17: Chapter 17 Huaxin Investment acquires 100% controlling stake

One week later, at the Transsion Technology headquarters conference room in Guangzhou.

The atmosphere was eerily quiet. On both sides of the long conference table sat the few remaining veteran shareholders of the company, who collectively held 10% of the shares.

On the other side sat the representatives from Huaxin Investment, led by Huang Tianya. He was in his mid-thirties, wearing a tailored dark suit and small glasses, looking very imposing.

Thick investment agreements were laid out in front of him, and he was flanked by two lawyers and a financial advisor, showcasing his professionalism.

Shen Fei sat at the head of the table, expressionless, as if this investment had nothing to do with him.

"Everyone, I believe you have all read this investment proposal clearly," Huang Tianya began, his voice gentle yet carrying an undeniable authority.

"After conducting an investigation, Huaxin Investment believes that Transsion Technology's innovative model in the Africa market has great potential. We are offering a valuation of 400 million in Chinese currency, with plans to invest 280 million, taking a 70% stake."

There were gasps in the conference room. 70%? This wasn't an investment; this was an acquisition.

Zhao Zhigang, one of the original shareholders holding a 2% stake, couldn't help but speak up: "Mr. Shen, didn't we... didn't we decide not to sell the company? Also, this valuation... could there be a trap? We were still losing money not long ago; when did we become so valuable?"

"Mr. Zhao, valuation looks at the future," Huang Tianya interrupted with a smile. "Transsion's first-month sales in Nigeria are expected to exceed 200,000 units, with single-month revenue exceeding 6 million USD.

At this rate, the annualized revenue could reach 500 million in Chinese currency.

Although the profit margin is a bit low, our valuation of 400 million is already quite conservative."

Another shareholder, Li Ning, who held 3%, said quietly: "Mr. Shen already holds 90%. We, as a group, only have 10%. If 70% is sold off, then our shares as small shareholders..."

Although he didn't have much say originally, he still didn't want his shares to be diluted further.

"Mr. Li, rest assured." Huang Tianya picked up the teacup on the table and took a sip: "Mr. Shen is willing to dilute his shares proportionally. We are investing, not acquiring, so everyone's relative proportions will not change.

In other words, after financing, Mr. Shen's shareholding will drop to 27%. Although the shares in your hands will decrease, the relative proportion remains unchanged, and they have even appreciated in value.

That is to say, although your shares have decreased, they are worth more."

Everyone was calculating. If Shen Fei diluted down to 27%, then Huaxin would be the undisputed major shareholder with undisputed voting rights, and these old-timers would become outsiders.

"Oh, right." Huang Tianya seemed to suddenly remember something: "Mr. Shen will personally transfer 2% of his shares to China Star Investment, bringing Huaxin Investment's total shareholding to 72%."

Everyone understood at this moment; this was a naked capital operation, but no one opposed it.

Firstly, the money offered was simply too much. According to this valuation, their previously worthless shares were now worth dozens of times more.

For example, the 3% stake Li Ning held, which might only have sold for a few hundred thousand a month ago, was now worth 12 million.

Secondly, the matter involving Vice President Zhang Mingyuan had already spread. This former vice president was being investigated for misappropriation of funds and commercial bribery. It was said the amount involved was significant, and he would likely be away for a decade or so.

Everyone knew this was Shen Fei's doing.

As for the third point... Huaxin Investment was clearly Shen Fei's people.

Huang Tianya? Huaxin Investment? An unheard-of investor suddenly popping up to invest 280 million in Transsion, and Shen Fei easily giving up absolute controlling power...

This play was so poorly acted that they didn't even bother with surface appearances.

"I agree." Zhao Zhigang was the first to raise his hand. He had figured it out: following Shen Fei meant he could still drink some soup; if he opposed, he feared he wouldn't even have a bowl to hold.

"I also agree." Li Ning followed, raising his hand.

The remaining three small shareholders exchanged glances and raised their hands one after another.

"Unanimously passed." Shen Fei finally spoke, his expression unchanged.

"Huaxin Investment is a major international capital firm. With their support, our Transsion will enter a stage of rapid development and needs to become more formalized.

As the saying goes, 'nothing can be accomplished without norms or standards.' I, Shen Fei, will not treat everyone unfairly, and I hope you can keep up..."

"Of course, if you can't keep up, then... I'm very sorry. After all, we are going international in the future, and we must be rigorous in all aspects to succeed. This is no longer anyone's family property, but a large international enterprise.

These 200+ million in funds—100 million will be used for expansion in Africa. While they haven't reacted yet, we must seize the market.

50 million will be used for R&D of next-generation products, 30 million for domestic channel construction, and 30 million to supplement working capital."

Shen Fei looked at the shareholders again. Although they were former contributors, they were now dragging Transsion down...

"People get old, and the era belongs to you young people.

Mr. Huang, I wonder if Huaxin is still willing to acquire shares? A big group like yours shouldn't mind my small amount.

If possible, I'd like to go home and retire..."

Once these words were spoken, the meeting room fell silent again.

Li Ning and the other three immediately widened their eyes, looking at Zhao Zhigang. Clearly, Transsion Technology was about to enter a period of high-speed development, and having these shares meant they could lie back and retire later. Why...

But soon, they all sighed in unison...

One wrong step, every step wrong.

They shouldn't have listened to Vice President Zhang Mingyuan's instigation back then; they should have stood up and strongly opposed it like Chen Hai.

"I also want to retire..." another small shareholder said.

Although Li Ning was a bit unwilling, in the face of this general trend, he also nodded silently.

Huang Tianya seemed to have been prepared long ago and handed each of the 5 of them a share transfer agreement.

They were former contributors after all, so this share transfer agreement was based on a valuation of 450 million for their acquisition... which could be considered the greatest concession Shen Fei made.

They expressed their gratitude and readily signed their names. Thus, Shen Fei completed 100% control of Transsion Technology!

The shareholders left in a rush, no one daring to say another word.

When only two people remained in the conference room, Huang Tianya took off his professional mask and smiled bitterly: "Mr. Shen, this act of yours... even I feel it's a bit bullying."

"Bullying?"

Shen Fei walked to the window, watching the few people leave: "Back then, they started the business with my father. When the company was in difficulty, they didn't think about how to overcome the crisis together, but rather how to sell the company and make a profit for themselves.

Vice President Zhang Mingyuan even wanted to sell my father's life work for 200 million to a competitor."

He turned around: "Tianya, in the investment market, remember not to be a saint..."

Huang Tianya, a top investment expert, had impeccable technical skills and strength. He certainly wouldn't make these small mistakes, but he just felt some emotion...

"Understood. Then next... we will continue to 'hunt' in the United States market to provide funds for the company."

"Hmm, besides that..." Shen Fei pulled up a strategic map. "The Africa region is still too chaotic. I need you to set up offshore companies in the Cayman Islands, then design a multi-layer holding structure to ensure our money can come back..."