In Hong Kong, we build a global business empire

Chapter 115: Howlley Company

He is no longer a small figure now, but the chairman of a listed company in Hong Kong. Therefore, after receiving the report from his staff, Lin Haoran also met with the Chairman of the China Securities Regulatory Commission, Mai Si.

The Chairman of the Securities and Futures Commission, Mr. Marks, is British, just like other senior officials of the Governor's Government.

During this period, the Governor and other senior officials of the Hong Kong government were almost all appointed by the British. Chinese senior officials were very rare, and senior management positions were almost monopolized by the British.

"Hello, Mr. Max! I am very sorry to bother you at this time, but I have received a formal letter from the Securities Regulatory Commission regarding the privatization process of Qingzhou Yingni Company. I generally support this.

However, after careful study, I found myself facing a difficult dilemma and had to ask you for advice in person. "Lin Haoran started politely and directly, and then both parties took their seats.

"Mr. Mai Si, my questions are mainly about the capital arrangement. I understand the requirements of the CSRC and agree in principle, but the actual situation is that in order to obtain control of Qingzhou Yingni Company, I adopted a large amount of loan financing, which directly led to nearly half of the company's shares being obtained through debt financing.

Now, not only have I used up all my funds to increase my shareholding, but I am also burdened with heavy loans from Hang Seng Bank, and the collateral for these loans is the shares of Qingzhou Cement Company.

This is the detailed contract for my loan from Hang Seng Bank. If you need to verify its authenticity, I believe you should be able to verify it easily. "

"Under these circumstances, I feel it is my responsibility to follow the CSRC's instructions to carry out privatization, but faced with the current funding difficulties, I feel that I want to comply with the regulations but am unable to do so.

Therefore, I sincerely hope that you can give me some advice or guidance to help me find a feasible solution that can not only meet the requirements of the CSRC but also properly solve the current financial difficulties. ” Lin Haoran sincerely expressed his dilemma and expectations.

Mai Si took the Hang Seng Bank contract handed over by Lin Haoran, reviewed it carefully and confirmed that it was correct. Both contracts clearly marked the clauses of using Qingzhou Yingni Company's shares as loan collateral.

After reviewing it, his face did not show much emotion.

For him, handling this matter of Qingzhou Yingni Company was just part of performing his official duties.

In his eyes, those British shareholders behind the scenes were nothing special and not enough for him to devote too much energy to.

In his work priorities, heavyweight institutions such as Bank of China and Jardine Matheson are the ones that deserve his close attention.

As for Qingzhou Yingni Company, it is obviously not within its focus area.

Despite this, Mai Si still maintained a professional attitude and said to Lin Haoran: "Mr. Lin, I fully understand your current predicament. In response to this situation, I can personally give you two suggestions for your reference.

First, you can try to raise funds to continue the privatization process of Qingzhou Cement, during which you can negotiate with other shareholders to set a reasonable acquisition time frame and price.

Please note that the acquisition price proposed by the CSRC in the letter is only a suggestion and not a mandatory requirement. If you believe that the price is inappropriate, you have every right to negotiate with the shareholders and reach a solution acceptable to both parties.

Secondly, another relatively simple option is that you can consider selling some of your shares to reduce your shareholding to below 50% to avoid triggering the general offer clause under the Hong Kong Code on Takeovers and Mergers.

However, I suggest that if you decide to adopt this option, you should act as soon as possible to avoid causing unnecessary trouble to the CSRC.

Mr. Lin, the above is just my personal advice. I hope it can help you make a decision. Do you have any other questions or need further discussion? If not, then our communication ends here.

I have some work arrangements to make, so I need to leave first. If you have any questions or need further consultation in the future, I suggest you call me directly during working hours. This is my business card, please keep it safe. "

As he spoke, Mai Si handed a business card to Lin Haoran. His words and actions revealed an eagerness to end the conversation, probably because he did have other urgent matters to deal with.

Moreover, perhaps after seeing Lin Haoran's loan contract, he knew that Lin Haoran was now penniless and it was difficult to use him to benefit his British compatriots, so he simply pointed out the key point directly.

Lin Haoran took the business card and said to Mai Si with a smile: "Okay, Mr. Mai Si, thank you very much for your answer today. I have benefited a lot from it. In this case, I will not disturb you from working. Goodbye."

After saying this, he politely put away the business card and left the CSRC building in a relaxed and happy mood.

For Lin Haoran, today's brief meeting was undoubtedly a turning point. The doubts in his mind were answered, and more importantly, he saw a new path to solve the problem.

At this moment, he felt as if the clouds had cleared and the sun was shining.

The merger and acquisition code issues that originally gave him a headache now seem to be not unsolvable.

The code itself does not impose a mandatory acquisition price, which means he has the right to reject the CSRC's advice as long as he can properly handle the relationship with shareholders.

After all, his father Lin Wanan was too conservative, fearing that he would offend the Securities Regulatory Commission. But from Mr. Mai Si's tone just now, Lin Haoran could sense that he didn't care about the matter at all, let alone offend them.

