Chapter 369: Goldman Sachs is Sold, and Must Help Xia Yu Count the Money
"Mr. James, your company's strength in mergers and acquisitions is top-notch. I've heard that acquisitions handled by your company almost never fail."
Xia Yu's flattery caught James Richard off guard. Xia Yu was not following the usual script, completely diverging from what James had anticipated!
But James Richard's confusion was short-lived. After a brief pause, Xia Yu continued.
"That's why I've come here today. I'd like to commission your company to help me acquire some stocks!"
With that, Xia Yu smiled at James Richard.
Upon hearing this, James Richard immediately understood Xia Yu's intentions.
"Mr. Yu, are you referring to acquiring shares of Yi He Machinery Group?"
Even though James had his suspicions, he still asked seriously.
"Yes, I want to commission your company to help me acquire Yi He Machinery Group's shares held by Cummins, Nomura Securities, Daiwa Securities, and others."
Xia Yu nodded slightly, affirming his request, and then looked intently at James Richard.
James Richard's heart skipped a beat, and he became alert.
Given the scope of Xia Yu's request, it involved a transaction of at least hundreds of millions of Hong Kong dollars.
Such a transaction would be considered substantial for Goldman Sachs' Hong Kong branch, and with the normal commission, it would yield profits in the tens of millions. How could James not take it seriously?
Xia Yu had thrown a big opportunity, and James Richard's attitude immediately became enthusiastic.
"Mr. Yu, thank you very much for your trust in our company. We are confident about this business, but could you tell me your specific requirements?"
James Richard asked eagerly.
The bait was set!
Xia Yu smiled inwardly.
However, he did not respond to James Richard's question as expected. Instead, he feigned sudden realization and asked, "Mr. James, I just remembered, doesn't your company also hold some shares of Yi He Machinery Group?"
Seeing Xia Yu's exaggerated acting, James Richard's smile gradually faded, and he returned to a shrewd expression. After a brief exchange of glances with Xia Yu, he nodded slightly and said, "I recall that our company does hold some shares."
At this point, James Richard said no more and waited for Xia Yu to speak further.
He began to ponder whether or not to sell the shares to Xia Yu.
In fact, after Xia Yu spoke, James Richard knew that the offer was a bait and a condition, otherwise, he wouldn't have suddenly stopped discussing it.
Whether the commission business could proceed depended on whether they were willing to sell the shares to Xia Yu.
If they sold, then Xia Yu's big offer would naturally go to them.
If they held on to the shares, then this highly desirable transaction would slip away.
James Richard had initially planned to keep the shares, but now he had to make a choice!
After exchanging glances with the two senior executives beside him, both of whom nodded slightly to indicate their stance, James Richard's eyes flashed, and he made up his mind.
Let's see the price. As long as the price is right and combined with the subsequent big offer, if the overall benefit is greater, it can still be sold!
"Mr. James, I would like to buy the Yi He Machinery Group shares held by your company. What are your conditions?"
Xia Yu went straight to the point, without any pretense.
James Richard offered a polite smile and said, "Mr. Yu, I can't make this decision alone. We need to discuss it. Please wait a moment!"
With that, James Richard stood up and walked out, followed by the other two executives.
"Please take your time. We look forward to good news!"
Xia Yu gestured for them to leave with a smile.
Soon after, James Richard and the two executives reentered the small conference room.
"Mr. Yu, the shares of Yi He Machinery Group can be sold to you."
Upon hearing this, Xia Yu smiled slightly in gratitude and listened quietly to the conditions.
"However, as you know, Yi He Machinery Group's stock still has significant upside potential. We can't let ourselves be at a disadvantage, so we hope for a price of 110 Hong Kong dollars per share!"
James Richard said calmly. Upon hearing this price, Xia Yu's eyes narrowed slightly.
James Richard was indeed asking for a high price!
On Friday, Yi He Machinery Group's closing price was only 78 Hong Kong dollars per share, and now he was asking for 110 Hong Kong dollars—a premium of 41%!
This price was quite aggressive!
