49th floor, Phase 2, Central International Financial Center.
In the conference room.
Lin Fan was receiving a group of foreign guests, headed by a white man in his fifties with gray hair on his temples.
He and the old white man sat on opposite sides of the long table, looking at each other.
Next to Lin Fan sat Li Ying and Ya Bo, and next to the old white man, there were also several entourages in suits and leather shoes.
"Mr. Becker, I heard that you were on an inspection tour in Asia and happened to arrive in Xiangjiang, so I invited you to come over for a while.
Let me put it bluntly, Lam Capital is interested in the Penguin shares held by Ed (Naspers)."
MIH Millard International Holdings Limited is a wholly-owned subsidiary of South African Newspapers.
The real corporate entity of the South African newspaper industry/South African media is the multinational media group ed. This is a company founded in 1915 and listed on the Johannesburg Stock Exchange in September 1994.
The old white man in front of him is the largest individual shareholder and CEO of Naspers, named Kus Becker.
He is the one who can decide!
When Wangdawei invested in Penguin, it was approved by this old man.
Hearing that the other party was in Xiangjiang, Lin Fan immediately invited the other party to meet him to see if there was any bargain.
Becker had basically guessed Lin Fan's purpose and shrugged with a smile, "Mr. Lin, I can only apologize to you. Penguins are not for sale to us."
Lin Fan completely sneered at these words. There was nothing in the world that was not for sale. He just couldn't afford the price.
"Mr. Becker, MIH originally spent more than 30 million US dollars to buy the shares of Yingke and IDG...
Penguin has been listed for more than a year now, and compared with the issue price of HK$3.7, the share price has increased very little."
Becker shook his head and laughed, "Mr. Lin, Penguin's current stock price can remain between 8 and 9 Hong Kong dollars. How can you say the increase is very small?"
Lin Fandan said calmly, "Penguin was listed on the Hong Kong Stock Exchange in June last year. It has been almost a year and a half now. Doubling the stock price increase is not high. Compared with the Chinese concept stocks listed in the United States, it is even worse."
It’s far from it.”
Becker smiled, "We are not greedy, we are already very satisfied, and we are optimistic about Penguin's development in the long term."
"MIH originally held 50% of Penguin's equity. After the listing and dilution, 37.5% remained. Based on Penguin's current market value of HK$14 billion, this equity investment has earned more than HK$5 billion, with a return rate of more than 20 times."
Lin Fan said with a smile, "According to the logic of venture capital, it is time to withdraw. After all, it is venture capital, not a hedge fund."
Becker waved his hand, "Mr. Lin, you may not know about MIH. This is a wholly-owned subsidiary of Naspas. We use the company's own funds to invest and do not raise funds from outside, so there is no pressure to exit.
At the same time, we have also maintained very good communication with the Ponima team, and we believe that they will be able to take Penguin to greater heights and create more generous returns for shareholders."
Lin Fan had a headache. In his previous life, MIH had been loyal to Penguin for twenty years, but he had deceived him so much with just a few words.
Of course, it’s also because Pony is so capable. As soon as Penguin went public, its stock price rose steadily.
If he were a Penguin shareholder, he would not sell the golden chicken that lays the eggs.
Although there were challenges from MSN, the SP business was subject to regulation, and the development of Paipai.com was setback, it didn't matter, especially when the cash cow of the game business matured, Penguin's stock price took off completely.
"The shareholding ratio is too high, and the risks are too concentrated. For example, selling 10% or 15%, controlling the position, using the money to invest in some emerging technology companies, and diversifying the investment risks may be a better choice."
Lin Fan looked at the old white man opposite him with a smile, and said slowly: "We can acquire the Penguin equity transferred by MIH at a premium of 20% based on Penguin's closing price today."
Becker shook his head, looking completely uninterested, "Mr. Lin, you don't need to persuade us anymore, we will never sell Penguin shares."
"What about the 50% premium?"
Becker and Lin Fan looked at each other, "Mr. Lin, as an investor in Facebook, don't you want to integrate the Chinese social market?
