Liu Mingyu said bitterly:
"If there is no exemption, Zhao Chen's behavior of increasing holdings through Rights Issue is likely to be ruled as triggering Mandatory General Offer."
He paused:
"Once the general offer is triggered, Zhao Chen will need to acquire the shares of all other shareholders in cash. That will require at least several billion in funds, which of course he cannot come up with."
"So the real purpose of Whitewash Waiver..."
Lin Wanqing answered with a cold voice.
"Let Zhao Chen legally increase its holdings in large quantities through the Rights Issue market without having to bear the obligation of a comprehensive offer."
"Yes." Liu Mingyu nodded, "And this exemption... was voted by Independent Shareholder on Shareholders' Meeting."
There was deathly silence in the office.
Lin Wanqing slowly sat back on the chair, his whole figure drained of energy.
She finally understood--
From the motion of Whitewash Waiver, to the design of Subscription Plan, to the early acquisition of Rights Issue at a low price by Zhao Chen, to the arrival of 700 million in cash today...
This is a complete, interlocking chain.
And she actually thought that she had the initiative.
"We were fooled."
Lin Wanqing said, his voice was very soft, but with a deep chill,
"From beginning to end, we are following the script designed by Zhao Chen."
Liu Mingyu said nothing.
He recalled that on the day Shareholders' Meeting, when Zhang Qingxue clearly stated the reasons for exemption, he still felt that the female lawyer was making a fuss out of a molehill;
Thinking back to when Zhao Chen calmly responded to shareholder inquiries, I was still laughing at him for pretending to be calm.
Now that I think about it, every step was planned by Zhao Chen.
"The scariest thing is,"
Lin Wanqing continued, his eyes empty,
"Zhao Chen Where did you get so much money? Seven hundred million in cash... This is beyond the scope of normal commercial financing."
Liu Mingyu did not answer Lin Wanqing who was in a state of confusion.
He looked at the numbers on the screen and tapped his fingers on the table unconsciously, trying to sort out his thoughts from the chaos:
"Mr. Lin, come and take a look first. Let's calculate the current Equity Structure..."
He made a quick calculation on a sticky note:
Before Rights Issue:
Total share capital: 400 million shares
Zhao Jianguo: 160 million shares (40%)
Zhao Chen: 100 million shares (25%)
Su Wantang: 20 million shares (5%)
Other shareholders: 120 million shares (30%)
After Rights Issue (press 10 for 4):
Total share capital: 560 million shares
Zhao Chen subscribes for 100 million shares (including quota 40 million + Rights Issue 60 million) → holds 200 million shares
Su Wantang subscribed for 8 million shares → holds 28 million shares
Zhao Chen party's total shareholding: 228 million shares (40.71%)
Liu Mingyu After writing the last number, the pen tip poked a hole in the paper.
"40.71%..."
Lin Wanqing stared at the number and said in a dry voice, "Zhao Jianguo Where is it over there?"
"Chairman originally has 160 million shares, and needs to subscribe for 64 million shares to keep its equity from being diluted."
Liu Mingyu continued to calculate, "But he has only subscribed for 10 million shares so far, so after Rights Issue his shareholding is..."
"170 million shares." Lin Wanqing answered, "Accounting for 30.35% of the total share capital of 560 million shares."
She laughed miserably:
"30.35% vs. 40.71%.Secretary Liu, you and I both know what this means."
Liu Mingyu Of course we know.
In Listed Company, which has dispersed shareholdings, relative control can usually be achieved by holding more than 30% of the shares, and absolute control is basically achieved if it exceeds 40%.
And now, Zhao Chen's side is close to 41%!
"More importantly,"
Liu Mingyu added with a bitter voice,
"We still don't know the identity of the new shareholder Shen Zhiyi, if..."
He didn't dare to finish. If it was true, it would be terrible.
Lin Wanqing closed his eyes, and every key node in the past six months flashed through his mind:
Henglong was arrested by Short Selling, Zhao Jianguo was arrested, Board of Directors seized power, and this time Rights Issue...
Every time, Zhao Chen used amazing means to break her cognition.
"Seven hundred million..." She began to repeat the number again, her eyes full of confusion and unwillingness.
"Where did he get the 700 million from? Zhao Jianguo definitely did not leave him so much private money... Overseas money laundering? Underground banks? Or..."
She thought of various possibilities, but each seemed far-fetched.
A twenty-year-old college student could raise 700 million in cash in just six months, which was completely beyond her understanding.
"Mr. Lin, this Shen Zhiyi..."
Liu Mingyu suddenly spoke, pointing at the unfamiliar name on the screen,
"She subscribed for 28 million shares, 173.6 million Hong Kong Dollar. Where did this money come from? Could it be..."
Lin Wanqing's eyes flashed:
"Check! Find out immediately who this Shen Zhiyi is and what his relationship is with Zhao Chen!"
She pressed Intercom Button:
"Wang Bin, come in."
Soon, a man in his early thirties wearing a dark suit walked into the office quickly.
He is Lin Wanqing's personal assistant and her most trusted investigator.
"Mr. Lin."
"Two things." Lin Wanqing spoke quickly,
"First, check that a person named Shen Zhiyi, a female, just subscribed for 28 million shares of our company, Rights Issue.
I want to know her full background—family, social connections, sources of funds."
"Second," she paused,
"Check her relationship with Zhao Chen. Especially... whether she was White Glove arranged by Zhao Chen."
Wang Bin Quick record. "Understood. How long does it take?"
"The sooner the better."
Lin Wanqing glanced at the clock on the wall and said, "I want a preliminary report before three o'clock in the afternoon."
After Wang Bin left, the office fell into silence again.
Liu Mingyu looked at Lin Wanqing's gloomy face and asked softly, "Mr. Lin, what do you think of this Shen Zhiyi..."