Hong Kong 1980: The Savage Era

Chapter 345 346 [Not the Right Time]

The film industry is somewhat lucrative, but it is only for talented people. Those who see others making money and then think about investing in film production generally lose money, such as those who get involved in social groups.

There are hundreds of companies in Hong Kong, many of which are film companies. Ordinary movies can make them lose less money because they intimidate the artists and hire stars with very little pay.

As for those who make adult films, they earn more, but they are also cracked down by the police.

Due to the sharp drop in the share price of Legu Real Estate, Huaguang Real Estate Company aggressively absorbed Legu Real Estate's shares and quickly increased its holdings from 40% to 69.1%, 11.1% more than its previous shareholding. The funds used were all profits earned from selling stocks in the stock market.

The number of stocks on the stock market also decreased rapidly, and stock prices began to stop falling and stabilize.

Someone discovered the trick and published an analytical article titled "Legu Real Estate Conspiracy" in a magazine, telling the majority of Legu Real Estate shareholders that Huaguang Real Estate Company would most likely use this trick to launch a comprehensive acquisition of Legu Real Estate Company.

This article caused some sensation, and a considerable number of investors believed this analysis.

"What should we do? Boss! Someone has seen through our intentions." Chen Zhilong asked impatiently.

Luo Qihong said slowly, "Let Huaguang Real Estate Company hold a press conference to respond to a series of rumors about Legu Real Estate Company, and announce that Huaguang Real Estate Company will pay a 2% premium to fully acquire Legu Real Estate."

"What if some people are unwilling to accept this and think the stock price is too low and are unwilling to respond?" Chen Zhilong became worried.

A successful full acquisition requires at least 90% of the shares. In this way, even if some shareholders are unwilling to respond, they can apply to the institution for forced privatization and delisting from the stock market.

"If you don't want to, just declare the acquisition a failure. What's the problem?" Luo Qihong replied indifferently.

Everyone has failures. The reason why he has always been successful is thanks to the prophets in his previous life. As for the comprehensive acquisition, he is also crossing the river by feeling the stones. Failure is failure, which is a good opportunity to learn lessons.

In his previous life, Liu Luanxiong had attempted to privatize Chinese Estates Holdings several times, but all failed. It was no big deal to continue privatizing it.

"Yes! I understand." Seeing that his boss didn't care, Chen Zhilong suddenly thought that his boss had some hidden means to ensure the success of privatization.

So, that afternoon, Huaguang Real Estate Company held a press conference to explain some rumors and announced a plan to fully privatize Legu Real Estate Company.

This news naturally caused quite a stir in the market, and many investors regretted selling Legu Real Estate Company's shares too early. Unfortunately, everything has already settled and cannot be changed.

However, investors have great confidence in Luo Qihong's management ability and believe that the shares of Legu Real Estate Company still have a lot of room for appreciation, so they are unwilling to respond.

Within a week, Huaguang Real Estate Company only received 3% of Legu Real Estate shares, and its shareholding reached 72.1%.

Luo Qihong was forced to use his trump card: exchanging 1 shares of Legu Real Estate Company for 5 new share of Huaguang Real Estate Company and paying 1 yuan in cash for 1 share.

Fortunately, the directors of Huaguang Real Estate Company had no objection to this plan and passed the decision unanimously.

As the parent company of Legu Properties, Huaguang Real Estate’s shares are more valuable, so this plan was welcomed by small shareholders.

In just 4 days, Huaguang Real Estate Company quickly received 35% of the shares of Legu Real Estate, successfully holding 97.1% of the shares and successfully privatized Legu Real Estate Company.

Meeting room of Zhaoan Real Estate Company

Many senior executives were holding a meeting. There were many topics to discuss, and it was expected to take three hours. "Boss, Huaguang Real Estate Company successfully privatized Legu Real Estate Company, adding three small commercial buildings in Central and one industrial building to the company. The total rental area increased by more than 3 square feet, the annual rental income increased by 3 million yuan, and the net profit was more than 1 million yuan," Kang Wenyi's fat deputy reported.

The privatization plan for Huaguang Real Estate Company formulated by Luo Qihong and the three giants has not been announced yet, so these senior executives do not know about it yet.

"Due to the acquisition of Legu Real Estate Company and the issuance of a large number of new shares, Zhaoan Real Estate's shareholding in Huaguang Real Estate Company has been reduced by about 2.2%. Although there is no big problem in controlling Huaguang Real Estate Company, is it necessary to increase the holdings?" Cheng Jianshen looked at Luo Qihong and asked.

"What is the financial situation of Zhaoan Real Estate?" Luo Qihong asked after thinking for a moment.

"There is not much liquid capital. If I want to increase my shareholding, I will need to borrow more from the bank," Cheng Jianshen replied.

"Use idle funds to slowly repurchase, and don't take out loans." Luo Qihong said, "Huaguang Real Estate Company successfully privatized Legu Real Estate, but its strength has also hit bottom, and it will take time to recover."

"The same is true for Zhaoan Real Estate Company. It needs to accumulate strength and make the next plan. It cannot maintain the status quo and needs to carry out multiple projects to earn funds."

"The current real estate market is booming. Should we sell a batch of properties to recover funds and enhance our strength?" Kang Wenyi suggested.

"Pick out some properties with bad locations and non-high-end residences to sell, and don't touch other properties." Luo Qihong knew that the peak of the local market had not yet arrived, and selling off properties on a large scale at this time would result in serious losses.

"Yes! However, we don't have many properties of this type, and the funds that can be recovered are very limited. The profits from the development of the real estate are also limited. We need to increase revenue or reduce expenditure to achieve the plan." Kang Wenyi continued.

"Let's raise funds for stock issuance, and then find a way to profit from the stock and securities market." Luo Qihong said, pursing his lips.

The burden has been heavy recently, and both Huaguang Real Estate Company and Zhaoan Real Estate Company need to free their bound hands, especially Zhaoan Real Estate Company.

The meeting lasted until 5: in the afternoon before it finally ended.

Originally, it would have taken another hour, but Luo Qihong thought that those were trivial matters, so he let his subordinates take charge of them with just a word or two, thus cutting some time.

Back to the office, the Big Three followed in.

"Boss, have you started preparing for the privatization plan of Huaguang Real Estate Company?" Cheng Jianshen asked.

Luo Qihong leaned back in his chair and said as the chair rocked twice, "Huaguang Real Estate Company has privatized Legu Real Estate. The stock price will rise sharply next. It is not a suitable time for at least half a year. Let's accumulate funds first and wait for the opportunity."

These decisions are naturally contrary to the previous plans, but in an emergency, there is no way to always do things according to the plan.

"According to the current market conditions, the market value of Huaguang Real Estate Company, which has acquired Legu Real Estate, will rise to about 18 billion yuan. If it issues shares, it can raise 3 million to 4 million yuan. At that time, the market value can easily exceed 20 billion yuan." Cheng Jianshen said.

"If this is the case, it will have a significant negative impact on our future privatization of Huaguang Real Estate. A heavily indebted Huaguang Real Estate is more suitable for privatization," said Chen Zhilong.

"In addition to being heavily in debt, there may also be opportunities like the China-UK negotiations," Luo Qihong added.

"The heavy debt that Mr. Chen mentioned can be controlled, but the crisis cannot. When Zhaoan Real Estate Company is ready and the market conditions are right, we will create a heavily indebted Huaguang Real Estate." Luo Qihong said.

The four people discussed Baohua Construction Company and the land exchange rights agreement and ended the meeting before 4:6.

(End of this chapter)