Hong Kong 1980: The Savage Era

Chapter 374 Chapter 375 [War of Words]

"Mr. Fu, I don't know what other companies offered, but I think a 5% premium over the base price of 4 million is already very good, and other companies shouldn't be able to exceed that." Luo Qihong said with a smile.

The Fu family was originally a wealthy family in Macau. Although they were somewhat shady, they had been running the D field for many years and were therefore quite wealthy.

Later, Yip Hon and his ilk came from behind and seized the D field license from the Fu family. The Fu family then faded out of Macau and returned to take over some of their ancestral properties in Hong Kong.

Unfortunately, the second generation of the Fu family does not have much business talent. They even sold properties like the Furama Hotel, which shows their lack of ability.

"Mr. Luo guessed it right. Indeed, no one offered a price higher than 4%. However, someone offered the same price as Mr. Luo, so Mr. Luo needs to bid higher, otherwise he will have no advantage." Fu Houze said.

"Mr. Fu, how about this? This is the final price. I will give you a 5% premium. If it's possible, we will sign the contract right away. If not, I won't stop you from selling at a high price." Luo Qihong restrained his smile and spoke in a firm tone.

He hates people who raise the price, and he also hates people who drag their feet and bargain repeatedly.

Fu Houze remained silent. Luo Qihong's offer was the highest at the moment, but he still felt that it could be higher.

Five minutes later, Fu Houze was still thinking.

Luo Qihong was a little impatient and said, "Since Mr. Fu doesn't agree with my proposal, I'll take my leave first. I hope Mr. Fu can sell it at a good price."

"Wait, Luo Sheng!" Fu Houze stood up to persuade him, "A 5% premium is 7.5 million, why not add another 3 million, 7.8 million, to make it a good omen."

Luo Qihong thought for a while, pretending to think for more than ten seconds, and said, "Okay, 7.8 million is 7.8 million, let's go to the law firm to sign the contract now."

"Haha!! Luo Sheng is really straightforward." Fu Houze said with a smile.

The Fu family has some confidence in Macau, but in Hong Kong where wealthy families abound, they definitely want to make friends with Luo Qihong.

The signing was quickly completed and Luo Qihong did not stay long. He asked Kang Wenyi to prepare for the reception.

Then Zhaoan Real Estate Company announced that it would acquire 7.8% of the shares of Furama Hotel held by the Fu family for 75 million yuan, becoming the holding company of Furama Hotel.

This news caused a sensation in the market.

Zhaoan Real Estate Company actually dared to acquire Furama Hotel at a premium of more than 5%. Suddenly, the share prices of Furama Hotel and Zhaoan Real Estate Company both increased, among which Furama Hotel's share price increased the most.

Originally this stock was very low-key, but now it has become a hot stock in the stock market, and has also made Furama Hotel a big hit.

With such operations, Zhaoan Real Estate Company's cash flow dried up again, leaving only a small amount of working cash. It also borrowed 5 million yuan from the bank. Its total debt has reached 16 billion yuan, and its market value is only 48 billion yuan.

Siu On Real Estate Company
"We have taken over the initial stage of the Furama Hotel, with an annual profit of 3 to 4 million yuan, and a net profit even lower, at just over 2 million yuan. It has been open for 13 years, and its decoration cannot keep up with the times. Although it is a star hotel, its occupancy rate is not high, far less than that of hotels of the same level. Therefore, if the Furama Hotel wants to increase its profits, it must be renovated again," Kang Wenyi reported.

Luo Qihong shook his head. "Forget about the renovation. I plan to demolish the hotel and rebuild it into a commercial building with an area of ​​more than 40 square feet. I will use it to collect rent, which will make much more money than running a hotel."

"But what if the hotel brand management company breaches the contract? This costs more than 1 million yuan," Kang Wenyi said in embarrassment.

"According to the current commercial building rent in Central of 26 yuan per square foot, 40 square feet will have a monthly rent of 1 million yuan. It is completely doable and affordable." Luo Qihong waved his hand and said.

"If we rebuild, we will need cash from privatization and construction costs. According to the comparable commercial buildings in Central, the construction costs are 2 to 3 million yuan. It will take us 10 years to recoup our investment." Kang Wenyi made a simple calculation.

"The rental prices in Central have been increasing year by year. It was 26 yuan in the first half of the year and at least 30 yuan in the second half. By this calculation, it will take at most seven or eight years to get your money back," said Luo Qihong.

"Where will the construction costs come from? Will it be provided by Zhaoan Real Estate?" Kang Wenyi continued to ask.

"Don't be in a hurry. You can first test the attitude of the hotel management company. I will find a suitable time to privatize and rebuild." Luo Qihong said.

