Reborn as a Hong Kong Tycoon

Chapter 634 Investing in shares, Hutchison's stock price plummeted (two in one)

On Friday, several things happened at the same time.

First of all, Wei Li of Hutchison Whampoa took the team to board the flight to London on this day, and started research and acquisition work on Hutchison Whampoa's entry into the automobile industry.

Lin Baicheng personally sent Wei Li and others to the airport, and gave Wei Li and others a few words of encouragement.

Due to time constraints, Lin Baicheng did not wait for the flight to take off at the airport before leaving, but after encouraging the team, he left Kai Tak International Airport in an extended Lincoln.

After the lengthened Lincoln left the airport, he did not go to any company under the name of Lin Baicheng, but went to Wharf.

Wharf held a board meeting at 10:30 this morning to vote on the issue of additional shares and inviting Lin Baicheng to become a shareholder of the company.

Because Bao Yugang hoped that Lin Baicheng could go to Wharf to show up and meet with the directors, Lin Baicheng went to Wharf.

Although the vote of the board of directors still needs to be passed, Bao Yugang has already told Lin Baicheng in private that the board of directors will definitely pass it, and the vote is just a formality. welcome to join.

"Lin Sheng!"

When Lin Baicheng led the people into Wharf, he saw Wu Guanzheng, Bao Yugang's second son-in-law, walking towards him.

"Wu Sheng!"

Lin Baicheng shook hands with Wu Guanzheng.

Wu Guanzheng said: "Father is talking to several directors, and he asked me to pick up Lin Sheng."

"Actually, I can go up by myself."

Lin Baicheng said politely, looking at Wharf, he felt a little emotional. If Li Jiacheng hadn't stepped in, he would have bought Wharf instead of Hutchison Whampoa, and his funds would only be enough for a family A company initiates an acquisition.

However, even if Wharf was acquired at the beginning, Lin Baicheng is sure that the current market value of Wharf will become tens of billions of Hong Kong dollars. He will still use the funds of Wharf to buy gold futures. After the company makes a lot of investment, the stock price will also increase. rise up.

The transformation of Wharf into Hutchison Whampoa has not changed Lin Baicheng himself in any way, but it has had a considerable impact on other shareholders of the two companies.If the minority shareholders can keep holding the shares in their hands, their value will be doubled by more than ten times.

Lin Baicheng followed Wu Guanzheng to the chairman's office. Bao Yugang was chatting with three people. Presumably, these three people should be the directors of Wharf, and they were still on Bao Yugang's side.

Every company has power struggles. Lin Baicheng is not sure if there are any directors in Wharf who oppose Bao Yugang, but even if there are, the other party will not be able to cause trouble. Bao Yugang has basically controlled Wharf.

"Lin Sheng, you're here."

Seeing Lin Baicheng and others coming in, Bao Yugang immediately stopped chatting with others.

"Bao Sheng!"

While shaking hands with Bao Yugang, Lin Baicheng looked at the other three people, none of whom he knew, and two of them were British.

Bao Yugang is different from Lin Baicheng. He has a good relationship with British capital. It can be seen from the fact that he is a director of HSBC. Therefore, after he entered Wharf, the original directors did not reject him so strongly. The director took the initiative to approach him, and Bao Yugang accepted it happily.

Bao Yugang introduced the next three people to Lin Baicheng, and Lin Baicheng shook hands and greeted each other one by one.Although he doesn't deal with British capital, but those are the four major British capital families. It doesn't mean that he doesn't get along with all British capital. Hutchison Whampoa still cooperates with some British capital companies, even with subsidiaries of Jardine Matheson cooperate.

Competitive hostility is competitive hostility, and business is business.

Not long after, Bao Yugang's secretary came to inform that the time for the board meeting was approaching, and the group went to the meeting room together.

When Lin Baicheng, Bao Yugang and others arrived in the conference room, almost all the directors had arrived. After waiting for another 2 minutes, the remaining two directors also came, and all the directors were present.

There are a total of nine directors of Wharf, among whom Wu Guanzheng is also one of the directors of Wharf.

When the meeting was held, Bao Yugang first introduced Lin Baicheng to the directors. Although he believed that all the directors present should know Lin Baicheng, he also briefly introduced the names and positions of the directors to Lin Baicheng.

"Today I invited Lin Sheng to come here to participate in the company's board of directors, because the company plans to invite Lin Sheng to join the company and become a member of the company. Therefore, I propose to issue 500 million additional company shares for Lin Sheng, and nominate Lin Sheng as the company's chairman. director."

