Hong Kong 1980: The Savage Era

Chapter 392 393 [Terrible Wealth]

"This is a global stock market crash. Although we haven't seen landlords withdrawing their leases yet, I think there will be a significant wave of withdrawals, so the company may not be able to hold on and will need to find other solutions," said Kang Wenyi.

"Zhaoan Real Estate's debt situation is not very serious, so it should be able to help Huaguang Real Estate." Luo Qihong asked, "If the worst happens, how big will the gap be?"

Kang Wenyi pondered for a moment and said, "At least 5 million, and we still need to negotiate with the bank."

"5 million yuan is not a lot of money. If there are any problems with the bank, I can ask Dehe Real Estate Company to come forward and guarantee it." Luo Qihong waved his hand. With Dehe Real Estate Company as a backer, Zhaoan Real Estate Company's problems would not be too big.

"With the boss's help, it won't be a big problem." Kang Wenyi smiled rarely.

In Luo Qihong's opinion, Kang Wenyi wanted to make money from him personally, but it didn't matter, after all, Zhaoan Real Estate Company was also one of his hard work.

After leaving Zhaoan Real Estate Company, Luo Qihong came to Dehe Real Estate Company.

Huaguang Real Estate Company and Furama Hotel need to be privatized, and Federal Real Estate Company and China Entertainment Properties Company under Dehe Real Estate Company also need to be privatized. However, the privatization of the latter is much easier because Luo Qihong's funds can be directly transferred to Dehe Real Estate Company.

"The market value of Federal Realty is relatively stable, probably because it holds a large number of commercial buildings in Central. The current market value is 21.6 billion yuan, a drop of about 4%. It is expected to drop by 45% by the end of the year, leaving a remaining market value of 55%, or 19.8 billion yuan. Including the premium, it will require about 24 billion yuan in funds."

"The decline of China Entertainment Real Estate Company is relatively large, at 6%. Its current market value is 3.16 million yuan, and it is expected to be around 1.7 million yuan by the end of the year. After a 2% premium, it will require 2 million yuan in funding."

"The company currently has 16.3 billion yuan in funds on its books, with a shortfall of 10 billion yuan. In addition, these funds include the construction costs of Admiralty Dehe Plaza, so the actual shortfall is 15 billion yuan."

Su Qishan said in a deep voice, mainly reading out the numbers in the report.

"Federal Realty needs a lot of funds. Are you sure that the end of December will be the lowest point of the stock market?" Luo Qihong asked with a relaxed expression.

"It shouldn't be the lowest point. I personally expect March or April 88 to be the lowest point for the stock market." Su Qishan said, "But the market value of Federal Realty Corporation shouldn't drop too much, because its net asset value is around 3 billion yuan."

"Whatever can be saved the better. Besides, privatizing two companies at the same time will cause a great impact. Let's privatize China Entertainment Properties first." Luo Qihong waved his hand and said.

15 billion is a considerable sum of money, and Luo Qihong doesn't want to hand it over so quickly. Besides, the stock market crash will continue for some time, and who knows if there will be any butterfly effect.

It is better to keep the funds in hand so that you can cope with various changes.

"Okay, then I'll get started now. Which securities company should I hire to help?" Su Qishan asked.

"Please hire my De'an Securities Investment Company. This company is fully capable of handling small acquisitions. There is no need to let others take advantage of it." Luo Qihong said, "As for Federal Real Estate Company, let's hire Peregrine International. Liang Botao is good at acquisitions of large companies."

"Boss, the privatization of Federal Realty is a foregone conclusion. Why don't we hand it over to Dean Securities Investment Company? The boss's wife is also very professional." Su Qishan certainly wanted to do this favor to Bai Jinyan.

Dehe Real Estate Company is a private company, and the boss's wife's whispers have a great influence on him.

Luo Qihong was of course aware of Su Qishan's thoughts, so he smiled and said, "Okay, then tell Ah Yan about it and let you do a favor."