Although the privatization plan has been brought forward, Lin Haoran does not feel too anxious.

Because the privatization of Qingzhou Yingni was something he had planned, it was just a matter of time.

Since we are now forced to privatize Qingzhou Yingni Company ahead of schedule, it may not be a bad idea to take action in advance.

As for the funding issue, Lin Haoran already had a plan in mind.

When funds are insufficient, loans may be the most direct and effective solution.

Although this will once again increase his financial burden, as long as the privatization can be completed smoothly, these temporary difficulties will become insignificant.

Thinking of this, Lin Haoran couldn't help but quicken his pace, his heart full of expectations and confidence for the future.

He doesn't need to consider the funding now, as it hasn't reached that stage yet. When he really needs money, he will naturally raise it, provided that he doesn't become a sucker.

After coming out of the CSRC office building, Lin Haoran went directly to Qingzhou Yingni Company.

"Boss, how should we respond to this matter? More than an hour ago, several reporters from newspapers came to our company for interviews. They hope you can give an answer." Burton asked as he arrived at the office and heard the noise.

"Newspaper reporters came to our company for an interview? How did they know about this?" Lin Haoran asked in surprise.

"I don't know. We just received the letter from the CSRC two hours ago, and they arrived right after that. That's why I'm curious. How did they know about this so quickly?" Burton was puzzled.

"Mr. Burton, how much do you know about the other board members of the company?" Lin Haoran asked.

"I don't know much. These shareholders basically only came to the company when the board meetings were held. But before that, two shareholders came to talk to me one after another, wanting to know from me what plans you have for Qingzhou Yingni Company. At that time, I considered that you were not in Hong Kong, so I told them that you didn't have any plans for the company yet." Burton replied.

Lin Haoran nodded, and he was very sure in his heart that these reporters were definitely hired by these people in order to make a big deal out of this matter.

These shareholders obviously no longer want to hold shares in Qingzhou Yingni Company, but it is impossible for them to find a buyer now. Not many investors will be interested in the stock of a listed company that is absolutely controlled, not to mention that the controlling shareholder is a young man who seems to have no business experience.

As long as this matter is made public, the citizens of Hong Kong will know about it, and they will have no choice but to privatize Qingzhou Yingni.

"Mr. Burton, what suggestions do you have for this matter?" Lin Haoran asked.

"Boss, after receiving the letter from the Securities and Futures Commission, I specifically looked into the Hong Kong Takeover Code. If you do not intend to privatize Ching Chau Cement, then it is best to control the shares you hold within 49.99% and not exceed the 50% threshold. Otherwise, Ching Chau Cement must be privatized.

If you, the boss, really want to privatize Ching Chau Cement, I personally think that this may be an opportunity to completely privatize Ching Chau Cement. The Hong Kong Takeover Code does not require that you must propose a takeover to major shareholders based on the company's highest share price in the past six months. In other words, you can actually reject the SFC's suggestion and directly announce that you will privatize Ching Chau Cement.

I understand that the market is not very optimistic about your control of Qingzhou Yingni Company, so the current stock investors are actually pessimistic about the future of Qingzhou Yingni Company. This is also the reason why the stock price of Qingzhou Yingni Company fell to more than three yuan before. Therefore, I suggest that you set a price that is neither too low nor too high when acquiring it. In this way, the stock investors will not have much objection and the acquisition will go smoothly.

As for the shareholders on the board of directors, I suggest that you hold a board meeting to discuss the purchase price with them until everyone agrees on the price and the matter is resolved.

I suggest you leave the privatization work to Wardley. Wardley is professional in acquiring companies and privatizing companies. They have a more professional team and a stronger background. You can rest assured if you leave it to them. "

Burton's suggestions not only echoed the ideas of CSRC Chairman Max, but also further refined the operational strategies and feasible plans, providing Lin Haoran with more comprehensive and specific guidance.

"Hudoli Company?" Lin Haoran repeated doubtfully.

"Boss, Huoduoli Company is a wholly-owned subsidiary of Huifeng Bank, but it operates completely independently. The company focuses on diversified financial services such as securities underwriting, corporate consulting, corporate management, mergers and acquisitions, financial investment, and medium- and long-term loans.

With the strong support of Huifeng Group, the influence of Huoduoli in the industry cannot be underestimated. They are always adept at handling various complex transactions, such as the recent Wharf acquisition war. Mr. Bao Yugang was impressed by Huoduoli's professional ability and entrusted them as financial advisors. "Burton explained patiently.

After hearing this, Lin Haoran's brows relaxed and he revealed an expression of sudden enlightenment: "So that's how it is, I understand, then, regarding the privatization of Qingzhou Yingni, let Huoduoli Company handle it in full.

As for the company's official announcement, don't release it for now. I want to see the market's reaction and media reports first. Tomorrow's news should be lively, so let them discuss it first!" Lin Haoran said with a smile.

(End of this chapter)