Hong Kong 1980: The Savage Era
Chapter 455 457 [He who knows the current affairs is a hero]
Chapter 455 457 [He who knows the current affairs is a hero]
The acquisition of Hang Chang Hong Enterprise Company requires more than HK$60 billion, which is a difficult task even for one of Hong Kong’s richest men like Cheng Yu-tung.
There are only a few people in Hong Kong who can do this. Luo Qihong is one of them, and Li Jiacheng is also one of them.
The original Cheng Yu-tung family had such strength, but unfortunately since Cheng Jia-chun came to power, he has been pursuing the method of expansion through acquisition. Coupled with the changes in the economic environment, Chow Tai Fook, New World Development and Wheelock are all short of funds.
“I heard that you took over Dragonair. Do you want to get a piece of the pie from Swire Group?” Cheng Yutong laughed, his tone showing that he was not optimistic about the company.
Luo Qihong laughed and said, “The Swire Group is too arrogant. They always think they are the only one in the aviation industry and look down on everyone. Of the four major foreign companies in the past, only Swire Group is left unscathed. It has even grown a lot. We should scare them. Otherwise, the Swire Group will still think we can’t do anything to it.”
“That’s true! Jardine Matheson has been much more restrained in recent years. Although it has moved its registration, it has never dared to show its head. The Swire Group has become the last pillar of the British, so it will be hyped up to some extent.” Cheng Yu-tung nodded.
In fact, Luo Qihong took away a lot of opportunities from the Swire Group, and its size has become much smaller than the same period in his previous life. For example, Dehe Plaza in Admiralty was taken away.
That is a 40 square feet plot of land in Central, which can be used to build a commercial building with a floor area of over 400 million square feet. It can be a complete standalone building comparable to Harbour City in Tsim Sha Tsui.
“The British are about to close down, so I want to be more aggressive. Dragonair will continue to lose money, but I can still afford to lose hundreds of millions a year, and I can make it back later.”
Zheng Jiachun said, “You are the only one in Hong Kong who dares to say that losing a few hundred million is nothing. Even Li Chaoren doesn’t dare to say that.”
“Haha!! Brother Chun, you’re too polite. It’s not that Li Chaoren doesn’t dare, but he’s too smart. He won’t do business at a loss. Only I can do it.” Luo Qihong laughed.
“Do you want to sell Dragonair in the future to get a return?” Cheng Yu-tung asked.
Luo Qihong nodded, “That’s right! Hong Kong’s aviation regulations are tailor-made for Cathay Pacific, and no one can change that. So we can only run it like a supermarket, killing one thousand enemies and losing eight hundred of our own, and finally deciding the winner. So I don’t want to get involved in this quagmire for too long, just to teach Taikoo a lesson, or get other benefits.”
“You guys always do things by eating one piece, picking up one piece, and then looking at one piece. I guess you are targeting the supply chain of the airline?” Cheng Yutong laughed.
The reason why Cheng Yutong stood out among so many Chinese businessmen in Hong Kong was naturally because he had extraordinary vision, otherwise how could he seize the opportunity for development.
Luo Qihong gave a thumbs up and said, “Uncle Tong is really amazing. He saw through my plan at a glance. Using Dragonair as a springboard, we can gradually enter the aviation supply chain around the world. The profits here are very lucrative.”
“You have money, so you can slowly burn it out to achieve a result. Others may not have the financial resources and energy.” Cheng Yutong sighed.
“Uncle Tong, I’m here actually for Hengchangxing Enterprise.” Luo Qihong said tentatively.
Hearing this, Zheng Jiachun’s expression changed slightly. “Ah Hong, do you want to get involved?”
Luo Qihong nodded and said, “Uncle Tong, Brother Chun, you should have realized that people like He Shanheng will not allow you to succeed in the acquisition. He Shanheng alone will be a huge obstacle.”
“I had my eyes on Hang Cheong Bank in 89, but it was not the right time then. Now that the Lam Hsiu Fung brothers have the upper hand, and Chow Tai Fook is also in the market, I had no choice but to give up. Now I have the opportunity, so I hope Uncle Tung can help me.”
This cannot be considered as taking advantage of someone’s misfortune, because any discerning person can see that the three companies’ acquisition of Hengchang Bank will definitely fail. If Hengchang Bank was a listed company, there might still be a possibility.
