Hong Kong 1980: The Savage Era

Chapter 272 273 [Things are complicated]

Dean Securities Investment Company
Luo Qihong has been here for several days, concentrating on handling the bidding project of the Hong Kong Electric Company.

De'an Company and he personally have invested hundreds of millions of dollars in this project and cannot afford to lose anything.

Simon Keswick did not give Li Jiacheng any face at all and insisted that those consortiums bid, which made Li Jiacheng very angry, but helpless.

Luo Qihong put down the newsprint with a gloomy face, and after a few seconds of silence, he said, "The Li family will certainly not sit still and wait for death, nor will they allow the Land Company to ask for an exorbitant price."

The headline of the newspaper was "Hong Kong's future is uncertain, investment needs to be cautious". The content included analysis of foreign investment cuts, stock and real estate market crashes, and the losses of the Hong Kong Land Development since 82. It was intended to tell the public and the consortium that the Electric Light Company would not have so many consortiums to compete with, and this was all a conspiracy of the Hong Kong Land Development.

"What should we do? Should we sell the shares of the electric light company?" Bai Jinyan was really worried that the stock price of the electric light company would drop slightly, and De'an Company would suffer a lot of losses in its investment.

Luo Qihong shook his head and said, "Don't worry, this is Li Jiacheng's trick. The asset value of the electric light company is there. Even if the stock price falls, it will be above the original price."

"Then shouldn't we do anything? Let Li Jiacheng ruin our plans?" Bai Jinyan was still too unfamiliar with these tricks.

Both Li Zhaoji and those competing consortiums were happy to see this scene. No one wanted to be treated as a 'sucker' by the Hong Kong Land Development, and they hoped that the Hong Kong Land Development would put itself in the right position.

Of course, those consortiums can wait. The Hong Kong Land Development has a debt of HK$160 billion. As long as they use a little public opinion, the banks will definitely come to collect the debt. However, that consortium will offend the Hong Kong Land Development and may be excluded from the list of takeovers.

Therefore, once something is done, Li Jiacheng can easily find out the mastermind behind the scenes, and thus be exposed.

So Luo Qihong told Bai Jinyan about the analysis, and Bai Jinyan's eyes widened. This plan was a bit insidious.

"Then doesn't that mean we can do nothing?" Bai Jinyan still didn't give up. That was an investment of tens of millions or even hundreds of millions of dollars in profit, how could he let it slip away in vain.

"Don't worry, as long as we give those newspapers a little hint, they will help us. Once all the newspapers report it, Li Jiacheng won't be able to find out anything. Besides, we are hiding in the dark." Luo Qihong said with a sly smile.

"That's good!" Bai Jinyan breathed a sigh of relief, and then mentioned another thing, "Xiangjiang TV is going to go public in January next year. Should we participate?"

The full name of Hong Kong Television is Hong Kong Television Broadcasting Co., Ltd. It was registered in Hong Kong in 65. Its founders and major shareholders include well-known Hong Kong figures such as Li Ka-shing, Run Run Shaw, and Yu Jingwei, as well as several large British companies, including Jade Channel and Pearl Channel.

In the second quarter of 80, after the chairman of the board, Li Ho-wo, passed away due to a heart attack, Run Run Shaw took over the management of Hong Kong Television, and he increased his shareholding year by year. Now he has a firm control over Hong Kong Television Broadcasting Company.

83年前3个季度已经盈利1亿3千万港元，全年预计盈利1亿7千万港元，比得上一家大型地产公司在巅峰时期的盈利。

"How does Run Run Shaw plan to issue allotments?" Luo Qihong knew that this was a hot commodity and that many people would be eyeing it, so it might not be De'an Company's turn to get involved.

“计划以每股2.65元的价格公开配售1亿零5百万股新股，集资2亿7千8百万元，这占比25%的股票由和记国际、新鸿基证券、英之杰、民乐等公司发出，配股完成之后，邵逸夫、利氏家族以及新鸿基证券会持有香江电视64%的股权。”白谨言将收到的消息和盘托出。

"How many shares does Run Run Shaw hold?" asked Luo Qihong.

