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Chapter Three Hundred and Twenty-Seven Share Repurchase

(Thanks to book friend Sn for the monthly ticket support.)

On the morning of the second day after Zhao Dongsheng and Yamashita Yamashita Yamashita Yamashita Yama management issued an announcement, saying that the prices of Zhao Dongsheng and Yamashita Yamashita Yamashita Yamashita had seriously underestimated Dopps' market value and were a malicious acquisition. They condemned Zhao Dongsheng and Yamashita Yamashita Yamashita's robbery behavior, and called on Dopps' shareholders to resist the offer.

Zhao Dongsheng and Yamashita Yamashita Yama would definitely not sit idly by the announcement. They also issued a statement in the afternoon, listing the mistakes in the decision-making of Dopps' management in the past two years and the difficulties faced by Dopps, indicating that a 10% premium acquisition with cash is a very reasonable price.

At the same time, another news that was very unfavorable to Dopps' management came. Half a year ago, the families of the victims of the mine accident held a press conference and filed a huge claim against Dopps on the grounds that there were security loopholes in the mine management, which caused Dopps' share price to drop by 2%.

It can be foreseeable that within the twenty days of the announcement of the offer acquisition, Zhao Dongsheng, Yamashita Yamashita Yamatsu and Dopps' management will play strategies, scheming and verbal battles. In order to have an impact on shareholders, both parties will definitely attack each other in the media and create public opinion influence.

Compared with the Dorps management who was in a hurry, Zhao Dongsheng and Yamashita Yamashita Yama's preparations were more complete and sufficient. Not only did they hire a famous local law firm in St. Paul to be responsible for legal affairs, but they also hired Chase Bank on Wall Street in New York as financial advisors. These two institutions have rich acquisition experience.

Afterwards, Zhao Dongsheng and Yamashita Yasuhito began to formally contact the shareholders of the Dopps board of directors, persuading them to accept the offer from the two because the acquisition price is very reasonable.

Just as Zhao Dongsheng and Yamashita Yasuhito were busy acquiring Dorps affairs in St. Paul, New York, at night, in a grand villa.

On the balcony on the second floor, a man in a suit and ties was standing on the fence with his back on his back, looking at the bright moon in the sky while savoring the red wine in his wine glass.

"Young Master, it has been arranged." Not long after, a middle-aged man with a scar on his face came to the balcony and whispered to the man in a suit.

"I don't want him to leave St. Paul." The man in the suit said in a cold voice.

"Young Master, don't worry, 'Black Fire' is one of the three top killer organizations in the world. As long as they take action, the target will definitely not be able to escape death." The middle-aged man with scarfaced face replied in a deep voice, looking very confident.

"If he dies, tell me the good news immediately!" The man in the suit drank the red wine in his glass, then let go, and the glass fell on the cold ground downstairs, smashing it into pieces, causing the two bodyguards patrolling not far away to see it.

Since Dopps invested heavily in a Canadian mine this year, there is only more than 50 million US dollars of liquidity on the books, and it is impossible to effectively repurchase stocks in the market effectively. Due to the difficulties currently facing Dopps, the bank has expressed concerns about Dopps' financial situation, so the conditions for lending from the bank will be very harsh.

The funds on hand of management staff such as Ancheney are limited, and their wealth is mainly reflected in the value of stocks. The actual funds they have are only a few hundred million US dollars, which can be a drop in the bucket.

Therefore, after weighing all aspects of the factors, Dopps management prepared to sell the iron ore located in Caracas in order to raise funds for effective stock repurchase.

Caracas Iron Mine is one of Dopps' most important assets, and it can obtain about $1 billion in funds, which is enough to buy back nearly 30% of Dopps' stock at a higher price than the quotes from Zhao Dongsheng and Yamashita Yamashita Yama. In this way, the share of Dopps's management in Dopps' management will increase accordingly, forming an overwhelming advantage.

In fact, the Dopps management did this not to really buy back 30% of the stock, because shareholders do not necessarily sell the stocks they have. Usually, they do this just a strategy, wanting to raise enough funds to repel Zhao Dongsheng and Yamashita Yamashita Yama:

Since the price of the acquisition of stocks by the Dopps management is higher than that of Zhao Dongsheng and Yamashita Katsuyi, this has had a huge impact on the acquisition of Zhao Dongsheng and Yamashita Katsuyi, which has made the two no price advantage and stabilized the people's hearts of Dopps shareholders, thus making it impossible for them to gain the support of shareholders.

The so-called stock repurchase refers to the listed company's investment in repurchasing the company's shares circulating on the market, and then canceling them or using them as "treasury stocks" that are not popular outside for retaining them.

Generally speaking, if the repurchased shares are cancelled and treated as treasury shares, the total share capital of the listed company will decrease, and the value of each share will increase accordingly, which is an important means for listed companies to increase and stabilize their stock prices.

For example, Ancheney owns 15.68% of Dopps' shares. After repurchasing 30% of the shares, the number of shares circulating in the foreign market became 70%, which means that Ancheney's shares increased to 22.4%, which invisibly increased the proportion of shares it occupied.

