Hong Kong 1980: The Savage Era

Chapter 146 [Cancellation of listing status]

Two days later

De'an Securities Investment Company and Siu On Real Estate Company jointly announced the completion of the transaction of the Garden Terrace residential building project in the Mid-Levels. De'an Securities Investment Company became the largest shareholder of Siu On Real Estate Company, while Hehong Real Estate Company became the second largest shareholder.

Since the boss of both companies was Luo Qihong, there were not many changes, and there was no unrest in the Zhaoan Real Estate Company.

The assets of Zhaoan Real Estate Company are worth more than 5 million yuan, and its liabilities are close to 3 million yuan, of which 1 million yuan is owed to De'an Securities Investment Company.

According to the net asset value of Zhaoan Real Estate Company of more than 2 million yuan, its current market value is only 1 million yuan. The stock price is 7 yuan, and there is still an increase of 8 yuan. The stock price will climb to 1.98 yuan, and the market value will never be less than 0.5 million yuan.

The market value of Zhaoan Real Estate Company was lower than its net asset value some time ago. This was done intentionally by Luo Qihong to facilitate the current action so that the private company can make a profit.

In fact, De'an Securities Investment Company subscribed for the new shares issued by Zhao'an Real Estate Company at a price of 3 yuan per share. It seems to be a disadvantage, but in fact it is raising the share price of Zhao'an Real Estate Company.

However, it will still take time to raise the share price. After all, the properties held by Siu On Properties are of high quality, including the Kaohsiung Building in Wan Chai, the On Lok Yuen Building in Central, the Garden Terrace Residential Building in Mid-Levels, and several scattered properties.

Reporters have been digging into the information of De'an Securities Investment Company and soon discovered that its major shareholder behind the scenes is still Luo Qihong. This is just a "left-hand and right-hand transaction", but Zhao'an Real Estate Company actually owns a residential building in the mid-mountain area.

This does not prevent some economic experts from criticizing Luo Qihong, saying that Luo Qihong is manipulating stock prices so that private individuals can make the most profit from it. Some people even say worse things.

But the shareholders did not care about so many things. Anyway, they felt that the Garden Terrace Building was the property of Zhaoan Real Estate Company, the asset value was indeed very good, there was no fraud, and most importantly, the stock price of Zhaoan Real Estate Company had a lot of room for growth, which was an opportunity to make money.

How could investors want to miss out!
Then, Siu On Properties announced a "rights issue plan", which was led by its major shareholder, De'an Securities Investment Company. It would offer 2 share for every 1 shares, meaning that 2 yuan would be required for every 2 shares, raising 9 million yuan. The purpose of the plan was to pay the balance of the Garden Terrace residential building and to acquire high-quality commercial buildings in the urban area of ​​Kowloon.

Since Luo Qihong's private company accounted for the majority of the shares, shareholders naturally responded positively and the fundraising was successful soon.

De'an Securities Investment Company and Hehong Real Estate Company hold a total of 6091.2 million shares, and need to issue shares worth 6091.2 million yuan. Therefore, Zhao'an Real Estate Company actually raised 2908.8 million yuan, and still owed De'an Securities Investment Company the balance of 4808.8 million yuan.

Meeting room of Wan Guobao Finance Company
"Mr. Luo, we already hold 41% of the shares of Hexiang Trading Company, spending 6 million yuan, with an average price of 4 yuan per share. Gong Guoyan, the original major shareholder of Hexiang Trading Company, holds 1.55% of the shares. Hehong Real Estate Company has successfully become the largest shareholder of Hexiang Trading Company."

Liang Botao changed the subject and said, "But Gong Guoyan has already informed us that if we do not give up the acquisition of Hexiang Trading, he will report to the Securities Commission and the Securities Regulatory Commission that Hexiang Trading's scattered shares on the stock market are less than 25%, and demand that Hexiang Trading's status as a listed company be revoked."

"Since the listing status of Hexiang Trading Company is being taken back, Hexiang Trading Company will buy back the shares held by small shareholders at the current market price. This will be a significant payment and may even aggravate the difficult situation of Hexiang Trading Company."

Hearing this, Luo Qihong frowned deeply. He had to admit that this move was indeed very ruthless, with a bit of the courage of "rather die in glory than live in dishonor". However, if they were scared off, Hehong Real Estate Company would definitely suffer losses.

On the contrary, only by taking over Hexiang Trading Company and Hong Real Estate Company can the interests be guaranteed, and he will personally control the pace of profit without being controlled by others.

Luo Qihong has never liked being controlled by others. This is not a simple investment. If it were a simple investment, it would not matter whether he controlled Hexiang Trading Company or not.

