In Hong Kong, we build a global business empire

Seeing this, Lin Haoran could only continue chatting with Bao Yugang.

As for the physical examination, he had already noticed it and there was no rush for it.

Lin Haoran asked: "Uncle Bao, Wharf Holdings should have no treasury shares at present, right? And from what you just said, all the profits were invested in the construction of Harbour City. Obviously, Wharf Holdings itself does not have the funds to acquire the Wheelock shares I hold.

So how do you plan to exchange Wharf Holdings and my shares in Wheelock Holdings? "

Bao Yugang heard this and calmed down his wheezing caused by his violent coughing, took a deep breath, frowned slightly and thought for a moment before saying: "Wharf Holdings does not have any treasury shares. Under the management of Jardine Matheson over the years, Wharf Holdings' profits have either been exploited by Jardine Matheson or invested in new projects. There is no money to buy back shares from the stock market.

Moreover, the current share price of Hutchison Whampoa is low. Even if its actual value is far underestimated, it is not easy for me to evaluate it directly according to the market value. This is not fair to you.

However, the market value of Hutchison Whampoa is now completely unequal to that of Wheelock. If the shares are exchanged by issuing new shares, too many new shares will need to be issued, which is not appropriate.

Let me think about a reasonable way to carry out this equity swap."

After saying this, Bao Yugang fell into deep thought.

Normal equity swaps usually involve either capital increase for shares, treasury stock for shares, or assets for shares, but now these conventional methods are not feasible for Hutchison Whampoa.

Because, in Bao Yugang's view, the docks, warehouses, hotels, buildings, trams, Star Ferry, etc. owned by Hutchison Whampoa are all very high-quality fixed assets. If they are exchanged for shares, it would undoubtedly be cutting one's own flesh. Moreover, the interest relationships involved in these assets are intricate and difficult to operate.

Bao Yugang frowned. As a top boss in Hong Kong, his eyes revealed a hint of anxiety at this moment. It seems that he has to go back and discuss it with his think tank.

Seeing this, Lin Haoran probably guessed what the boss was thinking, so he suddenly smiled and said, "Uncle Bao, I have a way to solve the problem of stock exchange without requiring Wharf Holdings to pay any assets."

"Oh? Haoran, tell me about it." Bao Yugang stopped thinking, looked up at Lin Haoran and asked curiously.

“Here’s what I think. Since Wharf Holdings doesn’t have any treasury shares, it can issue bonds to raise funds, and then initiate a share redemption from shareholders. In this way, it can gather enough shares for the equity swap with me.

Moreover, this method will not involve the disposal of Wharf Holdings' high-quality fixed assets, and can also avoid issuing a large number of new shares to dilute equity." Lin Haoran explained his ideas clearly.

"Issuing bonds may not necessarily raise much funds. With my influence, if it were two years ago, there might be no problem finding buyers after issuing them. But that may not be the case now." Bao Yugang shook his head.

Two years ago, in order to take over Wharf Holdings, in addition to borrowing HK$21 billion from Bank of China, he actually used Global Shipping Group to issue a large number of bonds.

These bonds also require paying considerable interest, and in order to attract investors at the time, the promised interest rates were not low.

But two years later, the whole Hong Kong knew that Bao Yugang had almost borrowed money to take over Wharf Holdings. Although Wharf Holdings is now developing gradually under his control, the outside world still has doubts about the financial situation of Wharf Holdings and himself.

Market funds have also become more cautious, and investors have become more stringent in selecting bonds. It is conceivable how difficult it would be to successfully issue a large number of bonds again to raise sufficient funds.

In addition, the Hong Kong stock market has flourished in the past two years and ushered in a bull market. Many companies have taken advantage of this trend to raise funds for expansion. Although the supply of funds in the market seems abundant, the competition is also extremely fierce.

Many high-quality companies have launched various attractive financing plans, giving investors more choices. It is not easy for Hutchison Whampoa to stand out among its competitors and attract investors to buy its bonds.

This is also why Bao Yugang feels that issuing bonds is not appropriate for this matter.

“Uncle Bao, you don’t have to worry about the buyer. I’ll take care of the issuance of bonds! And you don’t have to pay too high an interest. Just consider it as my contribution to this equity swap, and it also expresses my confidence in the future development of you and Wharf Holdings.” Lin Haoran said with a smile.

Today, the market value of Wheelock & Co. is about HK$22 billion, and his Hong Kong Land Development Group holds 11.8% of Wheelock & Co. shares, which is now worth about HK$2.6 million according to market prices.

This amount of money is not a huge sum for Lin Haoran.

As for how many Wharf shares these 11.8% shares could be exchanged for, Lin Haoran was not sure how many he could get before the discussion.

