v2 Chapter 604： Consortium formation (1/2)

This night, Xia Yu took Li Qian and Li Wuming to Elena’s house. Henry, who had not been notified by his sister, suddenly saw Xia Yu and others appearing, especially when he saw Li Wuming, he jumped excitedly. Then excitedly pulled Li Wuming to show the results of his efforts.

The next day, Gerald Pat learned that Xia Yu had come to London, and made a special call to Xia Yu, and took the initiative to invite Xia Yu to eat at his house. With such an attitude, Xia Yu was satisfied and he gladly agreed to go.

Later, Xia Yu came to the headquarters of Huashang Bank, and Wu Hongyi specially invited him to tell him the specific process of the formation of the Chinese business consortium.

”Tuk Tuk!”

Entering the Huashang Bank, Xia Yu went straight to the door of Wu Hongyi's office. Because the office was not closed, he saw Wu Hongyi who was immersed in work at a glance. He knocked on the door and then walked in.

Wu Hongyi blinked his sour eyes and raised his head to see Xia Yu approaching with a smile. He was refreshed and stood up happily and walked towards Xia Yu.

”Xia Yu, long time no see!”

”Hongyi, I haven't seen you for more than a month. Seeing you have experienced a lot of vicissitudes and pressure?”

Wu Hongyi smiled bitterly, sighed and said, ”It is indeed a lot of pressure, but the reason is that I am less experienced. Compared to the beginning, it is better now.”

”Thank you!”

Xia Yu patted his arm and said sincerely.

Wu Hongyi smiled freely and said: ”The gain is far greater than the effort, and I will enjoy it no matter how hard it is.”

”Haha...”

”Come on, sit down first, look at my documents.”

”it is good!”

Xia Yu sat on the sofa and saw Wu Hongyi took out the key to open the safe in the corner, took out a thick pile of documents from it, and walked over and placed it on the small round table next to the coffee table.

”Let's take a look first. This is a total of nine equity contracts of the corresponding companies that have been replaced after more than a month.”

After that, Wu Hongyi made tea on his own.

Xia Yu was not polite, picked up the top contract and looked at it.

”Shusha...”

After looking at the documents, Xia Yu kept thinking and analyzing in his mind, and occasionally paused to drink tea.

Wu Hongyi didn't bother and looked at Xia Yu quietly, while sorting out his thoughts, preparing to talk to Xia Yu about the details of the preparation of the Chinese business consortium later.

Nine companies, large and small, are distributed in various industries. There is only one in one industry. These nine companies will be the core companies of the Chinese business consortium in the future.

Wu Hongyi didn't pay any money, but simply replaced these companies with shares of China Commercial Bank.

Soon after Xia Yu left London, Huashang Bank completed the privatization process. The equity ratio was 64%. The Wu family occupies six floors and Xia Yu occupies four floors. The total equity of Huashang Bank is 10 million shares.

The stocks exchanged with other companies belong to the additional issuance of Huashang Bank. This model is conducive to Wu Jia and Xia Yu's control of Huashang Bank, and it is also more convenient to exchange shares.

Every company that wants to join must take out the company's equity with a value higher than the stock offered by Huashang Bank without paying a penny, so as to prevent Wu Jia and Xia Yu from losing money.

For example, assuming that 500,000 shares are added, the total equity of Huashang Bank becomes 10.5 million shares, Wujia’s equity ratio will drop from 60% to 57.1%, and Xia Yu’s equity ratio will change from 60% to 57.1%. 40% dropped to 38.09%, and new shareholders accounted for 4.76%.

Originally, the 4.76% of the equity belonged to the Wu family and Xia Yu, but now it has become a new shareholder. It stands to reason that the new shareholder should give the Wu family and Xia Yu money, but now there is no need to give money, only the equity replacement .

After the equity replacement, it belongs to the three shareholders, that is, part of the interests belong to the new shareholders.

Therefore, the new shareholders must take out shares of the corresponding company whose value is higher than the 4.76% equity of Huashang Bank, so as to ensure that the interests of Wu Jia and Xia Yu are not violated.

After the second company replaces its shares, and then issues new shares, the ratio of the original three shareholders' equity will fall again.

In this way, as each company's equity is replaced, the total value of Huashang Bank will rise by a notch.

Moreover, after each company replaces its equity, the condition is that the liquidity goes to the account of Huashang Bank, which makes the assets of Huashang Bank continue to rise and the value continues to rise.