Let Facebook and Penguin join together and become the largest social company in the world?"
Lin Fan was stunned for a moment. He really only wanted money, not life.
But because he is the founder of Facebook, it is not surprising that the old man would think so.
"That's not true. I'm just a shareholder now. I have the same attitude towards Penguin. It's just a financial investment."
The old man didn't believe Lin Fan's feeble explanation and said with a smile: "Mr. Lin, even if you pay double the premium, MIH will not sell the shares of Penguin. Okay, that's it!"
After saying that, the old man stood up and pointed to the cup on the table, "Thank you for the coffee!"
Then, he left the conference room of Lin Capital with a group of followers.
"what to do?"
Li Ying looked at Lin Fan and asked.
"What can we do? Forget it if you can't buy it. Call Liu Hai and ask Liu Hai how many Penguin shares have been bought in the secondary market?"
Lin Fan was not too disappointed. It would be fine if MIH did not sell shares. Anyway, he had already arranged to raise funds in the secondary market.
Regardless of whether there will be a conflict of interest with Penguin in the future, there is no problem in buying Penguin stocks now, holding them for a few years, and making a lot of money.
It’s just that Penguin’s public holdings are not large. Before the listing, the Penguin team and MIH each held 50% of the shares, and 25% was issued after the listing. Then the Ponima team successively reduced their holdings.
In the broader market, publicly held stocks account for less than 30% of the total share capital.
Lilin Fund, run by Liu Hai, bought more than 40 million shares of Penguin last year, accounting for about 2.6% of Penguin's total share capital.
After the Bailu Fund was established, he arranged for Liu Hai to buy Penguin's secondary market stocks in batches through multiple accounts.
Counting the time, almost two months have passed.
The reason why we need to accumulate funds in such a small amount is because we are afraid of causing too much market turmoil, causing Penguin's stock price to take off, and the cost of holding positions to be too high.
Li Ying left the conference room and made a phone call.
After a while, she came back and reported: "83.83 million shares have been purchased, accounting for 4.99% of Penguin's total share capital. Any more will be disclosed."
"Okay, let him disclose it and continue buying."
Li Ying hesitated and reminded: "After the disclosure, the stock price may soar."
"It doesn't matter, as long as it doesn't exceed 20 Hong Kong dollars, you can buy whatever you can."
Li Ying nodded, "Okay, I'll tell Liu Hai right away."
…………
…………
Pengcheng.
Fiyta Building.
In a conference room.
The ashtray in front of a man in his thirties wearing gold-rimmed glasses is filled with cigarette butts.
The man put out a cigarette and was about to light a second one when he was dissuaded by a bald man next to him.
"Bonnie, stop it. It's not as serious as you think. As long as MIH is on our side, there is no way that Lin Capital will launch a hostile takeover of Penguin.
Didn't Mr. Becker say that? Lin Fan was willing to pay double the premium, but he did not agree to sell Penguin's shares. Instead, he came to tell us the news to put us on guard.
It can be seen that MIH is on our side.
The two of us together hold more than 70% of the shares, and the public shareholding outside is less than 30%. Even if Lin Capital buys out all the outside shares, it will not be able to take away control of Penguin.
On the contrary, as long as they dare to make big purchases in the secondary market, the stock price will inevitably skyrocket. At that time, we will add more materials to them to see how much money they have to buy goods."
Bonima vomited an eye circle, "Maybe I'm thinking too much, tell me, why does Lin Fan care about us penguins?"
Liu Zhiping spread his hands, "Perhaps as Mr. Becker said, he wants to build an ambitious global social empire."
"Penguin doesn't welcome people like him, Martin, go ahead and arrange it!"
We want to entertain this guest from afar this time!"
Liu Zhiping smiled and said, "Don't worry, this battle is a sure thing. It can only be said that they made the wrong idea and wanted to pinch a weak persimmon, but ended up pinching a hedgehog."
The next day.
Nine o'clock in the morning is the call auction time for Hong Kong stocks.
