Hong Kong 1980: The Savage Era

Chapter 145 145 [All big moves]

Since they are partners, Luo Qihong needs to give Bai Jinyan some respect and not let him have the final say on everything.

Bai Jinyan immediately held a different opinion and said, "Ah Hong, you may not know much about the securities industry. Securities companies are very concerned about reputation, otherwise it is difficult for customers to come to them. It is difficult for the company to grow by relying solely on our own customers."

"Things that require fame are simple. With the Garden Terrace Residential Building project, Dean Securities Investment will become well-known. I will let Dean Securities participate in more large projects in the future. It will be hard not to be famous." Luo Qihong continued, "In fact, I don't want to do it in a big way because we can't invite too many famous guests. It's better not to do it than to force it."

Bai Jinyan thought about it, nodded and said, "Okay, then let's open the business in a low-key manner."

"Also, my original intention of establishing De'an Securities was to take over the securities and stock investments of my subsidiaries, so that the wealth will stay in the family. Of course, now, the related businesses of my subsidiaries cannot support the normal operation and profitability of De'an Securities Investment Company, and it needs profit support from external businesses." Luo Qihong directly expressed his thoughts.

Bai Jinyan naturally did not expect Luo Qihong's plan. She had worked in a securities company for quite some time and knew that many large companies had their own companies that specialized in securities, stocks and other business investments.

After all, the profits here are astonishing, otherwise there wouldn’t be so many securities companies in Hong Kong.

Luo Qihong's plan is quite different from Bai Jinyan's, but Bai Jinyan knows that without Luo Qihong's funding and business support, it would be difficult to gain a foothold in the securities and stock industry, and most importantly, he would not be able to contact Luo Qihong.

In Hong Kong, there are many capable people, but there are also countless geniuses who have failed. Bai Jinyan does not think that he is more capable than those people, so he has to rely on powerful people to accumulate more capital, and perhaps he can rise in the future.

Luo Qihong is Bai Jinyan's ready-made network resource. Even if he fails, there is someone to back him up, so he doesn't have to jump off the building.

"Ah Hong, if that's the case, I hope my shareholding can be increased to 10%." Bai Jinyan took the opportunity to ask for more things.

Luo Qihong thought for a moment and replied, "Yes, but you need to meet some conditions. The asset value of Dean Securities Investment Company must exceed 5 million yuan. I allow you to spend 1 million yuan to purchase 5% of the shares from me."

“1千5百万元！可不可以降低一点？”白谨言微微吃惊，150万元她都没有，别说1千5百万。

Luo Qihong smiled and said, "Don't worry! You can earn 1 million with this order for the Garden Terrace Residential Building. When the company's assets are worth more than 5 million yuan, you will definitely have 1 million yuan in funds."

Luo Qihong said this with such confidence that Bai Jinyan felt that it might really be true, and he couldn't help but feel more at ease.

The two discussed some other things and left the tea room more than half an hour later.

The acquisition of Best Property Company encountered a new problem. Century City Company actually persuaded Xinchang Real Estate to resell its 7% stake to Century City. Currently, Century City Company's shareholding has increased to 31%, nearly 4.3% more than Hongpu Real Estate Company.

This sudden reversal caught Hongpu Real Estate Company off guard.

Xinchang Real Estate Company still holds 3% to 7% of the shares. Since it has reached a resale agreement with Century City Company, it proves that Xinchang Real Estate is biased towards Century City Company. Hongpu Real Estate has opened up a equity gap of at least 7% with Century City Company.

"What should we do? Century City Company holds at least 34% of the shares of Best Real Estate in disguised form, while we only have 26.7%." Lin Luoqi was a little panicked. If the acquisition battle failed, he would face some losses.

Luo Qihong sat firmly on the spot. His bargaining chips with Century City Company were getting fewer and fewer. If he was unwilling to suffer a loss now, it would result in a big loss. Luo Qihong himself could wait for the stock price to go up before selling it to reduce the loss.

