10:37 am.
Henglong Group Headquarters, Board of Directors office.
Secretary Liu Mingyu stared at the Rights Issue payment data that had just been updated on the computer screen, his brows almost knitted into a knot.
As the company secretary, he needed to monitor the progress of Rights Issue in real time, and the unfamiliar name on the screen made him feel strongly uneasy.
Zhao Chen: 100 million shares (620 million frozen funds Hong Kong Dollar)
Su Wantang: 8 million shares (49.6 million Hong Kong Dollar has been frozen)
Shen Zhiyi: 28 million shares (173.6 million frozen funds Hong Kong Dollar)
Other shareholders: In progress...
"Shen Zhiyi?" Liu Mingyu muttered to himself, quickly searching for this name in his mind.
It is not in the list of Board of Directors, it is not in the list of important shareholders, and it does not even appear in the list of related persons of the company's senior executives.
But this stranger wanted to subscribe for 30 million shares, corresponding to 173.6 million Hong Kong Dollar.
What makes Liu Mingyu even more alarmed is the data that Zhao Chen's personal quota for subscription is only 40 million shares.
Then, the other 60 million shares are Rights Issue that he purchased through the market.
A considerable part of these should be sold by Lin Wanqing.
After Rights Issue, Henglong Shares held by Zhao Chen reached 200 million shares.
He knew the situation at Zhao Jianguo. After Rights Issue, the total shares were 170 million shares.
Zhao Chen has irrefutably become Henglong's first Major Shareholder.
What's even more frightening is that, together with the 8 million shares of Su Wantang, Zhao Chen subscribed for a total of 108 million shares, with corresponding funds of 669.6 million Hong Kong Dollar.
"Including the amount spent to purchase Rights Issue, it's nearly 700 million!"
Liu Mingyu Cold sweat broke out on his forehead.
He grabbed the intercom phone, his fingers turning slightly white from the exertion:
"Mr. Lin, the Rights Issue data is out and I need you to see it immediately. Also... there is a name that we don't know at all."
11:05 AM Lin Wanqing's office
Lin Wanqing looked at the words "Shen Zhiyi" on the screen, frowned slightly, but quickly looked away--
Although this unfamiliar name deserves attention, what makes her even more frightened at the moment is another number.
Zhao Chen: 100 million shares (620 million frozen funds Hong Kong Dollar)
Su Wantang: 8 million shares (49.6 million Hong Kong Dollar has been frozen)
"Nearly 700 million..." Lin Wanqing's voice was a little dry. She raised her head and stared at Liu Mingyu,
"Zhao Chen alone spent more than six and nearly seven hundred million? Where did he get so much cash?"
Liu Mingyu smiled bitterly:
"This is exactly what I can't figure out. Counting the money to purchase Rights Issue, they used at least 700 million in cash. This... This is beyond the scope of normal financing."
Lin Wanqing stood up suddenly and paced around the office:
"At the beginning, Zhao Jianguo and I settled the accounts. Subscription Plan offered 10 shares for 4, Zhao Jianguo had 160 million shares, and Hong Kong Dollar needed nearly 396 million to subscribe.
We estimate that Zhao Chen can only subscribe for his own quota of 40 million shares at most - even if he pledges all 15% of his shares, he will be able to cash out at most more than 200 million based on the current stock price, and he will have to set aside interest and risk deposits."
She stopped in front of the window, with her back to Liu Mingyu:
"At that time, I told Zhao Jianguo that even if Zhao Chen pledged all its shares, the most it would do is buy its own quota.
After Rights Issue is completed, Zhao Jianguo's shareholding ratio will still be 30%. Zhao Chen plus Su Wantang will only have a maximum of 30%. Control will not lose it."
"So we are relieved." Liu Mingyu answered with a bitter tone.
"We thought that as long as Chairman can secure more than 30% of the equity, we can maintain its relative controlling position. After all... who would have thought that a college student could come up with 700 million in cash?"
Lin Wanqing turned around, with an expression of disbelief appearing on his face for the first time:
"Seven hundred million in cash! Secretary Liu, you and I both know what this means.
Henglong's current market value is less than 3 billion. Zhao Jianguo has been struggling for twenty years. At its peak, his personal net worth was only about 3 billion, and most of it was stocks and real estate. The cash he could mobilize has never exceeded 500 million!"
She walked to the desk and tapped her fingers on the table:
"But now his son, a twenty-year-old college student, casually took out 700 million! Is this reasonable?!"
Liu Mingyu was silent. He knew that Lin Wanqing was not asking him, but questioning this absurd reality.
The office fell into an oppressive silence. The hum of the air conditioner seemed particularly harsh at the moment.
Suddenly, Liu Mingyu thought of something and raised his head:
"Mr. Lin, do you still remember the 'Whitewash Waiver' motion on Shareholders' Meeting?"
Lin Wanqing's body stiffened.
"At that time, Zhang Qingxue filed a motion requesting that Zhao Chen be exempted from Mandatory General Offer's obligations that may be triggered by Rights Issue."
Liu Mingyu's voice was very soft, but it was like a hammer hitting Lin Wanqing's heart.
"The reason is that 'Rights Issue may cause Zhao Chen and its Persons Acting in Concert shareholding ratio to exceed 30%, but this is based on the principle of equal participation of all shareholders and should not trigger a comprehensive offer'."
He called up the Shareholders' Meeting record and found this passage:
"At that time, we all felt that... this was unnecessary. Because according to our calculations, Zhao Chen could subscribe for up to 40 million shares, and the shareholding ratio remained unchanged at 25%."
Liu Mingyu suddenly stopped and tapped his fingers quickly on the calculator.
Total share capital before Rights Issue: 400 million shares
Zhao Chen actual control: 100 million shares (25%)
Rights Issue ratio: 10 for 4