What Bao Yugang said had actually been informed to all the directors in advance, so the directors present were not surprised or commented, let alone objected.

Wharf has a total of 9000 million shares. If 500 million shares are issued this time, it will be 9500 million of the total share capital. 500 million shares account for 5.263%, which can exceed 5%. However, it is already a big deal in Wharf shareholder.

Someone immediately said, "It's our Wharf's honor to invite Lin Sheng to join us, and I have no objection."

Then several directors echoed and agreed.

"Bao Sheng, let me make a statement first, welcome Lin Sheng to join. But I would like to ask, what kind of additional price will we invite Lin Sheng to join?" Someone asked.

"That's exactly what I'm going to say next."

Bao Yugang said: "Our Wharf's stock price was fired up to more than 50 Hong Kong dollars at the beginning because of my acquisition of Wharf, and then fell all the way down. In recent months, it has fluctuated between 26 Hong Kong dollars and 30 Hong Kong dollars. .”

"Here, let's take an intermediate number, which is 28 Hong Kong dollars. This is the company's stock price currently recognized by the outside world, but we certainly cannot invite Lin Sheng to join at such a price, so I think it is more appropriate to offer a 85% discount. 24 per share An additional 500 million shares will be issued at the price of Hong Kong dollars.”

This is the additional issue price negotiated by Bao Yugang and Lin Baicheng. Although it has doubled compared to when Lin Baicheng wanted to acquire Wharf, the stock price of Wharf was indeed undervalued at that time. The market value should also go up because the real estate industry is going up, so Lin Baicheng does not think that the price of 24 Hong Kong dollars is overestimated.

As for Wharf, since the share price of Wharf has fluctuated between HK$26 and HK$30 in recent months, it means that the market believes that Wharf’s share price should be in this range, and the calculation of the share price is not cheap.

That is to give Lin Baicheng a little cheaper by discounting the additional issuance, but the stock price of the additional issuance is usually lower than the company's current stock price, otherwise the big money can spend time slowly buying from the stock market, and buying low and selling high may even buy it cheaper stock.

Regarding the 85% discount, some directors have no objection, but some directors think it is too low, and 9% discount is more appropriate.

If some directors disagreed, Bao Yugang had to convince the other party. If it was impossible, the board of directors would vote. That was the last resort.

Lin Baicheng watched silently from the side. He came to the board of directors with his ears this time, and he would not express any opinions. Yu Gang's territory.

It was Bao Yugang who invited Lin Baicheng to become a shareholder of Wharf, so of course the matter must be handed over to Bao Yugang. Besides, Lin Baicheng has nothing to do with Wharf now, so he has no position to speak out.

In the end, Bao Yugang persuaded the directors who had different opinions, and all directors unanimously passed the proposal for additional issuance.

After the approval of the board of directors, Bao Yugang got up and said to Lin Baicheng: "Lin Sheng, welcome to join Wharf. We will work together in the future."

"Thank you Baosheng for your support."

Lin Baicheng also got up, shook hands with Bao Yugang, and then said to the directors: "I am very happy to be a member of Wharf. I believe that under Bao Sheng's leadership, Wharf will develop more and more. Well, I will fully support Bao Sheng."

Lin Baicheng directly expressed his support for Bao Yugang. He had no idea of ​​competing with Bao Yugang for Wharf. It was Bao Yugang who lured him into Wharf. If he secretly coveted Wharf, his reputation would be bad. , he would not do such a thing.

Unless one day Bao Yugang voluntarily cede control of Wharf to Lin Baicheng, that's another story, but this possibility basically does not exist.

After Lin Baicheng joined, Wharf has ten directors. This is definitely not possible, so an additional director is added to make the number of directors an odd number.It's just that how the other director arranges it is Bao Yugang's business and has nothing to do with Lin Baicheng.

Regarding the investment in Wharf, Lin Baicheng regards it as a pure investment, and he will not spend his time on this company.

After the board meeting, Lin Baicheng chatted with Bao Yugang and several other directors who were close to Bao Yugang, and then left.The next time I come to Wharf, I don’t know when it will be. He will let someone else represent him on the board of directors, and he may not come in person to sign the contract for the shareholding.

At noon that day, Wharf announced to the public that Lin Baicheng had become a shareholder of Wharf. Such an important change in the shareholding must be announced to the outside world.

