Hong Kong 1980: The Savage Era

Chapter 289-290 [Bad Family Affairs]

The Hong Kong property company sold 34.9% of its shares in the Electric Light Company and 38.8% of its shares in the Telephone Company, raising a total of nearly HK$50 billion. However, its debts still exceed HK$ billion, making it the largest debtor in Hong Kong.

Therefore, Simon Keswick could only continue to be a "prodigal son" and sell other assets, including 50% of the shares of Gammon Construction Company and several plots of land under development in the urban area of ​​Kowloon.

Then Jardine Matheson also sold overseas assets, such as 51.7% of the shares of South Africa's Leris Company, cashing in HK$13 billion; and the sugarcane plantations owned by Hawaii's Davis Company, cashing in HK$5 million.

The Hong Kong property company has to pay the last installment of the Exchange Square payment of HK$19.02 billion to the Hong Kong government. At this point, the Hong Kong property company's debt will once again exceed HK$120 billion, and the annual interest will be as high as HK$9 million.

According to estimates by industry insiders, if the Hong Kong Land Development did not sell its assets for cash as soon as possible, by 86, its total liabilities might have risen to 160 billion yuan, returning to its initial high debt level. By then, it might have faced a crisis of too much debt and poor cash flow.

Taking advantage of the difficult situation of the Jardine Matheson Holdings Group, Li Jiacheng actively negotiated with Simon Keswick, hoping to take over more valuable things from the Jardine Matheson Holdings Group.

Hong Kong Land Company Meeting Room

Hutchison Whampoa Chairman Simon Keswick, Hutchison Whampoa Executive Director and General Manager David Davis and other Hutchison Whampoa senior executives attended the meeting and met with Li Jiacheng and other Hutchison Whampoa senior executives to discuss which assets of Hutchison Whampoa should be acquired.

Li Jiacheng smiled and said, "Mr. Simon, Mr. Davis, I am here today with great sincerity. We want to acquire Dairy Farm International and Wellcome Supermarket."

"Mr. Li, do you want to dominate the supermarket business in Hong Kong and monopolize the supermarket industry?" Davis asked expressionlessly. The Dairy Company is not a non-saleable product, but it is not a cheap product either.

Li Jiacheng hit back, "Hutchison Whampoa has no intention of monopolizing any industry. It only hopes that Hong Kong citizens can eat cheap food and use cheap things."

"Mr. Li, please tell me your offer." Simon Keswick hated this hypocritical rhetoric. If you want to monopolize the market, just act decisively. Why use so many tricks? What is there to cover up?

It has always been like this in capitalist society. Monopolies will be fined, but compared to the profits, they are really insignificant. These big businessmen all like to do monopoly business.

"If it was to acquire Dairy Farm, we offered $21 billion, and if it was Wellcome Supermarket, we offered $8 million," Li Jiacheng explained. "Dairy Farm's land in Causeway Bay and Pokfulam were sold to Hong Kong Land, and most of the remaining land was industrial property, so the value was cut in half."

"The Dairy Company has monopolized the ice-making and milk supply market in Hong Kong, with annual profits exceeding HK$1 million, only slightly less than large companies like the Electric Company. However, the Dairy Company is wholly owned, which is different from the Electric Company. It is impossible for the transaction to be completed at HK$21 billion," Davis immediately refuted Li Jiacheng.

"Then Mr. Davis, please name a price." Li Jiacheng retreated to advance.

Davis glanced at Simon and said, "It cannot be less than HK$31 billion."

"That's impossible. The price is too high. Hutchison Whampoa can only offer HK$22 billion," Li Jiacheng said. "And we need to check the accounts of the Dairy Farm before we can pay the first installment."

"Mr. Li." Davis started arguing in an aggressive tone.

An hour later, the milk company's selling price was still at a stalemate, and the situation seemed to be in danger of getting out of control.

Simon Keswick saw this and tried to smooth things over by saying, "Since we can't talk about the dairy company, let's talk about the Wellcome supermarket."

So, Davis offered another bid of HK$13 billion, which was 62.5% higher than Li Jiacheng's previous bid, leaving room for negotiation infinitely widened.

After another hour, the two sides still could not reach an agreement. Li Jiacheng insisted on not going higher than 9 million yuan, while Davis was unwilling to lower the price too much and believed that 5 billion yuan was the lowest price.

In the end, Hutchison Whampoa did not reach an agreement on anything and wasted a lot of time.

Hutchison Whampoa meeting room

Li Jiacheng took a sip of coffee and said, "The acquisition has failed. Simon Keswick should have other ways to clear the debts of the Landmark Company. What do you think?"

Ma Shimin was the first to respond, "I think Hong Kong Land is just posturing. How can it easily deal with a debt of more than 1 billion? Simon Keswick probably thinks we have to acquire Dairy Farm and Wellcome Supermarkets."

"The most valuable assets of Hong Kong Land are the commercial buildings in Central. Now they have no intention to sell even the commercial buildings in Causeway Bay, let alone the properties in Central. Other assets are also valuable. On the contrary, Jardine Matheson has been vigorously selling its overseas assets. Perhaps it is taking advantage of Jardine Matheson."

MacLee pondered for a moment and said, "I agree with Director Ma's analysis. Jardine Matheson bought all those overseas assets at a high price in the 70s. If they are willing to sell them now, they must want to save Hong Kong Land."

