The Richest Man Yang Fei - Chapter 1305
Chapter 1303 Poison Pill Project
The news that Yang Fei wanted to acquire Siping Group spread all over the country overnight.
Meili Group is regarded as the leading daily chemical enterprise in China.
Now, Yang Fei announced in a high-profile manner that Beautiful Medicine was formally established!
Beautiful Group enters the pharmaceutical industry with a high profile!
At the same time, Yang Fei said that Beauty Medicine is about to acquire Siping Group, the largest pharmaceutical company in Southern Province!
Why is Yang Fei so high-profile?
Logically speaking, shouldn’t you be cautious about acquiring someone else’s company?
If Yang Fei does not go to the Siping Group and not brag in front of Liu Xiliang, it will be impossible for the Siping Group to know that someone wants to buy their company.
Yang Fei quietly bought stocks. Isn’t it unaware of ghosts? Just acting?
It’s all right now. You have made such a big noise. The Siping Group is like a big enemy and is guarding you up and down. How can you implement your acquisition plan?
Everyone clearly refused. Yang Fei didn’t know how to converge. The next day he held a press conference and announced in an unusually high-profile manner that the Beauty Group had formally established the Beauty Pharmaceutical Company and declared to everyone that he would spend a huge amount of money. , Acquired Siping Group.
Yang Fei’s move, it can be said that many people can’t understand it.
Chen Mo, Ning Xin and others are even less clear.
The most direct result of Yang Fei’s move was to push Siping Group, a non-obtrusive listed company, under the eyes of the public.
Siping Group’s stock has not fluctuated much since it went public. This stock can be said to be quite satisfactory and has no outstanding performance, but it is not too rubbish.
Now, because Yang Fei wants to buy, it is tantamount to injecting a shot in the heart of Siping Group’s stock!
After Yang Fei gave a public speech, Siping Group’s stock soared on the same day, reaching the daily limit for the first time!
Liu Zhiping and his son watched their stocks skyrocket, and couldn’t help but be happy!
In the next few days, encouraged and promoted by the good news of Yang Fei’s acquisition, the share price of Siping Group has risen steadily, hitting several daily limits, all the way up to 25.8 yuan!
The high stock price has led stockholders to frantically buy the shares of Siping Group.
This stock has always been immortal, and now it is like a night of spring breeze, full of the fragrance of trees!
Shareholders are also excited.
Stocks themselves are not money. Buying stocks does not mean that you can make money by investing.
Only by buying low and selling high and cashing out can the stocks become real money.
Some small shareholders have waited for a few years before they come to such a good news. Of course, they want to cash out their stocks.
Therefore, more and more stocks are listed and traded on the market.
Liu Zhiping and his son, who were still ecstatic just now, began to worry!
The four brothers of the Liu family hold approximately 40% of the shares of the group.
Other small shareholders hold about 30% of the shares.
There are still 30% of stocks scattered in the hands of retail investors.
Under normal circumstances, even if Yang Fei acquires most of the retail shares, he can only hold up to 20% of Siping Group’s shares and cannot control the entire group.
However, if a large number of other shareholders’ shares enter the market, and Yang Fei buys it aggressively, his shareholding ratio will rise sharply!
Liu Zhiping urgently convened the board of directors and asked all directors to hold the stocks in their hands tightly so that they could no longer flow into the market, lest Yang Fei took the gap.
The directors certainly wouldn’t say anything in front of him.
However, after the meeting, what should flow into the market still flowed in.
Brother Liu Zhiping panicked!
The stock price has risen, which is a good thing, but it has attracted a large number of small shareholders to sell their stocks for cash!
Liu Zhiping found his son to discuss countermeasures.
Liu Xiliang sneered, and said: “Dad, don’t worry, Yang Fei wants to acquire our company? Should we obediently? He underestimated us!”
Liu Zhiping asked: “Xiao Liang, what can you do to stop him?”
Liu Xiliang said: “When I was studying abroad, I learned the anti-takeover law. As long as we formulate a poison pill plan, Yang Fei’s acquisition plan can be ruined!”
Liu Zhiping is a native of Southern Province, who has not even been out of the country, and asked: “What is the Poison Pill Project?”
Liu Xiliang said: “Just set up a defensive wall to let the other party retreat. Dad, just wait for a good show!”
Liu Zhiping saw that his son was so sure, he felt relieved.
Liu Xiliang has studied abroad. He is a high-achieving student at a university in the United States. He studied economics and finance and knows how to deal with such acquisitions.
He understood that Yang Fei came to be unkind, so he quickly invited defense experts to work out a “poison pill plan.”
The Poison Pill Plan was invented by Martin Lipton, a well-known American M&A lawyer, in 1982, and it was officially called the “Equity Dilutive Anti-Mover Measures.”
Once a company encounters a hostile takeover, especially when the acquirer’s shares have reached %, the company will issue a large number of new shares at low prices in order to maintain its controlling rights.
Once the Poison Pill Plan is adopted, it will have at least two effects: one is to deter malicious buyers; the other is to reduce the number of buyers who intend to adopt the plan.
In 1985, the Delaware Court of the United States legalized this anti-takeover measure.
The poison pill plan is often used in acquisition and reverse takeover cases.
On top of the general poison pill plan, Liu Xiliang has perfected this plan.
He was ingenious and added three clauses.
One is to lower dividends and make the acquirer unprofitable.
The second is to announce that new shareholders do not have the right to vote. The board of directors can only change one-third of the board each year. Any major decision must be approved by two-thirds of the board of directors, so that the acquirer has no right to control the company.
Third, when the company’s senior person in charge resigns, he must pay his three-year salary and full retirement pension, totaling 10 million yuan! When the company’s backbone resigns, they must pay their half-year salary, totaling 3 million yuan. This will put a heavy financial burden on the acquirer!
The plan will automatically take effect when the hand-held shares exceed 20%!
Liu Xiliang announced the poison pill plan to the world in order to scare off Yang Fei and the Meili Group, and let the opponents take the initiative to abandon the acquisition plan.
After Yang Fei heard the news, he was slightly surprised and said: “Liu Xiliang, you really know how to use the poison pill plan. I underestimated you! You are even more powerful than I thought!”
Chen Mo asked: “Yang Fei, do we still acquire Siping Group?”
Yang Fei said: “Of course it can’t be acquired.”
As expected by Liu Xiliang, as soon as the poison pill plan came out, Yang Fei did as he wished and announced the abandonment of the acquisition of Siping Group.
Not long ago, Yang Fei declared with great fanfare that he must acquire Siping Group, and now he announced in a high-profile manner that he would abandon the acquisition plan!
Yang Fei’s action was once again incomprehensible.
Liu Zhiping and his son are happy!
Yang Fei, Yang Fei, see what you have, the poison pill is planned, and see how your conspiracy succeeds!
However, on the same day that Yang Fei announced that he would abandon the acquisition of Siping Group, another major incident occurred in Siping Group, which caught Liu Zhiping and his son by surprise!