“Whether I meet Zhaobi or not is none of your business. 3 million yuan for 60% of Chaoyang Real Estate’s shares – are you buying or not?”
Second Madam didn’t respond, but Xia Xiaolan replied without hesitation:
“Yes!”
Xia Xiaolan didn’t even try to negotiate.
That’s how confident women who made money during the Hong Kong stock market crash could be.
Second Madam was somewhat surprised. She had expected Xia Xiaolan to haggle, perhaps offering 2.5 or 2.8 million yuan, but Xia Xiaolan agreed promptly.
Perhaps this was one of Xia Xiaolan’s merits?
Xia Xiaolan certainly had her good qualities, which became more apparent the more time one spent with her.
During these months at the Asia Department Store, Second Madam had almost abandoned her hatred for Xia Xiaolan… but only almost. After witnessing how Xia Xiaolan dealt with others, Second Madam was terrified, believing that after settling matters with several state-owned stores and calming the agitated suppliers, either she or Zhu Suizhou would be next.
After careful consideration, since Zhu Suizhou was only a minor shareholder, acquiring his 16.4% shares wouldn’t do much for Xia Xiaolan – even combined with her existing 18%, it would only amount to 34.4%.
The most dangerous position was her own as the major shareholder.
Second Madam’s decision to sell her shares was not just admitting defeat to Xia Xiaolan, but also ensuring that Xia Xiaolan would continue making money for her as a minor shareholder, and most importantly, securing her peace!
According to Second Madam’s original plan, since she was withdrawing, she might as well sell all her Chaoyang Real Estate shares.
Chaoyang Real Estate’s value came from its holdings in Asia Department Store.
She had valued the Asia Department Store at nearly 100 million and initially planned to ask for 6 million yuan for 80% of Chaoyang Real Estate’s shares. If Xia Xiaolan found it too expensive, she would sell it to others – if mainland buyers couldn’t afford it, perhaps someone in Hong Kong would take it.
However, after meeting with her son Du Zhaobi, and following his advice, Second Madam changed her mind.
While Second Madam wanted to completely sever ties with Xia Xiaolan, Du Zhaobi persuaded her to retain some shares – sell the majority but keep a minority stake, thus avoiding becoming Xia Xiaolan’s target while still receiving annual dividends.
“More importantly, you and your siblings will be safer. Xia Xiaolan’s business is entangled with Du Zhaohuei – if you maintain a business relationship with Xia Xiaolan, Du Zhaohuei won’t touch you all.”
Second Madam could still recall her son Zhaobi’s expression as he said this.
The transfer price of 3 million yuan for 60% of Chaoyang Real Estate’s shares was also set by Du Zhaobi.
The mother-son meeting was brief – given Du Zhaobi’s sentence, visits would be few and short. He only had time to advise Second Madam that if Xia Xiaolan found 3 million yuan too expensive, reducing it by two or three hundred thousand would be acceptable – negotiations were meant to be negotiated after all.
But Xia Xiaolan didn’t even negotiate. Second Madam had barely convinced herself to sell, and while she wasn’t worried about Xia Xiaolan backing out, she feared she might change her mind, so she urged Xia Xiaolan about the transfer agreement.
“For such a significant share transfer, we should naturally notify the other shareholders.”
Xia Xiaolan remained composed, while Second Madam snorted, “Do as you please!”
Xia Xiaolan had Song Minglan postpone the flight by two days.
After Xu Jing left Commercial City, she needed to stay a few more days to wait for Zhu Suizhou’s return from Hainan Island.
Zhu Suizhou had been monitoring the situation in Commercial City closely. Asia Department Store’s turnaround had been too impressive, and even Huang Guoqiang, who had been regularly sending him information, had gone quiet. Zhu Suizhou understood that the tide had turned!
No one wanted him, General Manager Zhu, to return any more – Xia Xiaolan’s personal reputation had reached its peak.
