In Hong Kong, we build a global business empire

Chapter 122 Cooperation with Huifeng
The acquisition condition of not less than HK$4 per share is actually a relatively favorable situation for Lin Haoran.

Although there are indeed some stock orders below HK$4 in the market, the total number of these orders is limited, only three to four million shares, and the average unit price hovers roughly between HK$3.7 and HK$3.8.

As for orders below HK$3.5, they are even rarer, with only about one million shares.

Therefore, for Lin Haoran, this tiny price difference will not bring too much additional expenditure, but will effectively advance his plan to privatize the company at a stable price of HK$4.

At present, he personally holds approximately 49.9% of the shares of Qingzhou Yingni. Together with the 8% shares held by the eight shareholders he plans to acquire, once the acquisition is completed, his shareholding ratio will jump to 24.1%, forming an absolute controlling advantage.

The remaining 26% of the shares on the market, or about 1300 million shares, will no longer be a major obstacle to his privatization of the company.

As the dust settled on this decision, so too did the controversy and disagreements.

The next morning, Lin Haoran came to Qingzhou Yingni Company and officially announced that he had reached a deal with all major shareholders of Qingzhou Yingni Company. He would purchase a total of 4 million shares of Qingzhou Yingni from eight shareholders at a price of HK$8 per share, involving a total amount of up to HK$1205 million.

At the same time, Lin Haoran decided to privatize and repurchase Ching Chau Cement Company at a price of HK$4 per share. In addition, Ching Chau Cement Company officially prepared to withdraw from the listing process and had applied to the Hong Kong Stock Exchange to stop trading of its shares.

After the application is successful, shareholders will no longer be able to trade stocks through the secondary market.

Not long after the news was announced, many orders below HK$4 on the stock market suddenly disappeared without a trace.

Previously, he sold 1186 million shares of Qingzhou Cement and eventually earned more than HK$5900 million.

This time, he bought another 1205 million shares, which was more than the last time he sold, but the final amount he spent was only HK$4820 million.

Before that transaction, his available funds had basically been wiped out.

But after all this back and forth, his shareholding not only increased, but also increased from the original 68.4% to the current 74%.

Moreover, he still had HK$1 million in available funds.

The unexpected letters of complaint from the five British shareholders actually brought him considerable benefits.

Although it was forced to start the privatization process of Ching Chau Cement ahead of schedule, the remaining 1300 million shares on the market are priced at HK$4 per share, and the required funds are only HK$5200 million.

Although he is currently short of cash with only about HK$100 million left and obviously cannot come up with HK$ million, he has decided to entrust the task of privatization to the Waldorf Company under the Bank of Hong Kong. This move will greatly reduce his financial and operational pressure.

As a wholly-owned subsidiary of Huifeng Bank, Huoduoli Company has rich experience in financial services, covering securities underwriting, corporate consulting, mergers and acquisitions, financial investment and medium- and long-term loans.

Through Huoduoli's professional operation, Lin Haoran only needs to pay a certain service fee to easily solve the acquisition funding and loan problems, making the road to privatization smooth and unobstructed.

The privatization of a listed company is a complex and sophisticated financial engineering project that aims to withdraw the company from the public eye, transform it into private ownership, and delist it by having major shareholders acquire the shares of minority shareholders.

During this process, it is necessary to make a general takeover offer to all public shareholders, or reach an equity transfer agreement through negotiation with key shareholders, and at the same time apply to stop trading of the company's shares on the stock exchange.

Faced with the 13 million shares of Qingzhou Yingni held by retail investors, if Lin Haoran's Huanyu Investment Company operated alone, it would undoubtedly be a huge and time-consuming project. After all, Huanyu Investment and its core members such as Su Zhixue are very good at secondary market operations, but they are somewhat incapable of privatization, a highly specialized task. Therefore, it is undoubtedly a wise move to hand over the matter to a professional organization like Huoduoli to ensure the efficiency and smoothness of the privatization process.

Therefore, professional matters should be left to professionals, and Huoduoli Company is such a professional company, so it is most appropriate to leave it to them.

At three o'clock in the afternoon, Lin Haoran arrived at the headquarters of Huifeng Bank and visited Mr. Shen Bi, the head of Huifeng Bank.

Compared with the last time, Lin Haoran clearly felt that Shen Bi's attitude towards him had changed a lot and he was more enthusiastic.

"Mr. Lin, you have been a celebrity figure in Hong Kong's business community recently, and you have made quite a splash." Shen Bi smiled and shook hands with Lin Haoran, with a hint of sarcasm in his words.

Lin Haoran shook his head lightly and replied with a wry smile: "No, I have no intention of showing off, but the world is unpretentious, and there are always people who don't want to see me in peace."

The two sat down in Shen Bi's spacious and bright office, and the assistant brought them warm coffee at the right time.

Shen Bi got straight to the point: "Mr. Lin, you must have something important to discuss with me this time, right?"

Lin Haoran nodded and said bluntly: "Indeed, I understand that the company under Huifeng Bank is particularly professional in the field of financial services, especially in securities underwriting, corporate consulting, mergers and acquisitions, etc. Since I have announced the privatization of Qingzhou Yingni Company, I hope to entrust this important task to Huoduoli Company."