Lin Fan, Li Ying and others had already arrived at the company conference room, turned on several computers, and stared at the market trends together.
At 9:30, Penguin's opening price today increased slightly by 1.55% from yesterday's closing price, opening at HK$8.51 per share, which was calm.
However, looking at the stock price trend, we can see that big funds are entering.
Before Lin Fan could call, Liu Hai, who had returned to the United States, took the initiative to call and reported: "Jing Xing, the position has exceeded 5%."
"Okay, three days later, mail the disclosure letter to the Hong Kong Stock Exchange!"
After briefly speaking, Lin Fan hung up the phone and found Li Ying and Ya Bo staring at him in shock.
"Look, this is a fair use rule. The Hong Kong Stock Exchange stipulates that if you hold 5% or more of the equity in a listed company for the first time, you must disclose it within three working days.
Disclosure methods include telephone, fax, personal delivery or mailing.
As long as it is confirmed that the letter is mailed from the United States within three working days after reaching 5% of the position, then it complies with the regulations.
As for when the letter will arrive, that’s none of my business.”
As he spoke, Lin Fan started laughing.
When Buffett reduced his holdings in PetroChina a few years ago, he reported the reduction record to the Hong Kong Stock Exchange by "sending a letter". By the time the letter arrived, it was already half a month later.
The most outrageous thing is that when Buffett liquidated his position in PetroChina stocks in 2007, he used the same trick several times. It was clear that he was taking advantage of loopholes in the rules.
Without this loophole, PetroChina's stock price would have plummeted as soon as Buffett heard that he wanted to reduce his holdings. Correspondingly, Buffett would have made a lot less money when he liquidated the stocks.
Lin Fan is now doing the opposite. He is increasing his holdings of Penguin shares. If he discloses it too early, it will also attract a large number of funds to follow suit, causing Penguin's stock price to rise.
Although there was no information disclosure, anyone with a discerning eye could see that someone was shopping for goods in the market, and Penguin's stock price followed suit and closed at HK$10.21 that day.
The next day, some retail investors were enthused and got on the bus, but the large number of selling orders brought the stock price down a lot.
On the third day, Penguin's stock price rose again.
…………
…………
Realizing that their own stock trading was very active, Liu Zhiping and Bonima were almost certain that the fish began to bite the hook.
"Martin, do you want to take action?"
In the Fiyta Building in Pengcheng, Bonima was smoking a cigarette and asked Liu Zhiping sitting next to him with a playful smile.
The 34-year-old Bonima was only promoted to the boss of a listed company last year, and his personality is not that mature yet.
Seeing that Lin Capital has entered the market, I can't wait to give the opponent a head-on blow.
Liu Zhiping waved his hand, "Don't worry, wait for them to build a position first, and take action now. You can only repel them, but you can't make them remember it for a long time."
"Okay, then it's up to you!"
Regarding finance and investment matters, Ponima is very confident about Liu Zhiping.
Liu Zhiping previously served as an executive director of Goldman Sachs Asia. He was appreciated by Bonima for helping Penguin successfully go public in Hong Kong. He hired this general under his family with "high salary and equity".
Usually he regards Liu Zhiping as his own dog-headed military advisor... Oh, no, it's Zhuge Liang.
Anyway, let's do whatever the military advisor arranges. Bonima seems very optimistic about severely defeating Lin Capital's conspiracy.
…………
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In a simple and small office in Xiangjiang.
Zhang Sanshi is discussing with four startup partners.
"The trading of the Penguin we selected has been extremely active these days. I judge that a large fund is buying it. What should I do? Do you think you should follow it?"
Zhang Sanshi glanced at his friends and asked.
"The key is how much? We only have 20 million US dollars."
Zhang Sanshi was heartbroken, "I bought them all. I'm worried that after passing this village, there won't be this store anymore, and Penguin's stock price may not return to below 10 Hong Kong dollars."
"It's very risky, especially when there are big funds playing in it." A colleague advised.
"Being favored by a big fund means that the target we have selected is good."
Zhang Sanshi waved his hand, "That's it, all stud."