"Thank you, boss!" Su Qishan thanked him with a smile. It was really good to use the boss's favor to do a favor in a legitimate way.

Time flies and it is already the end of December.

Dehe Real Estate Company and Zhaoan Real Estate Company simultaneously announced plans to privatize their subsidiaries, which caused quite a stir. Major newspapers reported on the matter, many of which were full of praise. After all, it was a period of stock market crash, and daring to privatize at a premium was a way to save the market and help shareholders recover some losses.

Faced with a 2% premium, small shareholders were naturally satisfied and quickly handed over their shares.

In just one week, Zhaoan Real Estate Company successfully increased its stake in Furama Hotel to 97%, and then applied to the CSRC and the Committee to forcefully cancel the remaining 3% stake.

This naturally received an affirmative response, so Zhaoan Real Estate Company spent 1 million yuan to successfully privatize the Furama Hotel.

After a week, Zhaoan Real Estate Company only increased its stake in Huaguang Real Estate Company to 70%, and it will still take some time to succeed.

The reason was that some shareholders believed that the privatization of Huaguang Real Estate by Zhaoan Real Estate was premeditated and wanted Zhaoan Real Estate to increase the acquisition price. Unfortunately, Luo Qihong disagreed, so the situation fell into a stalemate.

Luo Qihong directly told these shareholders that they did not have to sell, but he announced that Huaguang Real Estate Company would distribute dividends in the next 10 years and all profits would be used to expand the company's business and assets.

Some powerful shareholders also bought newspapers and criticized and criticized Luo Qihong's actions.

Luo Qihong told reporters that this was the last premium that Zhaoan Real Estate Company would pay for the privatization of Huaguang Real Estate Company. In the future, all privatizations will be carried out at the current share price. Moreover, Zhaoan Real Estate has not given up its privatization plan for Huaguang Real Estate. In the future, it will carry out privatization in the event of stock market crashes, economic crises and other market conditions until the privatization is completed.

Luo Qihong's move is tantamount to telling those shareholders that if they don't make money now, they won't be able to make a penny in the future, unless they sell them on the stock market, but probably no one will take over.

After all, no one knows whether this stock will fall into their hands.

It was mid-January 88.

The shareholders of Huaguang Real Estate Company finally couldn't bear it anymore because Zhaoan Real Estate Company announced on the 20th that it would complete the privatization of Huaguang Real Estate Company.

Some reporters also asked whether there would be another privatization plan released in 88?

Cheng Jianshen replied that the company would be privatized in July or August at the stock price at that time.

So on the afternoon of the 18th, Zhaoan Real Estate Company successfully increased its shareholding to 90%.

Once the news was announced, the remaining shareholders could no longer sit still and had to go to De'an Securities Investment Company to register to sell their shares in Huaguang Real Estate.

On the morning of the 20th, Zhaoan Real Estate Company successfully increased its shareholding to 96% and announced that it would apply to the institution for forced privatization.

At this point, Zhaoan Real Estate Company successfully privatized two listed companies and increased its assets to a terrifying number.

Immediately afterwards, the share price of Zhaoan Real Estate Company rose against the market trend, increasing from 38 billion yuan to 52 billion yuan, an increase of nearly 37%, which became a big strange news during the stock market crash.

There are also some boring media that calculated the total value of assets under Zhaoan Real Estate Company, saying that the net asset value of Zhaoan Real Estate Company exceeded 30 billion yuan, and the total market value should be as high as 80 billion yuan.

The Zhaoan Real Estate Company alone under Luo Qihong is worth 80 billion yuan. If China Gas Company and Federal Real Estate Company are included, Luo Qihong's personal wealth has exceeded 300 billion yuan.

With such a wealth, the family is only second to the Kwok family of Sun Hung Kai Properties and the Li family of Cheung Kong Holdings, making it the third largest conglomerate family in Hong Kong.

(End of this chapter)