When he heard that it was a business discussion, Shen Bi became more enthusiastic. Although the profit would not be much, it was still an additional business.

At the same time, this is also a way for Huifeng Bank to deepen cooperation with the young businessman Lin Haoran. What happened in the past two or three months has convinced Shen Bi that Lin Haoran's future has unlimited possibilities.

The ultimate goal of Huifeng Bank is to make money, and cooperating with promising young people like Lin Haoran can obviously help Huifeng Bank increase its speed. The more such partners the better.

"Our company, Huoduoli, is the most professional in securities underwriting, corporate consulting, corporate management, and mergers and acquisitions. Mr. Lin really has a keen eye for talent, and Huoduoli will certainly live up to your trust." Shen Bi said with a smile.

"In addition, Mr. Shen Bi should also know that I purchased a batch of oil. This batch of oil cost me 6000 million US dollars, so I currently cannot use this money to purchase stocks. Therefore, the funds for the privatization of Qingzhou Yingni Company can only be carried out in the form of loans." Lin Haoran continued.

The 6000 million U.S. dollars were transferred through Huifeng Bank, and the destination was the famous oil company Saudi Aramco.

Lin Haoran didn't believe that Shen Bi, the boss of Huifeng Bank, would not pay attention to the transfer of such a large amount of funds.

In Lin Haoran's opinion, all those claims that banks have sufficient confidentiality and privacy are just excuses to the outside world.

Just like last time, he was just checking whether the funds in the account had arrived, but Shen Bi found out about it in the blink of an eye and directly invited him to meet.

It is conceivable that some large transactions of Huifeng Bank will be reported to Huifeng Bank in a timely manner by subordinates.

There is no way around it. Once you put your money in a bank, it is inevitable that your cash flow will be known to the bank.

"Congratulations, Mr. Lin. Today, the price of oil has just risen to $19.65 per barrel. I estimate that in a few days, the price of oil may directly break through $20 per barrel. Mr. Lin has made a lot of money again!" In this regard, Shen Bi began to admire Lin Haoran's courage.

Who could have imagined in November that an oil crisis would actually happen?

And even if one guesses that an oil crisis will occur, no one knows how long Iran will stop supplying oil to other countries.

From the beginning of December to the end of December, not only did Iran's oil supply fail to return to normal, but the civil war became more and more intense.

"I have been paying attention to the domestic affairs of Iran for nearly a year. Combined with the situation of the 1973 oil crisis, I decided to do this business a month before the oil crisis came. It can be considered lucky." Lin Haoran said with a smile.

"I heard that due to the rush for oil, many oil companies can't even buy oil. Mr. Lin's oil should be easy to sell at this time. You have made a lot of money now. Do you think the oil price will continue to rise?" Shen Bi asked curiously.

“Once an oil crisis occurs, it is impossible to stop it in a short period of time. Even if Iran resumes oil supply, those oil tycoons will enjoy the considerable profits brought by the increase in oil prices, and it is impossible to stop the rise in oil prices.

Mr. Shen Bi still remembers the first oil crisis, when the price of crude oil rose directly from US$2.7 per barrel to a maximum of US$13 per barrel. After the oil crisis ended, the price of oil has never fallen below US$10 per barrel.

The price has gone up, how can the oil companies easily go back to the original price? The oil price has risen from about $11 in November to $13 per barrel now, and the increase has not even doubled. These oil companies can't just stop the oil price from rising. "Lin Haoran made a simple analysis.

Shen Bi couldn't help but applaud and said, "Mr. Lin's analysis is really thorough. No wonder he can make so much money!"

"It's just luck." Lin Haoran continued modestly.

"We can take care of matters such as privatization and loans. Please rest assured, Mr. Lin, we are the most professional and our fees are fair. I will immediately call the person in charge of the Huoduoli Company to come and discuss it in detail with Mr. Lin." Shen Bi said with a smile.

Privatization and loans are already two separate businesses.

Although this kind of business is not big for Huifeng Bank, it is not a small business either. For example, in the acquisition battle of Hutchison Whampoa, Bao Yugang handed over the financial advisory work to the Huoduoli Company, which also involved borrowing a lot of funds from Huifeng Bank, which naturally made Huoduoli Company earn a lot.

However, an acquisition war of this scale may not occur in Hong Kong every few years.

That afternoon, Lin Haoran reached an agreement on cooperation with the general manager of Deli Company, and the two parties signed a cooperation agreement under the witness of Shen Bi.

First, the privatization of Qingzhou Yingni will be handed over to Deduoli Company. After Qingzhou Yingni Company is delisted, shareholders will not be able to continue trading on the stock exchange market and can only sell through Deduoli Company;
Second, Huifeng Bank will lend 50 million Hong Kong dollars to Lin Haoran.

It is worth mentioning that Huifeng Bank’s loan to Lin Haoran this time does not require any collateral, which can be said to be a credit loan.

In Shen Bi's opinion, Lin Haoran's current net worth is far greater than 50 million Hong Kong dollars.

From this point, it can be seen that Lin Haoran, the newly rising business star, has occupied an important position in Shen Bi's heart.

(End of this chapter)