Chapter 94 – Successfully becoming a shareholder
It was impossible for Feng Yu to accept these unreasonable clauses set by the City Government. If it was a foreign investor, the City Government might not be doing this, but Feng Yu was a local from Longjiang Province.
The original value of the Machinery Factory was only worth slightly more than 10 million Rubles, but it was suddenly inflated to 27 million Rubles. Part of it was because of the City Government injecting capital into it. But the fixed assets were overvalued.
By keeping quiet, Feng Yu was already giving in to the City government. If it weren’t for maintaining a good impression and future collaborations with the government, Feng Yu would have pointed it out. The City Government was treating him as a sucker!
The Machinery Factory wanted to dilute Feng Yu’s shares, but Feng Yu was also thinking about the same thing. He will slowly let this factory become part of his conglomerate!
“Director Feng, please give us your opinions.” Li Mingde turned to Feng Xingtai. Since he can’t handle the young one, then he will try to persuade the older Feng.
Although Feng Xingtai does not really understand what was going on, he still trusts his son entirely. He shook his head and said that he had no other opinions as long as the City Government agree to Feng Yu’s terms.
The officials from the agriculture department and some leaders from the Machinery Factory tried to persuade Feng Yu. In the end, they started pressurizing him by using the National interest.
Feng Yu just ignored them. This was also not some military products. There were only agricultural machines. They also stand to gain from it. Furthermore, Feng Yu had already made some concessions. If not, he would bundle the machines and technologies together to negotiate with them. He would ask for at least 20% shares!
Zhang Ruiqiang saw the negotiations were not going well and both parties were about to start arguing. He immediately stepped in.
“Mr. Feng, we had come to an agreement yesterday, but why today become like this?”
“You ask me? You should be asking them. We don’t talk about something else. Just these production machines. I had just sold these machines to the factory for 2.4 million Rubles, and now they valued these machines at 4 million Rubles and claimed that these machines were worth this amount. One look and you should know who is in the wrong. If I can import a set of machines, then I can import another set. I can easily find 10 interested parties that want to work with me. That’s because I am able to import the most advanced machines and I have the most advanced technologies!”
“Li Mingde, you all are in the wrong. You all should seriously consider about Mr. Feng’s clauses.” Zhang Ruiqiang hinted.
He already knew that there was something fishy with the documents. He was also doing this to these things to get the most benefits for the city. But he did not expect the Machinery Factory to be so lousy. Inflating the value of the fixed assets and letting the other party find out at first glance, a bunch of useless people!
During the meetings at the City Government, they were instructed to build good relationships with Feng Yu. If he could get his hands on Soviet Union’s advanced machines and technologies, that means he is competent. If Bing City could get more of these machines and technologies, then it was only a matter of time for Bing City to restore its former glory of being the Nation’s industrial base.
“Son, what’s happening? You are saying that these people are trying to cheat us?” Feng Xingtai pulled Feng Yu to a side and asked softly. These leaders should not be cheating money from the people.
“Don’t worry. I had intentionally let them cheat me. Without the support of the Motor Factory, City Government or even the Provincial Government, it will also be hard for us to survive. Rest assured. We will not make any losses.”
Now Kirilenko was having difficulties getting these machines and technologies. The risk was also huge. But that was because of the low prices Kirilenko offered, and some factories were not easy to negotiate.
It’s only one year, and the Soviet Union’s economy will be at its lowest. More factories will shut down, and those who are daring will start to sell off the machines. When that happens, Feng Yu would be able to import more advanced machines and technologies. By then, Feng Yu will not give in to these people. He will use those machines and technologies to be the major shareholder and take control of the factory.
The current leaders of the Machinery Factory were too conservative. With them leading, the Machinery Factory’s development would not be good. Although Feng Yu was not an expert in this, he was confident to lead the factory.
Li Mingde and the rest got together to discuss. This younger Director Feng was not someone easy to deal with, and the older Director Feng just kept quiet and let the younger Director Feng make all the decisions. Why not just agree to their terms?
But the 3 conditions set by Feng Yu were making them uneasy. They had wanted to give Feng Xingtai the title of an assistant manager or some union chief. Anyway, it was just a title, and no authority comes along with it. The one with the final say would still be Li Mingde.
Unfortunately for them, Feng Yu did not fall for their tricks and even pointed out the issue of inflated fixed assets’ value. If they still do not accept Feng Yu’s conditions, Feng Yu might request to reexamine the value of the factory’s assets.
“Fine, we will amend the contract as you requested. Then can you sign now?”
“You amend the contract and let me look first.”
Feng Yu slowly scrutinized the amended contract. This time, Li Mingde did not try any tricks. He only changed the terms Feng Yu pointed out and did not add in other clauses.
“Dad, you can sign it now.”
Feng Xingtai sat at the center table and signed the contract together with Zhang Ruiqiang. There was a SASAC (State-owned Assets Supervision and Administration Commission of the State Council) seal on the contract. This type of contract, Li Mingde was still not qualified to sign!
Feng Xingtai’s facial expression was very stiff. There were people from the TV station recording the contract signing ceremony. He was about to go on TV?
Feng Yu hide in a corner. His father can be on TV and become a high-profile entrepreneur. But if he was named as a successful young entrepreneur, then he won’t be able to attend school.
“For the celebration, let’s have lunch at the Motor Factory canteen.” Li Mingde waved his hands and said loudly.
Feng Yu shook his head when he saw the food and alcohol on the table. There were only 12 people, including Zhang Ruiqiang, Feng Yu, and Feng Xingtai, at this lunch and there were more than 20 dishes on the table.
There was also Maotai (Chinese wine). These were at least more than 10 RMB per bottle, and there were 6 bottles. This sumptuous meal was comparable to the meals eaten by the rich in Feng Yu’s previous life.
Feng Yu casually asked: “Director Li, how much does this meal cost?”
“Not much. We will reimburse from the factory. What are you worrying?” Li Mingde said, smiling happily.
“That’s what I am worried about. There are serious problems about reimbursement from the factory. The reimbursements of some factory’s leaders were higher than those leaders in the City Government. They still reimburse for their holidays and receptions. These are all factory funds, and I am paying for part of it. These funds cannot be spent this way. This is the reason why I want to watch over the finances.” Feng Yu said seriously.
Everyone’s face changed. Feng Xingtai was still holding on to his cup, but he soon noticed everyone putting down their cups and staring at his son. What? They try to bully my son? They will have to pass through me first. Feng Xingtai opened his eyes wide and choose one of them and stared back!
“Director Feng, your worries are a bit unnecessarily. We are having such a good lunch was only to celebrate you becoming a shareholder. Let’s not talk about these. Here, have some vegetables and wine.” Li Mingde said loudly, changing the subject.
Feng Yu did not carry on talking about this. Concepts cannot be changed in a day or two. Feng Yu wants to be the major shareholder of the factory within two years so he can fire anyone who misused the company’s funds this way!
Author’s notes:
PS: Machinery Factory is very important, but the City’s support is even more critical. That’s why Feng Yu seems to be taken advantaged off, but this is only temporarily. He will earn everything back soon. I had a bottle of Maotai from the 80’s, but in the year 2000, I dropped the bottle! I was sad for a very long time!