Hong Kong 1980: The Savage Era

Chapter 79 [Only Loans Available]

On the second day after the Kowloon Motor Bus Company acquisition broke out, Luo Qihong came to Sun Hung Kai Securities early in the morning waiting for the stock market to open.

That day, Bai Jinyan was wearing a floral dress with a denim jacket on the outside, and a work badge was hanging on her chest with her name, department, and position on it.

Luo Qihong glanced at Bai Jinyan and said in a serious tone, "Sister Jinyan, I want to sell all the Kowloon Motor Bus shares I have today, and the share price cannot be lower than 7.8 yuan. Do you think you can do it?"

Bai Jinyan opened the glass door of the reception room for Luo Qihong, and Luo Qihong chose to sit down in the back. Only then did Bai Jinyan begin to answer Luo Qihong's question, saying, "It's hard to say whether we can do this now. It depends on the performance of this stock in the next few hours. If it performs like yesterday, it's okay to sell all of it today."

Bai Jinyan blinked his eyes, his face slightly hesitant, and asked, "Are you worried that Sun Hung Kai Properties is not determined to compete with the Lei family?"

Bai Jinyan had learned about the background information of the Kowloon Motor Bus Company and was very clear about the significance of the Kowloon Motor Bus Company to the Lei family. It was impossible for the Lei family to give up the Kowloon Motor Bus Company as it was one of the foundations of the Lei family.

So Bai Jinyan felt that it was Sun Hung Kai Properties that was wavering in its determination.

Luo Qihong nodded expressionlessly. "Sun Hung Kai Properties would rather expose its purpose in the stock market than acquire KMB shares at lightning speed. I guess it wants to control KMB in the future at the lowest cost."

"Once Sun Hung Kai Properties retreats, Paramount's profits will be greatly reduced. I would rather get a substantial profit than take the risk."

Bai Jinyan nodded slightly, "Yes! I will try my best to help you sell all the KMB shares."

Although stock trading is a risky investment, there are very few investors who are not greedy. It is not easy for Luo Qihong to achieve this at such a young age.

Time quietly came to 9 o'clock, the stock market officially opened, and many investors entered the market.

The share price of Kowloon Motor Bus Company continued to rise, and at 9:15, the share price rose to 8 yuan.

As expected, at around ten o'clock and approaching eleven o'clock, Sun Hung Kai Properties held a press conference, stating that the company already held a 26.1% stake in Kowloon Motor Bus Company and only wanted to invest in Kowloon Motor Bus Company but had no intention of acquiring it.

Suddenly, the share price of Kowloon Motor Bus Company rose slowly and then stayed at 8.3 yuan per share.

Before the lunch break, the stock price was stuck at 8.3 yuan. Luo Qihong predicted that there would be a sharp drop when the market opened in the afternoon, and the stock price should stabilize at around 6 yuan, so there was a drop of 2.3 yuan during this period.

"Ah Hong, you still hold 5.4 shares of Kowloon Motor Bus Company. You have sold 93.1 shares and recovered 748.1516 million yuan. It is expected that there will be a significant drop in the afternoon, but I will try to sell it above 7 yuan." Bai Jinyan reported to Luo Qihong while holding the document.

The profit has reached 248 million yuan, and the remaining 5.4 shares are only enough to recover a few hundred thousand yuan of funds. The profit is still more than 2 million yuan, and the rate of return exceeds 50%, which is already a good return on investment.

"No matter what the price is this afternoon, the sale must be completed before 3 o'clock, and then 5 million of it must be transferred to the HSBC account of Paramount." Luo Qihong paused and said, "Sister Jinyan, I heard that Henderson Land Development Company is about to be listed. Sun Hung Kai Securities and Henderson Land Development Company are from the same lineage. I wonder if you can help Paramount Company get some subscription shares?"

Bai Jinyan was slightly stunned. The relationship between Sun Hung Kai Securities and Henderson Land Development was indeed good, but the stock subscription activity had been going on for some time, and it was hard to say whether there was still a chance. However, as the Party B company, she could only bite the bullet and give it a try.

"I'll go ask, but I may not be able to get a share." Bai Jinyan responded cautiously. Luo Qihong nodded, "Okay, whatever amount is better than nothing."