What the outside world thinks of Lin Baicheng's shareholding in Wharf can be seen from the stock price of Wharf that afternoon.After the stock market opened that afternoon, Wharf's share price ushered in a long-lost surge, rising by as much as 10% in half an hour, and it looked like it would continue to rise before the end of noon.

Although Lin Baicheng's shareholding is at a price of about 85% off the additional issue price, Lin Baicheng's acquisition of Hutchison Whampoa has brought so many benefits to Hutchison Whampoa that the market has an expectation for Lin Baicheng's shareholding in Wharf. The development is better, so the stock price will naturally be fired up.

It can be said that Lin Baicheng has already made money from his investment before signing the contract to buy shares in Wharf.

The stock price of Wharf rose sharply, but the stock price of Hutchison Whampoa, another company of Lin Baicheng, ushered in two consecutive declines yesterday and today, and it was still a relatively large two-session decline.

Years ago, Hutchison Whampoa’s stock price rose sharply because of the billions of dollars in investment. The highest price broke through 140 Hong Kong dollars a year ago, that is, the market value exceeded 600 billion Hong Kong dollars, and the highest rose to 143.8 Hong Kong dollars At that price, the total market value of Hutchison Whampoa exceeded 630 billion Hong Kong dollars.

However, because the New Year is approaching, stockholders need to spend money for the New Year, and the stock market needs to rest for many days, so the stock price fell in the last two trading days before the holiday, but it did not fall much at that time. With the closing price of 137.02 Hong Kong dollars, the total market value of Hutchison Whampoa could break through 600 billion Hong Kong dollars.

The first trading day of the stock market after the festival is Wednesday. Hutchison Whampoa's share price closed with a slight increase of 0.6% after the shock, which is a good start.

But on Thursday, Xiangjiang heard the news that the international gold price had plummeted, and Hutchison Whampoa's stock price fell sharply that day.Although Hutchison Whampoa is no longer long on gold futures, the market is irrational. After investors think that the price of gold will no longer rise, they think that Hutchison Whampoa will no longer make money in future investment, and the original expectations are gone.

It was originally expected that Hutchison Whampoa could make a lot of money in the investment in the future, but now that these expectations are gone, investors will naturally choose to sell stocks, and the stock price will naturally continue to fall.

On Thursday, Hutchison Whampoa closed at 122.1 Hong Kong dollars, a sharp drop of 11.41%, which means that Hutchison Whampoa lost more than 60 billion Hong Kong dollars in market value on this day.

Today, the stock price of Hutchison Whampoa continues to fall, and it has fallen by as much as 5% by the end of the morning session. However, it seems that today’s decline should not be as much as yesterday. After all, it is not rumored that Hutchison Whampoa is investing in this area. Big loss.

What price Hutchison Whampoa will close today depends on how the stock moves at noon.

The stock price of Hutchison Whampoa has plummeted in the past two days. Lin Baicheng, as the boss, of course knows, but he, who is already reducing his shares, knows that this is a sequelae caused by the previous surge, so he did not let the management stimulate the stock price, and let the stock price fall.

Another boss might think of ways to stimulate the stock price, so that the shares he wants to reduce can be sold at a higher price, but for the sake of his own reputation, Lin Baicheng will not release good news during the period of reducing the shares Stimulate the stock price, so that stockholders will not come back to attack him afterwards and affect his reputation.

In the afternoon of the same day, there was also a board meeting at Jardine Matheson.

Henry Keswick proposed to acquire the telephone company, increase his stake, and take control of the telephone company, but this motion was rejected by several directors, including two directors who had always supported the Kesak family.

These vetoing directors believe that Jardine Matheson has already owed more debts to the bank, and it is not appropriate to spend a lot of cash to acquire other companies. The funds should be used for the development of existing companies, or choose to repay debts to reduce the burden.

Henry Kessack sensed that something was wrong, so he didn't hold a directors' vote, but said that he would think about it again, and put the proposal on hold for the time being.And those few directors who objected didn't chase after seeing this, and didn't say anything.

Afterwards, no matter how he thought about it, Henry Cassack felt that something was wrong. He went to a director who was close to the Cassack family, playing the card of friendship, and finally found out the reason.It turned out that HSBC approached them, hoping that they could oppose the proposal to acquire the telephone company.

These directors have also sought loans from HSBC for their own businesses, so they do not want to offend HSBC.

Henry Kesak, who knew the reason, did not blame these directors, but he thought it was necessary for him to talk to HSBC's Taiban Chen Porridge in person.He must know whether HSBC is very determined to acquire the shares of the telephone company, which is related to his attitude towards the telephone company.

(End of this chapter)