Without needing Xia Yu to speak, Wang Qi knew he had to step in as the bad cop and counter with his own bargaining. He said with a cold expression, "Mr. James, this price is too high. We're not fools!"
James Richard maintained his smile and, without showing any embarrassment, shrugged and said, "Mr. Wang, this price was determined after discussions within our company. It represents our entire company's stance. I would have preferred a lower price, but I'm afraid we can't accept a loss."
James Richard smoothly deflected the pressure, trying to block any further bargaining from Wang Qi and Xia Yu.
However, this high price was unacceptable to Xia Yu.
Thus, Wang Qi continued to counter, "Mr. James, at this price, we can acquire shares from other companies. I'm sure Cummins and Nomura Securities would be willing to sell. There's no need for us to buy from you, and we don't need to commission the acquisition business either."
Wang Qi used the acquisition business as leverage to remind James Richard.
The price of 110 Hong Kong dollars per share might not guarantee acquiring shares from other companies, but James Richard couldn't refute Wang Qi's argument—how could he prove otherwise?
After a heated negotiation, the share price was finally settled at 95 Hong Kong dollars per share, a premium of 21.7%.
However, agreeing to this price came with conditions from Goldman Sachs!
Xia Yu would use the bundling clause, and James Richard would certainly do the same!
Goldman Sachs would sell the Yi He Machinery Group shares to Xia Yu, but Xia Yu had to simultaneously entrust Goldman Sachs with the acquisition business and sign an agreement.
"Mr. James, first of all, thank you for your help. Next, let's discuss the commissioned acquisition business."
Xia Yu expressed his gratitude and then brought up the heavy acquisition business that James Richard was eager about.
"Mr. James, I'm willing to offer 120 Hong Kong dollars per share to commission your company to acquire the shares of Yi He Machinery Group!"
Xia Yu dropped a bombshell with a smile.
James Richard was taken aback, and then his face lit up with joy. He hadn't expected the person who had been so relentless in pressing down the price would suddenly offer such a high purchase price!
He was ready to negotiate further, but this price exceeded his expectations. There was no need for more negotiation!
120 Hong Kong dollars per share was the fixed acquisition price!
This was a premium of over 50%!
This meant that their potential profit margin was 42 Hong Kong dollars per share!
The lower they acquired the shares, the higher the profit when selling them to Xia Yu at 120 Hong Kong dollars per share!
Including the shares held by Cummins, Nomura Securities, and Daiwa Securities, the theoretical maximum profit was 270 million Hong Kong dollars.
Of course, this profit margin was based on Goldman Sachs acquiring the shares at 78 Hong Kong dollars per share. If Goldman Sachs had paid a higher price, their intermediary profit would decrease!
The actual profit would depend on Goldman Sachs' ability!
"Mr. Yu, we will take this business!"
James Richard said without hesitation, seemingly afraid that Xia Yu might change his mind.
Just as James Richard was smiling, Xia Yu shook his head slightly and said, "Mr. James, don't be hasty. We have conditions for offering such a high price!"
James Richard's smile faded, and he looked at Xia Yu seriously, "Please state your conditions!"
Xia Yu's conditions made James Richard more reassured. This was typical of Xia Yu!
"Our goal in acquiring Yi He Machinery Group's shares is to complete the acquisition and seize control from Yi He Holdings."
Xia Yu said slowly, and James Richard nodded in agreement.
This was indeed the case, and James Richard could not refute it.
"You know that Yi He Holdings is currently the largest shareholder with a high stake, very close to absolute control. If Yi He Holdings achieves absolute control first, our acquisition will fail."
"This means we need to achieve absolute control of Yi He Machinery Group before Yi He Holdings does."
"If we fail in the acquisition, the commissioned acquisition agreement will be terminated immediately!"
Xia Yu spoke plainly, but James Richard nodded solemnly, clearly agreeing to Xia Yu's terms.
He instinctively believed that this was Xia Yu's way of urging Goldman Sachs to act quickly.
But deep down, he also wanted to help Xia Yu complete the acquisition as soon as possible.