Even if it was against his will, Luo Qihong could not let go of the opportunity to make money.

All the Kowloon Motor Bus Company shares in the HSBC trading hall have been sold, with a capital of 857.456 million yuan, including a profit of 380 million yuan, and a rate of return of nearly 80%. The purchase time was earlier than that of Sun Hung Kai Securities, so the rate of return was much higher.

At the same time, Luo Qihong asked Zhang Taotao to transfer 440 million yuan of it to a private bank account, and use the remaining 4 million yuan to buy Hutchison Whampoa shares.

His private bank account has a balance of 5 million, but this is of course temporary because the money will be used immediately to acquire Zhaoan Real Estate Company.

Luo Qihong agreed to let Liang Botao raise 3 million yuan to acquire Zhaoan Real Estate Company, but he thought 2 million yuan would be ok, after all, the market value of Zhaoan Real Estate was only 4800 million yuan.

Central Waldo Company Reception Room
Liang Botao was silent for a moment, and then said, "Mr. Luo, 3 million yuan may not be enough. The previous 1 million yuan was already stretched to the limit. We acquired 1 million shares at a share price of 921 yuan, accounting for 19.2%. There is another important issue. There are fewer and fewer scattered shares in the stock market, which makes it easy for the other party's major shareholders to discover our acquisition intentions. In other words, a takeover war is imminent."

Luo Qihong knew that Liang Botao's analysis was not alarmist and was possible. If time was wasted in raising funds, it would probably be troublesome.

"Mr. Liang, let's follow the old rules. Use all the shares of Zhaoan Real Estate Company as collateral to borrow 1 million yuan from the bank to carry out the final stage of the acquisition. What do you think?" Luo Qihong stared at Liang Botao and said.

Liang Botao sighed, "That's the plan for now. I'll help Luo Sheng and Paramount complete the loan procedures first, which will save some time in the future."

"Okay, thank you Mr. Liang!" Luo Qihong looked at the information in his hand and said, "It would be safe if we had a controlling stake of more than 47%. We can acquire about 30% of the shares from the stock market, and the remaining 17% will be acquired from other small shareholders of Zhaoan Real Estate. However, if we work hard on the second largest shareholder and take over the 18.4% of Zhaoan Real Estate shares held by this person, we can save a lot of effort."

Liang Botao said, "It's theoretically feasible, but Zhao Qicheng, the second largest shareholder of Zhao'an Real Estate, is a very greedy person. I'm worried that he will ask for an exorbitant price. If we can't meet his price, our acquisition intention may be exposed immediately, and the price we have to pay is much higher than that from other shareholders."

"If I don't take away Zhao Qichen's shares, I'm worried that he will join forces with the major shareholder Huang Bingzhong. If that happens, their shareholding will exceed 50%, and I'm afraid I won't be able to control the board of directors." Luo Qihong's face was heavy.

"Mr. Luo, you don't know that Zhao Qichen and Huang Bingzhong have a grudge. They originally held similar shares, but Huang Bingzhong joined forces with other shareholders to control Zhaoan Real Estate. Zhao Qichen was excluded by those people, and his situation in the board of directors has always been bad." Liang Botao took a sip of coffee.

"Zhao Qicheng is a stingy and suspicious person. If we were to say who wants Huang Bingzhong to lose control of Zhaoan Real Estate, Zhao Qicheng would definitely be the first. After holding more than 40% of the shares, Luo Sheng can promise Zhao Qicheng some benefits. I think Zhao Qicheng will not refuse."

Listening to Liang Botao's words, Luo Qihong suddenly understood, "Okay, let's do as Mr. Liang said."

Leave Huoduoli Company and return to Dehe Real Estate Company.

Not long after, Lin Luoqi called and said, "Ah Hong, my eldest brother has been kicked out of the management of Jide Real Estate Company and only retains the board seat. However, my father is still considering the candidate to run Jide Real Estate Company. What do you think I should do?"

Luo Qihong smiled and said, "Don't do anything, just manage Yiren Real Estate well. If your dad wants you to be in charge of Jide Real Estate, then you don't need to do anything. If your dad doesn't want you to manage it, then you won't have a chance, so it's better to be quiet than to move."

(End of this chapter)