Chapter 38 (1/2)

The Woman In the Video

“I’m afraid it’s a little difficult for Young Uncle to acquire Fenglei Group. I remember that five years ago, a company wanted to acquire Fenglei Group, but the management of Fenglei adopted a poison

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. That acquisition war lasted for more than two years. In the end, the acquirer had no choice but to give up.” Xing Shu was very close to Cheng Lang. In order to see the words on the computer screen, Xing Shu rested her chin on Cheng Lang’s shoulder and he could feel her breath on his ear as she spoke. This posture was too intimate; it looked like she was hugging him and acting coquettish.

Cheng Lang did not push her away. Instead, he adjusted the computer screen nearer. “Tell me your opinion.”

“Fenglei Group is a family-owned business, and its operating structure is similar to Cheng Corporation Group. However, its management is different from yours, Young Uncle. Cheng Corporation Group has a very diverse portfolio; but Fenglei Group only deals in the perfume business. They are not aggressive in expansion or the pursuit of profits. Fenglei Group’s family holds more than 70% of the shares, and these 70% are scattered among the various members of the family. No one has more than 5% of the shares. Young Uncle, if you want to acquire Fenglei Group, be prepared for a protracted war of at least a year.” Xing Shu’s eyes curved. “What’s more, this protracted war won’t end well. I met a member of their family in college. Ever since the last acquisition, most of the heirs of Fenglei Group have locked down 50% of the company’s shares through a very strict custody of shares agreement. This 50% of the shares—by their design—are prohibited from being sold to outsiders without the approval of more than 75% of the family members. Thus, no one can buy Fenglei Group under this framework.”

This was a secret of Fenglei Group, privy only to their family members. Cheng Lang looked at Xing Shu with surprise.

Xing Shu’s face was flushed as she straightened up. “That family member got drunk at a gathering and blurted it out. No one took it seriously, but I remembered.”

Cheng Lang turned off the computer and aborted the acquisition of Fenglei Group.

“Young Uncle, you trust me that much?” Xing Shu was a little surprised.

Cheng Lang replied,”I don’t doubt you.”