The equity of Hengchangxing Enterprise is concentrated in the hands of 439 shareholders, who are either relatives or friends of Ho Sin-heng, or company employees. Moreover, the price of the acquisition plan is very low and is not in the interests of the shareholders.
Cheng Yutong sighed and said, “I have no choice but to launch a takeover war. The Lin Xiufeng brothers have already offended Ho Shanheng and his men. How can I get away first? This is not in line with morality. I can only bite the bullet and go ahead.”
“It’s true that Hengchangxing Enterprise is a piece of fat meat, but unfortunately I can’t swallow it anymore. But things must be done from beginning to end, and I must get things done. Ah Hong, you can also do your own thing, there is no problem on my side.”
“Thank you, Uncle Tung, for your understanding.” Luo Qihong nodded and said, “If my acquisition is successful, there will be some problems with funding. I plan to sell my interests in the Wan Chai Convention and Exhibition Plaza. I wonder if Uncle Tung is interested?” Upon hearing this, Cheng Yutong’s eyes lit up, and Cheng Jiachun was even more delighted. This was a deal.
“Ah Hong, you don’t have to do this. The acquisition of Hengchang Bank is doomed to fail. If you are not allowed to take it over, someone else will take it over. I know that you have always had sufficient funds. Even if you don’t have enough, there are banks willing to lend you money.”
“Uncle Tong, I already have Central Plaza in Wan Chai, which is enough for me. Selling the Convention and Exhibition Plaza is just a matter of time. How about this, when I have thought it through, I will inform you the first time.” Luo Qihong took a step back and said.
After greeting Cheng Yu-tung, Luo Qihong immediately met with Ho Sin-hang.
He first raised two points: one was to acquire the company at a high price, and the other was to help Hengchang Bank fight off the acquisition war among three companies.
Seeing that the price issue had been resolved, He Shanheng asked Luo Qihong whether he would split up Hengchang Bank.
In fact, many shareholders and old employees of Hengchang Bank did not want Hengchang Bank to disappear, and He Shanheng was a nostalgic person, so this also became a key point in the acquisition.
Luo Qihong stated that he owns Hexiang Trading Company, and the acquisition of Hengchangxing Enterprise is only to strengthen the weaknesses of the trading company. It will not be split up, and it will even enhance Hengchangxing’s strength in the fields of trade and real estate.
After getting Luo Qihong’s assurance, He Shanheng felt relieved, but he still said that he would seek the opinions of the shareholders and asked Luo Qihong to wait for two days.
After successfully conquering He Shanheng, the other shareholders were no longer a problem and the acquisition was a done deal.
So, Luo Qihong started to raise funds.
Hexiang Trading Company has indeed made a lot of money in recent years, with a profit margin of around 10%, making several hundred million yuan each year, but it is still insufficient in the face of such a large acquisition.
Therefore, Luo Qihong plans to use bank loans to resolve this acquisition.
After his personal investment in international oil futures is recovered, he will use the funds to repay the loan. Since the time will not be too long, the interest generated will not be too much.
This news shocked all walks of life in Hong Kong.
Everyone in Hong Kong knows that among the five major families, the Luo Qihong family and the Cheng Yutong family have a very good relationship. They have jointly developed many projects, and the relationship is still developing.
It is really incredible that Luo Qihong helped Ho Shanheng of Hengchang Bank to deal with the Beiyi Company headed by Cheng Yutong during the honeymoon period.
Is it true that there are no eternal friends, only eternal interests?
Luo Qihong quickly held a press conference to clarify the truth of the matter, saying that this was just an acquisition and he was not against anyone. He also informed Uncle Tong in advance that the acquisition would not affect the relationship between them.
However, the outside world did not believe anything he said. In their opinion, things were definitely not as simple as Luo Qihong said. Something must have happened between the two families, or their relationship would definitely become bad in the future.
Luo Qihong was helpless. Seeing that the matter continued to ferment, he stopped paying attention to it and began to concentrate on dealing with the next acquisition case.
This is a huge acquisition case, involving more than HK$60 billion, which is rare in Hong Kong.
Xu Zhandang of Beihai Industrial Company, one of the three acquisition companies, was also ready to retreat. As a veteran in the business world, he knew very well that Cheng Yutong was not prepared to fight to the death. It was impossible for him and the Baishunning Group to defeat Luo Qihong alone. Moreover, the possibility of a successful acquisition was very low in the first place, and now there was no chance of winning.
(End of this chapter)