The all-cash acquisition proposed by Su Yi and the two conditions of not changing FX International's internal business structure and personnel framework directly hit the shareholders' pain points.
This is because FX International urgently needs to pay off debts owed to various traders and urgently needs to replenish the company's cash flow.
Therefore, cash is in urgent short supply.
If Huayi Capital, led by Su Yi, can acquire the company through an all-cash acquisition, it can quickly replenish FX International's cash flow, enabling the company to quickly overcome its difficulties.
And not changing the company's business structure and personnel framework.
This means that after the shareholders hand over their shares, they can still continue to hold company positions and exercise corresponding powers.
"We naturally trust Mr. Su's words." After pondering for a while, Stuart continued with a smile, "We have no objections to these two conditions proposed by Su Yi. It's just regarding the specifics of other acquisition details, I think... we still need further discussion and negotiation."
"Please speak freely, everyone," Su Yi said with a smile.
Seeing that Su Yi was a straightforward person, Stuart pondered for a moment and couldn't help but express his true thoughts: "Since we agreed to negotiate with you, Mr. Su, we definitely welcome your Huayi Capital taking over our FX International.
It's just that this enterprise was built by all of us through more than twenty years of hard work. Everyone has some emotional attachment to the company. What we hope for is to welcome Mr. Su's Huayi Capital to invest in us, but we will not divest all of our shares."
Upon hearing Stuart's words, Su Yi's expression clearly changed, and he stated frankly and unceremoniously: "Mr. Stuart, before the meeting began, I remember I made it clear in advance: if we cannot control FX International, if you are unwilling to hand over the controlling stake of FX International, then all investment premises will be invalid. We will not buy a company we cannot control. Moreover, I also hope Mr. Stuart understands that our Huayi Capital is not a charity."
If he couldn't gain control of FX International and make it an important part of Huayi Capital's overseas expansion, then he wouldn't invest a single penny in this company already on the verge of bankruptcy.
This is because, without control, investing any amount of money would be meaningless.
"I think Mr. Su has misunderstood," Stuart said, "I said that we shareholders do not object to Huayi Capital, led by Mr. Su, taking control of the group. We simply hope to work together with Mr. Su in the future, and we wish to retain some shares to continue growing with the company."
Stuart knew that if this dragged on further, with the further deterioration of FX International's operating conditions and cash flow, once the capital chain completely breaks and debt pressure erupts concentratively. Then, amidst the rapid decline in the fair value of the group's assets, it is highly likely that the group will soon become insolvent.
By then, their shares will very likely become worthless.
At that time, if they wanted to sell shares and introduce new controlling shareholders to rescue the group, it would probably be very, very difficult.
Therefore, when the Huayi Capital team, led by Su Yi, came all the way and showed great investment interest in their FX International, he would certainly not refuse lightly.
However, he wanted to leave a way out for himself and for the original shareholders of FX International.
At the same time, he also saw Su Yi's future development potential and did not want to sell all his shares at a cheap price when the group was in crisis.
Of course, the shareholders had already discussed this before today's meeting.
After listening to Stuart, Su Yi looked around the meeting room at the expressions of the FX International shareholders.
He knew that getting everyone to completely give up their shares to achieve a wholly-owned acquisition and 100% controlling stake would probably not be so easy.
After thinking for a moment, he said, "Since the shareholders do not want to sell all of their shares, then the acquisition procedures and conditions to be negotiated later will likely be more complex. At the same time, I also represent Huayi Capital in stating that if our initiated acquisition process cannot secure an equity stake of over 75%, then we will completely abandon this round of acquisition."
After long deliberation, Su Yi felt that giving up 100% control was acceptable.
But the bottom line must be to obtain absolute controlling rights.
This way, in important development decisions for the FX International Group, he will not be constrained by the board of directors and the general meeting of shareholders, and will have absolute veto power.
Moreover, giving up 100% control and only acquiring 75% of the shares also helps them save cash expenditure, allowing them to retain a portion of cash to swiftly resolve FX International's internal capital chain crisis after the acquisition.
"This... we probably need to discuss this," Stuart responded.
Su Yi nodded slightly and replied, "Alright, let's adjourn temporarily. How about we talk again in an hour?"
Stuart nodded, and then, with mutual agreement from both parties, chose to take a one-hour break and privately gathered other group shareholders for a discussion.
"If Huayi Capital gains absolute control, then in the future... we will completely lose our say within the group," said Noel, a major shareholder of FX International and a member of the group's board of directors. "I don't think we can agree to this condition."
"Not agree?" Patrick, also a major shareholder of the group, chuckled and said, "Everyone heard clearly what Mr. Su of Huayi Capital said just now. If their institution cannot complete the acquisition of a 75% absolute controlling stake, then all conditions are off the table."
"Isaac, did you contact the other prospective acquiring institutions last night?" Stuart turned to Isaac. "What did they say after you informed them about Huayi Capital's move?"
Isaac replied, "Aside from Gain Capital International, the other Wall Street capital institutions did not give a clear reply."
"What did our old rival, Gain Capital International, say?" Stuart continued to ask.
Isaac replied, "They said they could raise the acquisition price to 1.75 billion US dollars, but it must be in the form of a private placement of shares, requiring us, FX International, to merge with Gain Capital International. As for solving our group's internal capital chain problem, they said they were willing to support us with a short-term loan of 300 million US dollars."
"Heh, private placement of shares." Stuart let out a light laugh and scoffed, "What's the difference between this and getting something for nothing? They talk about full sincerity, but in reality, there's no sincerity at all. If we really merge, our company might die even faster, right?"
"It seems we have no choice," Patrick sighed softly.
"Indeed!" Stuart smiled helplessly and said, "How about this, Noel, Patrick, we each keep 5% of the shares, and sell all the remaining shares to Huayi Capital?"
"It seems this is the only way," Patrick said.
"That depends on how much Mr. Su can actually offer, and how he plans to resolve our company's internal difficulties after the acquisition," Noel said, turning his gaze back to Stuart. He continued, "Chairman, I think we should still continue to contact the other prospective acquirers to try, and at the same time, we can continue to recruit new investors to increase our bargaining chips. Only then can we relatively obtain an ideal selling price from Huayi Capital."
(End of Chapter)