Hong Kong 1980: The Savage Era

Chapter 308 Chapter 309 [Leqi Real Estate]

On the third day, the news that Luo Qihong's private company acquired the shares of Huaguang Real Estate Company held by Zhao Congyan's family was published on the front pages of major newspapers, causing quite a stir.

Originally, Zhaoan Real Estate Company held nearly half of the shares of Huaguang Real Estate Company, so taking over Huaguang Real Estate Company should not have been a big topic. Unfortunately, Luo Qihong had many enemies who thought this was a good opportunity for revenge, which led to the current popularity.

Many newspapers reported that Luo Qihong held more than 75% of the shares of Huaguang Real Estate Company, which was contrary to the requirement of the Company Law that at least 25% of the shares must be circulated in the stock market. They called on the Commission and the Securities and Futures Commission to investigate Luo Qihong's shareholding.

In view of the strong public opinion, the relevant institutions did not dare to delay and launched an investigation on the same day, requiring Luo Qihong to produce proof of shareholding and to go to Huaguang Real Estate Company to conduct inquiries.

It was not until the evening of the same day that the CSRC and the Commission announced that Luo Qihong and his companies' combined shareholding did not exceed 75%. However, they also warned Luo Qihong to reduce his holdings to 70% within six months.

Luo Qihong naturally agreed. In his opinion, as long as he did not lose money by selling these stocks, he was not willing to hold too many shares. After all, this would lock up his funds.

Huaguang Real Estate Company Board Meeting
Luo Qihong relied on his status as a major shareholder and chairman to expel all the directors who had previously supported Zhao Shizeng from the board of directors. Those who also served as senior executives of the company were also dismissed. He took the opportunity to arrange trustworthy people to join the board of directors.

Today, he has become the one who has the final say in the board of directors of Huaguang Real Estate. Eight of the 12 directors are his confidants, and the rest of the directors are trembling with fear, fearing that they will be expelled the next day.

"I don't plan to distribute last year's profits as dividends. This money will be used for another purpose." Luo Qihong said with a smile, "I propose that the company purchase Cui Baiquan's family's Legu Real Estate Company. The information about this company has been distributed to all directors. You can take a look at it first."

"Legu Real Estate has abundant assets, with a market value of more than 4 million yuan. In its peak period in 82, its market value exceeded 7 million yuan. It is the leader among similar companies. Moreover, this company does not have much debt and is a pure rental company. Many large companies are eager to make a move on it, and we at Huaguang Real Estate cannot fall behind."

"With such fierce competition, how much does Luo Sheng plan to bid?" asked a director.

"It's hard to say. We need to discuss it before we know." Luo Qihong would certainly not disclose the secret, even though it was a confidant who asked.

"Legu Properties is indeed of high quality, and the real estate market is now recovering, which has great prospects. However, the company does not have much cash. Even if we acquire it at the market price, it will cost 1 million yuan, which will clear the company's cash flow." Another director expressed his concerns.

Luo Qihong sneered and said, "Mr. Long is wrong. The company has to develop. The local market is about to take off, but you are unwilling to take any risks. You still want to make a profit. How can such a good thing happen?"

"The acquisition of Legu Real Estate Company has been approved and there is no need to discuss it further. The parent company has already helped with some of the preliminary work, and the subsequent work will also be carried out by Zhaoan Real Estate Company. Huaguang Real Estate only needs to raise the required funds."

This made the director feel angry. He didn't expect Luo Qihong to be so disrespectful. This was just a normal meeting, but he acted in an extremely overbearing manner.

The three giants of Zhaoan Real Estate naturally became directors of Huaguang Real Estate. This was a benefit given to them by Luo Qihong. Being a director came with some royalties.

"What did Cui Baiquan say? What's the reserve price?" Luo Qihong asked.

This was Zhao Shizeng's original office. He was temporarily taking over the position of general manager of Huaguang Real Estate Company until a suitable candidate was found.

Zhao Shizeng is a man who knows how to enjoy life. The decoration of his office is much more luxurious than Luo Qihong's offices in other companies. The antiques displayed inside alone are worth hundreds of thousands of yuan.

"The reserve price is 2 million yuan, with a premium of about 5%." Chen Zhilong said in a deep voice.

This price is already very high. The asking price is 35% higher, and the marked price is at least 6% higher. However, compared with the peak market value of 7 million yuan, it does not seem very expensive.

"What price do you think is appropriate?" Luo Qihong asked with a serious expression.

It has to be said that Cui Baiquan offered a good price. Although it was high, Legu Real Estate Company was still attractive.

Kang Wenyi said, "I think it doesn't matter if the price is a little higher. We can even consider the market conditions in 82 and give a premium based on the market value of 7 million yuan."

When this was heard by everyone, they were inevitably shocked. There is a huge gap between the current market conditions and those in 82. It is not an exaggeration to say that the difference is twice as much.

