CHAPTER 337: CHAPTER 337: 2% JINDONG SHARES

The favor Chen Yiyang has is quite valuable.

In France, under the request of the legislators, the AI model Lucy has to meet the public soon.

If it still turns out to be so dumb, it would mean declaring that the French Government’s investment of billions of Euros has been wasted.

The contractor who messed up this job is likely to lay low for a while during the public opinion storm.

So Chen Yiyang believes there is absolutely no problem using this to trade with Tengxu.

However, the series of film and TV investment rights offered by Tengxu as a return lacks sincerity.

Given the bizarre state of the domestic film industry, if you end up with a bunch of terrible movies, you’d end up losing money.

Therefore, Chen Yiyang wants something with actual value in return.

Wu Changxun confirmed that Chen Yiyang indeed has connections to help Tengxu solve its problems, and hurried back to the hotel for a video conference with other executives to discuss what to offer Chen Yiyang in return.

Just one day later, Wu Changxun came to find Chen Yiyang again.

"If you can really help Tengxu solve the problems in France, Tengxu is willing to sell you 2% of the Jindong shopping platform’s shares for 2 billion."

"Really?" Chen Yiyang was a bit surprised.

"Really." Wu Changxun nodded.

"I remember Tengxu holds 17% of Jindong’s shares, right?"

"That’s right."

The Jindong shopping platform was founded by the famous domestic entrepreneur Liu Qiangxi and quickly developed into a platform that can compete with Taobao.

Moreover, Jindong is the only domestic platform that mainly sells self-operated digital electronic products, and it has its own courier team.

Based on Jindong’s current valuation, 2% of Jindong’s shares are worth about 5 billion.

Tengxu offering to sell it to him at half the price is like giving away money.

If it were anyone else, Chen Yiyang might have thought they were just handing him money.

But Tengxu, such a big company, isn’t foolish, why would they suddenly offer such a benefit?

Unless.

Chen Yiyang immediately realized and asked, "Is Tengxu planning to reduce its holdings of Jindong?"

"Not reducing, Tengxu doesn’t plan to hold any shares of Jindong anymore," Wu Changxun straightforwardly informed Chen Yiyang of a big news.

"Tengxu holds a total of 17% of Jindong’s shares, 15% of which will be directly distributed as dividends to all of Tengxu’s shareholders.

This plan is expected to save Tengxu 78 billion in dividend funds. You can also understand it as Tengxu distributing 15% of Jindong’s shares as 78 billion in cash to its shareholders.

Initially, Tengxu planned to continue holding 2% of Jindong’s shares. But if you can help Tengxu solve the problems in France, Tengxu can sell you this 2% of shares for 2 billion.

billion.

This is roughly equivalent to Chen Yiyang’s entire current worth.

But Tengxu, with a single stroke, can decide to distribute 78 billion in dividends to its shareholders.

The difference is indeed significant.

But, why is Tengxu doing this?

Although the rise of Pinduoduo has changed the landscape of domestic e-commerce platforms, Jindong still maintains its own status.

Pinduoduo poses more of a threat to Taobao.

Why would Tengxu suddenly want to sell all of its Jindong shares?

"Mainly because the company’s strategic direction will be adjusted," Wu Changxun said, "Tengxu previously entered the e-commerce sector and invested in Jindong.

Over the years, this move hasn’t brought much benefit to Tengxu. Instead, Tengxu is better off withdrawing from the e-commerce sector and abandoning the conflicts with other e-commerce platforms.

Tengxu can afford not to earn from e-commerce platforms, but other major e-commerce platforms are very eager for Tengxu’s two major social media platforms to drive traffic to their platforms."

In simpler terms, what Wu Changxun is saying is that in this e-commerce gold mine, Tengxu, in the past, wanted to dig in itself because it couldn’t resist the allure, hiring people to do so.

As a result, they didn’t make much money and had conflicts with other mining teams.

Then Tengxu suddenly realized that it is actually a seller of mining tools. Rather than continuing to have conflicts with other mining teams, they might as well exit the mining field and profit by selling tools to all the mining teams.

Though it’s uncertain if this is Tengxu’s real intention.

But the proposal offered by Tengxu is quite tempting.

In reality, although Tengxu assesses the 15% shares in its hands to be worth 78 billion,

If they were to sell these shares for real cash, the price might be even higher.

Chen Yiyang could buy 2% of Jindong’s shares for 2 billion, then gradually sell them on the market, eventually selling them for 5 billion is not impossible.

This is practically giving away money.

Is there such luck where pies fall from the sky?

Chen Yiyang became rather hesitant.

"Rest assured, there’s really no trick in this deal." Noticing Chen Yiyang’s hesitation, Wu Changxun couldn’t help but laugh and said, "Tencent just happens to want to sell this share, selling to anyone is still selling. Besides, Tengxu also wants to invest in your Yiyang Automobile, so giving you some benefit to foster good relations isn’t unusual, is it?"

"Give me a few days to consider." Chen Yiyang still wasn’t completely reassured.

After seeing off Wu Changxun, Chen Yiyang pondered over it alone in the hotel for quite a while but couldn’t come to a conclusion.

So he found Zhang Yuling to discuss it, hoping she could offer some advice.

Although Zhang Yuling isn’t exactly a legitimate businessperson, she is well-informed and accustomed to the tricks wealthy individuals use to deceive others.

So Chen Yiyang hoped that Zhang Yuling could provide some reference advice.

"This kind of transaction involves too high a level, I rarely hear about it, let alone help you analyze it."

Zhang Yuling also spoke honestly. After thinking for a while, she opened her mouth and said, "Actually, to truly confirm if there’s any issue with this transaction, you only need to ask one person."

"Who?" Chen Yiyang asked.

"That would naturally be the founder of Jindong, Liu Qiangxi himself," Zhang Yuling replied.

Chen Yiyang had never interacted with Liu Qiangxi before.

Although Zhang Yuling had become a well-known broker in the Imperial Capital, her dealings were mainly with mid-level power holders.

She didn’t have contact information for someone like Liu Qiangxi, who is at the top level.

But fortunately, with Chen Yiyang’s wealth, as long as he pushed a bit, he could get anyone’s contact information.

Chen Yiyang happened to know Lei Jun, and Lei Jun’s Rice Company is a close partner of Jindong.

So Chen Yiyang specifically called Lei Jun, hoping to get Liu Qiangxi’s contact information.

Lei Jun was very straightforward and said, "How about this, I happen to be in the Imperial Capital recently, I’ll host, and invite you and Liu Qiangxi to gather together."