Sheng Yongneng, who is in charge of Hutchison Whampoa's finances, said, "The company can still come up with 25 billion yuan if it grits its teeth. However, if we spend all this money, we can't take any other actions in the next year, otherwise the company's debt ratio will reach a dangerous level."

"Then let's digest the telephone company first. I have a bigger plan." Li Jiacheng looked at Sheng Yongneng and said, "Prepare the land supplement fee of 3 million yuan for the Hung Hom land and the road construction fee of 9 million yuan. Then we will focus our main energy on developing this land."

"Yes! Mr. Li!" Sheng Yongneng nodded in response.

After the three people left the meeting room, Hong Xiaolian whispered in Li Jiacheng's ear, "Boss, is your plan to acquire the Landmark Company?"

Li Jiacheng did not show any sign of shock, nor did he answer Hong Xiaolian's question, but a smile appeared on the corner of his mouth.

Guan Jiahui still lives in the luxurious residence in Mid-Levels, but she has bought this mansion and turned it into her private property.

This woman was quite intelligent. After Luo Qihong gave her a few pointers, she began to cash out half of her investment in the Japanese stock market and used the money to acquire those cheap properties in Hong Kong.

Now, Guan Jiahui owns properties with an area of ​​more than 2 square feet, most of which are luxury houses and a small part are shops. When the local market recovers, she will make a fortune.

Cluck! !
Just as he was about to "fight" with Guan Jiahui, there was a knock on the door, which made Luo Qihong a little depressed.

"Who is it?" Luo Qihong wanted to come out to open the door, but was stopped by Guan Jiahui. "They are all irrelevant people. Let's continue and ignore him."

From what Guan Jiahui said, she knew who it was, or at least guessed who it was. Luo Qihong, who had lost interest, could only sigh and go to see who it was.

Seeing the man's face through the cat's eye, Luo Qihong's anger suddenly subsided a lot. He forced a smile, opened the door and greeted him, "Uncle Guan! It's been a long time since we last met. How are you doing?"

"It's Ah Hong, I'm fine." Guan Shan smiled brightly when he saw it was Luo Qihong.

Luo Qihong is his savior, and Guan Jiahui has been avoiding him.

"Is Jiahui at home?" Guan Shan glanced inside and asked with a smile.

"Here! Come in first." Luo Qihong moved aside to make way for Guan Shan.

Guan Jiahui heard Guan Shan's voice and put on her clothes reluctantly.

"If you have something to say, just say it directly." Guan Jiahui said unhappily.

Whenever Guan Shan comes to her house, he always asks her to do something. When he has nothing to do, he won't think of her as his daughter. He doesn't even care about her as much as Luo Qihong does, so Guan Jiahui has become somewhat dependent on Luo Qihong.

"Actually, I know I don't have much talent to be a director. Ah Hong, you have been very helpful to me. The three movies we made all lost money, so I don't want to be a director anymore, and I don't want to do behind-the-scenes work." Guan Shan sighed and said awkwardly.

Guan Shan paused. Guan Jiahui was still dismissive and didn't want to give Guan Shan a way out, so Luo Qihong asked, "What does Uncle Guan want to do? Do business or other work?"

Luo Qihong remembered that the reports he had read in his previous life mentioned that Guan Shan had done business, but it did not specify what kind of business it was, so he had no idea.

"I have been working as an actor for many years, but I have no idea how to do other things, so I want to do business related to movies, such as movie videotapes, and I think I can get started easily." Guan Shan said shamelessly.

Luo Qihong pondered and said, "Uncle Guan, this business is not easy to do. Many societies are also dealing in pirated videotapes. It may be difficult for you to make money. Why don't I give you the equipment and other items of Baoxiang Film Company?"

"Instead of letting others make a profit from the price difference, it's better to give the money to you, Uncle Guan. As for the business outside of Baoxiang Film Company, you have to rely on yourself. I can't help you."

"What if I can make money from video tapes?" Guan Shan was very stubborn and unwilling to give up.

"Yes, but the profit cannot be lower than that of an ordinary video tape company." Luo Qihong said.

"Okay, if I can't make money, I'll listen to you and become an equipment supplier." Guan Shan was also unwilling to give up his way out.

After Guan Shan finished speaking, he chatted with Luo Qihong for a few words and then left.

It was not until Guan Shan left that Guan Jiahui's complexion improved slightly.

"Okay, Uncle Guan is your dad after all. There's no need to act like you're always estranged from him." Luo Qihong grabbed Guan Jiahui's shoulders and persuaded her gently.

The woman was wearing pajamas, and she seemed even more attractive when she was angry.

Guan Jiahui snorted and still did not respond to Luo Qihong.

"Uncle Guan may not be a qualified father, but he still cares about you very much. Last time, he asked someone to ask me about your recent situation." Luo Qihong spoke well of Guan Shan.

Finally, Guan Jiahui couldn't help it anymore and spoke out the grievances she had suffered over the years, bursting into tears.

Listening to Guan Jiahui's story, Luo Qihong suddenly felt that Guan Shan was too selfish. However, her mother Liu Bingqian was not a good mother either. How could she abandon her daughter? She even asked her daughter, who was in middle school, to support her and her son's expenses in the United States.

Don't you want your daughter to be sold out?

(End of this chapter)