Chapter 266 Taking the initiative
While Su Cheng was having a private meeting with Jodie Foster, Zhang Qizheng was not idle at this time.
After he arrived at the hotel, he directly made appointments with two shareholders of Namei Entertainment Company who were interested in selling their equity through his friends.
The headquarters of Namei Entertainment is actually on Hollywood Boulevard, not far from the hotel where they live.
These two shareholders both hold directorships in Namei Entertainment Company and often visit the company.
Today, they all happen to be at the company.
So, it is not difficult for Zhang Qizheng to make an appointment with them.
After he informed the two shareholders of the agreed location through an intermediary, twenty minutes later, the three met at the very famous Musso&Frank Grill restaurant in Hollywood.
The menu of this restaurant has hardly changed since it opened in 1919. It can be said to be an old Hollywood restaurant. More importantly, it has excellent private rooms. Talk about cooperation in this restaurant. It's a very good idea.
"Mr. Wollaston, Mr. Wayne, welcome." Zhang Qizheng had already arrived at the restaurant's private room in advance. When he saw two middle-aged foreigners coming in, he stood up with a smile on his face. Get up and shake hands with them one by one.
The friend had already faxed the information of these two shareholders to Zhang Qizheng, including their photos, so Zhang Qizheng recognized them at a glance.
"Are you Mr. Zhang? Mr. Wade has told us your conditions. US$1.28 per share is still too low. We hope that the price will be at least US$1.4 so that we can Accept it!" As soon as he sat down, Mr. Wollaston couldn't wait to tell the price they had colluded with.
Mr. Wade is Zhang Qizheng’s friend from Beautiful Country. They have had many financial cooperations, so he is a very trustworthy partner.
It was through Mr. Wade that Sioux City had the opportunity to eat up the shares of these two shareholders.
The total market value of Namei Entertainment was originally around US$110 million.
The traders of Tianyuan Company led by Zhang Qizheng were discovered by the chairman of their company during the later stage of absorbing shares of Namei Entertainment Company. Therefore, in order to prevent theft, the chairman also repurchased the stocks on the market.
However, there were not many stocks on the market, so the chairman only recovered 2.63% of the stocks.
Originally, the chairman of Namei Entertainment held 21.21%. Adding this 2.63%, the shareholding reached 23.84%, and there was no movement in the market, so he did not continue to collect shares. , because he felt that these shares were enough to stabilize his position in the company.
In those days, the total market value of Namei Entertainment Company was once raised to 140 million US dollars.
However, as no one continued to absorb the shares, and investors continued to place orders, the total market value of Namei Entertainment quickly fell to around US$100 million again.
After all, ordinary listed companies like Namei Entertainment are not considered high-quality stocks in the entertainment industry, and there are no bookmakers to speculate on them.
Those ordinary investors are more targeting stocks such as DreamWorks, The Walt Disney Company, 20th Century Fox Film Company, Columbia Pictures, Sony Pictures Entertainment, and Universal Pictures , Warner Bros. Entertainment, Paramount Pictures and other movie giants, as well as top record companies like RCAJIVE Interscope Records.
For a company like Namei Entertainment, which has few top stars, investors naturally feel that it has insufficient potential.
The conditions Zhang Qizheng talked about, US$1.28 per share, were actually based on the total market value of Namei Entertainment Company of US$100 million.
As for the $1.4 per share Mr. Wollaston said, it was exactly the original market price.
The two of them hold a total of 10.83% of their shares. If you want to sell them by placing orders, it is simply impossible, because so many stocks will lower the share price of Namei Entertainment Company infinitely. Unless they encounter capital like Tianyuan Investment Company secretly acquiring shares of Namei Entertainment, it will be difficult for them to make a move.
Just like a few days ago, the stock price of Namei Entertainment was absorbed by the chairman of the company and raised a lot. These two people also took the opportunity to sell some stocks, otherwise they would hold shares, there will be more.
So, after mutual discussion, the two shareholders of Namei Entertainment felt that they would be happy to sell it at a unit price of US$1.4 per share.
After all, in this situation where the stock market is very uncertain, they have long wanted to escape.
In particular, Namei Entertainment's financial statements for the first half of this year were not very good.
Not only was there no profit, it was even a loss of millions of dollars.
For a company like them with an annual turnover of more than hundreds of millions of dollars, a loss of several million dollars is nothing, after all, they have cash flow.
However, this is enough to show that the business situation of Namei Entertainment Company is not good!
Coupled with the oil crisis that is about to break out now, they are even more convinced that selling stocks and holding cash is the best choice.
After all, they experienced the 1973 oil crisis.
Nowadays, it is so similar to back then.
They are cautious and have to prepare in advance in case there is a financial crisis.
Although, the government is now using various methods to stimulate the stock market and has introduced many policies to give the stock market signs of recovery.
But they feel that these are only temporary and cannot last long.
Therefore, when someone contacted them, the two decided to take advantage of this opportunity to sell all their shares.
“No hurry, you two need something to eat, order it first.” Zhang Qizheng said with a smile.
Mr. Wollaston and Mr. Wayne can only call the waiter over first and order the dinner they want to eat.
Then, there was silence for a while.
It wasn't until the dishes were all served and the door to the private room was closed tightly again that the three of them continued to chat.
"Our boss feels that the shares of Namei Entertainment are not worth the price, because we have investigated the specific situation of Namei Entertainment. Throughout last year, your investment in movies failed a lot, which caused your company to The annual profit is only more than one million US dollars, and in the first half of this year, it has directly lost more than three million US dollars. You should know this better than me.
Namei Entertainment Company. The reason why the stock can maintain such a high price is because the trading volume of Namei Entertainment's stock is not large, and your company occasionally uses buybacks to increase the total market value. Therefore, the current total market value of 100 million US dollars, I think it’s too high!” Zhang Qizheng said bluntly!
Negotiation, if you want to take the initiative, you must have all the information.
So when Zhang Qi was in New York, he had already asked someone to secretly investigate the specific situation of Namei Entertainment Company. Only in this way can he gain an advantage in negotiations.
(End of this chapter)