Reborn as a Hong Kong Tycoon

Chapter 270 Huge Acquisition Plan
A few days later, in the office of Lin Baicheng of Hutchison Whampoa.

Wei Li, Cheng Yufeng, Xia Boyin and Wei Peter were all here, and the five held a small high-level meeting.

After a few days of investigation and screening, Wei Li has already listed some goals, and what is going to be discussed today is how much money is more appropriate to spend.

Many of the targets selected by Wei Li and the others are familiar to Lin Baicheng, such as Golden Gate Building, Ocean Center, Emerald Pearl Plaza, International Building, etc. These are relatively well-known buildings and squares in Hong Kong, either located in Central or Causeway Bay , Tsim Sha Tsui and other economically developed places with a large number of people.

The buildings and squares in these places are bought, as long as the premium is not too high, they will definitely make a lot of money in a few years.

This acquisition will be made with bank loans, which require interest, but the bank interest will definitely not outpace the increase in Hong Kong's housing prices, so as long as the premium is not too outrageous, there is no possibility of loss at all.

Wei Li said aloud: "Mr. Lin, the company currently only has 5 million Hong Kong dollars in debt. Considering the company's current market value, the debt ratio is quite low. As long as it is willing, the company can even borrow billions of Hong Kong dollars. However, considering the company In the future, real estate development will also require bank loans, so the acquisition of squares and buildings should not cost too much money.”

Wei Peter said: "Although the company's development is mainly based on the real estate industry and retail industry, the business of trade, shipyards, and quarries will also use loans, so the loan amount should be reserved for other businesses."

"The earlier the acquisition of the square and the building, the better. It is best to complete it within the year. This is a one-time acquisition. After the goal is achieved, there will be no further acquisitions in the short term. Therefore, since it is going to be done, let it be bold and set up a loan upper limit for acquisitions."

"The loan limit does not exceed how much, so we need to discuss it carefully."

After hearing what the two said, Lin Baicheng looked at the four of them and said.

After some discussions among the five people, they decided that the loan should not exceed 30 billion Hong Kong dollars.With Hutchison Whampoa's current market capitalization of more than 200 billion Hong Kong dollars, although a loan of 30 billion Hong Kong dollars is not low, it is not outrageous and can be obtained.

Of course, it is one thing to be able to get a loan, but if the loan not only fails to bring profits to the company, but instead causes losses and has to pay loan interest every year, it will definitely have a considerable impact on the company's development.

Lin Baicheng asked: "Wei Li, how are you going to handle this loan of no more than 30 billion Hong Kong dollars?"

"Boss Lin, I think so."

Wei Li already had a draft in his mind, so he said: "Most of the squares and buildings we are going to acquire are in the hands of British investors. For example, the Golden Gate Building is the property of Jardine, and the Ocean Center is the property of Wheelock. I plan to use HSBC and The relationship between Standard Chartered initiates the acquisition of related companies, and which bank can help the company acquire the target, and the acquisition funds will be borrowed from that bank."

"This is a loan of about 30 billion Hong Kong dollars. The annual interest alone is more than million Hong Kong dollars. The interest of the loan is about million Hong Kong dollars in three years. Whoever wants to eat this piece of meat must work hard, otherwise he will just watch Let others eat the meat."

"Your idea is good. With the assistance of HSBC and Standard Chartered, it is indeed easier to acquire targets."

Lin Baicheng's eyes lit up when he heard the words, and he couldn't help but praise.HSBC and Standard Chartered are the largest banks in Hong Kong. The British capital has dealt with these two banks a lot, and they must sell the face of these two banks. It is indeed more likely to complete the acquisition with their help.

Wei Li continued: "There is another advantage in this way, that is, we don't need to make a loan first, otherwise we will lose a lot if the funds are loaned but the target cannot be acquired. But if this is the case now, how much acquisition funds are needed?" No matter how much you borrow, there will be no waste.”

Lin Baicheng immediately said: "Very well, let's do as you said, and leave this matter to Wei Li and you are responsible."

"Mr. Lin, don't worry, I will handle this matter beautifully."

Wei Li solemnly said that this involves an investment of billions of Hong Kong dollars, and he will definitely personally participate in the operation to get the job done so as not to damage the company's interests.The damage to the company's interests indirectly equals to the damage to his interests, so how could he not care about it.

"Leave the matter to you, I can rest assured."

Lin Baicheng nodded. After all, this involves an investment of up to 30 billion Hong Kong dollars, so it is impossible for him not to ask.This kind of large-scale acquisition costs at least hundreds of millions of Hong Kong dollars for a building, and it cannot take effect without Lin Baicheng's signature. He did not give Wei Li such high authority.

After leaving.

Wei Li immediately called a staff meeting and arranged for people to conduct a more detailed investigation of the target square and building.For example, what is the flow of people at the target site, what is the approximate annual profit, what is the current valuation, whether the company it belongs to is likely to be sold, etc., all of which must be thoroughly investigated.

It took a few days for Hutchison Whampoa to complete the investigation, and then Wei Li went to visit Shen Congee of HSBC and explained the purpose of his visit.

Because he wanted HSBC and Standard Chartered to help, Wei Li didn't hide anything, and explained everything directly.

"HSBC will definitely assist in this matter!"

After hearing this, Shen Porridge immediately said that even if HSBC could only take half of the maximum loan acquisition of 30 billion Hong Kong dollars, it would still have an annual interest of more than million Hong Kong dollars, let alone a three-year loan.Besides, if you can help acquire more properties, you will get more loans.

As for the issue of the loan amount, it is not a problem at all. With Hutchison Whampoa's current debts, even if it directly gives Hutchison Whampoa a loan of 30 billion Hong Kong dollars, it will be fine.

In addition, HSBC is still the major shareholder of Hutchison Whampoa, holding 15% of the shares of Hutchison Whampoa. If Hutchison Whampoa can make money from this acquisition, it will be a good thing for HSBC, which is equivalent to earning money at both ends.

If Shen Porridge refuses this kind of good deed, then he is not worthy to be the head class of HSBC.

"Then thank you, Taiban!"

Wei Li was not surprised when he saw this, if he had been sitting in Shen Porridge's seat, he would have made the same decision.

After leaving HSBC, Wei Li went to Standard Chartered and told Huo Yaohua what he had said to Shen Congee.

In the same way, Huo Yaohua immediately agreed, saying that he would assist Hutchison Whampoa to acquire the property he was interested in.

The maximum loan of 30 billion Hong Kong dollars is not a small amount for HSBC and Standard Chartered, and it is a huge performance, so both parties want to win it.

Of course, as Hutchison Whampoa, which is really going to acquire, it is impossible to do nothing. It is also Hutchison Whampoa who is actually negotiating with the target company, and HSBC and Standard Chartered are only assisting.

Wei Li, who left Standard Chartered and returned to Hutchison Whampoa, set up a negotiation team, screened suitable targets, and prepared to make door-to-door contacts.

(End of this chapter)