Suddenly, Cheng Jianshen and Chen Zhilong didn't know how to answer. Kang Wenyi's words reminded them that the price depended on the boss's determination for Legu Real Estate Company.

"Manager Kang's price tag makes a lot of sense. Even if we estimate it based on the market conditions in 82, it's only a difference of 1 million. As long as the market conditions are good, it's only a matter of time before the price goes back up." Luo Qihong smiled.

Knowing his boss's determination, Cheng Jianshen suggested, "In this case, Huaguang Real Estate will need to borrow a lot of money."

"It's only 1 or 2 million. We can easily get it back from the stock market." Luo Qihong solved the doubts at once.

"Then what should be our specific price?" Chen Zhilong asked.

Luo Qihong smiled and said, "4 million. Doesn't Cui Baiquan hold 3% of the shares? Then we will just follow this ratio."

This is a premium of more than 7%.

Kang Wenyi, the person who brought it up, was surprised. He thought the boss would give a slight discount.

"Do you want to check the quotes from other companies first?" Cheng Jianshen still wanted to be safe. This price was really a disadvantage, and it would not sound good if it got out.

"No need, but I will continue to get news from other companies. Although I can't get too much real news, I can confuse the outside world." Luo Qihong waved his hand and said, "Mr. Chen, you should pay special attention to the quotation from Cheung Kong Industries."

"Yes, boss!" Even without Luo Qihong's special instructions, Chen Zhilong would pay special attention to Cheung Kong Holdings. He knew very well who Luo Qihong's opponents were.

Lin Yunxue finally collected enough company information and selected 8 companies from them.

Luo Qihong glanced over the information and asked Lin Yunxue, "Which company do you think is the most suitable for us?"

"Leqi Real Estate Company!" Lin Yunxue explained, "Although this company is heavily in debt, it will be a good company after the city recovers, and the current property assets can offset the debt."

"Have you contacted the boss of this company?" Luo Qihong said with a smile.

Lin Yunxue shook her head. "Not yet. According to the investigation, the boss of this company doesn't seem to be willing to sell it and is waiting for a 'turnaround'."

"It is indeed very easy to turn things around in the current market, but danger and opportunity go hand in hand. Once the stock price falls again, this person will be left with nothing, or even heavily in debt." Luo Qihong smiled faintly. There will be a big crash in the middle of the year, so the idea is quite perfect.

"So what are you going to do? Buy it directly from the stock market?" Luo Qihong asked, his tone full of ease. The acquisition of such a small company was a little simple for him.

If there is any problem, just use your financial power to crush them. The other party will not be able to withstand it.

"You can only buy stocks on the stock market, and you can also look for small shareholders on the board of directors." Lin Yunxue said.

"Well, let's get started." Luo Qihong nodded, "How much money do you plan to use?"

"Five million is enough." Lin Yunxue replied. "Okay, I won't show up. The market is good now. If those people see me show up, they will probably take the opportunity to ask for a high price, which is not good for the new company." Luo Qihong said expressionlessly.

"I think the situation will be the opposite. As long as we explain the plan and Luo Sheng is in charge, those small shareholders will be much more sensible." Lin Yunxue retorted.

Luo Qihong didn't care about it. It was just some small business. He was just playing with Lin Yunxue, and the loss was very limited. So he smiled and said, "Okay, if there is any accident, you will be responsible."

"Okay, then I will arrange to secretly purchase a part of it from the stock market, about 15% of the shares, and then contact those shareholders." Lin Yunxue smiled brightly. She noticed that this was a joke from Luo Qihong.

Acquiring a company on the verge of bankruptcy is quite simple. However, in just one week, Lin Yunxue acquired 16% of the shares of Leqi Real Estate Company and became the second largest shareholder of Leqi Real Estate Company.

Tsim Sha Tsui Kowloon Hotel
Lin Yunxue invited several shareholders of Leqi Real Estate Company, and these shareholders thought that this was a setup by Luo Qihong, and they became much more respectful to Lin Yunxue.

Luo Qihong's spokesperson is simply not on the same level as these small bosses.

"Everyone, Qiyu Investment Company plans to purchase your shares of Leqi Real Estate at a premium of 5%. Are you willing to sell?" Lin Yunxue said.

The middle-aged shareholder of the Mediterranean joked, "Since it is Luo Sheng's company, isn't a 5% premium a bit stingy?"

Lin Yunxue glanced at Luo Qihong and said, "The 5% premium was determined after market research. This gentleman may not know that Qiyun Investment acquired Leqi Real Estate not to continue operating it, but to sell it for profit after a slight asset and debt restructuring."

The Mediterranean shareholder chuckled, his face full of disbelief, and so did the other shareholders.

Suddenly, Lin Yunxue felt a little embarrassed. It was actually just as Luo Qihong said.

"Since you are not willing, Miss Lin, we can't force you." Luo Qihong certainly ignored those guys who wanted to take advantage of the opportunity to make a fortune, "Take your time to eat, the bill has been paid."

