When Feng Zhiyao heard that Lu Feng was going to pick him up personally, he was immediately overjoyed. Lu Feng had never picked him up even once before, despite all the times he had come to visit.
After chatting for a while, Lu Feng hung up the phone.
In terms of equity structure design, according to Lu Feng's vision, on the surface, with the entry of large capital, Lu Feng basically lost control of the company. However, there are several hidden aspects that allow him to basically control the company. One is employee stock ownership, with employees holding as much as 30% of the shares. Although the shares cannot be sold and can only be used for dividends, they can also elect representatives to speak and vote on the board of directors.
The senior management team had all been with the company since its inception. Whether it was Wei Yandan, Zhu Lidong, Liu Cheng, or the next level of management, they were all very convinced of one thing when it came to matters of interest: "A new emperor brings a new court." If the leadership changed, the entire management team would have to be replaced.
Aside from the management's voting rights, there are also 10% of the voting rights held by Sun Hung Kai Properties and 10% of the voting rights held by the banks on behalf of United Capital. If Lu Feng can win the support of either of these parties, he can achieve a draw on the board of directors. If he can win over one more person, he can control the company.
The reason for taking such a risky tactic is purely to attract capital. There is no such thing as a free lunch in this world. Schroders decided to invest in Jiafeng, and even with a valuation of tens of billions of US dollars, they still poured in a lot of money. On the one hand, they saw Jiafeng's development speed and the management's ability. On the other hand, they did see the probability that they could control the company under this system.
Capital seeks excess returns, and absolute control is essential to achieving these returns. When John wrote the report to senior management, he clearly stated the reasons why investing in Jiafeng would not result in losses. If Jiafeng succeeds and joins the ranks of global semiconductor companies, they will have absolute control. They can leverage Jiafeng's business channels in China to establish partnerships with major European groups. Using this as a breakthrough, they can quickly seize the market compared to companies in the United States and Japan.
Secondly, even if Jiafeng doesn't break out, its intrinsic value is not low. It only needs to continuously stimulate companies in the United States and Japan in the semiconductor field. If the other party is willing to pay money to buy the company, it can also get rid of itself and even sell it at a high price.
In the last scenario, if Jiafeng's development is very unsuccessful and it is completely unable to stimulate the two countries in the semiconductor field, and the other party is unwilling to pay a high price to buy it, it can inject some other semiconductor junk patent rights, integrate some European 'leftover' companies into Jiafeng Group, put pressure on China at the national level, and finally sell it to a state-owned enterprise.
From any perspective, Schroders Group is completely unrelated to losing money; Lu Feng has no part in this rigorous risk control plan.
In their eyes, this equity system was completely open to anyone to control it. They also knew Lu Feng's weakness at that time. Under pressure from various parties, he needed a huge amount of money to continue on this path.
What does a 35% stake mean?
In John's eyes, this meant absolute control. Moreover, Lu Feng's direct withdrawal from management showed how shrewd and pragmatic he was.
Mr. Feng saw the subtlety of the situation and followed suit without hesitation, holding another 5% of the shares. He is definitely a master at maintaining balance.
Although international developments have somewhat exceeded the Schroders Group's expectations, everything is still within a controllable range.
Not long after Lu Feng finished calling Feng Zhiyao, he felt it was necessary to ask Su Yourong about it. He called her to discuss the lithography machine. Everything was progressing smoothly. The working group had already gone there and he heard that they were drafting the contract. If there were no problems, it could be signed in about ten days, and the machine would arrive around the end of the year.
Over the phone, Lu Feng inquired whether the board meeting would be attended by representatives from the bank holding the shares or from United Capital. Su Yourong thought for a moment and said that they had already paid back the money advanced by the bank this year, and now the bank had no rights other than holding the shares on their behalf.
The reason for having the bank hold the shares on her behalf was to prevent Mr. Feng from taking action against United Capital if he found out. Now that he is lying in the hospital, he is nothing but a skeleton, so Su Yourong is no longer worried.
Moreover, since Lu Feng has taken the initiative to call and inquire, Su Yourong has guessed his situation. Now it's her turn to make a move. In the past, the two of them could be said to have benefited from each other in their struggles, but now the roles have reversed.
"If you miss me, I can come," Su Yourong said with a slightly ambiguous tone on the phone. "Do you miss me?"
"Of course I want to!" Lu Feng replied.
"Oh my, you dare to say that? Looks like the tigress isn't home. Since you miss me so much, I definitely have to go. First, to see you, and second, I put a lot of effort into finding you a lithography machine, so I should give you some compensation for my hard work. I keep things separate, how about it?" Su Yourong stated her price.
“No problem, come on over. What kind of relationship do we have? Over the years, we’ve been inseparable. I didn’t quite understand before, but now that I’ve thought about it, I think I understand a little bit. This is love!” Lu Feng said very seriously.
Su Yourong laughed on the other end of the phone, a somewhat sarcastic laugh, and said, "I didn't know you had this side to you. Okay, I'll book a ferry ticket for tomorrow morning, and you can come pick me up then."
"Then you should book the 10:30 train. It just so happens that Feng Zhiyao is also taking that train tomorrow."
The two agreed on a time, and Lu Feng hung up the phone. It was clear that Su Yourong had the upper hand in the current situation, and she herself was aware of this. Lu Feng had no objection to her taking the opportunity to blackmail her. Compared to these small matters, he cared more about the big picture.
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