However, Dopps used selling the Caracas mine to raise funds for repurchasing stocks, rather than using Dopps' working capital to repurchase stocks, which is undoubtedly a desperate move.

This method not only increases the cash on hand of Dopps' management and increases its ability to buy back shares, but more importantly, it sells an important asset of Dopps. Even if Zhao Dongsheng and Yamashita Yasuhito successfully acquire Dopps, then Dopps, which lost the Caracas mine, is much less valuable than before.

It can be said that Dopps's management did this this time with the intention of "intimidating" Zhao Dongsheng and Yamashita Katsuyi, who wanted to force the two to retreat.

In any case, as soon as this news came out, Brazil's mining companies were immediately excited. Many mining companies were salivating about the iron ore of Caracas in Dopps, so they tried to raise funds and prepared to take advantage of the battle between Dopps and Zhao Dongsheng and Yamashita Yasuhito to swallow the iron ore of Caracas and enjoy the benefits of the fisherman.

In particular, Barker was actively engaged in contact with Dopps' management, and relied on his wealth and courage to act like he was determined to win.

"Zhao, do you think Ancheney will sell the iron ore in Caracas?" After learning the news, Yamashita Yamashita went to the Warwick Group branch office in Sao Paulo, Brazil to find Zhao Dongsheng and asked with a smile. He did not expect Ancheney to come up with such a sinister move.

"If the iron ore in Caracas is sold, then the market value of Dopps will definitely shrink greatly. Although Ancheney's equity ratio in Dopps has increased, its actual value has decreased. Isn't it worth it to do this? He can take the position of chairman of Dopps, and he will never be so arrogant." Zhao Dongsheng thought for a while, looked up at Yamashita Katsuya, "I think he has done this in two ways. One is to deter us and make us give up the acquisition..."

"The other one is to take the opportunity to make a big profit, and at the same time, it has increased the equity ratio in Dopps, which can kill two birds with one stone." Before Zhao Dongsheng finished speaking, Yamashita Katsuyoshi laughed. He thought that Ancheney's repurchase of stocks was not that simple.

"Let's wait and see now. Is Anchenette scaring us or really want to make a fortune?" Zhao Dongsheng smiled and looked at Kang Yi from the bottom of the mountain. If Kang Yi from the bottom of the mountain really wanted to make a fortune, he would definitely sell the iron ore in Caracas within the twenty-day public announcement period.

On the fifteenth day of the tender offer, Dopps management heard a news that they had negotiated with a foreign investment company to sell the Caracas iron ore for $1 billion, and three days later asked the board of directors to vote on the transaction.

Barker then expressed his regret because they had contacted Dopps' management and proposed to buy the Caracas iron ore for a high price of $1.5 billion, but unfortunately they were rejected by Dopps' management.

The reason for Dopps' management is very simple. Barkger's purchase is a "hostile purchase". If the Caragas iron ore is sold to Barkger, it will undoubtedly increase Barkger's strength and compress Dopps' market further at that time, which is not conducive to Dopps' future development.

As for other mining companies in Brazil, although some of them had bids of more than $1 billion, they were rejected by Dopps management for the same reason.

In fact, it is not just the UK investment company that quoted Dopps management, but several investment companies from Europe and the United States that have also made more than $1 billion, and the highest bid is said to have even reached $1.6 billion.

Unfortunately, Dopps management rejected the offer of those investment companies for various reasons and finally selected this one in the UK because the investment company in the UK promised Dopps management to buy back the Caracas iron ore for US$1.05 billion within one year.

In this way, the intention of the Dopps management is very clear. They do not really want to sell the Caracas iron ore, but are equivalent to borrowing from the British investment company using the Caracas iron ore as collateral. The interest rate is 5%, which is very preferential and lower than the loan interest rate of the local bank in St. Paul, in order to solve the problem of insufficient funds.

Why did that British investment company give Dopps management such preferential loan interest rates? According to a deputy general manager of the investment company, they are optimistic about Dopps' future development and decided to take this opportunity to form a strategic partnership with it, which caused Dopps' stock to rise by 6%.

Zhao Dongsheng and Yamashita Yamashita Yama checked the overseas investment company. The investment company was headquartered in the UK and had a history of more than 50 years. The company's boss was a British. As for whether there was any trick in buying Caracas this time, the two of them could not find out for a while because it involved commercial secrets.

Although there is no evidence that the investment company has insider trading in the purchase of the Caracas iron ore, and the lending relationship is very clear, and the reasons of both parties are reasonable, Zhao Dongsheng and Yamashita Yamashita Yama were still keenly aware that there was a shady story in this transaction, because the two really couldn't see how good the future of Dopps was: under the attack of Bucker and other Buck Mining companies, Dopps' situation would only become more and more difficult.

To this end, Zhao Dongsheng and Yamashita Yamashita were preparing to figure out Anchenette's plan. Of course, it was not convenient for the two to come forward, so naturally someone helped them test Anchenette.
Chapter completed!
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