After the Spring Festival, Zhaoan Real Estate will start raising funds and issuing shares, and will try to raise funds and issue shares again before the August 7 stock market crash.

Friday, October 1

Before Peregrine International announced its acquisition of Wing On Group, the news that "Lo Chi-hung and Cheng Yu-tung's family are once again acquiring Wing On Group" spread in the market, causing the share price of Wing On Group to soar.

Because the last time Liu Luanxiong attacked Wing On Group, investors followed suit and made a lot of money, so this time investors flocked in, even crazier than last time.

Guo Family Villa
Guo Zhiliang and Guo Zhiquan sat there in silence. They knew very well that this time was more dangerous and stressful than last time. How could Liu Luanxiong possibly compare to the Cheng Yutong family.

In the market, many people recognize the Cheng Yutong family's title as one of the four major Chinese families in Hong Kong, which shows how powerful the Cheng Yutong family is.

It was already troublesome enough to resist the Cheng Yutong family, and now with the addition of Luo Qihong, the chances of winning were greatly reduced.

"What should we do? It's Luo Qihong again, that barbarian."

"First he acquired 34% of the shares of Central Financial Plaza and Grand Hotel Group, and now he's trying to mess with us. How much money does Luo Qihong have? Isn't he afraid of being attacked by others?"

"Okay, I called you here to discuss countermeasures, not to let you come here to complain." Guo Zhiliang scolded, "Can you all tell me what suggestions you have?"

When the suggestion was mentioned, everyone fell silent. The atmosphere was completely different from the noise just now and it became very strange.

"Zhiliang, we should talk to Cheng Yutong. Cheng Yutong is not a bad person. Maybe he can persuade Luo Qihong to get out of trouble." Guo Zhiquan was a little whimsical.

"It's unlikely, but we can give it a try," Guo Zhiliang said. "But we still have to do our own thing and actively repurchase the group's shares and try to increase our holdings to 48%."

The family members had different thoughts. The last time they were able to work together was because they were reluctant to give up their ancestral business. However, Guo Zhiliang reduced his holdings in Yongan Commercial Management Company, which represents the family's interests.

None of the money went into the pockets of any of them, but they paid a price in the sniper battle. Now they are asked to contribute again, and they are all worried about being at a disadvantage again.

Seeing that no one answered, Guo Zhiliang also understood the reason, so he explained, "I want to explain to you some things after the last sniper case."

"That being said, the truth still needs to be verified by actual evidence. If we believe it based on just one or two sentences, then aren't we being taken advantage of?" Some members directly expressed their dissatisfaction.

"Is that what you all mean?" Guo Zhiquan looked around and saw that everyone was silent. He then said to Guo Zhiliang, "Why don't you take out something so they can see it clearly?"

"Okay, if you want to see it, go to the group meeting room tomorrow." Guo Zhiliang said, "But we still have to make a decision as soon as possible. Since you are not willing to pay, the business management company can only borrow money from the bank."

"Okay, that's a good suggestion!"

All the members agreed. They did not think that the family would collapse, so they were naturally unwilling to contribute their own strength again.

the next afternoon
Guo Zhiquan and Guo Zhiliang met with Cheng Yutong and his son and Luo Qihong.

There was no excessive politeness between the two sides, and they got down to business in less than 3 minutes. Of course, Luo Qihong and Zheng's father and son were robbing the Guo family's ancestral property, and the Guo brothers would not be in a good mood, and they might even want to kill the three people in front of them.

Luo Qihong stated his side’s requirements, which included the addition of Yongan Company to the conditions agreed upon with Zheng Jiachun before.

"Impossible! These are all our family property." Guo Zhiquan refused righteously.

"Tell me your conditions." Cheng Yutong was disgusted with these practices, but unfortunately Cheng Jiachun had already done them, so he could only maximize the benefits. Otherwise, he would lose his reputation and not get any benefits, which would be a huge loss.

"We can sell the Wing On Center Building to you, but nothing else is possible," said Guo Zhiquan.

"How about this, we give up the acquisition of Wing On Group, but Wing On Group must sell 34% of Wing On's shares to us and give us the management rights. Wing On Group will still be the largest shareholder of Wing On." Cheng Yu-tung took a step back, hoping to resolve the matter amicably.

Guo Zhiquan and Guo Zhiliang looked at each other, and Guo Zhiliang said, "Wing On Company is the most important subsidiary of the group. How could it be transferred to someone else?"

"How about this, Wing On Centre Building plus Fortuna Hotel in Yau Ma Tei?"

Luo Qihong smiled and said, "Uncle Tong, I guessed right. Your kindness made them think it was a weakness. Our two companies initiated the acquisition, and such a small amount is just like sending away beggars."

