At nine o'clock in the morning the next day, Lu Shen arrived at the Eagle Group headquarters ten minutes early.
The staff took him and Zhou Huai to Main Conference Room.
Hou Dejian, Wu Fayi, Chen Guihong are already waiting in Meeting Room.
Seeing Lu Shen come in, the three of them stood up at the same time.
"Mr. Lu, please take a seat." Hou Dejian greeted enthusiastically, "Did you have a good rest last night?"
Lu Shen nodded:
"Very good. Thank you Mr. Hou for your hospitality."
Both parties took their seats.
Hou Dejian Get straight to the point:
"Mr. Lu, we had a great time chatting at the wine table yesterday. Let's get down to business today. What do you think of Eagle?"
Lu Shen leaned on the back of the chair and said calmly:
"Mr. Hou, I listened to Chairman Zhao's speech yesterday and also read your information.
Eagle's fundamentals are indeed good, but in terms of valuation, my views are similar to those of Chairman Zhao."
He paused:
"15 times is a reasonable range that we can accept."
Hou Dejian and Chen Guihong looked at each other.
Chen Guihong opening:
"Mr. Lu, the number 15 times, we also talked with Chairman Zhao yesterday. To be honest, it is a bit low."
Lu Shen looked at her:
"Mr. Yang, why is 15 times so low? After all, the current market valuation for you is less than 18 times."
Chen Guihong Open the file in front of you:
"Mr. Lu, you have also seen our future growth.
Growth in slaughter volume, financial sector income, brand premium, channel integration - these add up to at least doubling profits in three years.
The 18 times given by the market corresponds to current profits, not future profits."
Lu Shen smiled:
"I agree with what Mr. Yang said. But the future is the future and the present is now.
Things in the future will only count if they are realized."
He paused:
"And, will the conditions offered by Henglong be better than ours?"
Hou Dejian took over:
"Mr. Lu's question is on point."
He leaned forward and looked at Lu Shen:
"Chairman Zhao gave us a condition yesterday - pure Financial Investment, no interference in operations, no financial dispatch, and no pursuit of Board of Directors Seat."
He paused:
"Mr. Lu, if it were the same valuation, we would definitely choose Henglong.
After all, the conditions offered by them are more relaxed, so there is no need to go to a lot of trouble to negotiate with another company."
Lu Shen's brows moved slightly.
Not assigned to finance.
Not seeking Board of Directors.
Pure Financial Investment.
Zhao Chen Is this... completely giving up the right to speak?
He was silent for a few seconds.
Then he said:
"Mr. Hou, what if I can give a higher valuation?"
Hou Dejian's eyes lit up:
"How high?"
Lu Shen glanced at Zhou Huai.
Zhou Huai Open the folder in front of you:
"Mr. Hou, we suggest entering through private placement.
Based on your company's current share capital and stock price, we have made detailed calculations."
He paused:
"If calculated based on a price-to-earnings ratio of 18 times, your company's pre-money valuation is approximately 8.28 billion.
Jiahe plans to invest 2.07 billion to subscribe for your company's private placement of shares.
After the additional issuance is completed, Jiahe will hold 20% of the equity of your company."
Hou Dejian Calculate quickly in your mind.
2.07 billion, 20% equity.
This means that the post-money valuation is 10.35 billion.
Compared with the current market value of 8 billion, the premium is 29%.
Chen Guihong whispered next to him:
"Mr. Hou, this premium is very high."
Hou Dejian nodded and looked at Lu Shen:
"Mr. Lu, the figure of 18 times is indeed very sincere.
The equity ratio of 20% is also reasonable.
But how many Board of Directors Seat do you want?"
Lu Shen looked at him:
"Three."
Meeting Room was quiet for two seconds.
Wu Fayi was stunned for a moment:
"Three? Mr. Lu, 20% of the equity, can only nominate one director according to the articles of association..."
Lu Shen nodded:
"I know. So what I'm talking about is not the nomination right. I hope your company will make some adjustments to Company Charter during this additional issuance."
He paused:
"We, Jiahe, are backed by Blackstone, which has a lot of resources in the global agricultural and consumer goods fields.
If we can deeply participate in the decision-making of Eagle, we can bring more than just money.
International channels, overseas mergers and acquisitions, brand cooperation - these things require a smooth communication mechanism."
Hou Dejian was silent for a few seconds.
Three Board of Directors Seat.
A 20% stake would account for nearly one-third of Board of Directors.
This means that Jiahe will have considerable say in Eagle.
Chen Guihong reminds you gently:
"Mr. Hou, if we give three seats, then from Board of Directors..."
Hou Dejian waved his hand, signaling her to stop talking.
He looked at Lu Shen:
"Mr. Lu, three seats are too many. Two is the limit."
Lu Shen thought for a while:
"Two are okay. But there are two additional conditions."
Hou Dejian looked at him:
"What conditions?"
Lu Shen said:
"First, send a financial officer Deputy Director to participate in major financial decisions.
Second, Jiahe has a veto power on major investments and mergers and acquisitions in the next three years."
Hou Dejian's brows furrowed.
One-vote veto power.
This is to tie all the key decisions of Eagle to the chariot of Jiahe.
Wu Fayi whispered beside him:
"Mr. Hou, this condition..."
Hou Dejian raised his hand and interrupted him.
He looked at Lu Shen:
"Mr. Lu, we really cannot accept the veto power.
This will seriously affect the company's decision-making efficiency."
Lu Shen smiled:
"Mr. Hou, let me take a step back. You don't have to give up the veto power, but you must give it three Board of Directors Seat."
He paused:
"When 2.07 billion real gold Silver comes in, we must have some say.
With two seats, we can't even influence the vote of Major Matter.
This investment is too risky."
Hou Dejian was silent for a long time.
He glanced at Chen Guihong and then at Wu Fayi.
Neither of them spoke, but there was confusion in their eyes.
2.07 billion is too much.
But three Board of Directors Seat are too hot to touch.
"Mr. Lu," Hou Dejian finally said, "We need to discuss the matter of three seats internally.
In this case, you go back and rest first, and we will give you an answer in the afternoon."
Lu Shen stood up:
"Okay. I'm waiting for news from the general manager."
He walked to the door, suddenly stopped, turned around and said:
"Mr. Hou, 2.07 billion will be paid in two installments.
50% of the first installment will be paid within 15 working days after the signing of the agreement, and the remaining 50% will be paid within 30 working days after Securities Regulatory Commission approves the additional issuance.
The funds are absolutely clean and the channels are absolutely compliant."
He smiled:
"The valuation that Henglong can give you will not be higher than ours. What we can give is more than money."
The door closes.
Hou Dejian leaned back on the chair and let out a long breath.
"This Lu Shen is much more difficult to deal with than Zhao Chen."
Chen Guihong said softly:
"Mr. Hou, Lu Shen is a bit strong and difficult to deal with."
Wu Fayi also nodded:
"Yes, this person has much more experience in the world than Zhao Chen, that fledgling kid."
Hou Dejian was silent for a few seconds.
Then he said:
"The initiative is still in our hands, there is no rush."