Hong Kong 1980: The Savage Era

Chapter 442 [A Farce]

Thursday, December 90, 2

The sudden rise in the share price of Chinese Estates Holdings is very strange.

People with insight understand that someone is taking action against the Chinese Estates Company and it may be a sniper attack.

Although Liu Luanxiong has not targeted listed companies for two years, his share offerings and privatization are disguised attacks, except that the targets are changed to the company's small shareholders.

Therefore, Liu Luanxiong's reputation is still very bad, and it is not surprising that he attracts other covetous people.

The next day, Liu Luanxiong and his wife met with Luo Qihong.

Logically speaking, Liu Luanxiong and his wife have always wanted to privatize Chinese Estates Holdings, which has a market value of tens of billions. They should not be short of funds, and it should not be difficult to deal with the invaders.

The three of them reminisced about the past for nearly half an hour before they got down to business.

"Mr. Luo, you should have heard the rumor about the surge in the share price of Chinese Estates. I have already found out that it was Huang Zhouxuan, chairman of Formosa Construction Company, who was behind this. He also has a company in Hong Kong called Mingren Enterprises, which is valued at around HK$1 billion. This person is coming with great momentum and is determined to acquire Chinese Estates." Liu Luanxiong said thoughtfully, "Can you help me again?"

Huang Zhouxuan was charged with bribery in March last year due to employees of his construction company. He might have been involved, so he sold most of his assets in Formosa and came to Hong Kong to seek development.

In fact, Ming Yan Enterprises under Huang Zhouxuan has assets worth over 90 billion Hong Kong dollars in Hong Kong, of which Parkview Hill is valued at billion Hong Kong dollars. He is a very powerful and wealthy businessman.

However, Luo Qihong did not know this person, so he said, "Liu, your family holds 46.2% of the shares of Chinese Estates, which is close to half. Why are you worried that this person can successfully acquire Chinese Estates?"

Liu Luanxiong and Bao Yongqin looked at each other and explained, "My family's funds are already in other projects. Now we only have more than 1 million yuan. The previous privatization of Chinese Estates was a test of the market. So it is difficult to resist Huang Zhouxuan's tough acquisition at present."

"I heard that this person has obtained 50 billion to 70 billion yuan of credit support from HSBC. It's not a sniper attack."

Chinese Estates Holdings is of such high quality that it controls Chinese Strategic Holdings, Paramount Properties (formerly Paramount Restaurant), Evergreen Properties and some small companies, totaling more than 30 companies with a market value of HK$48.9 billion. Its actual assets are probably 4% more.

Moreover, Chinese Estates Holdings is everything to the Liu Luanxiong family. Once they lose it, there will be no possibility of making a comeback, or at least it will be difficult to acquire a high-quality company like Chinese Estates Holdings.

"How do you want me to help you?" Luo Qihong thought seriously for a while.

"I want Mr. Luo to continue to hold part of the shares of Chinese Estates, about 4%." Liu Luanxiong said, "Don't worry, Mr. Luo, when my funds come back, I will buy it back at the original price, and sell all the interests in the Caroline Center Building in Causeway Bay to Siu On Real Estate Company."

The Grand Court Building is located in the heart of Causeway Bay and has always been priceless. Its current market value is around HK$20 billion.

"No problem!" Luo Qihong said with a smile. Liu Luanxiong was so aware of the current situation, so he certainly would not throw away such a big piece of fat meat.

Although Dehe Real Estate Company owns commercial buildings such as the Eaton Hotel in Causeway Bay, it is still much weaker than places like Tsim Sha Tsui, and the geographical location of the Gloria Centre is too good.

4% of Chinese Estates Holdings shares, including the increase from the acquisition, is worth HK$3 to 4 million.

This is not a huge financial expenditure for Luo Qihong. Of course, Liu Luanxiong also plans to use Luo Qihong's fame to scare Huang Zhouxuan.

It’s all because Liu Luanxiong’s original tentative privatization plan offended many small shareholders, and now he has to offer huge profits to win over Luo Qihong.

