Hong Kong 1980: The Savage Era

Chapter 375 Chapter 376 [Accident]

Wing On Group Managing Director Guo Zhiren publicly condemned the hostile takeover by Luo Qihong and Zheng Jiachun, saying, "Chinese people should be friendly when doing things, and takeovers should be conducted in a friendly manner. If you want to cooperate with Wing On Group, you can discuss it again. A sudden takeover through Peregrine International is hurtful."

Then Cheng Yutong personally responded, "Before proposing to acquire Wing On Group, we had discussed with the Guo family. Unfortunately, the conditions offered by the Guo family were less than one-tenth of the original conditions, so the negotiations failed."

These back-and-forth offensive remarks are common in Hong Kong's business wars. The public has become quite numb to this and is only concerned about their own pockets and how much money they can make.

While publicly refusing, the Guo family was also actively purchasing shares in the market through Wing On Commercial Management Co., Ltd., acquiring 1 million shares on January 19 and 106.1 shares on the 20th. In just five days, they purchased 62.5 million shares, using approximately RMB 5 million, equivalent to 214.6% of the total equity of Wing On Group.

Dean Securities Investment Company
"The Guo family is so shameless. They keep talking about friendly negotiations, but they have been buying large amounts of shares in the stock market." Bai Jinyan sneered.

In fact, this is a normal method used in shopping malls, but it is far from enough to defeat invaders in this way.

"This is a business war, who would care about human feelings?" Luo Qihong chuckled. Interests move people's hearts, and people's hearts under the influence of interests are the most real.

"The Guo family's shareholding is almost at 44%. If the acquisition reaches 48%, it basically means that the acquisition has failed." Bai Jinyan said.

"Yes, this acquisition is very difficult, but I still want to test how deep the water is in Yongan Group." Luo Qihong smiled coldly.

"In fact, I think it's not cost-effective to acquire Wing On Group. Even if the acquisition is successful, the most valuable things will belong to Wheelock, and what we get are worthless." Bai Jinyan looked at Luo Qihong's face and continued, "Making it a sniper case is more in our interest."

Luo Qihong pursed his lips and nodded. Bai Jinyan was right, but what was done had already been done, so he could only go ahead and do it.

"To be honest, I also think there is a high chance of failure, but the possibility of losing money is not high."

"Yeah!" Bai Jinyan changed the subject and said, "The 30 billion yuan cash flow is almost raised, of which 8 million yuan comes from bank loans and mortgages some of the company's shares held."

"I have also negotiated with Sino Group. We are going to set up a new company to handle this huge acquisition, and the agency representing us will be Peregrine International."

"What are you going to call the new company?" Luo Qihong asked casually.

"Qixin Co., Ltd., we and Xinhe Company each hold 50% of the shares." Bai Jinyan replied.

"Learn from Liang Botao. Maybe we can hand over our overseas acquisitions to De'an branch in the future," said Luo Qihong.

"Okay!" Bai Jinyan was not too happy about this, as if this was within his expectations.

In order to complete the acquisition as soon as possible, Luo Qihong spent a lot of money to buy off newspapers and asked a large number of economic newspapers and magazines to help promote it.

Fortunately, the money was not wasted and played a significant role, allowing many small shareholders to go to Peregrine International to register to sell their stocks.

Therefore, before the Spring Festival, Martin Investment Company successfully increased its stake to 39.1%, narrowing the gap with the Guo family's shareholding by about 3%.

During the Spring Festival, when most people are enjoying the holiday leisurely, Luo Qihong and his wife are very busy, visiting people everywhere and taking the opportunity to expand their family's social circle. The Luo Qixing and his wife, who used to be relaxed in previous years, are also like this. They are busy and can't be seen.

Therefore, the Luo family became quiet during the Chinese New Year, and there was not as much liveliness as in previous years.

After the Spring Festival
A senior stock analyst in Hong Kong published an analytical article entitled "The Value of the Wing On Group Acquisition" in the Oriental Daily.

‘1987年12月，永安公司手上物业账面值11.9亿港元，其中8亿港元是81年价格入账，1亿港元是81年以后，3亿港元是72年价格入账并经减折旧。’

'In terms of the market value of shopping malls, the value has increased tenfold since 72, and doubled since 81. If the above ratio is used, the property value of Wing On is estimated to be HK$47 billion, which is HK$35 billion higher than the book value. In other words, after the revaluation of Wing On's properties, the shareholders' funds are HK$47 billion or HK$16 per share of Wing On.'

"Under the management of the current board of directors, such a huge asset only generated a net profit of HK$86 million in 1."

Such comments are like adding fuel to the fire, making it burn even more vigorously.

Wing On Group quickly held a press conference to clarify that it did not want shareholders to have bad thoughts about Wing On Company and the current board of directors of Wing On Group. Wing On Group also asked Oriental Daily to apologize in public and stated that it would pursue legal responsibility for stock analysts and Oriental Press Group.

Oriental Press Group was no pushover either. It immediately refuted Wing On Group's warning and called for an inventory of Wing On's assets.

In order to retaliate against Wing On Group's clamor, the current status of Wing On Company's property assets and a rough assessment of their value were published in the newspapers of the next day, leaving Wing On Group helpless.

Today, the Wing On Group is facing a takeover by a powerful consortium. How dare it really provoke Hong Kong's media tycoons again?

"Haha!! The Guo family is really stupid. They are actually challenging the Oriental Press Group at this time. Aren't they afraid that others will expose their underwear?" Bai Jinyan spoke fiercely.

Luo Qihong smiled and said, "They are not stupid, but they made the wrong decision in a panic. They wanted to quickly pass on the blame and win the support of those shareholders. Once they lose the support of those shareholders, Guo may really lose control of Yongan Group."

Hearing this, Bai Jinyan calmed down. "Should we hype this matter up? Or publicize the incompetence of the Guo family?"

Luo Qihong knew that Bai Jinyan had taken the stock analysts' analysis into consideration. If he took over such a lucrative group, his lips would be glistening.

"It's a good idea, but the effect won't be that great. Yongan Group has been in the hands of the Guo family for decades and has a deep foundation that cannot be shaken by one thing." Luo Qihong advised Bai Jinyan not to be too optimistic.

The Guo family has reached its third generation. Its foundation is only deeper than that of ordinary wealthy families, and its tentacles have extended into all areas of Hong Kong.

"I suggest that Martin Investment Company come forward and guarantee to increase the overall profitability of Yong'an Company and the group after taking over Yong'an Group. As for the specific figures, we need to study them carefully. Perhaps this will expand the impact of the incident." Bai Jinyan said.

Luo Qihong's pupils dilated slightly, and he did not agree immediately. His goal was to make a profit and leave, but Bai Jinyan's suggestion would prolong the acquisition time, which was contrary to the plan.

"Let me think about it first. There's no rush for this matter."

(End of this chapter)