The Industrial Giant Reborn.

Chapter 298 Privatization of Wharf
The next day, Chen Zhiwen convened several top executives from Hutchison, Wharf, and Galaxy to sit together. These companies can be said to be his real estate, infrastructure, and various heavy investment companies. Except for Galaxy, Hutchison and Wharf came from acquisitions. In fact, there are quite a few duplications in many businesses. Chen Zhiwen has long had the idea of ​​re-planning these three companies, but before the main focus was on gold futures in the United States. Now, it's better to rearrange.

"Chen Sheng, we have acquired 30% of KMB's shares, and we have obtained the management rights of KMB through the general meeting of shareholders, but we have not changed the management." Zhao Lilinhui, general manager of Wharf Group, reported.

"Okay, find a suitable time in the future, increase the shareholding to 34.9%, and then operate normally." Chen Zhiwen nodded and said.

A small company like Kowloon Bus can't even rank among the top [-] listed companies in Hong Kong, and Chen Zhiwen has no interest in how to buy it, just let his subordinates figure out their own way.

Therefore, in the past few months, Wharf entrusted Huo Duoli to find the existing shareholders of Jiulong Bus, and broke through one by one. Finally, it directly acquired enough shares, and it was a matter of course to take over.

This is also a benefit of Hong Kong's capital society. Even if Chen Zhiwen swept away HSBC's face when he acquired Wharf and HK Electric, as long as he has money to make, Huodoli, as the most important investment company under HSBC, doesn't care who it is for. Serve.

"There is another small thing. Many minibuses under Kowloon Bus are very old, and many of them are employed with illnesses. In addition, many minibuses do not even have air conditioners. Many customers complain deeply. The previous KMB has been unable to Change, after we took over KMB, some small media also called on us to renew some of China Pakistan.” Zhao Lilin said.

"Change as needed. It is very important for us to make money, but the safety of employees or customers is more important. Air conditioning should be standard equipment. In addition, the Star Ferry is also very old now, and we can consider replacing it. Air conditioning also needs to be replaced. Yes, otherwise it would be too hot in summer." Chen Zhiwen said.

"The previous Star Ferry was all open, connected all around, and not closed. If you want to buy a fully enclosed one, the cost will increase a lot. The most important thing is that the carrying capacity may still be affected. The Hong Kong government is very concerned about the Star. There is also a limit on the price of the ferry, and we may not be able to recoup the cost." Zhao Lilin thought for a while and said.

"Then book a few high-end ships first, which can be regarded as VIPs. The Hong Kong government has restrictions on the pricing of ordinary Star Ferries, but I will increase services and charge high prices. It should be no problem like the first class of an airplane, right? Hong Kong There are millions of people, many of them have to take the ship, and not everyone is only looking for cheap, right?" Chen Zhiwen thought for a while and said.

The Hong Kong government’s pricing for the Star Ferry was still in the 60s. At that time, the per capita wealth in Hong Kong was very different from what it is now. Especially in the past five years, I don’t know how many people have become richer than they could have dreamed of by relying on the appreciation of their houses. People, but rich people can buy cars, but they can't buy boats?Although there is the Hung Hom Cross-Harbour Tunnel, Hong Kong is not small. You can’t drive around in a big circle. Besides, there are more islands in Hong Kong than Hong Kong Island.

"That should be fine. I'll consult the legal department later." Zhao Lilin nodded and said.

"Actually, whether it's the Star Ferry or the Kowloon Bus, it's just a small business in Wharf. We don't need to rely on these two companies to make a lot of money. It has a great impact. If we can make a large number of people feel good about us by adding air conditioners, it will be worth it. For example, KMB, if there is no air conditioner, many people may be too lazy to come out in summer. If there is, After they come out, they may go to Harbor City to spend, and we earn more." Chen Zhiwen said.

Not all businesses are aimed at making every penny. This kind of public service company can gain a better reputation if it can do a good job in the service. Besides, as a public service company, HK Electric is obviously used to make money. A lot of money, but even so, the service needs to be improved. If you earn money from the common people, you must serve well.

"Okay, I'm already planning to increase the number of flights to Harbor City and Huangpu Plaza from various places, and the Star Ferry will do the same," Zhao Lilin said.

"Not only that, but a certain amount of consumption is stipulated. As long as you spend a certain amount, you can exempt the fee for a minibus or ferry on the same day, similar to parking spaces." Chen Zhiwen added.

In the later generations of China, many shopping malls or large supermarkets have fixed free shuttle buses. Although they have been losing money, it is enough to bring people to the place to spend. Even if there are free prostitutes, as long as you earn more. Now that I control the bus by myself, it is more convenient.