After leaving the hotel, Luo Qihong sat in the back seat of the car and smiled, "The Gloria Center Building. Long-term holding will be more valuable than investing in small and medium-sized buildings in Central."

"I personally own about 1% of Chinese Estates Holdings' shares, and Dean Securities Investment Company also holds 1%. I only need to acquire another 2%. Even if the premium is 5%, it will only be 1.5 million yuan." During the same period in the previous life, Chinese Estates Holdings owned Windsor House in Causeway Bay, Harcourt House and Admiralty House (now renamed Chinese Estates Building) in Wan Chai, and Entertainment Building in Central. These four buildings alone were valued at HK$110 billion.

Today, the Entertainment Building in Central has been changed to Wei Kee Building. Naturally, the value of the latter cannot compare with the former. However, Paramount Real Estate Company has a priceless Jinghua Building in Causeway Bay, which can make up for this part of the price difference, and even have some surplus.

Therefore, today's Chinese Estates Holdings Limited owns partial interests in Windsor House, Capital House and Caroline Centre in Causeway Bay, Harcourt House and Chinese Estates Building in Wan Chai, and Wai Kee Building in Central, with an estimated value of nearly HK$115 billion.

A few days later.

Huang Zhouxuan formally issued a challenge to the Liu Luanxiong family, proposing a comprehensive acquisition of all shares and warrants of Chinese Estates Holdings.

Huang's offer was HK$5.35 per share, and the entire acquisition required a capital of HK$61 billion, which was a huge deal.

If we talk about such a large acquisition, we have to go back to 86 when Lloyds Bank acquired Standard Chartered Bank. No other acquisitions were of such a large scale.

"How's it going on your side, Luo Sheng? When can we announce the entry?" Liu Luanxiong asked nervously.

Huang Zhouxuan's actions were so fierce that he didn't dare to gamble, and he finally experienced the feelings of those families he had sniped before.

"I have already obtained 3.5% of the shares of Chinese Estates Holdings. Add to that the 46.2% in your hands, Liu, and now it is 49.7%. Huang Zhouxuan has no chance." Luo Qihong smiled and said, "Maybe we can try to get this Taiwan guy."

"Luo Sheng means to ignore it for now and make an announcement after he gets enough shares, so that he can lose some money?" Liu Luanxiong said.

"Correct."

"Okay, then let's do as you say, Luo Sheng." Liu Luanxiong was finally relieved and could now fight the dogs.

A week later, Huang Zhouxuan's company announced that it had acquired a 32.5% stake in Chinese Estates Holdings, shocking the outside world.

The media called Huang Zhouxuan the white knight, and the newspaper used the headline "Carrying out Justice on Behalf of Heaven", which shows how bad Liu Luanxiong's reputation is.

Of course, there are also people who want to see Liu Luanxiong's good show and hope that Liu Luanxiong will lose the Chinese Estates Holdings assets and bring him back to his original form.

On the same day, Zhaoan Real Estate Company announced that it had joined the acquisition battle of Chinese Estates Holdings and stated that it already held a 3.8% stake in Chinese Estates Holdings and supported Liu Luanxiong to continue managing Chinese Estates Holdings.

It was like a thunderclap in a clear sky, shocking everyone.

With the entry of Zhaoan Real Estate Company, this massive acquisition war was on the verge of collapse. All shareholders began to sell off the shares of Chinese Estates Holdings Company, and the stock price plummeted for a while.

Although Huang Zhouxuan will lose some money, he has brought great honor to Hong Kong and made the whole Hong Kong know about Huang Zhouxuan. It is only a matter of time before he makes back the losses in the future.

After all, he avenged those who were bullied by the Liu family, and those people would be a little more considerate of Huang Zhouxuan.

In Luo Qihong's opinion, this sale was worthwhile and better than advertising in newsprint.

However, both Huang Zhouxuan and Liu Luanxiong suffered heavy losses, and only Luo Qihong gained real benefits.

But it will take some time to get the real benefits, and there is no need to worry that Liu Luanxiong will dare to leave.

(End of this chapter)