"Mr. Liang, how do you think we should deal with this problem?" Luo Qihong asked. He really couldn't think of a solution.

Liang Botao shook his head and said, "There are only two options at present. One is to reduce the shareholding, and the other is to have Hexiang Trading Company cancel its listing status."

"Is it possible to make a breakthrough with Gong Guoyan?" Luo Qihong looked at Liang Botao expectantly. In fact, he already knew the answer, because Liang Botao only gave two options.

As a professional acquisition expert, Liang Botao couldn't have thought of a way to get through Gong Guoyan. There was only one possibility, that this road was blocked. Liang Botao responded, "I have tried it. I asked my friend to contact Gong Guoyan, but unfortunately he was unresponsive and only gave us these two options. Gong Guoyan must be trying to scare us off. His current personal funds must be very insufficient."

"Since you don't want to negotiate, let's launch a full acquisition. We can take the opportunity to get more shares and gain more advantages." Luo Qihong saw that the situation was irreversible and did not dwell on it too much. What he had always wanted was the trading channels of Hexiang Trading Company, not a listing status.

The biggest advantage of a listed company is raising funds for share issuance, which can provide a large amount of capital for the company's development. Luo Qihong currently has a lot of funds that can be used first for acquisitions, so the status of a listed company is not that important.

And it’s just a position. It can be listed through a backdoor listing in the future. It’s just a matter of spending more money.

Liang Botao said, "Mr. Luo, I suggest that you just buy another 30 shares. Hehong Real Estate already holds 41% of the shares. Once Hexiang Trading withdraws from the stock market and recalls 2 million shares, the 4 million shares held will become 1%, which will allow them to completely control Hexiang Trading Company."

Luo Qihong still thought that we should be cautious, so he objected, "No, we have to prevent Gong Guoyan from having any tricks up his sleeve. We should buy as much as possible and keep the share price below 2 yuan. We have sufficient funds, so we don't need to save that one thousand or several million."

Seeing that Luo Qihong was so "generous", Liang Botao did not give too many suggestions. Luo Qihong's opinion was naturally more prudent.

next day
As expected, the China Securities Regulatory Commission sent a proposal to Wan Guo Bao Tong Financial Company to cancel the listing of He Xiang Trading Company, which included a suggestion that Wan Guo Bao Tong Financial Company sell some of its shares to keep its shareholding within 35%.

Of course, the CSRC also sent a letter to the original major shareholder Gong Guoyan, asking him to keep his shareholding below 35%.

It is highly likely that Gong Guoyan will not follow the advice. After all, he is the one who made the report. If he is threatened, he will be laughed at.

Liang Botao responded by asking the CSRC Joint Committee to cancel the listing status of Hexiang Trading Company. However, Wan Guo Bao Tong Financial Company did not stop its acquisition activities in the stock market.

General Manager's Office of Hexiang Trading Company
Gong Guoyan, a man of sturdy build and square face, sat on a leather chair with a gloomy face. The skin on his left cheek twitched slightly, as if he was suppressing his rage.

At this time, a richly dressed young woman came in with a lunch box in her hand. Seeing Gong Guoyan's gloomy face, she gently persuaded him, "It is common for employees to make mistakes. It is not good for the liver to get angry all the time. Come, let's have lunch first."

This woman was none other than Gong Guoyan’s wife, but she was not his lifelong lover. Rather, she was his former secretary who was now in a higher position.

Gong Guoyan's expression eased a little, and he said, "Let's eat later. I'm not in the mood now."

"What's wrong?" The young woman Li Qiqi saw something. After all, she had followed Gong Guoyan for many years and knew him quite well.

Faced with his wife's tenderness, Gong Guoyan told her about the difficulties the company was facing and sought Li Qiqi's opinion in disguise.

"I have read a lot of reports about Luo Qihong in the newspapers. He is a domineering person. It seems that we are in danger. It is not good for us to fight a stalemate with such a person." Li Qiqi looked at Gong Guoyan's face and said, "Husband, why don't we withdraw from Hexiang Trade and use the money to buy another company. We can start a new business."

After hearing this, Gong Guoyan's face turned even darker, but he still took his wife's words to heart. The current situation was indeed very unfavorable to him. If he continued to fight to the death, his situation would become even more unfavorable.

However, he really couldn't lose face, not to mention that the company's listing status was no longer secure. Luo Qihong might take the opportunity to lower the price, or even directly "cut it".

Seeing this, Li Qiqi said, "Why don't I go talk to the financial company and Luo Qihong, and when we've reached an agreement, you can come forward. This way, we can leave room for both parties."

Gong Guoyan trusted Li Qiqi very much and didn't think there was anything wrong with it, so he nodded and agreed.

(End of this chapter)