The Richest Man Yang Fei

The news that Yang Fei wanted to acquire Siping Group spread all over the country overnight.

Meili Group is one of the leading daily chemical companies in China.

Now, Yang Fei has announced with a high profile that Beautiful Medicine has been officially established!

Meili Group enters the pharmaceutical industry with high profile!

At the same time, Yang Fei announced that Meili Pharmaceutical is about to acquire Siping Group, the largest pharmaceutical company in Southern Province!

Why is Yang Fei so high-profile?

Logically speaking, shouldn’t we be cautious when acquiring other people’s companies?

If Yang Fei hadn't gone to the Siping Group and boasted in front of Liu Xiliang, there would have been no way the Siping Group would have known that someone wanted to acquire their company.

Yang Fei quietly purchased stocks, wouldn't he be unaware of it? Acting just right?

Well, now that you have made such a big noise, the Siping Group is facing a formidable enemy and everyone is on guard against you. How can you execute your acquisition plan?

Everyone clearly refused, but Yang Fei didn't know how to restrain himself. The next day, he held a press conference and announced in an unusually high-profile manner that Meili Group had officially established Meili Pharmaceutical Company. He also announced to everyone that he would spend huge sums of money. , acquired Siping Group.

It can be said that many people cannot understand Yang Fei's move.

Chen Mo, Ning Xin and others were even more unclear.

The most direct result of Yang Fei's move is to bring Siping Group, an unobtrusive listed company, under the eyes of the public.

Siping Group's stock has not fluctuated much since its listing. This stock can be said to be quite satisfactory, with no particularly outstanding performance, but it is not too rubbish.

Now, because Yang Fei wants to acquire it, it is equivalent to injecting a shot in the arm into Siping Group's stocks!

After Yang Fei made a public speech, Siping Group's stock soared that day, reaching the daily limit for the first time!

Liu Zhiping and his son couldn't help but feel happy as they watched their stocks soar!

In the next few days, encouraged and driven by the good news of Yang Fei's acquisition, Siping Group's stock price continued to rise, hitting several daily limits, all the way up to 25.8 yuan!

The rise in stock prices caused investors to frantically buy Siping Group's shares.

This stock has always been immortal, but now it suddenly comes like a spring breeze overnight, blooming with the fragrance of flowers all over the tree!

Shareholders who hold shares are also excited.

Stocks themselves are not money, and buying stocks does not mean that your investment will make money.

Only by buying low, selling high and cashing out can stocks be turned into real money.

Some small shareholders have been waiting for several years for such good news, and of course they want to cash out their stocks.

As a result, more and more stocks are listed for trading and circulating in the market.

Liu Zhiping and his son, who were ecstatic just now, now started to worry!

The four Liu brothers hold about 40% of the group's shares.

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 investors' shares, he can only hold about 20% of the Siping Group's shares and cannot control the entire group.

But,

If a large number of other shareholders' shares enter the market and Yang Fei makes aggressive acquisitions, his shareholding ratio will rise sharply!

Liu Zhiping held an emergency board meeting and asked all directors to hold on to the stocks in their hands and prevent them from flowing into the market, lest Yang Fei take advantage of the situation.

Of course the directors wouldn't say anything in front of him.

However, after the meeting, what should have flowed into the market still did.

Brother Liu Zhiping panicked!

The rise in stock prices is a good thing, but it has attracted a large number of small shareholders to sell their stocks and cash out!

Liu Zhiping found his son to discuss countermeasures.

Liu Xiliang sneered and said, "Dad, don't worry, Yang Fei wants to acquire our company? Do we have to obey? He underestimates 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 was a native of the southern province and had never even traveled abroad. He asked, "What is the poison pill plan?"

Liu Xiliang said: "It's just to set up a defensive wall to let the other party retreat when faced with difficulties. Dad, just wait and see the good show!"

Liu Zhiping felt relieved when he saw that his son was so determined.

Liu Xiliang studied abroad and was a top student at a university in the United States. He studied economics and finance and knew how to deal with such acquisitions.

He understood that Yang Fei had come with bad intentions, so he quickly invited defense experts to formulate a "poison pill plan."

The poison pill plan was invented by Martin Lipton, a famous American merger and acquisition lawyer, in 1982, and its official name is "equity dilution anti-takeover measures."

When a company encounters a hostile takeover, especially when the acquirer's shareholding has reached 10%, the company will issue a large number of new shares at low prices in order to maintain its controlling stake.

Once adopted, the poison pill plan will have at least two effects: one is to deter malicious buyers; the other is to reduce the number of buyers interested in adopting the plan.

In 1985, the U.S. Court of Delaware legalized this anti-takeover measure.

Poison pill plans are often used in takeover and anti-takeover cases.

On top of the common poison pill plan, Liu Xiliang improved this plan.

He was creative and added three clauses.

One is to lower dividends and make acquirers unprofitable.

The second is to announce that new shareholders have no right to vote, and that the board of directors can only replace at most one-third every year. Any major decision must be approved by a two-thirds vote of the board of directors, so that the acquirer has no right to control the company.

Third, when a senior person in charge of the company resigns, he must pay his salary and full pension for three years, totaling 10 million yuan! When key members of the company resign, they must pay their half-year salary, totaling 3 million yuan. This will put a heavy financial burden on the acquirer!

This plan will automatically take effect when the opponent holds more than 20% of the shares!

Liu Xiliang announced the poison pill plan to the world in order to scare off Yang Fei and Meili Group and make their opponents give up their acquisition plans.

After Yang Fei heard the news, he was slightly shocked and said: "Liu Xiliang, you really know how to use the poison pill plan. I underestimated you! You are more powerful than I thought!"

Chen Mo asked: "Yang Fei, should we still acquire Siping Group?"

Yang Fei said: "Of course we can't acquire it."

As Liu Xiliang expected, as soon as the poison pill plan came out, Yang Fei did as he wished and announced that he would give up the acquisition of Siping Group.

Not long ago, Yang Fei declared with great fanfare that he would acquire the Siping Group, and now he announced in a high profile that he would give up the acquisition plan!

Yang Fei's action was once again hard to understand.

Liu Zhiping and his son were happy!

Yang Fei, Yang Fei, let’s see what you are capable of. There is a poisonous pill plan, let’s see how your conspiracy succeeds!

However, on the day when Yang Fei announced that he would give up the acquisition of Siping Group, something big happened again in Siping Group, which caught Liu Zhiping and his son off guard!