When the shareholders saw Luo Qihong's move, they were dumbfounded. You should at least give us a price. Is it right to just leave if the price is not right?
Lin Yunxue reacted instantly and stood up. "Then everyone, take your time eating. We'll be leaving first."

When Luo Qihong walked to the door, the shareholders finally admitted defeat, "Mr. Luo, let's continue to talk, maybe we can find a price that we can both accept."

"To be honest." Luo Qihong turned around and smiled, "A 5% premium is already the highest price. If the premium is too much, I might as well buy it directly from the stock market or find a major shareholder. Why bother dealing with so many people?"

"Isn't Mr. Luo afraid that we might leak the secret?" another shareholder said maliciously.

Luo Qihong sneered and said, "Don't worry, at worst you can change companies, you will always meet people who know the times."

"You know the situation of Leqi Real Estate Company better than I do. The local market seems to be recovering, but it is hard to say whether it will really recover in the end. There were repeated ups and downs in 83."

"I don't mind. I can take the risk. But for you guys, it's a bit dangerous."

The shareholders began to fall silent. Of course, they wanted to sell their shares and could not wait much longer.

So, under Luo Qihong's intimidation, the shareholders immediately signed the contract and paid the money on the spot.

"Counting the 17.4% stake of these shareholders, we already hold 33.4% of Leqi Real Estate Company's shares, making us the largest shareholder." Lin Yunxue picked up the dishes with a smile.

This was Lin Yunxue's first acquisition, and she didn't expect it to go so smoothly.

"Are you sure the original major shareholder doesn't have extra funds to launch a counter-takeover?" Luo Qihong crossed his arms across his chest with a slight smile on his face.

"The major shareholder still has a lot of debts, so it's difficult for him to launch a counter-takeover." Lin Yunxue smiled and said, "Even if the major shareholder can successfully launch a counter-takeover, we have an advantage over him. You are Mr. Luo, much more reliable than those people. The directors will definitely stand on our side."

So that was the idea.

But it is in line with the style of children from wealthy families, using their power to bully others.

"Okay, let's hold a board meeting as soon as possible and pass the plan smoothly first." Luo Qihong smiled.

Lin Yunxue thought things were a little too simple. When the interests of those people were threatened, they would not sit idly by and wait to be slaughtered by anyone, even if the other party was strong, especially if there was a former major shareholder who took the lead.

in a few days

The board of directors of Leqi Real Estate Company was successfully held and a new chairman and general manager were elected.

Although the major shareholder Deng Jisheng made a lot of preparations, the directors still sided with Luo Qihong. Lin Yunxue successfully became the new chairman and concurrently served as general manager.

"The plan in our hands is an asset and debt restructuring plan. At present, this is the best plan for the company." Lin Yunxue said selfishly.

Deng Jisheng frowned and said, "Chairman Lin, this plan is not appropriate. It will harm the interests of many shareholders."

Hearing this, many directors looked at Lin Yunxue and Luo Qihong, hoping for an explanation.

Lin Yunxue explained slowly, "I know that the board's original plan was to wait for the local market to improve, and the company would naturally get rid of the crisis, but we don't know when the company will be profitable."

"My opinion is the opposite of Director Deng's. I think this will protect the interests of all directors. Shareholders who are willing to wait for the company's situation to improve can continue to wait. Luo Sheng and I will definitely help everyone find a good successor. Shareholders who are unwilling to wait and want to cash out can also cash out in time. This is a best of both worlds solution."

Luo Qihong chimed in, "Don't think I'm here to inject capital to save Leqi Real Estate. I already have several listed real estate companies under my umbrella. There's no need to spend energy on being a good guy."

"My purpose is very simple, to realize profits in a short period of time. I believe this is also the idea of ​​most directors. It will take at least 2-3 years for Lucky Real Estate to pay dividends. It is better to use the cash to invest in other companies, such as Hutchison Whampoa."

Deng Jisheng was furious, but he was still unwilling to give up Leqi Real Estate. "Luo Sheng, what you said is wrong. It is precisely because Leqi Real Estate's stock price is low that the benefits can be maximized. If it can restore its strength in 82, all shareholders will make more money."

"Mr. Deng, do you think you have the ability to turn the tables? If Mr. Deng did, I don't think Leqi Real Estate Company would have fallen into the hands of Qiyun Investment. Instead of talking big, Mr. Deng might as well think about how to clear his debts." Seeing that Deng Jisheng was stubborn, Luo Qihong did not show any mercy and broke the paper.

The shareholders' faces showed signs of realization. Deng Jisheng was clearly making empty promises, and he had been doing so for several years.

Deng Jisheng's face turned red, as if Luo Qihong was slapping him in the face.

There is no doubt that this plan was approved by the board of directors.

Luo Qihong also used his power for personal gain and asked Lin Yunxue to sell some high-quality properties to his private company at market prices. Of course, he would also leave some high-quality properties so that Leqi Real Estate Company could sell them at a good price.

(End of this chapter)