The four companions thought that all the funds were raised by Zhang Sanshi from the Yale University Foundation. At the same time, Zhang Sanshi was also the majority shareholder of their small company, Gao Ling Capital.
Now that the big boss has made up his mind, they will not object.
Under Zhang Sanshi's arrangement, Gao Ling Capital, a small company, began to operate, and payment orders were issued one after another.
…………
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Nearly half a month later, in mid-November, the mail from the United States finally arrived in Hong Kong. Lam Capital disclosed to the Hong Kong Stock Exchange that it already held 5% of Penguin Holdings shares.
When this news came out, it immediately attracted the attention of a large number of media, retail investors, and institutional investors.
The share price of Penguin, which has exceeded 15 Hong Kong dollars, has soared by more than 20%, reaching 18 Hong Kong dollars per share. More funds are pouring into Penguin stock, pushing the share price to rise.
At this time, how come there is so little media support?
"Lam Capital targets Penguin and joins hands with Facebook to build a global social empire",
"Bill Gates holds shares in Facebook, does the world's richest man want to get involved in China's Penguin?",
"Undeclared War, Revealing the Ambition of Lin Capital for You".
…
Not only the unscrupulous media in Xiangjiang are reporting blindly, but the domestic financial media also noticed the news in Xiangjiang and began to reprint it one after another.
On the Tianya Forum, the slogan “Expel South African MIH, and Chinese people become Penguin’s major shareholders” has been shouted.
As public opinion boiled, Penguin's stock price skyrocketed again, exceeding 25 Hong Kong dollars per share and beginning to touch a high of 30 Hong Kong dollars.
Penguin, seeing the opportunity, finally took action.
Bonima and several Penguin founders held a press conference to express their disapproval of Lam Capital's investment and called it "barbarians."
Representatives of MIH also attended the press conference and expressed their continued support for Penguin.
Once the shares of the two parties were increased, exceeding 70%, Lin Capital could not afford to make waves.
Those who were originally looking forward to the merger between Facebook and Penguin were undoubtedly poured cold water on their hearts. Penguin’s stock price fell in response, and retail and institutional investors began to retreat.
The one who ran faster than them was Liu Zhiping's secret ambush.
Goldman Sachs Asia and several other institutions continued to throw large sell orders into the market and ran like crazy.
For several institutions, this is also a matter of quitting when things get better.
Liu Zhiping found them and invited them to play a game together.
So when Lam Capital was rushing to raise funds, Goldman Sachs and several other institutions also entered the market to purchase goods.
The chips that several institutions grabbed at around HK$10 were sold at around HK$25 or 20. It can be said that they made a huge profit.
The large sales orders, coupled with the opposition of Penguin's founding team, and the facts before everyone, made the market sentiment very low. As fast as Penguin's stock price rose at the beginning, it has fallen as hard as it has now.
HK$25/share
22 Hong Kong dollars/share,
18 Hong Kong dollars/share,
13 Hong Kong dollars/share,
…
Penguin's stock price fell faster and faster. In just two days, it fell below ten dollars, returning to its original form before the sharp rise.
At this time, Lam Capital’s second disclosure letter was sent to Xiangjiang, revealing that Lam Capital held more than 6% of Penguin’s shares.
The Hong Kong Stock Exchange has such a rule that if the shareholding exceeds 5%, every additional 1% must be disclosed again.
The third letter, the fourth letter, and the fifth letter... came one after another, showing that Lin Capital's shareholding in Penguin exceeded 7%, 8%, 9%...
Every time a letter is sent, Penguin's stock price flashes back, briefly exceeding 10 Hong Kong dollars.
But later on, there was no return to the glory. Instead, every time a letter was sent, the stock price fell a little.
Because people are constantly taking this opportunity to jump out of the car and cut their flesh.
At this point, the situation has become clear. Lin Capital cannot shake Penguin's control. Even if it shorts out the shares on the market, it cannot change the outcome.
The retail investors who foolishly followed him on the bus were the most angry, and even Lin Fan received a lot of scolding.
