Reborn as a Hong Kong Tycoon

Chapter 303 Hutchison Plan Fixed Increase
noon that day.

Hutchison Whampoa issued an announcement, stating that the company's operations are normal, and the recent decline in the company's stock price is a normal adjustment of the market.

At the same time, Lin Baicheng, the company's controller and major shareholder, stated that he will never reduce his 49.9% Hutchison Whampoa shares within one year, and he is optimistic about the long-term development of Hutchison Whampoa.

After the public announcement, the stock price of Hutchison Whampoa stopped its decline in the afternoon and rebounded slightly. Unfortunately, the rebound was not strong and did not break through the price of 50 Hong Kong dollars. After that, it fell again, and the stock price was between 45 Hong Kong dollars and 50 Hong Kong dollars. The Hong Kong dollar oscillates.

The stock price of Hutchison Whampoa stopped the decline. If the short sellers want to make more profits, they will definitely do it.Either release news that is unfavorable to Hutchison Whampoa, or create events that are unfavorable to Hutchison Whampoa, etc. Only in this way can investors look down on Hutchison Whampoa, causing the stock price to continue to fall.

Lin Baicheng asked Hutchison Whampoa to issue an announcement to temporarily stabilize the stock price, in order to ask the short side to do it, so that he can know more clearly who is shorting Hutchison Whampoa, and at the same time carry out targeted responses.

However, as of the close of this week on Friday the 17th, there was no movement in the market at all.Although the stock price of Hutchison Whampoa fell, it fell along with the Hang Seng Index, and the decline was not large, and the short side did not make a targeted move.

The short side didn't make a move. Although Lin Baicheng didn't know what the short side was thinking, he had no choice but to give up. After all, he didn't have any major good news to stimulate the stock price of Hutchison Whampoa, so he could only passively defend.

However, Lin Baicheng will definitely not wait until the empty side makes a move before launching a counterattack, so he held a board meeting on Friday.

On the board of directors, a proposal was passed, that is, the company will look for a powerful partner externally, and plans to increase the minimum 5% and maximum 10% of the shares to the third party. The fixed increase price is between 33 Hong Kong dollars and 37 Hong Kong dollars. The specific The fixed increase price and fixed increase quantity will be negotiated by the management and the third party.

HSBC disagrees with this fixed increase plan, not because HSBC thinks its own interests will be damaged by the fixed increase, after all, the fixed increase share price is within a reasonable range.However, HSBC feels that there is no need for a fixed increase. Hutchison Whampoa is currently operating normally and has normal debts. The company's stock price will rise sooner or later. There is no need to introduce third-party shareholders to dilute the original shareholders' shares.

It's just that Lin Baicheng's determination has been made, so this proposal was passed by the board of directors, and HSBC's objection was invalid.

The reason why Lin Baicheng is willing to carry out the fixed increase is mainly to attract powerful partners and enhance the market's confidence in Hutchison Whampoa.The fixed increase price is between 33 Hong Kong dollars and 37 Hong Kong dollars. After the fixed increase is announced, with this good news, it is unlikely that the stock price will fall below this fixed increase price.

Of course, Lin Baicheng has not found a partner for fixed increase, but he already has some candidates in his mind, and he will slowly talk to the candidates later.If it can be negotiated, it is of course the best; if it cannot be negotiated, that's okay.

If the negotiation is completed, although the fixed increase will reduce Lin Baicheng's shareholding in Hutchison Whampoa, Hutchison Whampoa itself will receive a large amount of funds to strengthen the company's strength.As for Lin Baicheng's reduced shares in the same proportion, he can buy them from the market and continue to increase his holdings to as much as 49.9%, which means he won't lose money.

And if the fixed increase is not negotiated, that's okay, Lin Baicheng also has an alternative plan, that is, let the Golden Fleece Company come forward to take over the fixed increase, and Lin Baicheng takes over the fixed increase shares at his own expense.

Although Lin Baicheng's shareholding in Hutchison Whampoa has exceeded 50% in this way, which does not comply with the laws of the Hong Kong Securities Regulatory Commission, but as long as the real legal person under the skin of the Golden Fleece Company is not exposed, nothing will happen. The outside world will only think that the Golden Fleece Company is an overseas company.

And Lin Baicheng, who spent money to take over the fixed increase, will not lose money. After Hutchison Whampoa has made a lot of money investing in gold and the company's stock price has risen sharply, then let Golden Fleece Company sell its shares.

The reason why he still has to find someone else to take over the fixed increase is because Lin Baicheng wants to use his own funds to develop the upcoming home appliance company, wafer and memory chip technology.Lin Baicheng, who has decided to spend 7 million U.S. dollars to go long on gold futures, if he receives a large fixed increase from Hutchison Whampoa, then he will not have much money to use to develop home appliance companies and semiconductor technology in the short term.

Not long after the board meeting ended, Lin Baicheng called Wei Li and the others to his office for a small meeting.

"There is no other movement in the sky these two days. Although I don't know what they think, but for us, the development of the company is the most important thing, so we ignore this matter for the time being. It is serious to develop the company's business well. .”

"What's more, I will look for the target of the fixed increase, and I will personally handle the specific fixed increase matters, so you don't have to worry about it."

Wei Li nodded to express his understanding: "Boss Lin, we know what to do."

"Mr. Lin, about the acquisition of Kowloon Bus, do you want to stop for a while?"

Xia Boyin asked aloud, Lin Baicheng asked Wei Li to look for a bus company to buy at the end of September, and finally targeted the Kowloon Bus Company, and Xia Boyin was responsible for the acquisition.

The control of the Kowloon Bus Company is in the hands of Lei Juekun, but Lei Juekun only has a little over % of the shares. If he really wants to, he can completely snatch the control of the Kowloon Bus from Lei Juekun.

The market value of Kowloon Bus is not very high. After completing the investigation of Kowloon Bus, Xia Boyin began to slowly raise money from the stock market. After the number of shares held exceeded 10%, he began to contact the small shareholders of Kowloon Bus while raising funds.

For some minority shareholders, the purpose of holding the shares of Kowloon Bus is to invest, so as long as there is a suitable premium, they certainly don't mind selling their shares.

Today, Hutchison Whampoa's shareholding in Kowloon Bus is close to 20%, which is not much different from Lei Juekun's shareholding.

If the acquisition of Kowloon Bus continues, it would be good if the acquisition goes well. If there is an accident, it will lead to competition with Lei Juekun for Kowloon Bus, and a takeover battle will break out. This is not a good thing when some people are shorting Hutchison Whampoa.

"Recently, the Hang Seng Index has been falling. It is a good time to acquire Kowloon Bus, so the acquisition continues, don't stop."

Lin Baicheng pondered for a while before making a decision.As he said just now, instead of making acquisitions while the stock market is in a downturn and the stock price is falling, why not wait until the stock market rises and the stock price soars to make acquisitions?
As for the risks that may be involved in it, let’s wait until the risks appear, and then deal with them at that time.

(End of this chapter)