"About 23%, making him the largest shareholder. Run Run Shaw has a good relationship with other directors, except for the Li Hau Woo branch of the Li family." Bai Jinyan understood what Luo Qihong meant, but there was nothing he could do from Run Run Shaw, as he had already carefully prepared a defense mechanism.

"25% of the allotment is the lowest percentage, it's hard for us to get it, do you have any channels?" Luo Qihong certainly hopes to get some new shares, that's a sure-fire money-making project. "I can talk to Sun Hung Kai Securities, but it should involve some exchange of interests. If it's the shares of the Electric Light Company, can you accept it?" Bai Jinyan asked bluntly, her eyes hooked at the expression on Luo Qihong's face. She believed that the profits of the Electric Light Company were not as good as the Hong Kong Television Broadcasting Company, which was about to go public.

"The current share price of the Electric Light Company is 7.02 yuan, and Sun Hung Kai Securities' bid cannot be lower than the market price." Luo Qihong agreed conditionally.

Of course, De'an Company will sell the shares of the Electric Light Company at the market price, and Sun Hung Kai Securities will also sell the new shares of Hong Kong Television Broadcasting Company at the announced new price. As for how much to sell, this needs to be discussed carefully.

"Of course." Bai Jinyan nodded. Luo Qihong had authorized her, and she could even make the decision on the stocks of the prosperous electric light company.

"Daoheng Bank is conquering the city and even taking over some of HSBC's business." Bai Jinyan continued to report, "The current situation is still unclear. Isn't such a big move a bit inappropriate? Do you need to discuss it with Guo Lingcan?"

Luo Qihong was slightly stunned. He did not expect Guo Lingcan to be so bold. HSBC has gathered its forces in Hong Kong and made preparations for unexpected events, but Guo Lingcan is so optimistic about the Hong Kong financial market and believes that this is a great opportunity for expansion. This is completely leaving no way out for himself.

Bai Jinyan's worries are normal. Without the God's perspective, Luo Qihong would be terrified, because if a major accident happened, the loss would be more than one billion Hong Kong dollars.

This amount can buy two medium-sized commercial buildings in Central or a Grade A commercial building. It must be an unprecedented blow to the Guo family.

Luo Qihong didn't know how Guo Lingcan convinced the members of the Guo family, but he was sure that Guo Lingcan had put in a lot of effort and would not give up easily.

"No need. Since we have invested in Feng Long Investment Company, we must believe in Guo Lingcan's vision and ability. We are outsiders and cannot easily question our allies." Luo Qihong said earnestly.

Bai Jinyan was also helpless. She wanted to interfere, but unfortunately she didn't have enough say. Guo Lingcan would definitely not take it seriously and might even report her to Luo Qihong.

"We received news that John Madden of Wheelock is planning to sell his shares. The share price of Wheelock has fallen to 5.1 yuan, and many small shareholders are looking for buyers to sell their shares," said Bai Jinyan.

"Contact those small shareholders and secretly acquire their shares." Luo Qihong asked, "Approximately how much shares can we get?"

"If everything goes well, we can get 7% of the shares, and then we will hold 11% of the shares." Bai Jinyan stated the results of the analysis.

"What will you do if these small shareholders take the opportunity to raise the price?" Luo Qihong considered Bai Jinyan.

Bai Jinyan thought for a moment and replied, "Considering our current situation, I will offer a 1% premium to meet their asking price. I'm worried that those people will reveal our intentions, and a 1% premium can be considered as keeping their mouths shut."

Luo Qihong shook his head and said, "We can't offer a premium. Our bottom price is the market price. We have to lower the share price when we negotiate with them."

"Wheelock is on the verge of bankruptcy, and Zhang Yuliang doesn't want to save the entire Wheelock. Even if Zhang Yuliang saves those real estate companies, Wheelock will be seriously damaged. This is not something that small shareholders can bear, so they must want to get out of this vortex."

"Then what's a suitable price?" Bai Jinyan felt a little panicked. If she were those shareholders, she would not agree to this price.

"8% of the market price!" Luo Qihong thought for a moment and added, "It can also be 7%, depending on your wishes."

(End of this chapter)