But Hongpu Real Estate Company cannot do this. Most of their funds are borrowed, and they will face the "choke point" of high interest rates for a long time, adding an operational risk to Hongpu Real Estate Company.

"Now we can only try our best to purchase stocks from the stock market or certain shareholders to increase our shareholding." Liang Botao said solemnly.

Who could have thought that Xinchang Real Estate Company would actually reach an agreement with Century City Company to form an alliance? Now Hongpu Real Estate has undoubtedly been forced into a corner, with only two options left: withdraw or compete.

Li Yude looked at Luo Qihong and asked, "Mr. Luo, do you have any suggestions?"

Luo Qihong said expressionlessly, "My suggestion is still the same as before. Talk to Century City Company. Perhaps we can find a solution that is beneficial to both parties."

Lin Luoqi no longer dared to say anything against it. The situation was already very bad and there was a high possibility that the acquisition would fail. Now it was not a question of whether or not to take over Best Real Estate Company, but how to avoid losses.

"Mr. Luo, I think the possibility of a successful negotiation is very low. The other party has an absolute advantage. Even if it succeeds, we can only gain very little benefit." Liang Botao said.

Luo Qihong shook his head and said, "There is no other way. Let's do it in two ways. Liang Sheng, you should first absorb it from the stock market, and at the same time find some shareholders who hold shares and try to narrow the gap."

Liang Botao nodded. Now he could only give it a try.

Century City Corporate Meeting Room

Luo Qihong, Li Yude and Lin Luoqi came to meet with Century City Company's boss Wang Jianwen and others to discuss the affairs of Best Property Company.

In fact, Wang Jianwen was also worried that Hongpu Real Estate Company would launch a takeover campaign, which would be a challenge for the cash-strapped Century City Company. If he could gain the greatest benefit without losing so much, he would naturally be willing to negotiate with Luo Qihong and others.

"Mr. Wang, you should have guessed our purpose. Your company already holds 31% of the shares of Best Real Estate, and we also hold nearly 27%. The gap is not very big. If we continue to compete, it will not be good for both parties." Luo Qihong took the lead and said, "Why don't we talk first and try to come up with a plan that can guarantee the interests of both parties."

"Mr. Luo, please tell me your conditions first." Wang Jianwen showed the momentum and attitude of the host.

Luo Qihong smiled and said, "Why don't we divide the Best Real Estate Company equally, but we hope to gain control of the Best Real Estate Company."

"Luo Sheng has a big appetite, worthy of being the one who can acquire China Gas Company." Wang Jianwen smiled slightly, "It is impossible to split it equally. Century City Company has more advantages than you, so there is no need to split it equally with you."

"Mr. Wang, although Century City has the advantage, it is not certain to win. Even if Century City wins, it will have to pay a heavy price." Luo Qihong continued, "Hongpu Real Estate has already made millions of profits. It is nothing more than spitting out these profits. There will not be much loss."

"What Luo Sheng said makes sense. Let me propose a plan." Wang Jianwen was too lazy to waste words. "Century City Company will acquire some properties of Best Real Estate Company and divide its site development team in half."

Luo Qihong knew that Wang Jianwen was going to take over all of Best Real Estate's high-quality properties, which would greatly weaken Best Real Estate's strength, and perhaps Best Real Estate would become a hollow shell.

"According to Wang Sheng's plan, the Best Real Estate Company we get will only be an empty shell. We might as well fight to the death and still have a chance of winning." Luo Qihong said bluntly.

"What does Luo Sheng want to do?" Wang Jianwen asked. The sneer on his face faded a lot. He didn't want to confront Luo Qihong head-on.

"Everyone has to take a step back. We can only choose between Best Real Estate's high-quality properties and the site development team, and Century City must choose first," said Luo Qihong.

"It seems like this is no different from a tie." Wang Jianwen sneered.

"Of course there is a difference. Wang Sheng can take this opportunity to make up for Century City Company's disadvantages, and the cost is small." Luo Qihong picked out some benefits and mentioned them.

