NFBE Chapter 206: Different Ways, Don’t Conspire with Each Other
Chapter 206: Different Ways, Don’t Conspire with Each Other
In He Tao's brief introduction, Shang Yibo once again gave a comprehensive overview of the Chao Phraya River project.
Two years ago, Chu Fanqing met Ma Anhua, a member of the board of directors of the Bangkok Chinese Chamber of Commerce, at a business gathering through the introduction of a friend.
At the time, Rushang Group was planning to expand into overseas markets, and Ma Anhua strongly recommended the Chao Phraya River project to Chu Fanqing. After in-depth analysis and on-site inspections by the investment team, they generally believed it was a project with great potential. However, their only concern was their unfamiliarity with Thailand's business environment and policies. Ma Anhua, however, confidently assured Chu Fanqing that he would use his resources and connections to solve these problems. Considering Ma Anhua's position as a director of the Bangkok Chinese Chamber of Commerce, Chu Fanqing ultimately chose to trust him.
At Ma Anhua's enthusiastic invitation and strong recommendation, Chu Fanqing personally traveled to Bangkok to conduct an in-depth investigation of the project. During the visit, Ma Anhua went to great lengths to facilitate Chu Fanqing's meetings with political and military figures, providing numerous conveniences and resources. He even used police escorts, making Chu Fanqing appear incredibly prestigious. However, Chu Fanqing was not swayed by this vanity, but rather used the level of hospitality and power Ma Anhua displayed to assess his resources and influence in Bangkok, in order to make informed decisions about future cooperation.
Against this backdrop, Chu Fanqing made the investment decision. However, according to Thai law, foreign investment cannot exceed 50% of the shares. Therefore, Ma Anhua offered to use his company to hold 51% of the shares on behalf of Rushang Group.
If it weren't for the crisis that the Rushan Group encountered this time, with investment funds failing to arrive on time and problems arising in the environmental impact assessment process, leading to penalties and the project being forced to stop, the even greater crisis on the shores of Chao Phraya Lake would not have been discovered.
Ma Anhua was actually a gambling addict who had long since mortgaged the land to loan sharks and even pledged 51% of his shares.
Rushang Group's original plan was to transfer the 51% stake to Rongchang Capital. Although Rongchang Capital is headquartered in Singapore, it also has an investment company in Bangkok, making it fully qualified to acquire the stake.
However, it was only during this on-site inspection of the company in Bangkok, and the due diligence conducted after Rongchang Capital's involvement, that Rushang Group discovered this shocking truth.
Rongchang Capital was determined to acquire the Chao Phraya Lake project. With its strong influence in Southeast Asia, dealing with high-interest loans would be a piece of cake for them. However, Rongchang Capital also set conditions: if they negotiated with the loan sharks and agreed on an interest rate, they could help resolve the debt, but only if Rushang Group transferred 100% of its equity in the Chao Phraya Lake project to them. Furthermore, Rushang Group would have to assume all the initial debt. Even more demanding, Rongchang Capital offered a low price in exchange for Rushang Group's investment opportunity in the Yuehai Medical Pilot Zone, requiring at least a 34% stake.
Faced with Rongchang Capital's forceful demands, the attendees from Rushang Group found themselves in a difficult position. Everyone anticipated that agreeing to Rongchang Capital's conditions would not only cause Rushang Group significant financial losses but could also jeopardize the future development of the Yuehai Medical Pilot Zone project in China. However, if they refused, how would they resolve the substantial debt and complex legal issues of the Meilan Lakeside project?
A brief silence fell over the meeting room as everyone pondered their next move. Chu Fanqing frowned, her gaze sweeping across each person's face.
Shang Yibo clenched his fist on the table, his knuckles turning slightly white from the force. He knew the importance of this decision and understood that a wrong decision would bring immeasurable consequences to Rushang Group.
He Tao continued, "Before this meeting, Mr. Yang from Rongchang Capital had already spoken to me on the phone. They were working hard to prepare a specific plan, which they expected to send to us tomorrow. They also made it clear that they would not give us much time to consider it."
Zhou Yanruo responded, "Their efficiency is indeed very high, but it is precisely at times like these that we must remain calm and handle every detail with care."
He Tao added, "Mr. Zhou, even if they don't urge us, we can't slack off in the slightest. We can't delay, after all, it's high-interest lending in Bangkok, and the interest is calculated daily."
Shang Yibo interjected, "This is not slackness or delay, but rather a matter of careful consideration and weighing all the pros and cons before making a decision."
Sensing the dissatisfaction in Shang Yibo's tone, He Tao quickly explained, "Yes, yes, I misused my words. What I meant was that we need to consider things carefully and not act rashly."
Chu Fanqing waved his hand, interrupting their conversation: "Alright, we haven't gotten to the heart of the matter. I think we should consider this issue in two phases. The Meilan Lakeside project is already destined to be a failed investment, and all we can do now is minimize the losses. As for the Yuehai project in China, we absolutely cannot let it fall into the hands of others."
Zhou Yanruo nodded in agreement: "They want 34% of the equity, which means they actually want to have a say in this project."
He Tao echoed, "Yes, we have already noticed that."
Although this was Shang Yibo's first time attending a formal group meeting and he was relatively inexperienced in the workplace, he was a major shareholder of the company and wielded considerable influence. Despite the inconvenience of speaking in this setting, he couldn't help but look at Chu Fanqing, as if he had something to say.
Chu Fanqing noticed Shang Yibo's expression and nodded to him: "Yibo, feel free to speak your mind. This is an internal discussion, so there's no need to hold back."
After a moment's thought, Shang Yibo said, "For the Bangkok project, we can reach an agreement with them based on the price they quoted. Given Rongchang Capital's strength and background, they are indeed more suitable to handle the project than we are. Then, we can negotiate with them the profit-sharing ratio after the project is completed."
Zhou Yanruo: "Based on my investigation of Rongchang Capital, their investment style is that they don't do real business. If we hand over the Meinan Lake project to them, they will just resell it. Don't expect them to complete the construction and then share the profits with us."
Chu Fanqing nodded: "Companies like this can't be our partners. Our values are different. We have different paths, so we can't work together."
Then, Chao Shangyibo said, "Yibo lacks experience and oversimplifies things, making them too idealistic."
No one in the room responded. Everyone could tell that the chairman was giving his son a lesson on the spot, cultivating his business acumen.
Shang Yibo raised an eyebrow and retorted without considering the gravity of the situation: "I think modern investment philosophies should be diverse. There's nothing wrong with investment styles like Rongchang Capital's. As long as it represents the interests of the company and maximizes profits, it's a successful investment. Whether it's the traditional emphasis on real industry or the unscrupulous buying and selling of stocks, it's just a difference in operating style. There's only one standard for evaluating which is better or worse: profit. In today's world, being profit-driven should be considered a positive term."
Shang Yibo was speaking eloquently, making Zhou Yanruo sweat with worry for him, because Chu Fanqing's face had already darkened.
Even Chu Fanqing, usually a refined gentleman, couldn't help but say in a gruff voice, "What do you know? Everyone here is a senior. Do you think it's your place to talk so glibly?"
The attendees exchanged bewildered glances; the chairman was about to discipline his son, and no one else dared to interrupt.
Just as Shang Yibo was about to speak, Zhou Yanruo nudged his chair with her foot, whether intentionally or unintentionally, and then interrupted, "Chairman Chu is right. I went off-topic. We don't need to waste our energy discussing other people's investment styles. Let's get back to the project."