My Age of Investment

   Chapter 1186 is a brother, let's carry it together

  Pengcheng, in a private club.

   Bonima and Liu Zhiping were sitting on the sofa, sighing and discussing the confused way forward.

   "Boney, the stocks we pledged last year have hit the warning line several times. If we hadn't filled up our positions in time every time, these stocks would have been liquidated by investment banks long ago!

   Today, the world is experiencing a financial crisis, the stock market is weak, and our game business has been slow to open.

  If the stock price cannot be recovered as soon as possible, both you and I may face unbearable things! "

   Bonima gave a "hmm" and didn't speak, but his already gloomy face sank a bit.

   At the end of last year, Liu Zhiping, together with him and the other four tigers in the Penguin Five Tiger Generals, bought shares at a high price of HK$4.567 billion from Envision Capital at that time.

   Then, they really became the penguin five tigers, plus Liu Zhiping, called the six tigers.

Tiger! It's the tiger in the Northeast dialect!

   Before, he didn't quite believe that it was Xia Jingxing who specially set them up, because he didn't think Xia Jingxing was so powerful, how could he predict whether he would succeed?

   Some time ago, he saw Xia Jingxing hammer Li's house and knock out the crowd. He had to admit the reality that he and others were indeed being tricked.

   It must have been Xia Jingxing who judged that a financial crisis was about to break out, and sold them all while the stock price was still high.

   When negotiating the sale of shares, Xia Jingxing performed various performances, coercion and inducements, and trained them to be like grandsons.

   Yet they dared not to speak out, and endured great shame just to eat that batch of stock.

   Looking at it now, it was not Tang monk meat that was eaten, but dichlorvos!

   Whenever he thinks of this, he can't help but want to give himself two big mouths, was he cheap at that time! Hurry up and send money to others!

   Afterwards, he was complacent and thought that this investment would make Xia Jingxing regret it in the future!

   Now he understands that the clown is actually me!

   Nearly 4.6 billion Hong Kong dollars of stock, as the CEO and largest individual shareholder, he took the lead in subscribing 2.4 billion Hong Kong dollars.

   Since they didn’t have that much cash on hand, they found an investment bank to pledge a batch of Penguin shares.

   He pledged at a 50% discount to the stock price of HK$60/share at that time, and the pledge price was HK$30/share. He personally pledged a total of 80 million shares. .

  According to the agreement signed on the stock-pledged loan, the warning line is 45 Hong Kong dollars, and the closing line is 39 Hong Kong dollars.

   It is absolutely impossible for investment banks to wait until the stock price drops to HK$30 before closing the position, because during the process of closing the position, large sell orders will definitely cause the stock price to fall further, resulting in losses.

   Therefore, Bonima has suffered a lot in the past six months.

   Often receive calls: I, Goldman Sachs, transfer the stock here!

  In this way, Bonima embarked on the same road of no return as the major shareholders of many A-share listed companies.

  Penguin's stock pledge rate has been increasing, and it can be seen that retail investors in Hong Kong stocks are sweating for the CEO of Bonima.

   Now that Penguin’s share price has fallen to around HK$20, Goldman Sachs and other investment banks are still saving face, or in other words, they will continue to give 50% of the pledged value.

   Therefore, Bonima pledged a total of 240 million shares, accounting for 83.13% of all his personal holdings.

When   Penguin went public in 2004, Bonima held a 14.43% stake in the company.

   Since he has been reducing his holdings of Penguin shares to improve his life, by the end of 2007, his holdings of Penguin shares had dropped to 13.68%.

   After many years, this well-known figure has become a few percent, which is a momentary success compared to Jack Ma, who holds a few percent in Ali.

   At the same time, Penguin is issuing additional shares every year to motivate employees, and the total share capital has changed from 1.68 billion shares at the time of listing to 1.818 billion shares today.

   In addition to the 40 million shares received from Xia Jingxing, Pony Horse now holds a total of 288.7 million shares of Penguin, accounting for 15.88% of the total share capital of Penguin.

  Ponima holds less than 290 million shares of Penguin in total, but has pledged a total of 240 million shares. The cumulative pledge rate of major shareholders has reached 83.13%, which is not far from the 90% pledge rate of major shareholders, which is the most panic among A-share shareholders.

   This kind of company that felt like it was going to run away further scare the panicked Hong Kong Island investors, which contributed to the decline of Penguin’s share price.

   This kind of mortal hatred that cuts off people's wealth, how could Bonima let go.

  Thinking of this, Bonima picked up the whisky on the table, raised his head and drank it.

   Then, his face flushed, he said viciously: "Have you calculated, how much the stock price falls, we will liquidate your position?"

