Hong Kong 1980: The Savage Era

Chapter 104 [Focus on Private Debt]

Lin Luoqi frowned and questioned, "Will the three parties' secret purchase of the electric light company's stocks cause a bad market reaction?"

Luo Qihong smiled and said, "The Electric Light Company is a big company. It won't attract a significant bidding war in the short term. In addition, in the eyes of the Landmark Company, we are just a small player."

"But now that we have almost acquired everything, it would be best if we could cause a significant reaction in the market. It would be even better if we could contact Connor, the boss of the electric light company."

It is impossible for Haofeng Real Estate Company to acquire Hong Kong Electric Company given its size and strength. All it can do is just make a profit, or it is possible for the company and the family to make money together.

On the surface, the Hong Kong Electric Company was a public specialized enterprise with relatively dispersed equity. It did not have a major family shareholder like Jardine Matheson Company. The company's boss basically controlled the board of directors, so the Electric Company actually belonged to the Connor family, but its strength was not as strong.

The biggest loser of course would be Connor, who controlled the board of directors, if the Hong Kong Electric Company was successfully acquired. So Connor would definitely try his best to resist the acquisition by the Hong Kong Land Development.

Lin Luoqi nodded. "Okay, we'll keep in touch anytime."

Afterwards, Luo Qihong called Zhang Taotao and asked him to buy shares of Hong Kong Electric Company with a capital of 6 million and a leverage of 6 times, which was million yuan.

The news that Paramount Company wanted to acquire the Liancheng Building in Central spread like wildfire. The person who spread the news was naturally the owner, Yan Zhijie. Suddenly, the price of offices in the Liancheng Building rose a lot, with the price of a first-floor property rising from 1 million yuan to 2 million yuan. Moreover, those owners were still waiting and watching, unwilling to sell.

Luo Qihong suspected that Yan Zhijie was trying to "have his cake and eat it too", and that he had teamed up with the owners to take advantage of the situation and ask for an exorbitant price, so that he could make a fortune from the Paramount Company.

"Mr. Luo, the property prices in Liancheng Building are rising very fast. It has increased by 1 million per floor in just a few days. If we wait a few more days, we will definitely get 1, if not 50 million. Add a 1% premium, 1 million per floor is more appropriate." Jiang Jinjian, an owner of Liancheng Building, had a smile on his face.

Yan Zhijie sat aside without saying anything, while other owners took the opportunity to agree.

"I'm not greedy, I just want the same price as Jiang Sheng."

"Same here."

Luo Qihong smiled and said, "Okay, but I need to go back and discuss it."

Yan Zhijie said at this time, "Luo Sheng, it is better to give a definite answer now, otherwise the price may be higher in two days."

Luo Qihong thought for a moment and said, "What Mr. Yan said makes sense, but I don't own Paramount Company. Some major matters still need to be approved by the board of directors. Also, I told you, Mr. Yan, that the price per floor was 1 million. Now it has become 2 million per floor, an increase of 1 million per floor."

"All of you here own a total of 6 floors of property in Liancheng Building, which requires an additional nearly 1 million yuan in funds. This is a considerable amount of money."

"Mr. Luo, I'm afraid the price per floor won't be 1 million next time. It could be 5 million, or even 1 million." Jiang Jinjian persuaded with a smile. In his opinion, Luo Qihong was too young and his mind might not be very firm.

Luo Qihong pretended to be silent and nodded, "Then I will give you the news as soon as possible."

In fact, Luo Qihong was very happy. He had already acquired the other two floors of Liancheng Building at a price of 1 million through other channels. Now Paramount Company owns 2 floors of Liancheng Building.

According to the current value, Paramount Company can earn at least 1 million, and this profit has reached Luo Qihong's expected standard.

After Luo Qihong left the table, Yan Zhijie and the others began to chat casually. "Mr. Yan, Mr. Luo doesn't seem to be that easy to deal with. He's not worried that we'll raise the price again." Jiang Jinjian looked embarrassed. He was a little worried that Liancheng Building Property Management couldn't take the opportunity to make more money.

Yan Zhijie laughed and said, "If Mr. Jiang is afraid, I can buy the Liancheng Building property from you for 1 million per floor. I don't think the money is too much."

Jiang Jinjian sneered, "Mr. Yan is really good at calculating. He takes 30 yuan commission from us. I think you should also take commission for acting as a matchmaker for Luo Qihong, right?!"

Yan Zhijie frowned and said in a deep voice, "That's my business. Jiang Sheng made millions of profits, can't I even have a sip of soup?"

As a result, there was a noise in the box, and Yan Zhijie and his people naturally left in a bad mood.

Naturally, the matter could not be concealed, and the price of the Liancheng Building was soon published in newspapers. It increased from 1 million to 1 million in less than a month. To outsiders, it was really shocking.

Luo Qihong felt that the time had come, so he began to look for a buyer for the five-story Liancheng Building property owned by Paramount Company.

What he didn't expect was that a foreigner was willing to offer 1 million per floor to take over the five floors of property owned by Paramount Company.

Of course Luo Qihong quickly agreed to sign the contract. The foreigners invested 4 million yuan and the remaining 4 million yuan was borrowed from the bank. Paramount Company recovered 8 million yuan in funds, with a profit of 2 million yuan and a return rate of 33%.

Luo Qihong then held a press conference for Paramount to announce the sale of the 5th floor of Liancheng Building.
During the period, a reporter questioned whether Luo Qihong had plans to speculate on the property units of Liancheng Building from the beginning, and whether he did not really want to acquire the entire Liancheng Building.

Luo Qihong guessed this kind of question and answered the reporter's question with confidence, saying that if the owner's request was met, Paramount Company would have to pay at least 4 million more to acquire the entire Liancheng Building. That was the price of a commercial building in Sheung Wan. Paramount Company really did not have the funds and could only give up with tears.

Of course, the reporters were unwilling to let Luo Qihong off so easily, and they also believed that Luo Qihong was just trying to get rid of the title of speculator.

When this news came out, the original owners of Liancheng Building, especially Jiang Jinjian and Yan Zhijie, regretted it very much. If they had not been greedy, they would have made millions of profits by now.

These owners have not given up and are desperately looking for buyers while the heat is still there. However, experienced real estate developers are unwilling to take over properties in a building with inflated prices, so the properties in Liancheng Building have a price but no demand.

There are also owners who resent Luo Qihong and Paramount Company, wondering why they left after making a fortune instead of continuing to work hard.

The news that Paramount Company had made a profit of 2 million yuan spread quickly, and the stock price rose slightly again, with the market value exceeding 4 million yuan.

This made Luo Qihong very happy. If he sold Paramount Company at this market value, he could get nearly 2 million yuan in funds.

Therefore, Luo Qihong used the 6 million that Paramount Company owed him personally to offset a small part of the fundraising and share offering, so he still owed Paramount Company 4 million.

百乐门公司账上的8千1百万元，罗齐鸿将其中的8千万换上贷款，于是百乐门公司负债将至4千6百50万元，负债率降至12%左右。

Such a debt ratio is already very low. Luo Qihong wanted to take the opportunity to promote it again, but unfortunately the share price of Paramount Company did not increase much, and the market value remained around 4 million yuan.

After repeated consideration, Luo Qihong decided to focus his main energy on making money for himself, repay the 4 million yuan owed to Paramount Company as soon as possible, and let Paramount Company acquire another building, preferably a commercial building in Wan Chai.

(End of this chapter)