"Then let me propose a second plan. Best Property Development can be transferred to Hongpu Real Estate, but Best Property Development's Central property and the two development sites in Tsuen Wan West must be sold to Century City Company. How about that?" Wang Jianwen finally put forward the plan he wanted.

Luo Qihong glanced at Lai Yude and Lin Luoqi. The properties in Central and the land in Tsuen Wan West were undoubtedly the best assets of Best Property. However, now that they were under the roof, there was no reason not to bow down. Seeing that the two were hesitant, Luo Qihong asked directly, "What price do you want to buy it for, Mr. Wang? Market price?"

Wang Jianwen curled his lips and smiled, saying, "If I were to acquire it at the market price, why would I spend so much money to acquire Best Real Estate Company? Century City Company can only be acquired at 6% of the market price."

Luo Qihong shook his head. "That's impossible. Best Real Estate has so much debt. If they lose important properties and land, and suffer a 4% loss, it will be a big problem and will affect Hongpu Real Estate."

"How about this? We sell it at 9% of the market price, and Hongpu Real Estate Company will then purchase 16% of Best Real Estate Company's shares from Century City Company at a 1% premium. After that, we can sign an agreement to raise the share price to a certain level, so that Century City Company can make a profit. How about this plan?"

Wang Jianwen was somewhat tempted. In this way, Century City could acquire a batch of high-quality properties at a very low cost and make a lot of profit from it. It was killing two birds with one stone.

But people are greedy, so Wang Jianwen shook his head and said, "8% of the market price, other conditions remain unchanged."

"How about adding 5%, 85% of the market price?" Luo Qihong still took a step back.

"Okay, we've got a deal!" Wang Jianwen saw that his goal had been achieved and began to smile happily, "Luo Sheng is really courageous!"

Wang Jianwen has already become the biggest winner, so it is only right for him to say a few nice words to ease the relationship.

"Thank you for the compliment, Mr. Wang." Luo Qihong replied indifferently.

After signing the contract, Luo Qihong, Li Yude and Lin Luoqi gathered together again to discuss what to do next.

Seeing that Li Yude and Lin Luoqi were silent, Luo Qihong smiled and said, "If you two feel that my decision just now is not satisfactory, my Zhaoan Real Estate Company can acquire the 42% equity of Best Real Estate Company held by Hongpu Real Estate."

For Luo Qihong, as long as the assets of Best Real Estate Company are reorganized and capital is injected to drive up the stock price, it will be another profitable project, which will be of great benefit to Zhaoan Real Estate Company. After all, there will be profits of over 100 million yuan here.

With this profit, more than half of Zhaoan Real Estate Company's debts can be cleared.

Hearing this, Li Yude and Lin Luoqi looked at each other. Luo Qihong wanted Best Real Estate Company, which proved that Best Real Estate Company's projects still had huge profits to be made.

Lin Luoqi was very calm at this time and asked, "Ah Hong, what do you want to do?"

Luo Qihong smiled and said, "Follow the plan. The only drawback is that it requires a large amount of capital injection, much more than before."

Lin Luoqi was somewhat tempted, but he still wanted to acquire a listed company with better qualifications. However, he did not have much funds.

"Combining the funds from Dehe Real Estate Company, I can take out a maximum of 4 million, but it always feels like it's not enough." Lin Luoqi said thoughtfully, actually asking Luo Qihong for his opinion.

"Aren't we partners?" Luo Qihong smiled. "Zhao'an Real Estate Company can inject 4 million yuan. If Hongpu Real Estate can transfer a high-quality building to Best Real Estate Company, I think it will be a win-win situation for all three parties."

"We'll discuss this later." Li Yude still didn't want to damage Hongpu Real Estate's assets. "For now, we still have to deal with the debt and asset restructuring of Best Real Estate Company."

"Let's follow the plan. We will first use the funds from the sale of the property to purchase some high-quality properties. Then we will issue new shares to Zhaoan Real Estate Company and Dehe Real Estate Company. All the funds raised will be used to repay debts and reduce the debt ratio." Luo Qihong said, "According to my calculations, the debt ratio can be reduced to 4%. In this way, Best Real Estate Company will be safe."

