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Chapter 2812

~7 min read 1,392 words

The Zhicheng Group was a well-known enterprise in Diannan, but because the industry it was engaged in was relatively vertical, it didn't have much popularity outside the tea circle.

Su Zhiyu had never even heard the name of the Zhicheng Group.

But her style of doing things was always capable and direct, without any hesitation. So, on the other end of the phone, while taking paper and pen from her desk, she said: "Okay, Mr. Ye, I wonder how you need me to cooperate on this end?"

Ye Chen said, "I hope you will use the Su family's name to talk to their boss. If the other party is curious why you, a dignified eldest lady of the Su family and the head of the Su family, would be interested in such a tea enterprise, just tell them that your grandfather likes their tea very much in Madagascar, so you intend to buy this enterprise. In short, just maintain a tone of being rich and willful."

"OK!" Su Zhiyu agreed without hesitation and said: "Mr. Ye, please give me ten minutes. I will first roughly understand the basic situation of this enterprise, and then formulate a general acquisition plan to communicate with you."

Ye Chen then said, "Good, I'll wait for your news."

Su Zhiyu hung up the phone and immediately searched for some information about the Zhicheng Group on her computer. After recording some useful information she had collected, she thought for a minute and then called Ye Chen back.

Ye Chen answered the phone and asked her: "How much does Miss Su understand?"

Su Zhiyu said respectfully: "Mr. Ye, I just roughly understood their situation. This company is a private joint-stock enterprise. The current biggest boss is their founder, named Lu Zhicheng. At the beginning, it was just a small micro-enterprise with sole proprietorship, but after the economic opening in the 1980s, their tea business had a great breakthrough and gradually developed into one of the top five tea enterprises in Diannan;"

"The Zhicheng Group completed its share reform ten years ago. At that time, it was intended to go public with an IPO on the main board, but because the profit scale was somewhat lacking and the profits were not stable enough, although it accepted the IPO guidance of the China Securities Regulatory Commission, the final step failed, and it has never been able to complete the listing;"

"A few years ago, they gritted their teeth and went on the New Third Board, but because the company's valuation was low, liquidity was poor, and financing goals were not as expected, it retreated from the New Third Board;"

"I just checked roughly, their market value curve when they were on the New Third Board, at its highest, was only a little over one billion. But their financial reports for those years were not very satisfactory. The cooling of the tea market would affect their profits, and tea production reduction or bumper harvests would also affect their profits, so the market value would naturally be affected;"

"Moreover, in this industry, there is also a leading enterprise in Diannan, which is the Juyi Group. This enterprise is considered the leader in this industry, but even for them, capital operation has not been very smooth. Although the backdoor listing was successful, the market value was only relatively hot at the beginning. Now that the market has cooled down, its market value is not even two billion, so the capital prospects of the tea industry are actually not very good;"

"Coming back to the Zhicheng Group, although they can indeed have a profit of ten million level every year, such a small amount of money still lacks room for imagination in the capital market. Judging from their repeated attempts at IPO, repeated failures, and repeated attempts, their boss Lu Zhicheng should have always wanted to go public to cash out, but suffering from the hopelessness of listing, he has never been able to get his wish;"

"Without going public, Lu Zhicheng can only guard this stall of business every year, guarding the annual profit of ten million level. What really gets into his hands is only a few tens of millions a year. His dream of cashing out hundreds of millions at once by going public, I guess, will never have any hope."

Ye Chen didn't expect that Su Zhiyu could sort out and summarize so much effective information in just 10 minutes. In his heart, he had great recognition for this woman's business acumen, judgment ability, and professional ability.

He asked Su Zhiyu: "In Miss Su's view, if we acquire this company, how much money should we offer to get our wish?"

Su Zhiyu said: "Mr. Ye, judging from the information I can find so far, their boss Lu Zhicheng's public shareholding ratio is 57.6%, but through other equity structures and option holdings, the overall calculation should be around 78.5%. He is the undisputed major shareholder. To successfully acquire the Zhicheng Group, as long as Lu Zhicheng can be made to nod, it is considered a success;"

"Judging from Lu Zhicheng's current income situation, if he continues to guard this stall of business, if he is lucky, he can earn thirty or forty million a year. If he is unlucky, he may not earn a penny all year round, or even lose money;"

"Looking at the next 20 years, the net income he can personally get from the Zhicheng Group should not exceed six hundred million;"

"If our offer can ensure that after he sells, there are no gambling clauses, no waiting period, and he can harvest more than six hundred million at once, then he has no reason to refuse our acquisition."

"Six hundred million divided by his shareholding ratio, which is 78.5%, our total offer for the Zhicheng Group should be around seven hundred and sixty million;"

"Of course, whether this price is high or low in the end depends on the specific situation of talking to Lu Zhicheng. Through communication, we can analyze his current psychological state and psychological expectations. To be safe, I personally suggest setting the psychological price at eight hundred million, but I will use six hundred million as the offer to talk to him, striving to take him down in the price range of seven hundred million to seven hundred and fifty million!"

Ye Chen asked her: "Are you confident?"

"Yes." Su Zhiyu said very confidently: "Entrepreneurs like Lu Zhicheng have been doing physical business for decades. Although the industrial scale is very large, the money is all earned penny by penny. For such people, there is no possibility of getting rich overnight in business. Wanting to go public to cash out but having no opportunity, they simply cannot experience the feeling of getting rich overnight. So, people's enthusiasm will also be relatively consumed. He probably doesn't know how much he hopes that someone can take over his plate at once, so that he can successfully withdraw and retire with that large sum of money. And he is the major shareholder with absolute control, so whether it succeeds or not depends only on him alone. I believe there should be no problem."

Ye Chen was very satisfied and said to her: "I am in Puer now. How long do you think you can solve this matter? If it's fast, I'll wait for you for two days. If it's slow, I'll go to other places to handle other things first, and I'll come back after you get it done."

Su Zhiyu looked at the time and said: "It's almost sunset here, but since you are in Puer, it should still be more than an hour before sunset. If it goes smoothly, before sunset on your end, I should be able to make him nod. As long as he nods, I can immediately pay him a deposit of one hundred million, and then send a legal team overnight to handle the transfer procedures for him!"

"One hour?" Ye Chen smiled and said when he heard this answer: "Okay, then I'll wait for your news here. As long as he nods and you pay the deposit, tell him that you must first send two consultants to his Zhicheng Mountain base to inspect it, and let him notify the person in charge of the base to prepare for the reception!"

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End of Chapter

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