"If Uncle Tong doesn't want this bad reputation, why not transfer all the shares to me and let me do it."

Hearing this, the Guo brothers' faces changed slightly. Of course, they wanted to bully Cheng Yutong but were unwilling to bear the bad reputation. However, Luo Qihong had a bad reputation and was fully capable of launching a comprehensive takeover.

Seeing that Cheng Yutong was in trouble, Luo Qihong said to the Guo brothers, "Mr. Guo, the situation is very clear. If you want to resist, you may lose everything. If you are willing, you can keep the rest of the family property."

"We are not interested in the department store business under Wing On. We are only interested in the properties under Wing On."

Guo Zhiliang thought for a moment and said, "Mr. Zheng, Mr. Luo, I want to see how the Guo family will lose."

"Well, in that case, I don't think there's any need to talk further." Luo Qihong crossed his legs.

"Then we'll say goodbye." Guo Zhiquan also supported Guo Zhiliang, and was even more angry than Guo Zhiliang.

The room was quiet for a while.

Cheng Yutong said, "Ah Hong, how likely do you think it is that Guo will find outside help?"

The power of the Guo family is not that scary, but if other forces are introduced, they will be in trouble, after all, the Guo family holds a large amount of shares.

"Guo's members are very proud and will not bring in other people. We must be prepared for an advertising war." Luo Qihong said with a normal expression.

Cheng Yu-tung laughed and said, "Advertising wars are nothing more than wars of words, the most powerless means of commercial warfare. No matter how fancy the words are, they cannot compete with the green money."

"That's true, but it's your reputation, Uncle Tong." Luo Qihong smiled slightly.

"My reputation had already been damaged when Ah Chun started doing things. Now he is only concerned about profits. If there is no profit to make up for it, won't I be at a loss?" Cheng Yutong did not seem unhappy.

"Uncle Tong, what will you do if I quit?"

This sentence surprised Cheng Yu-tung and Cheng Jia-chun.

"With the two companies, Wheelock and New World Development, it is more than enough to take over the acquisition of Wing On Group. Do you have any big projects to do?" Cheng Yu-tung said.

"Well, there is a big cooperation project with Huang Tingfang's Sino Group." Luo Qihong did not directly state the details.

"What project?" Zheng Jiachun asked.

Luo Qihong replied, "The Landmark Company!"

Zheng Jiachun's eyes widened, and Zheng Yutong's face looked slightly dull.

"Acquire the Swire Properties?! Our only ally is Huang Tingfang?" Zheng Jiachun asked excitedly.

"Well! As you know, it's difficult to coordinate with too many people." Luo Qihong nodded and explained briefly.

Cheng Yutong thought for a long time and said, "Now is a good time. I insisted on letting the joint company acquire it. Unfortunately, Mr. Li wants to withdraw the funds because we have a huge project in Canada and cannot delay this case for too long."

Luo Qihong pretended to say, "Uncle Tong, are you interested in participating?"

In fact, if Luo Qihong was sincere and wanted to invite Cheng Yutong, he would have visited him long ago. Why wait until today?

So, this is just a courtesy, just like when Cheng Yutong invited Luo Qihong.

Cheng Yutong shook his head and said, "No, I don't have that much cash. You can do it yourself."

After chatting for a while, Luo Qihong also said goodbye.

Zheng Jiachun couldn't help but ask, "Why didn't you agree to Ah Hong?"

"Silly boy, Ah Hong is just asking out of courtesy. He doesn't really mean to invite us in." Cheng Yutong smiled faintly.

"Is it because we didn't bring him last time?" Zheng Jiachun seemed to ask himself.

"Of course, this is social etiquette. Last time, we didn't do the right thing. Now he's back." Cheng Yutong said, "It's nothing. Even if the relationship is good, it's impossible for us to work together on every project."

Zheng Jiachun sighed and nodded. He understood this truth, but still couldn't bear to give up such a big piece of fat meat.

How can the weak and small Wing On Group compare with the Hong Kong Land Development?

"Don't worry, it's not that easy to acquire the Hong Kong property company successfully. Funding is one thing, and whether it goes smoothly is another." Cheng Yu-tung said in a calm tone.

He has done in-depth research on the Hong Kong property company and knows exactly where the key to the acquisition lies.

Sunday, November 1

The day before, Martin Investment Co., Ltd. (the joint venture company) announced the full acquisition of Wing On Group and held a 35.4% stake in Wing On Group.

On that day, the board of directors of Wing On Group issued a statement rejecting Martin Investment's acquisition proposal, believing that it seriously underestimated the group's assets and was unwelcome. It also claimed that it had received notice from shareholders who owned more than 50% of the shares and had no intention of accepting Martin Investment's acquisition.

(End of this chapter)