liu Chuanzhi’s hard work. How can they answer to their higher-ups?
CAS had the opportunity to make money. If they rejected this deal, how could they still request for funds from their higher-ups? No higher-ups will agree to their requests.
When the higher-ups heard that there was a considerable investment and the CAS will still be getting 100 million RMB, they were overjoyed. During some meetings, the higher-ups had still praised the leaders of CAS. There were even some high-ranking officers present at this contract signing ceremony.
What surprised the CAS leaders the most was one of the high-ranking officers was from Iron-Fist Zhu’s office. Did Iron-fist Zhu found out about this investment and sent his man here to find out more, or he was aware of Feng Yu’s plan to invest in Lenovo long time ago?
There was a great difference between both.
But no matter what, Iron-Fist Zhu had shown his support of this investment by sending his man to attend this signing ceremony.
With Iron-Fist Zhu’s support, Director Li was more confident. No one would dare to say that Lenovo should not be letting others invest in the company. Restructuring a state-owned enterprise to a shareholding was also a policy introduced by Iron-Fist Zhu.
The most controversial part of this deal was there were no changes to the percentage of shares owned by Liu Chuanzhi and the other employees. The amount invested was more than Lenovo’s total value, and the portion of shares owned by Liu Chuanzhi and the other employees should be significantly lowered. But these management staffs were still holding the same proportions of shares!
As such, Deputy Zhao said that Liu Chuanzhi and the other management staffs should not be entitled to this benefit. They should hand over some of their shares to CAS, or distribute their shares to the other employees. Liu Chuanzhi and the rest should not be holding on to so many shares.
Although Lenovo was not a state-owned enterprise, the initial management style was the same as state-owned enterprises. Deputy Zhao’s way of doing things had never changed and was like several years back. It was sufficient for Liu Chuanzhi and the management staffs to get some benefits. Why should they be getting so many shares? All these shares were the government’s assets, and they were embezzling the assets.
Even if Lenovo was a private entity, but a private company should also be reasonable. Liu Chuanzhi and the rest had not spent a single cent and why should they be getting so many shares? The company had already given them a house and a car. What else do they want? They should not be embezzling the company’s assets! They should not be taking so much from the company!
But the other leaders of CAS felt that these people had contributed a lot to the company and should be rewarded. The Chinese government had also mentioned that hard work should be rewarded. These people had helped the CAS gained so much from this deal. This was not something others could do. Compared to the gain CAS were to receive from this deal, their shares were not a lot.
If it wasn’t for this condition, will Liu Chuanzhi and the rest still work so hard to make this deal go through? If their shares were diluted, then Feng Yu’s shares would be more than 51%.
Finally, the contracts were signed, and this cannot be changed. After signing the contract, Feng Yu immediately make a phone call to Wind and Rain Holdings to ask them to wire the money to CAS’s account. Feng Yu wants this deal to take effect as soon as possible and does not wish CAS to go back on their words!
As for the other details, Feng Yu does not need to do the follow-ups. Someone from Wind and Rain Holdings will settle the rest of the details. His staffs from Wind and Rain Holdings were a group of talented people hired from Hong Kong. These people were not the successful businessmen in the future, but Feng Yu felt that these people could complete the tasks given to them after the interview and it was enough.
In the coming few years, Feng Yu had plans to transfer his shares of all his companies to this Wind and Rain Holdings. But it was still too early now. Hong Kong was still not part of China, and it was not easy for him to transfer his assets out of China. This could only be done after Hong Kong’s return.
Master Lu had made use of his connections in the Planning Committee to let the other party accept that Hong Kong was a part of China, and Feng Yu would not transfer these assets out of China. Of course, Iron-Fist Zhu’s office got wind of this and reported to Iron-Fist Zhu.
Iron-Fist Zhu asked his men to pass Feng Yu a message. Lenovo was a company supported by the Chinese Government to compete with the overseas MNCs. He wants Feng Yu to remember this. Lenovo was China’s hope!
Feng Yu really wanted to tell Iron-Fist Zhu that if Lenovo follows his suggestions, Lenovo will be more successful in the future than his previous life. But Feng Yu did not say it out. He will have to do lots of explanations about how he could let Lenovo be more successful and will have lots of problems.
Feng Yu could only keep quiet. He will let his result do the talking.
Feng Yu looked at Director Li, Liu Chuanzhi and the rest being interviewed by the reporters and he quietly left the place……