The longer the delay, the higher the stock price would rise, reducing Goldman Sachs' intermediate profit.
"Mr. Yu, rest assured. We will do our utmost to help you acquire the shares."
James Richard promised.
"That's great!"
Xia Yu smiled.
After the agreement was reached, they proceeded to sign the contracts.
Soon, two different agreements were drafted and signed.
94.62 million Hong Kong dollars for 2.49% of Yi He Machinery Group's shares held by Goldman Sachs, with payment completed at the bank.
"Pleasure working with you!"
"Pleasure working with you!"
Xia Yu and James Richard shook hands and congratulated each other.
"Mr. James, I will rely on you for the next steps!"
Xia Yu reminded again.
"Mr. Yu, please rest assured. We will do our best!"
James Richard reaffirmed
.
"Looking forward to your good news!"
With that, Xia Yu said goodbye to James Richard and left with Wang Qi.
"Boss, you were amazing. You had James Richard spinning around."
Wang Qi said admiringly in the car.
"Ha ha, you played your part well too, and didn't let them find any flaws."
Xia Yu laughed.
Xia Yu's commission acquisition agreement was never intended to succeed. The proposal was merely to lure Goldman Sachs into biting, forcing them to release the tightly held shares and act as his pawn.
Though others believed Xia Yu was aiming to acquire Yi He Machinery Group, Xia Yu had never deceived anyone—he was merely using this opportunity to make a profit and exchange the 30% stake in Yi He Insurance Consulting Group held by Yi He Consortium.
He had received news that nine powerful Chinese tycoons were strong, with several having completed preliminary preparations, and the rest were about to do so.
This meant a collective action was imminent.
When that time comes, with the sky falling and the earth cracking, the Yi He Consortium would be in panic.
Goldman Sachs would also be caught off guard, with less than two days remaining. Even with Goldman Sachs' strength, it would be impossible to tackle Cummins and the two Japanese securities companies in such a short time.
At that point, Xia Yu would secretly complete the exchange with the Keswick family, and the commission acquisition agreement with Goldman Sachs would automatically terminate. The promised 120 Hong Kong dollars would become a mirage.
If Goldman Sachs managed to acquire some shares suddenly, Xia Yu would still honor the agreement, purchasing at 120 Hong Kong dollars per share and then selling them to the Keswick family.
Goldman Sachs might not be able to sell the shares to the Keswick family at 120 Hong Kong dollars. If Xia Yu offered 120 Hong Kong dollars, the Keswick family, not wanting to lose Yi He Machinery Group, would have no choice but to buy.
Of course, if Goldman Sachs ultimately failed to acquire any shares, Xia Yu would offer them a 5 million Hong Kong dollars reward for their efforts, and James Richard would have no grounds for complaint, even expressing gratitude for Xia Yu's generosity.
After all, the agreement with Goldman Sachs did not include a clause prohibiting Xia Yu from selling the shares to the Keswick family.
This loophole was something James Richard and his team subconsciously overlooked, as they were completely fooled into believing Xia Yu truly wanted to acquire Yi He Machinery Group.
Even the 5 million Hong Kong dollars reward for failure, which Xia Yu planned to give after the acquisition failed, would come from Goldman Sachs, making the purchase price effectively 100 Hong Kong dollars per share.
Without the commission acquisition agreement, Goldman Sachs would certainly not be willing to sell Yi He Machinery Group's shares to Xia Yu at 100 Hong Kong dollars per share.
But now, Goldman Sachs had sold the shares at 95 Hong Kong dollars per share and would be entangled in the competition for Yi He Machinery Group's shares, making things even more complicated, preventing the Keswick family from acquiring the stocks from Cummins and the two Japanese securities companies.
In essence, Xia Yu had set a trap for Goldman Sachs, who were now helping him, delaying time, and obstructing the Keswick family from achieving absolute control.
Looking at it this way, Xia Yu's approach with Goldman Sachs was a well-crafted scheme, layer upon layer, selling Goldman Sachs out, while they were counting the money for him, and would have to thank him for his generosity!