Liu Zhiping also picked up his wine glass and took a sip before replying with a dignified expression: "Penguin's stock price falls to HK$13, and a new round of replenishment will be carried out. If it falls below HK$10.8, all positions will be liquidated. Control may be lost.

   Of course, after closing the position and paying off the stock-pledged loan, there may be some residue left, but it is definitely not much, at most only one or two of the ten.

   It is more likely that there is nothing left, and at the same time, the debt will be collected by the investment bank. "

Bonima clenched his back molars. If such an extreme situation really occurs, he, the Penguin founder, has become a bare commander with one or two shares, or even zero shares, then the Penguin may have to change of weather.

   "If it really blows up, is there any way to continue to control the penguins?"

   Bonima was like a gambler who lost most of his chips at the poker table, looking at Liu Zhiping with red eyes.

   "Well, then there is only one way to go about restructuring. Like the chrysanthemum factory next door, the founder can control the company with one or two points of shareholding.

   Or change to the same shares with different rights, Class A shares, 1 share corresponds to 1 vote; Class B shares, 1 share corresponds to 50 votes or 100 votes. "

   Hearing that the number of voting rights was five or ten times more than the 10 votes of the regular B shares, Bonima raised his teeth.

He silently lit a cigarette, and after puffing in the air, his mind gradually calmed down and asked, "Do you think MIH, IDG, Legend Capital, Hony Capital, Li Yikai and other shareholders will support the restructuring? ?"

   "It's a bit difficult! And the Hong Kong stock market does not support the AB stock design now, so we can only choose to delist and then go to the United States to list again."

   Liu Zhiping stared at the pony horse whose forehead lines were twisted into a Sichuan shape, hesitating for a few seconds, and finally told the truth.

  The control of Penguin today comes from the nomination rights of CEO and directors owned by the founder of Ponima.

   On the eve of Penguin's listing, the management had reached an agreement with the major shareholder MIH: the company's CEO was nominated by the founder, and the CFO was nominated by the major shareholder MIH. As for the members of the board of directors, the number of nominees from the founder's side and the number of nominees from the major shareholder MIH should be equal.

   Today's Penguin, Ponima nominated himself and Liu Zhiping, and occupied 2 executive director seats;

  MIH nominated 2 non-executive directors;

   There are also 5 independent non-executive directors from outside;

   There are 9 directors in total.

The most critical design for Bonima to control the board of directors is not only the ratio of board members, but also that the Penguin founding team has made a further agreement with MIH: the company's general meeting of shareholders or the board of directors must vote at the general meeting of shareholders or the board of directors. It is valid only if 75% of the shareholders or directors present at the meeting vote, rather than a simple majority.

   When many companies vote at the general meeting of shareholders, simple motions can be passed with more than 50% approval, and special motions can be passed by two-thirds, while Penguin has increased it to 75%, which makes it easier for the founding shareholders to exercise their veto power.

   For example, Bonima and Liu Zhiping already occupy 2 seats on the board of directors, and they can pull one from the 5 independent non-executive directors, and they have reached one-third of the opposition.

   However, if the stock pledge blows up and the management’s shareholding shrinks sharply, it will be difficult to form a total shareholding of more than 25%.

When   Penguin was listed, the total shareholding of the management was as high as 37.5%, and it remained above 25% after Bonima and his brothers improved their lives and reduced their holdings.

   But this time they stepped on the trap that Xia Jingxing set for them, once the worst situation occurs, it is very likely that they will only have a few points left to hold shares.

   In this case, when the general meeting of shareholders is held again, even if the management and the founding team are collectively opposed, other shareholders can reach 75% of the vote, bypassing them to pass some important resolutions.

   This means that the originally well-designed system may have a huge loophole due to the stock pledge of Penguin Six Tigers being liquidated.

   Fortunately, Bonima and Liu Zhiping are alert enough to have discovered this loophole and are now thinking about how to make up for it.

   Liu Zhiping suddenly patted Bonima on the shoulder: "Don't think so much, the shareholders will be here soon.

   If you have any difficulties and pressures, don't carry them alone, we will face them together! "

   Seeing the healing smile on Liu Zhiping's face and his encouraging eyes, Bonima was moved.

  No matter what the road ahead is, there are still brothers who are willing to carry it with me.

   Not long after, Bonima and Liu Zhiping finally came to a group of shareholders.

   In a large group of people, in addition to the representatives sent by the old shareholder MIH, there are also a large group of new shareholders who bought the shares sold by Vision Capital, including Li Yikai, Xiong Xiaoge, Yan Yan, Zhu Linan, and Zhao Linghuan.

   Li Yikai and Xiong Xiaoge are considered to be the second entry into the palace. Both of them and the institutions behind them have chosen to sell all the stocks before Penguin goes public.

   The reunion after many years, don't have the usual feeling in your heart!

   (end of this chapter)