Chapter 456 458 [Cooperation]

Seeing that there was no hope of acquiring Hengchangxing Enterprise, Beiyi Company sold its 20% stake to Hexiang Trading Company at a price of HK$330 per share, involving a capital of HK$13.89 billion.

Since the acquisition has been made public, the non-listed public company must still comply with Hong Kong’s acquisition and merger codes, which means that when a consortium acquires more than 35% of a company’s equity, it must make a full offer in cash at the highest price paid for the company’s shares within 6 months.

The total funds involved in the comprehensive acquisition are 69.3 billion yuan, but Hengchangxing Enterprise still has cash and stocks worth 11 billion Hong Kong dollars on its books, with a net value of more than 90 billion Hong Kong dollars, and a Hengchang Building in Central, worth about 10 billion Hong Kong dollars.

As for the loan, ever since Luo Qihong spread the news, banks have been rushing to lend money to Hexiang Trading Company, including the “quasi-central bank” HSBC.

Luo Qihong then quickly raised HK$60 billion in funds for Hexiang Trading Company, acquired Hengchangxing Enterprise, and further expanded the scale of the trading company.

Once the company is reorganized, Hexiang Trading Company will become the number one trading company in Hong Kong, and will have a huge gap with the second-ranked Li & Fung Trading Company. It will create a super large enterprise with an annual profit of more than HK$20 billion.

The citizens of Hong Kong were not in the mood to pay attention to the news at this time, because the Hang Seng Index had fallen to 3 points in just a few trading days, showing a rapid downward trend, causing investors to wail.

Although Luo Qihong used his personal funds to buy over ten billion stocks, nearly half of them were blue chip stocks and some were stocks of large companies. There was not much room for decline, so he was still somewhat comfortable.

According to his judgment, the plunge caused by this war will not last too long. At most, the Hang Seng Index will rebound by the end of the year and the stock market will continue to rise.

Of course, this is not the best time to buy, you need to wait.

Luo Qihong transferred Vice President Li Gukun from Hexiang Trading Company to Hengchangxing Enterprise to serve as General Manager, responsible for the overall management of the company.

Since Hengchangxing Enterprise has always been in the hands of several nearly centenarians, they have rarely appeared in recent years. Therefore, in order to facilitate management, many employee benefits have been cancelled, such as travel, dances, and even parties.

“You have to resume the company’s normal operations as soon as possible, increase profits, and restore employee benefits as soon as possible,” said Luo Qihong.

“Yes, I will deal with it as soon as possible. There are several senior staff in the company’s management who are about to reach retirement age, which has some impact on the management of the company. Should I sideline them and promote new people?” Li Gukun asked.

As a multi-billion dollar enterprise, its annual profit is less than HK$10 billion, which is really unacceptable. This is all a problem of decision-making by the management.

“Okay, explain it to them clearly. If they are willing to let go, it’s nothing more than a few months’ extra salary.” Luo Qihong didn’t want to leave a reputation as mean and ungrateful.

If a company wants to develop, it is right to promote new people, but it cannot prevent retired employees from receiving their pensions.

“You should contact Qian Yu more often, try to integrate Hexiang Trading Company’s business in Hong Kong and the mainland, and then clarify the business scope of the two companies.” Luo Qihong further explained.

“Boss, I suggest that Hexiang Trading Company be merged into Hengchangxing Enterprise. This will further save labor costs and increase work efficiency.” Li Gukun asked tentatively. Of course, he had his own selfish motives. This would further expand his authority.

You should know that the combined asset value of the two companies will exceed HK$150 billion, which can be ranked among the top 15 blue-chip stocks in Hong Kong.

Luo Qihong waved his hand and said, “We can’t rush this matter. It’s not easy to reverse the son and become the mother.”

In fact, Luo Qihong has not yet found a suitable candidate to take over the huge enterprise after the merger. Li Gukun can only be a core management member, but can never be the only one.

In September, Bai Jinyan, the mistress of the Luo Qihong family, gave birth to her second child, still a son, named Luo Zhile.

According to Luo Qihong’s expectation, Luo Zhile will take over the current trading company when he grows up. If he doesn’t have the ability, he can only be a rich second generation who lives a life of idleness and waiting for death.

The Hong Kong media did not report much about this, because he was the second son of the eldest son, and he would not inherit much of the family business, far less than the eldest son. Luo Qihong was naturally happy to see this happen, so as to avoid a group of reporters surrounding him and asking questions, which was really troublesome.

Siu On Real Estate Company.

Although the group has been established, Luo Qihong himself still likes to come to Zhaoan Real Estate Company to take charge. It may be due to years of habit, or it may be because he attaches too much importance to real estate.

After all, real estate still has more than ten years of development space and has not yet reached its peak.

Chen Zhilong came to the office and reported, “Boss, the land in Yau Yat Tsuen, Sham Shui Po, Kowloon is going to be auctioned. Will you participate?”

Luo Qihong instantly remembered the specific information of the land. The land has an area of ​​20 square feet. According to the plot ratio of 7.8, it can be built into a floor area of ​​150 million square feet.

This is a completely large-scale housing estate project, not much worse than the City Garden in North Point. It can be called a small garden city and a luxury residential community. The profits can be imagined.

Zhaoan Real Estate Company has made more than 1 billion yuan in profits from the first and second phases of Lantian Ligang City, which can be used for this project.

The property prices in Hong Kong are not falling much now, and the rich have become smarter and know that this is an opportunity, making the chances of acquiring large properties rare.

“I won’t go. Just take this project back.” Luo Qihong waved his hand.

The project is not small, but Chen Zhilong and others already have enough qualifications. There is no need to deny opportunities to their subordinates. Wouldn’t he be exhausted if he had to do everything himself?

“Okay, I know.”

The average price of land in Kowloon is HK$2600 per square foot. However, Sham Shui Po is a densely populated area and is a luxury residential land, so a premium of more than 50% is possible.

Therefore, Luo Qihong did not set a price cap for them.

Not long after, Huang Tingfang came to visit with Huang Zhixiang.

“Mr. Huang, Mr. Huang, we haven’t seen each other for some time.” Luo Qihong stood up to greet the two of them. After all, they were all wealthy people of the same level.

“Mr. Luo, you have been very successful recently. You even acquired Hengchangxing Enterprise. We really can’t keep up.” Huang Tingfang said with a smile.

The Sun Hung Kai Properties Group is similar to Siu On Properties. Even though the Huang family has a lot of assets in Singapore, they are not as much as the Lo Chi-hung family, or even less than half of the Lo Chi-hung family. How dare they be so arrogant?

“Mr. Huang, you are so polite. Please take a seat.”

If you can’t compete, you have to win over others. This is the rule of the business world, and Huang Ting’s visit to these top wealthy people is no exception.

After chatting for a while, Huang Tingfang told the purpose of his visit, “Mr. Luo, I came here this time to cooperate with you. You should have heard about the land auction in Sham Shui Po. We at Sino Group are very optimistic about the real estate market in Hong Kong.”

“You are a real estate tycoon in Hong Kong. If we compete with each other, the only one who will benefit is the Hong Kong government. So do you think we can cooperate?”

(End of this chapter)