v3 Chapter 770： Take a stake in IBM (1/2)

That night, Arthur Blank gathered with Bernie Marcus and told him what had happened in the morning, and the two had a deep conversation.

The specific content is not important.

Importantly, two days later, Xia Yu received a call from Arthur Blank, asking him to go to the Home Depot Company again.

Xia Yu immediately took people there and met Arthur Blank and Bernie Marcus at Home Depot.

”Mr. Blank, Mr. Marcus, hello!”

”Mr. Xia, welcome to you!”

After a while, everyone sat in a small conference room, sitting opposite each other, as if they were in a negotiating posture.

Arthur Blank and Bernie Marcus looked at each other. The former said to Xia Yu: ”Mr. Xia, I invite you this time because of the day before yesterday. I have discussed with Bernie about the North Star. We initially decided to accept the capital company’s investment.”

”The specific result can only be decided after negotiation.”

Xia Yu nodded slightly and said, ”Of course, cooperation can only be done if both parties are satisfied.”

”So, does it officially start now?”

”Okay, then let's start!”

Arthur Blank smiled and nodded.

Then Shuangyi started the negotiation process.

Private companies that are not listed are good for this. When making any decision, there are very few steps and extremely high efficiency.

Two days ago, Xia Yu had already given a preliminary plan, and Arthur Blank had also specifically considered it, so the negotiation is very quick now.

The whole talk was intermittent and lasted until noon the next day, when the contract was officially signed.

First of all, Arthur Blank and Bernie Marcus support Polaris Capital's acquisition of more than 100 other minority shareholders.

The second point is that the Home Depot Company has valued US$18 million and received US$10 million in financing from Polaris Capital.

The third point is that Polaris Capital has loaned 25 million US dollars to Home Depot.

The Home Depot company has already mortgaged a total of five million US dollars at this time, so the net worth is only 13 million US dollars.

Even after receiving tens of millions of dollars in financing from Polaris Capital, the net worth is only 23 million dollars.

The $25 million loan exceeds the assets of the Home Depot Company. If it were placed in any financial institution in the world, it would not agree to this loan.

However, Xia Yu knew the future of Home Depot, so he could hardly agree to this condition of Arthur Blank and won the latter's favor.

The last one is a condition put forward by Arthur Blank after Xia Yu disagrees with the AB share reform.

That is, as long as the Home Depot Company does not lose money for three consecutive years, and Arthur Blank and Bernie Marcus do not violate the law or intentionally harm the interests of the company, Polaris Capital cannot force the two to be expelled unless they voluntarily resign.

This condition is a self-insurance clause specially set up. If there is no such clause, Arthur Blank is not at ease.

After all, the total equity of the two of them is only 52%. If they raise 10 million US dollars, the total equity of the two of them is only 33.43%, which is very dangerous.

If Polaris Capital acquires the equity of all other shareholders of Home Depot, plus the equity obtained through financing, the shareholding ratio will reach 66.57%, which is a 0.1% equity difference. Absolute holdings can dominate everything at Home Depot in one word, even including the removal of Arthur Blanc from the CEO position.