Hong Kong 1980: The Savage Era

Chapter 283 284 [Acquisition Successful]

Bai Jinyan also looked at Luo Qihong nervously. This was not part of the plan agreed upon by the two. It was a sudden decision made by Luo Qihong himself.

Luo Qihong smiled and said, "There's no rush for these things. Mr. Li can think about it slowly."

Li Jiacheng nodded slightly and said, "I will go back and discuss with the senior executives of the two companies and give Luo Sheng an answer as soon as possible."

"Come, let's eat and drink." Luo Qihong raised his glass, smiled slightly, and clinked glasses with Li Jiacheng and others.

The banquet was over, and Luo Qihong and Bai Jinyan got in the same car, preparing to return to De'an Securities Investment Company.

Bai Jinyan finally couldn't help it and asked, "Are you going to reject Li Jiacheng with such harsh conditions?"

"That's about right. Li Jiacheng wants to use that little bit of profit to break the impasse. Does he think I'm a beggar?" Luo Qihong became a little angry. "The electric light company with a market value of tens of billions can only give a profit of 1 to 2 million yuan. We are the key to the tipping point."

Bai Jinyan naturally felt the change in Luo Qihong's mood. "It's not the same as the rumors. Li Jiacheng is so stingy. The low-priced new shares are just empty promises. I think Li Jiacheng will dilute our holdings. After all, we are not on the same side."

Even Bai Jinyan understands all this, which shows how poor Li Jiacheng's acting skills are. Perhaps he is the only one who believes that Luo Qihong will agree.

"So, Li Jiacheng doesn't have much sincerity and he underestimates us. Now let's throw the question back to him and see how he answers it." Luo Qihong's anger subsided a little.

"What if Li Jiacheng agrees?" Bai Jinyan asked worriedly.

Luo Qihong sneered and said, "There is always a saying that first come first served when doing things. He agreed two days later. Can't I say that I signed an agreement with Li Zhaoji?"

"There is a price to pay for looking down on others, and I think Li Jiacheng understands this very well."

The hotel room on the other side
Li Jiacheng and Hong Xiaolian still did not leave. Li Jiacheng leaned back in his chair with a gloomy expression. Hong Xiaolian did not dare to disturb him for a while.

Li Jiacheng crossed his arms over his chest and said coldly, "It seems that we are going to lose to Li Zhaoji. Luo Qihong's attitude seems unclear, but in fact he leans towards Li Zhaoji's side."

"Could it be that Li Zhaoji's conditions are really much better than ours?" Hong Xiaolian asked with a hopeful hope.

Li Jiacheng laughed mockingly, "Maybe, but Luo Qihong wants to embarrass us, and he even dares to offer such a condition."

"Can we bargain? Change the conditions to something else?" Hong Xiaolian suddenly remembered something from the past and said, "Why not sell the Hilton Hotel and the land next to it to Luo Qihong? Doesn't he have a special liking for commercial buildings in Central?"

Li Jiacheng has never been a generous person, but compared to his own huge plan, the land by the Hung Hom seaside is an important part, so he can only give up some of his material possessions. "Okay! At the current market price, let's see what Luo Qihong's reaction is."

"Okay, then I'll contact Luo Qihong tomorrow afternoon." Hong Xiaolian chose a more appropriate time.

"No, notify Luo Qihong around 11 o'clock tomorrow morning." Li Jiacheng began to take this matter very seriously.

The electric light company was so important to him that it was difficult to find a replacement for it for the time being.

When Li Zhaoji received the news of the meeting between the two, he immediately went to find Luo Qihong, worried that Li Jiacheng had really poached Luo Qihong. In that case, all his previous efforts would be wasted and he would suffer heavy losses.

"Mr. Luo, let me be direct. If you feel the previous conditions are not good enough, I can increase the price." Li Zhaoji said a little anxiously. He was no longer afraid of being controlled by Luo Qihong, because Luo Qihong already had a control over him.

Luo Qihong did not directly respond to Li Zhaoji's question, but sincerely stated the conditions given by Li Jiacheng, and also told Li Zhaoji the conditions he proposed.

Hearing Li Zhaoji frowning, he was not sure what Luo Qihong meant. Was he optimistic about him or Li Jiacheng?

"If Mr. Li is willing to increase the stakes, I certainly won't refuse. If Mr. Li is unwilling to increase the stakes, I will also abide by the original agreement." Luo Qihong immediately stated, "I am just making things difficult for Li Jiacheng, hoping that he will give up, rather than reject him in person. Even if Li Jiacheng agrees, I will have a way to refuse."

Li Zhaoji breathed a sigh of relief. "Since Mr. Luo is trustworthy, I will not let him suffer any loss. After the matter is settled, I will transfer Fengze Electric Appliance Company to Mr. Luo."

Hearing this, Luo Qihong was delighted. Fortress Electric Appliances was a good thing. It would allow him to enter the home appliance industry, which was also an industry that made money quickly.

