The Industrial Giant Reborn

Chapter 191 Restarting the Wharf Acquisition

The time soon came to May, and the housing prices in Hong Kong began to increase further. There were more and more customers looking at the properties in various properties. I don’t know if they are real potential buyers, or they are sitting in the sales center with 5 people in the future. support.

But the trend is already obvious, rising housing prices has become inevitable.

In recent years, a large number of people have flooded into Hong Kong, which has not only lowered the average wages of migrant workers in Hong Kong, but also raised housing prices and rents, making life even worse for ordinary people in Hong Kong.

But this is beneficial to capitalists. Fortunately, Midea's factories are very profitable, and there are no layoffs. All the workers who enter now basically live a very comfortable life, and even buy houses with very low-interest loans.

The same is true for the stock market. The Hang Seng Index in Hong Kong has risen from the lowest point of 150 to 430 points, which has nearly tripled.

Estimated that the time would be about the same, Chen Zhiwen ordered Hutchison Whampoa to sell all the stocks in his hands, and cashed out almost 1.5 million Hong Kong dollars. With this extra fund, Hutchison Whampoa's real estate business can develop calmly.

Central, Hutchison Building Headquarters:

"With this amount of money, Huangpu Garden will be able to develop 20 buildings at one time plus the funds for the commercial center. It's completely fine, and Chen Sheng's overseas funds have not even been used." Zhou Jiayang said with a smile.

Generally, real estate companies develop large-scale land in multiple phases. The five or six phases are less than ten phases. After the first phase is completed, the next phase will be developed when there is funds. For example, Taikoo City under the Swire Group, The project is smaller than Whampoa Garden, but only five or six buildings will be built in each phase, which is far from the 20 buildings developed in the first phase of Hutchison.

Although the real estate industry mainly relies on spending other people's money, such as borrowing from banks, letting builders advance money, etc., it is impossible to advance [-]% of the money in the end. Builders are not fools. To a certain extent, they will definitely need money. There are also certain controls. If you want to develop real estate, you still need to prepare a lot of money.

It is said that when the pre-sale system first came out in Hong Kong, real estate development companies not only did not need to advance money but also obtained more funds through various channels by borrowing the money paid in advance by ordinary people plus bank loans and advances from architects, so the real estate company at that time Naturally, the funds were used to expand substantially, but in the end they lost their game, causing heavy losses to the bank. In the end, the Hong Kong government restricted the pre-sale system, and the pre-sale could only start eight months before the house was capped.

Otherwise, Hutchison would not need so much capital to develop Whampoa Garden.

"The local market is rising, and the stock market is naturally rising. These two are basically a barometer of Hong Kong's economy. Next, we will sell all the stocks in our non-core business." Chen Zhiwen said lightly.

Large companies in Hong Kong, in addition to finding ways to invest in multiple businesses, will also invest in various directions, especially when large companies have a lot of funds, they prefer to do so.Hutchison used to be such a type. At its peak, Qi Dezun's Hutchison controlled 8 Hong Kong companies with a market capitalization of the top 27, and became the major shareholder of [-] listed companies in total.

Regarding the future of these companies, Chen Zhiwen doesn't know, nor is he interested in analyzing each one. Everyone is more interested in real estate. Instead of putting the money in the hands of others, it is better to take it back to develop their own land, or to buy other high-quality land. Investment, under leverage, has the highest returns.

You know, in the following years when the real estate market skyrocketed, the share price of Li Jiacheng’s Cheung Kong Industrial did not increase by more than ten times, and an ordinary person, as long as he dared to leverage to buy a house and then put it there, the real estate price reached the peak Sometimes, the profit is not only ten times, because leverage can double the profit.

In the whole of Hong Kong, there are basically few companies whose income growth can exceed that of Cheung Kong. That is to say, as long as they escape before the peak of real estate, the efficiency of income growth with their eyes closed will exceed that of Cheung Kong's stocks.

Under the situation of growth, Chen Zhiwen will naturally clear the non-core business stocks held by Hutchison, but because he is a major shareholder in many companies, it will take some time to withdraw all of them.

Zhou Jiayang thought for a while and said: "It's just that, Hutchison's influence in Hong Kong is really getting smaller and smaller."

In the past six months or so, Hutchison has sold various fringe businesses on a large scale, and it has also lost thousands of employees. Now it has begun to liquidate all the company stocks in its hands. The company's influence and many investments are all invested together by everyone, which ensures that Hutchison can gather more funds.

"Don't worry about these small things. What I have to do is to gather as much funds as possible before the end of 78. Besides, why do we need these small companies to show our strength." Chen Zhiwen said with a smile.

