Hong Kong 1980: The Savage Era

Chapter 57【Board of Directors Takes Action】

"Okay, I do know two shareholders who want to sell their shares. They hold about 6% of the shares." Wu Wenbai smiled and said that if he could negotiate with the two shareholders and sell them at 4 cents per share, he could make a profit of 52 yuan.

Luo Qihong thought about it, realized the truth of "the longer the night, the more dreams there are", and said, "Can Wu Sheng invite them out now?"

Wu Wenbai was a little hesitant, but he hadn't discussed it with the two shareholders yet after hundreds of thousands of dollars were gone. "Mr. Luo, this is stock, not cabbage. They have to think about it too. How about tomorrow? I'll do some psychological work on them today."

Luo Qihong also felt that he was too anxious, and said with a smile, "Okay, let's go sign the contract first."

Before signing the contract, Luo Qihong discussed with Wu Wenbo and agreed that he would pay 1 million yuan first, and the remaining 630.8 million yuan would be settled within a week, with interest to be paid according to the bank's interest rate.

Wu Wenbai was certainly not worried that Luo Qihong would default on his payment, because the contract clearly stated that once Luo Qihong could not pay the balance, the 14% shares would return to his hands, even if Luo Qihong had already transferred the shares to his own name.

Luo Qihong only had 80 yuan in cash. After careful consideration, he decided to embezzle 20 yuan from Dehe Real Estate Company's account and pay it to Wu Wenbai.

The next day, Friday the 6th, Luo Qihong came to the trading hall of HSBC early in the morning. Now he had to sell the shares of Hang Lung Group and exchange them for the 20 yuan misappropriated from Dehe Real Estate Company.

"Mr. Zhang, what is the stock price of Hang Lung Company?" Luo Qihong asked.

Zhang Taotao responded, "It has risen to 12.3 yuan, the upward trend is very good, it is estimated that it will rise to 13 yuan."

"Help me sell it." Luo Qihong said without any hesitation.

"Mr. Luo, there is still an increase of 0.7 yuan. Are you sure you want to sell?" Zhang Taotao reminded again.

"Mr. Zhang, please sell it. I need the money urgently." Luo Qihong was a little annoyed as tens of thousands of dollars flew away.

"Okay! Then I'll arrange it." Seeing Luo Qihong's firm attitude, Zhang Taotao stopped persuading him.

Hang Lung's stock was quite popular, and as soon as the 10 shares were released, they were immediately sold out by investors.

Half an hour later, Zhang Taotao returned and reported, "Mr. Luo, the 10 shares of Hang Lung that you held have been sold. The average selling price was 12.3 yuan. After deducting various expenses, the funds recovered were 120.54 million yuan."

"Transfer all the money to my personal account." Luo Qihong instructed, and then asked, "How is the share price of China Bus Company?"

Zhang Taotao replied, "There has not been much change, but the value of Sino Land's subscribed shares has risen to 4.3 yuan, and it is estimated that it will rise above 5.5 yuan once it is listed."

Luo Qihong breathed a sigh of relief. Although he was unable to pay off the 630 million yuan even after selling off Sun Hung Kai Properties' shares, he finally had some hope and the pressure was not so great.

Even if the share price of Sun Hung Kai Properties climbs to 6 yuan, Luo Qihong will still have a funding gap of nearly 200 million yuan.

Continue to embezzle funds from Dehe Real Estate Company?
Luo Qihong rejected the idea instantly. 200 million yuan was not a small amount of money and it would be easy for Lin Luoqi to discover it. Moreover, this was not a short-term embezzlement and the Paramount Restaurant Company could not recover the funds so quickly.

Waldo Corporation

Luo Qihong took a sip of coffee and said to Liang Botao, "Can Huoduoli Company provide me with 850 million yuan in acquisition funds?"

He could raise the 850 million yuan acquisition fund, but he would need to sell all the shares of Sino Land Company and some of the shares of China Bus Company, which would be a loss for him, and time was very tight, so it would be better to take out a loan. "Okay! But Luo Sheng needs to pledge all the shares of Paramount Restaurant Company he holds," Liang Botao said.