"Then I'll be disrespectful to refuse." Luo Qihong said, "I think Mr. Li can take over the electric light company."

Li Zhaoji nodded and said, "Well, I will have the electric light company hold a board meeting as soon as possible to elect a new chairman of the board."

"I think there's no need to elect. The position of chairman must belong to Mr. Li." Luo Qihong said with a laugh.

"Thank you for your good wishes!" Li Zhaoji replied indifferently.

Monday, September 2
Zhengluo Company announced that it holds effective control of 39% of Wheelock Company and will make an unconditional full acquisition of Wheelock Company in accordance with securities laws.

On this day, New World Development Company Chairman Cheng Yu-tung replaced John Madden as Chairman of Wheelock, and John Madden was appointed as the company's honorary CEO.

Seeing that the situation was hopeless, the Qiu Depu Group announced its withdrawal from the acquisition and decided to sell its 25% stake in Wheelock to the Zheng Luo Company.

In this battle, the Qiu Debao Group returned empty-handed, but also earned a profit of about 1 million yuan.

At this point, Zhengluo Company held 64% of the effective shares of Wheelock Company, indirectly controlled 11.8% of the shares, and firmly controlled the board of directors of Wheelock Company.

"Including the real estate company shares acquired from Zhang Yuliang, we spent nearly 21 billion yuan, including 8 million yuan in loans." Luo Qihong reported the situation to Cheng Yutong.

Zheng Jiachun interrupted, "Should we quickly clear these debts? The Trade Development Bureau's project is about to pay the first installment of funds."

"What Brother Chun said makes sense. We can transfer these debts to our subsidiaries first. Henderson Land Development also needs some working capital to complete the debt and asset restructuring plan." Luo Qihong said.

Cheng Yutong pondered for a while and said, "We can first sell off some of the shares held by Zheng Luo Company to recover some funds, and then consider selling Wheelock's subsidiary companies to your name. As for the debts of Zheng Luo Company, let's keep it as it is."

Zheng Jiachun was hesitant to speak. He had always been a good boy in front of Zheng Yutong and of course didn't want to refute.

"Okay, we can definitely afford the interest anyway. Which companies does Uncle Tong plan to sell first?" Luo Qihong was eager to try.

"Sell the Australian properties to Zhang Yuliang as soon as possible." Cheng Yutong thought for a moment and said, "Also, sell Lane Crawford Development Company to you. In this way, Wheelock will have enough funds to complete the restructuring plan."

"Okay, I'll submit my proposal to the board of directors as soon as possible." Luo Qihong nodded. Soon, the acquisition case of the electric light company was decided, and Li Zhaoji was elected chairman of the board of directors of the electric light company.

The important reason was that Luo Qihong rejected Li Jiacheng's plan, completely sided with Li Zhaoji, and supported Li Zhaoji to become the chairman of the electric light company at the board meeting.

Since Li Zhaoji did not initiate a full acquisition, and Li Jiacheng held such a large amount of shares, it was impossible for him to sell them all in a short period of time. He could only reluctantly become the second largest shareholder, locking up more than 30 billion yuan of funds.

It was a huge loss to Cheung Kong Holdings and Hutchison Whampoa, but Li Jiacheng did not give up. Instead, he actively looked for a replacement for the Electric Light Company.

Luo Qihong was very smart. Before he acquired the Fengze Electric Appliance Company under the Electric Light Company, he discussed with Li Zhaoji about sending someone to take over the Fengze Electric Appliance Company.

Li Zhao basically wanted to refuse, but when he thought that his position was not yet secure and Li Jiacheng could still make a comeback, he had no choice but to agree to Luo Qihong's request and appoint Luo Qihong as the CEO of Fortress Electric Appliances Company, taking charge of the management of Fortress Electric Appliances.

So, Luo Qihong began to take over Fengze Electric Appliance Company and made some adjustments to the internal personnel positions. He did not make any major changes, but only replaced the heads of important departments.

a few days later
Luo Qihong heard a shocking piece of news that Li Jiacheng's Cheung Kong Holdings, together with Hutchison Whampoa and Hong Kong Land Development, intended to acquire Hong Kong Telephone Company.

You know, the British Cable and Wireless Company has been eyeing the telephone company for a long time, and another acquisition war is about to break out.

The telephone company is not a listed company. If you want to control the company, you must hold more than 50% of the shares, otherwise accidents may easily occur.

It was also the same situation that prevented Luo Qihong from intervening, because once he entered the scene, he would inevitably offend Li Jiacheng.

There is no problem in having a small fight with Li Jiacheng, but if he turns into a major opponent, Luo Qihong doesn't think he can fully withstand it. Li Jiacheng is not that easy to provoke.

However, Li Jiacheng has to fight against the powerful Cable & Telegraph Company. Even if he wins, it will take him several years to get back on track, which is good for Luo Qihong.