"If this is the case, won't Best Real Estate Company be left without funds for development?" Lin Luoqi frowned slightly.

Luo Qihong pursed his lips and smiled, "We can wait for the fundraising, but the funds raised will not be too much, because the reputation and stock price of Best Real Estate Company are not enough to bear it."

This is the disadvantage of Lin Luoqi taking over Best Real Estate, he can only use ordinary means to restructure assets and debts.

In the end, Lin Luoqi was still willing to take over Best Real Estate Company, but Li Yude did not want Hongpu Real Estate Company to pay such a heavy price and was quite dissatisfied.

Fortunately, Dehe Real Estate Company holds a controlling stake in Hongpu Real Estate Company, so Li Yude did not dare to object directly.

Soon, Lin Luoqi took over Best Real Estate Company as executive director and general manager. Although there were only 46 employees, he removed 13 employees and placed his own people in important positions.

The new employees in these 13 positions came from the former Yiren Real Estate Company, including some old colleagues who had been fired by the Lin Luoxun brothers.

Lin Luoqi acted quickly. As soon as he received the first payment from Century City Company, he immediately announced it to the public. At the same time, he began to look for new high-quality properties and choose to acquire them to strengthen the company's strength.

Lin Luoqi also announced that Best Real Estate Company had passed a board meeting and agreed to issue 1 million new shares exclusively to Dehe Real Estate Company and Zhaoan Real Estate Company to raise 5 million yuan, of which Zhaoan Real Estate Company would hold 7 million shares and Dehe Real Estate Company would hold 5 million shares.

If this happens, the five major shareholders, Zhaoan Real Estate Company, Dehe Real Estate Company, Hongpu Real Estate Company, Century City Company and Xinchang Real Estate Company, will hold more than 80% of the shares and will receive a warning from the CSRC. Therefore, Hongpu Real Estate Company will take the opportunity to reduce its shareholding to about 7%.

The 4 million yuan fundraising from Best Real Estate Company was a big problem for Zhaoan Real Estate Company at that time, so Luo Qihong could only let Zhaoan Real Estate easily obtain the funds through private loans.

There is no alternative but to sacrifice personal interests to make up for the profits of Zhaoan Real Estate and allow it to quickly get rid of its current debt crisis.

Dean Securities Investment Company opened successfully and currently has 19 employees, including Bai Jinyan.

These 19 people have brought some customers and business to the company, with a market value of approximately 4 million yuan.

In order to appease these people, Luo Qihong made a promise to them that the commission for their business would be increased to 5 points, but this was only limited to their own business and had nothing to do with the business of Luo Qihong's companies.

This decision made the employees very happy. It was 3 points more than the original 2 points, an increase of almost 7%.

Although De'an Securities Investment Company did not invite many people to its opening, Luo Qihong immediately asked a familiar newspaper to publish a piece of news: Hehong Real Estate Company will sell the Garden Terrace residential building in the Mid-Levels to De'an Securities Investment Company for 2.3 million yuan.

This news caused quite a stir, and Dean Securities Investment Company was remembered by many people and gained some fame.

几日之后，德安证券投资公司又宣布将花园台住宅大厦以2亿3千5百万元的价格出售给兆安地产公司，其中的1亿2千6百万元换取兆安地产公司发行的4千2百万股新股，尾款会在2个月内支付完成。

As to whether the balance has actually been paid, that is a matter between De'an Securities Investment Company and Zhao'an Real Estate Company.

兆安地产公司的市值不过是1亿4千4百万元而已，却一举收购了市值1亿9千万元的花园台住宅大厦。

记者们纷纷报道此事，股价由3元涨到了3.5元，市值1亿6千8百万元（尚未发行新股），隐约有突破2亿元市值的趋势。

Seeing this, Luo Qihong asked Bai Jinyan to help him sell about 3.8% of the shares at the price of 10 yuan, and recovered 1 million yuan.

(End of this chapter)