But Zhu Suizhou hadn’t expected the situation to be so serious – despite things going so well, Second Madam wanted to transfer her shares, and to Xia Xiaolan of all people!
Once Xia Xiaolan took over Second Madam’s shares, she would instantly become both the General Manager and major shareholder of Asia Department Store – what role would be left for him?
This forced Zhu Suizhou to return to Commercial City.
Though the share transfer agreement hadn’t been signed yet, and while Zhu Suizhou felt the chances were slim, he still wanted to try to prevent it.
Naturally, he went home first upon arriving in Commercial City. Sheng Xuan had given birth several months ago, and Zhu Suizhou’s visits to Commercial City could be counted on one hand. His daughter wasn’t familiar with his scent and burst into tears when he held her.
Sheng Xuan took the child and handed her to the nanny:
“Second Madam Du is asking 3 million yuan to transfer 60% of Chaoyang Real Estate’s shares to Xia Xiaolan – was she threatened by Xia Xiaolan? Now that Asia Department Store has dealt with several state-owned department stores in Commercial City, Chaoyang Real Estate’s shares are essentially Asia Department Store’s shares – people would pay even more… but Second Madam Du only wants 3 million! Suizhou, if that’s the price, we should consider it.”
Of course, she and Zhu Suizhou didn’t have 3 million.
But they could get it by selling the land in Coconut City.
In April this year, Hainan Island had just been upgraded from a district to a province, and a provincial-level special economic zone was established.
While Sheng Xuan hadn’t noticed any immediate changes in Hainan’s economy after becoming a provincial-level special economic zone, land prices were changing monthly.
From an initial average price of 40-50 thousand yuan per mu to the current average of 140 thousand yuan per mu… The first batch of speculators who bought land in Hainan struck gold – land worth 1 million yuan at purchase had now appreciated to 3 million yuan including interest!
Unfortunately, Zhu Suizhou had bought land too late, missing the announcement of the provincial-level special economic zone.
Not only did he miss the average price of 40-50 thousand yuan per mu, but he had to buy at a premium from others, with an average price above 90 thousand yuan per mu.
Sheng Xuan knew that Zhu Suizhou’s initial 100-plus mu of land had cost him an average of 105 thousand yuan per mu. Even though land prices increased monthly after purchase, Zhu Suizhou hadn’t sold to cash in but instead used these plots as collateral for more bank loans to buy more land.
Through repeated operations like this, Zhu Suizhou now owned nearly 300 mu of land.
If they sold all this land and repaid the bank loans, Zhu Suizhou would still profit seven to eight hundred thousand yuan!
Working at a bank, money to Sheng Xuan was more like a string of numbers in a passbook. Some efficient factories paid more than this amount in annual taxes and profits to the state.
But that was the total benefit created by entire factories with thousands of workers.
For an individual, seven to eight hundred thousand was truly substantial… At least with Sheng Xuan’s current salary, it would take many lifetimes to save that much – only those who ventured into business like Zhu Suizhou had the opportunity to earn such money.
Sheng Xuan suggested it was time to cash out.
Zhu Suizhou remained silent as Sheng Xuan continued her analysis:
“You can get 800 thousand back from Hainan, and if we temporarily keep the initial 2 million yuan loan, plus whatever else I can gather, we could raise 3 million yuan. How about buying that 60% stake in Chaoyang Real Estate from Second Madam Du? Adding your existing 20%, you’d own 80% of Chaoyang Real Estate’s shares, becoming the undisputed controller of Chaoyang Real Estate and Asia Department Store’s primary shareholder. Don’t worry about the bank loans – you can repay them gradually and use Asia Department Store as collateral…”
Abandon Hainan and return to Asia Department Store?
Zhu Suizhou shook his head, “Xuan, you’re thinking too simply. Second Madam is willing to sell so many shares to Xia Xiaolan for 3 million, but if I were the buyer, the price would be higher. Those two have already made their private deal – calling me back is just a formality!”