By early March

The Hong Kong Financial Secretary announced the 84th fiscal budget, which showed a deficit of 36 billion yuan, shocking everyone.

Since 83, the Hong Kong government's finances have become increasingly difficult, so it has been increasing revenue and reducing expenditure, and has raised various taxes, which has caused many businesses to lament, but it has still resulted in a deficit.

Now that the deficit results have been announced, people from all walks of life are worried that the Hong Kong government will further increase taxes or implement other measures. In any case, it will be disadvantageous to the citizens. After all, the wool has to come from the sheep.

At the end of last year, the Director of Lands, Mr Toody, pointed out that 83 was the worst year for Hong Kong's real estate market since World War II.

这一年，港府透过官地拍卖会和招标的收益仅有5亿8千5百万元，其中官地拍卖仅1亿1千4百万元，有接近6成的官地流拍。

The transaction volume of properties is alarmingly low, nearly 82% less than in 8, and the Hong Kong government departments are unable to collect any taxes at all.

Today’s fiscal revenue can only rely on industries and other sectors, but this cannot compensate for the difficulties faced by local governments.

As a result, rumors began to fly again, criticizing Hong Kong's economy and saying that ambitious people wanted to take capital out of Hong Kong and invest in other regions.

Hexiang Trading Company's business has also been affected. Some industrial companies lack confidence in the current situation and want to relocate their industries to Southeast Asia, but the political situation in Southeast Asia is unstable, so factory owners are somewhat hesitant.

"Boss, the sales of Kaida Baoye Company's toys in the European market have dropped significantly recently due to reduced quality and competition from American Walt Disney's products." Yan Guantong reported with a gloomy face.

Luo Qihong flipped through the report and asked, "Have you informed Kaida Baoye Company? Have you asked them to sort it out?"

Yan Guantong replied, "We have informed you, but the quality is still poor."

"Then reduce the purchase volume and focus on other businesses. If Kaida Baoye Company wants to explain, tell them directly." Luo Qihong said, "We are a trading company, not a subsidiary of Kaida Baoye Company."

In fact, Luo Qihong has already made a lot of money from Kaida Baoye Company's products, and Hexiang Trading Company, with the assistance of Japan's Nikkatsu Film Company, has obtained the agency rights for many cartoon and comic toys, so it no longer needs Kaida Baoye Company.

"The current situation is not very good. Many factory owners are wavering, which has also affected our trade volume. If this situation cannot be improved, this year's profits will probably be significantly reduced," said Zhang Zuoyao.

Luo Qihong sighed and said, "This is the overall situation. We can only accept it. It is impossible to change anything."

"Can we change the main source of trade?" Zhang Zuyao looked at Luo Qihong and suggested.

"Tell me about your plan." Luo Qihong put down the report and didn't care much.

"Electronic products can be transferred to the Japanese market." Zhang Zuoyao simply stated his plan, "The ready-made clothing market will still be left to the Hong Kong market."

"Yes, but it should be done step by step. Don't be too hasty. Transfer half of the supply first. Don't rely too much on the Japanese market. The appreciation of the yen is already not conducive to exports." Luo Qihong said.

"The turmoil in Hong Kong will eventually pass. Our headquarters is in Hong Kong, and we will continue to be based in Hong Kong in the future," Luo Qihong added.

"I still don't know what's going on with Aigo Company? There have been a lot of problems recently, and they ignored me when I tried to coordinate with them." Zhang Zuyao reported somewhat dejectedly.

The main market for Aigo's classical fans is North America, specifically Canada and the United States, which account for 6% to 7% of fan sales. Zhang Zuoyao is mainly responsible for trade in the American market, which has affected the income of his department.

Luo Qihong smiled and said, "Something has indeed happened at Aimego. It is difficult to change this situation for the time being. Manager Zhang, you have to overcome the difficulties and add some other popular products appropriately. Don't rely on the classic fans."

The founders of Aigo, Liu Luanxiong and Liang Yingwei, had some disagreements. Liu Luanxiong noticed that the sales of fans were declining, so he thought about product transformation so that the company could survive for a long time. However, Liang Yingwei thought it was unnecessary. Aigo was a company that made fans. If they couldn't sell them in America and Europe, they could move to other countries.

Liang Yingwei even suggested moving the factory to the mainland to develop the mainland market, and was always reluctant to transfer funds to research and development.

As a result, a series of conflicts broke out in Aigo, and many management members resigned, leaving them with no time to take care of business matters.

"Since the boss has already made up his mind, we will do our best to do a good job." Zhang Zuyao felt that with so many industries under Luo Qihong, he might not notice the affairs of Aigo Company. Unexpectedly, he was wrong.

After thinking about it, Luo Qihong decided not to get involved in the power struggle in Aigo. Although Liu Luanxiong was more valuable than Liang Yingwei, his help to him was really limited.

(End of this chapter)