Bao Yugang's eyes lit up when he heard this.

If Lin Haoran is willing to make a move, then all the problems for Wharf Holdings will be solved. More than 200 million Hong Kong dollars is not a lot for Bao Yugang, the former richest man in Hong Kong, but now he is heavily in debt, and all the money earned by his subsidiaries is used to repay debts. Every sum of money has to be carefully calculated, so even if only more than 200 million Hong Kong dollars of bonds are really issued, it is not a lot for Bao Yugang, and he can't easily take it out for a while.

He quickly weighed the pros and cons in his mind, and with a look of relief and some complexity on his face, he said, "Haoran, you really solved my urgent need, but I can't let you suffer too much in terms of interest."

Lin Haoran waved his hand and said with a hearty smile: "Uncle Bao, since I have decided to do this, I naturally have my considerations. I believe that under your leadership, Wharf Holdings will have unlimited potential in the future.

This 200 million Hong Kong dollars is my advance support for Wharf's development, and it is also the cornerstone of our further cooperation. As for the interest, it will be based on the normal market level, so don't be polite to me."

“Well, in that case, I won’t be polite. Anyway, for you, the funds for issuing these bonds are not a large amount. Once these plans are completed, I will immediately announce the purchase of Wharf shares.

However, in the process of reclaiming shares, I still need your cooperation. After all, any disturbance in the market may affect the progress of the entire plan.

As for the specific details, we can discuss further. Don't worry, I will never let you suffer any loss!" Bao Yugang said solemnly.

Lin Haoran nodded and said, "Uncle Bao, don't worry, I will definitely cooperate with you. I also hope that this equity swap can go smoothly so that both of us can cooperate smoothly. When I go back, I will hand this matter over to Mr. Ma Shimin and I will explain it to him clearly. Then, Uncle Bao, you can also send someone to negotiate with Mr. Ma Shimin about the stock swap. Once it is concluded, we can sign the contract."

Bao Yugang smiled with satisfaction and said, "Okay, Haoran, I feel relieved when you say that. Mr. Ma Shimin is also an elite in the business world. I believe in the professional ability of your team. I will also arrange capable personnel as soon as possible to connect with Mr. Ma Shimin."

The two bosses mainly discussed the general direction, but when it comes to signing the contract, there will be many details, such as how many shares of Hutchison Whampoa will be exchanged, how many bonds will be issued, etc.

These are not things they can determine in a short period of time. They require comprehensive consideration of many factors, including the interests of both parties, market conditions, and the actual operating conditions of Wharf Holdings and Wheelock.

Afterwards, the two exchanged views on some general directions and potential issues of cooperation.

Relying on his rich business experience, Bao Yugang shared with Lin Haoran a lot of insights on market trends and corporate management. Lin Haoran listened very carefully and raised his own questions and ideas from time to time. The two had a great conversation and the atmosphere was very harmonious.

After talking for more than an hour, Lin Haoran noticed that Bao Yugang was coughing violently from time to time, so he didn't want to stay any longer.

He stood up and said to Bao Yugang, "Uncle Bao, let's stop here for today. I'll go back and talk to Mr. Ma about this. As for you, I suggest you get a thorough checkup as soon as possible, especially on your lungs. This kind of thing can be a big deal or a small one. If there's nothing wrong, that's the best. But if there's really any problem, it can be discovered and treated early. After all, the body is the capital of the revolution!"

Bao Yugang nodded slightly and said with a smile: "Okay, Haoran, you are thoughtful. After I have arranged the equity swap with you, I will go to the hospital for a thorough check-up."

"Then I'll go back first. I'll visit you another day!"

"Okay, take care!" Bao Yugang stood up and saw him off until he reached the elevator. Watching the elevator door slowly close, Bao Yugang sighed lightly and began to worry about his health.

After hearing what Lin Haoran said, the indifference in his heart dissipated a little, and was replaced by a vague worry.

After returning to the office, Bao Yugang immediately convened a think tank meeting and told them everything about his conversation with Lin Haoran.

After hearing this, the think tank members fell into deep thought and then started a heated discussion.

On the other side, after Lin Haoran finished talking with Bao Yugang, he left Prince's Building with his bodyguards.

They got in the car and drove straight towards Kangle Building.

The road that was previously congested due to a traffic accident has now been restored to normal.

Prince's Building and Kang Le Building are not far from each other, so after a few minutes, Lin Haoran appeared in Kang Le Building.

Taking the elevator, he soon arrived at the 51st floor, Ma Shimin's office.

Seeing Lin Haoran, Ma Shimin asked curiously: "Boss, you went to the East Asia Bank for a meeting this morning, right? What was the result?" (End of this chapter)