"Okay, I understand." Zhou Jiayang nodded and said. Chen Zhiwen had said many times that he would gather all the cash before the end of 78. Even the development of Huangpu Garden required a lot of money to ensure that it would be completed before the time. He naturally knew for sure. It will be of great use at that time, but I don’t know what it is?Could it be that they are going to take action against a British capital?

But the boss didn't tell him, and he didn't speculate too much, and then asked: "Chen Sheng, can we continue to buy shares in Wharf? Now that land prices are starting to recover, and the Hang Seng Index is also rising, we are now considered to have gotten rid of the original acquisition." As for the shortage of funds after the recording, I am afraid that delaying it will increase our future costs.”

"In the past six months or so, Jardine has added a lot of shares in Wharf, right?" Chen Zhiwen asked suddenly.

In fact, this is a very normal operation. When Hutchison Group was suddenly acquired by Chen Zhiwen, other British capitals would naturally be surprised. After all, British capitals are just not good at real estate development, but they are not fools. After completing the acquisition, this commercial merger and acquisition case will be regarded as a classic even after 50 years.

"Yes, Jardine has increased its investment in Hong Kong Land and Wharf, but the effect is not obvious. The scale of Hongkong Land is too large. Even in the second half of last year, the market value exceeded HK$50 billion. Considering the growth effect of the stock market, Jardine would like to An increase of 10 points requires at least 8 million Hong Kong dollars, and Wharf has a much smaller market value. However, in 73-74, in order to develop Harbor City, Wharf issued additional shares many times. I estimate that Jardine holds Wharf shares. It is less than 10%, and we are now the largest shareholder of Wharf." Zhou Jiayang said with a smile.

"Unfortunately, we, the largest shareholder, have no way to obtain the management rights of the company." Chen Zhiwen said with a smile, it is useless to become a major shareholder. If you want to obtain stable management rights, you need at least 35% to start, and it is absolutely safe to reach 49% .

In the original history, Bao Yugang obtained 30% of the shares of Wharf, while Jardine only had 20%, but the latter firmly controlled Wharf until Bao Yugang spent 20 billion Hong Kong dollars in one go Only when his own equity increased to 49% did he completely defeat Jardine.

Zhou Jiayang went on to say: "The Harbor City project is too costly. The original budget was 10 billion Hong Kong dollars, but the current trend is that 20 billion is not enough, but it cannot be stopped. Once stopped, the previous one billion investment It's all in vain, and the whole Wharf will go bankrupt immediately."

"Actually, as long as the properties in Harbor City are sold, this problem is enough to solve this problem. Unfortunately, people in Jardine are too obsessed with self-owned properties, and they can't get out of this circle." Chen Zhiwen shook his head and said.

The original land of Harbor City was also one of the three major piers in Hong Kong. It was named after the current Taikoo Shing and Whampoa Gardens. In terms of location, although it is on the Kowloon Peninsula, it is facing Central. With the help of the Star Ferry, the location here is not at all. Not worse than Taikoo Shing.

If this kind of land is developed like Taikoo Shing, it is estimated that it will be no problem to easily earn one billion. However, Jardine's executives obviously hope that this can become a business model that can replace the annoying rainy weather in Central, so they built Harbor City.

Judging from the future situation, this idea is correct. Harbor City has become the largest shopping mall in Hong Kong, and in the 21st century, the annual rent collection will exceed tens of billions of Hong Kong dollars. The large amount of investment caused Wharf's capital problems to be full of loopholes, and it had to dilute the stock on a large scale, and was eventually snatched away by Bao Yugang.

In this life, of course it's me.

"Over the past few decades, Hong Kong Land has been making money lying in Central. I think Jardine also hopes that Wharf will become like this." Zhou Jiayang said with a smile. It is indeed very profitable to collect huge amounts of money, but unfortunately, the current Hutchison does not have this ability.

"The acquisition of Wharf is not in a hurry, I just want to acquire it slowly, so let's restart the acquisition of Wharf stocks now, everything is stable, and the acquisition is slow." Chen Zhiwen thought for a while and said.

In fact, apart from the problem of funds, Chen Zhiwen has never started to deal with Wharf. One of the main reasons is to let Jardine's funds be spent on Harbor City. After all, if he buys it himself, he will have to pay for the one billion Hong Kong dollars. Otherwise, if Harbor City is abolished, what's the point of buying Wharf?
"Okay, I will try my best to buy as many stocks as possible at the lowest cost." Zhou Jiayang asked again: "The funds?"

"I will transfer from overseas." Chen Zhiwen said.

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(End of this chapter)