Hong Kong 1980: The Savage Era

Chapter 262 Chapter 263 [It’s time]

"Don't worry. De'an Company has made good profits in the past two years. We can borrow some money for emergencies. We won't fall to that point." Luo Qihong decisively rejected Cheng Jianshen's suggestion.

Cheng Jianshen was silent for a moment, and then said, "Zhaoan Real Estate is a medium-sized listed real estate company. We cannot always rely on your personal funds to develop. We should rely on normal profits and occasional abnormal profits."

This was the first time that Cheng Jianshen insisted on his own opinion without backing down, and withstood Luo Qihong's displeased expression.

He was gambling, gambling that Luo Qihong was not a dictator, and at the same time gambling on his previous efforts.

"Tell me about your plan." Luo Qihong thought about it. Although De'an Company seemed to have a lot of funds, in fact, it was also stretched to its limits when faced with such a huge plan. Cheng Jianshen's opinion would be beneficial to both Zhao'an Real Estate and De'an Company.

Cheng Jianshen breathed a sigh of relief. "I think that even if the local market does not continue to fall, it will not rise much. It is better to invest the funds from the acquisition of properties in other projects to make quick profits, just like our profits during the Hong Kong dollar crisis. De'an Company is engaged in securities and stock investments, so you can leave it to the boss to manage it yourself."

Luo Qihong pursed his lips and said, "We don't have much time left. This long-lasting crisis may end in the second half of next year. We only have a little more than half a year, and we can't make much profit at all."

"Siu On Real Estate Company owns On Lok Yuen Building in Central, Tung Cheong Building, Kaohsiung Building in Wan Chai, 10 industrial buildings in Yau Tong and Kowloon Bay, as well as a number of shopping malls and shops. According to the market conditions in 82, the market value of Siu On Real Estate Company is already 14 billion yuan. With a little effort, the market value of Siu On Real Estate Company can reach 20 billion yuan, and it will become one of the large real estate companies in Hong Kong." Cheng Jianshen mainly wanted to say that Luo Qihong was too anxious and should slow down.

The tycoons in Hong Kong all have a solid foundation, only Luo Qihong's foundation is more complicated. Once any accident occurs, the losses and impacts will be greater than those of other tycoons.

Luo Qihong searched in his mind and felt that there was only one project that was more suitable for Zhaoan Real Estate Company. "Then let's set up a securities investment department for Zhaoan Real Estate Company, and you will be in charge. The first project of this department is to acquire the stocks of Regal Hotels Company and Paliburg Investment Company from the stock market. As for how many stocks to acquire, you can decide based on the shareholding status of these two companies."

"Yes! I will look for candidates right away." Cheng Jianshen said.

"Time is urgent. You should immediately communicate with De'an Company and ask them to lend us a few people. This project needs to be carried out immediately." Luo Qihong said firmly.

Soon it will be the year 84, and businessmen with a keen sense of smell will immediately smell something different. There will be some obvious changes in the market, and they need to make some arrangements.

A few days later, news came out in the market that in order to resolve the HK$24 billion debt, Eagle Properties decided to sell its Regal Hotels Group.

The news spread quickly and many companies and consortiums approached the company, hoping to acquire Regal Hotels at a low price.

This industry is really lucrative, but the debt situation of Regal Hotels is very bad, and the situation of its subsidiary Paliburg Investment Company is not good either.

根据罗齐鸿的调查，富豪酒店有经常性亏损3亿5550万元，非经常性亏损8亿5千万元，合共约12亿1千万元，而百利保投资公司有经常性亏损3亿9930万元，非经常性亏损2亿4750万元，合共约6亿5千万元。

If Regal Hotels is taken over, it will be equivalent to taking on 18 billion Hong Kong dollars. However, the two hotels of Regal Hotels in Tsim Sha Tsui East and the airport are priceless, and coupled with the high-quality equity controlled by Paliburg Investment Company, there is still some hope.

But the pressure is huge, and the acquirer needs to have strong support, otherwise why wouldn't the bank cause trouble?

A hotel in Kowloon City

Luo Qihong, Wei Li and Luo Xurui all gathered here to discuss how to take control of the Rich Hotel.

Luo Qihong picked up a piece of abalone with chopsticks and sipped red wine. He chewed it for a few times and said with a smile, "We still have a big advantage. Both of you know Regal Hotel very well. What we need to discuss now is the bottom line of our opponent and the price that Eagle Properties can accept, as well as how to get Regal Hotel out of the crisis in the shortest possible time."