"Okay!" Luo Qihong had guessed this result before coming. He could pay off the loan after the acquisition of China Bus Company was completed.

There were a lot of procedures for this acquisition loan, including filling out the steps on how to operate and run the Paramount Restaurant Company. This made Luo Qihong speechless, but when you are under someone's roof, you have to bow your head. For the emergency payment of 850 million yuan, he could only suppress his impatience and fill out the documents carefully.

The transferred amount of 850 million yuan was not received on that day, and Luo Qihong needed to contact the two shareholders of the Paramount Restaurant Company that day. In the same way, he signed an agreement with the two shareholders to pay the full amount within a week, and at the same time paid them a down payment of 100 million yuan.

It was not until the fourth day, Monday the 9th, that the 850 million yuan from Huodoli Company was successfully deposited into the account. In fact, this money did not come directly from Huodoli Company, but was a loan from HSBC Bank.

Luo Qihong did not care about the listing of Sun Hung Kai Properties. He immediately met with Wu Wenbo and the two shareholders and paid the remaining balance of 793.8 million yuan (including 2 yuan in interest). Luo Qihong was left with only 56 yuan.

Since the opening of the market, the share price of Sun Hung Kai Properties has been rising sharply, from 2 yuan to 4.6 yuan in less than an hour. The increase was somewhat scary, but before it was officially listed, the subscription price was hyped up to 4.3 yuan, which was only an increase of 3 cents if you calculate it carefully.

Paramount Restaurant Company Board Meeting
Hehong Real Estate Company already holds 49% of the shares of Paramount Group, becoming the largest shareholder of Paramount Group. Even though it does not hold more than half of the shares, it still has a veto power on the company's board of directors.

This is also one of the main reasons why the original largest shareholder Xu Haizhi did not seek a meeting with Luo Qihong.

Luo Qihong spent so much effort to gain control of the Paramount Restaurant, and Xu Haizhi had long wanted to sell the Paramount Restaurant, so he tacitly agreed to the matter. However, Luo Qihong completed the acquisition without notifying him, the major shareholder, which made him somewhat unhappy.

"Everyone, let me introduce you to Mr. Luo Qihong, the latest major shareholder of our Paramount Restaurant. He already holds more than 49% of the shares. At the same time, we are electing a new chairman of the board of directors. The candidates are naturally me, Xu Haizhi, and Mr. Luo Qihong."

Xu Haizhi is a short and fat middle-aged man. The fat on his face has begun to squeeze his eye sockets, giving people a very greasy and disgusting feeling.

In fact, elections are just a formality. It is a foregone conclusion that Luo Qihong will become the chairman of the board of directors. Even if all board members oppose it, Luo Qihong can veto it with one vote.

"Congratulations to Mr. Luo Qihong for becoming our chairman of the board of directors!"

"Clap!!"

Applause resounded throughout the conference room, but there was not much joy on those people's faces. It seemed that Xu Haizhi's cronies were all over the board of directors.

Thinking about it now, Luo Qihong felt that it was right not to discuss the stock sale with Xu Haizhi. After all, this guy was a bit arrogant, and with his influence on the board of directors, it seemed certain that he would ask for a huge amount of money.

Luo Qihong still sat in his original position and began to deliver his inaugural speech. "I am new here. I hope that all the directors can help me do a good job in the company in the future."

"Mr. Luo should be very clear about the current situation of Paramount. I wonder if Mr. Luo has any way to reverse the company's losses?" Xu Haizhi began to attack.

"I plan to sell some of the assets first, recover funds, and clear some debts. As for the rest, I will make other arrangements. Mr. Xu doesn't need to worry." Seeing that Xu Haizhi wanted to refute, Luo Qihong continued, "I didn't acquire the Paramount Restaurant Company to make a loss. There must be a way to achieve the goal of profit. If any shareholder has any objection, except Mr. Xu Haizhi, everyone else can leave the board of directors, so that everyone can 'out of sight, out of mind'."

According to Hong Kong's company law, only shareholders who own more than 16% of a company's shares can automatically obtain a seat on the company's board of directors. As for shareholders who hold less than 16% of the shares, they can be dismissed from their board seats.

(End of this chapter)