"Three companies have already come to us, and the highest price they offered is 3 million yuan. I calculated that 8 million should be our highest price," Luo Xurui said in a deep voice.

Wei Li said, "This price is very suitable. I agree. But it would be better for Luo Sheng and I to handle this acquisition. Your father is still very excited."

Wei Li was referring to Luo Yingshi's statement to reporters yesterday: "The foundation of a business cannot be established overnight. As for taking shortcuts, all it takes is one mistake to ruin the business. If the hard-earned money is lost through speculative activities, it is a business failure."

Luo Yingshi's words inevitably implied a complaint about his son Luo Xurui's reckless behavior, and Luo Xurui had left the family.

"Okay, what do you think, Luo Sheng?" Luo Xurui looked at Luo Qihong, his voice still dull.

"OK! Then Mr. Wei Li and I will go there, and Mr. Wei Li's Asian Investment Company will take the lead." Luo Qihong said. Wei Li nodded and said, "Then let's start talking about how to restructure the debts and assets of Regal Hotels and Paliburg Investments. That is our biggest challenge."

These words have revealed their determination to acquire the Regal Hotel.

"You two are experts, so tell me about your plans first." Luo Qihong did not have a specific plan, only a general idea. In their previous lives, both of them were able to turn profits and losses around, so they did not need him to give instructions in this life either.

Wei Li glanced at Luo Xurui and said, "Mr. Luo, my plan is to first borrow 7 million yuan from HSBC to restructure the debt, of which 6 million yuan will be used to buy back the Regal Hotel in Tsim Sha Tsui East."

“然后是资本重组，内容是把富豪酒店的股东资本大幅撇减，普通股的面值从每股10元撇减至2元，也就是把发行股本从6亿9千万元减至1亿3千9百万元。”

“同时注销股份溢值帐6亿6千万元，并重估两家酒店带来的溢值2亿3千万元，以抵消溢帐上的12亿8千9百万元的账面亏损。”

"The devalued common shares were then merged into new common shares with a par value of $1, which significantly reduced the number of issued shares by about 80%."

"Finally, there is a reorganization of the internal structure, which includes three points."

Luo Qihong was well aware that this would involve selling out the interests of small shareholders to carry out the restructuring, and that there would certainly be great resistance. Moreover, major shareholders like them would also need to reduce their shareholdings to lower risks.

This move seems to protect the interests of the wealthy hotel, but in fact it protects the interests of the people present.

"How does Mr. Wei Li plan to deal with those small shareholders?" Luo Qihong asked.

"It's very simple. As long as we have enough voting rights, small shareholders will not be able to resist at all." Wei Li spread his hands.

"This plan is indeed very good. I'll leave it to you, Mr. Wei Li." Luo Qihong often does these things, so naturally he wouldn't have any psychological barriers.

"Since Asia Securities Investment Company is taking the lead, I suggest that Wei Li become the largest shareholder and chairman of the board of directors of the Regal Hotel. What do you think?" Luo Xurui glanced at Wei Li and Luo Qihong.

"I agree." Luo Qihong agreed, because it was clearly 2 to 1, he had no decision-making power at all and it was impossible for him to get the decision-making power.

"Eagle Properties holds 33.4% of the shares of Regal Hotels, Asia Securities holds 13.4%, and Luo Sheng and I each get 10%. Next, we all need to purchase Regal Hotels' shares from the stock market. I suggest that we make the acquisition in a unified manner, with Asia Securities being responsible for it?" Luo Xurui suggested.

Luo Qihong shook his head and smiled, "Mr. Luo, Mr. Wei Li, you all know that I am owned by a securities company, and De'an Company has already started to acquire it, so I am very sorry."

"This is a small matter. Please ask Mr. Luo to purchase 10% of the shares and notify Asia Securities. We will enter the market at that time." Wei Li said.

This means that Luo Qihong is only allowed to hold 20% of the shares of Regal Hotels.

"Okay, I will inform Mr. Wei Li in time." Luo Qihong said with a smile.

Wei Li nodded and said, "Once I have made an appointment with Eagle Real Estate Company, I will also inform Luo Sheng."

Baoxiang Film Company Meeting Room

Compared to last year, the company has grown countless times and is now the fourth largest film company in Hong Kong, after Shaw Brothers Film Company. Its profit last year exceeded 4 million yuan.

This year, Baoxiang Film Company has been developing at an even faster pace. Its profit before October has exceeded 10 million, and is now approaching 8 million. It has to be said that it is really easy to make money from filming.

Luo Qihong looked at the financial report and couldn't help but curl up the corners of his mouth, his expression becoming pleasant.

(End of this chapter)