"Okay, I understand." Zhao Lilin nodded and said. The current main business of Wharf Group is Harbor City and its real estate development. Many other businesses are not small in scale, but the profit is far behind. CMB Or whether the Star Ferry makes money or not, it has little impact on Wharf. If it can improve the business of Harbor City, it will still be more profitable overall.

"How is the traffic flow in Harbor City recently?" Chen Zhiwen asked again. Half of the purpose of buying Wharf was for this Harbor City, which is also a representative of rent collection while lying down.

"It has been very good. Whether it is gold and silver, clothing or catering, the business is very good. Many people originally like to shop in Central, but they also come to Harbor City, especially when it rains. When it is hot in summer, Probably the same." Zhao Lilin said with a smile.

"Okay, but we can't just be satisfied with this. If Harbor City wants to go further, it needs to attract a large number of overseas tourists. Their spending power is stronger than that of Hong Kong locals. We need to talk to some travel agencies and give them some money. The advantage is that they can send people to Harbor City, and Hong Kong’s immigration airport. They can send people to distribute leaflets, advertise, or directly buy advertising space in the rear seat of the plane from Cathay Pacific Airways. In short, it is to send people Attract it." Chen Zhiwen continued.

I have to say that the Jardine Department is still very capable. The Harbor City project they created is very well designed. Many people fall in love with it after visiting it once. Hong Kong locals are like this, but the number of Hong Kong locals It is always limited, and many people just come here for fun and do not consume or consume very little, but overseas tourists are different. It is rare to come to Hong Kong once, so you have to buy something, right?At least have a good meal, right?

"Understood." Zhao Lilin said.

"In addition, Wharf also has a port business, and we also need to cooperate with Hutchison in this area. However, the focus of Wharf is no longer on the port. You can negotiate internally, or you can come up with a suitable price with Huang to transfer Wharf's The port has been acquired, and in the future, Huanglai and Huang will concentrate on the port business." Chen Zhiwen added.

Wharf used to be a port terminal. After the containerization of the terminal, Wharf also obtained the No. 1 berth of Kwai Chung Wharf. However, in the original history, the charter king family did not invest much in the terminal. , and was overtaken by He Huang later, and in the 21st century, he was basically not well-known.

Now two companies under my own have this business. Although there is no conflict, operating separately will only consume more resources. At least for now, He Huang is much stronger in terms of capital advantages, and the port business is also defined by Chen Zhiwen. One of the main business.

"Chen Sheng, the port is also one of the main businesses of Wharf. Even if it is sold to Hutchison at a normal price, it may cause some gossip. Why don't we privatize Wharf and then conduct internal transactions?" Zhou Jiayang suggested.

"Alright, then privatize it first, so that the expansion of many businesses will be much more convenient in the future." Chen Zhiwen agreed after thinking for a while.

As for Wharf, he has always wanted to privatize it. He didn’t privatize Wharf at the time of the acquisition, because the stock price was too high during the takeover battle, and it would be a loss to privatize at that price. Now, the stock price is lower than before. , and considering that the future income of only one harbor city is very high, if it costs more than one billion yuan to privatize, I am afraid that the rent will be earned back in the next few years.

Zhao Lilin nodded and said, "That's fine. The Hong Kong government's previous acquisition offer forced me to sell the stock slowly, which caused the stock price of Wharf to fall. This is also good. If we fully privatize, the cost will be higher." Lower."

"This is also an unexpected benefit." Chen Zhiwen said with a smile.

The 35% acquisition trigger offer set by the Hong Kong government to protect British capital is aimed at all companies under normal conditions. After all, the Hong Kong government can only change the stock market laws in the name of considering shareholders.

The new regulations require that when any person or legal entity holds more than 35% of the company's shares, it is necessary to initiate a general takeover offer, including the former major shareholder. Basically, the holding does not exceed 30%. The only Swire Group is headquartered in the UK and is not listed in Hong Kong. Hong Kong regulations cannot control it.

This has led to many Chinese-funded companies needing to sell their shares. However, the new law also stipulates that controlling shareholders can increase their shares to 40% after holding the company's shares for more than two years. This is currently the highest proportion of listed companies in Hong Kong. .

Chen Zhiwen's shareholding in Wharf had reached 49.9% before, but it had to be changed due to the new law. At that time, there were rumors in the market that Chen Zhiwen might privatize Wharf, which led to another sharp rise in the stock price. In the United States, Chen Zhiwen didn't bother to care about it. He just lowered his shares slowly according to the law.

"Chen Sheng, should Taohua Datong also be privatized? Their hot sauce is selling well in the United States, and they have recently launched new tomato sauce and cheese sauce. The market in the United States should be very large." Xu Xinghe of Galaxy Group Jin Hong asked.

"No, you don't need to privatize everything." Chen Zhiwen shook his head and said, he only privatizes those with very high income and does not need to be shared with others, and the rest should be listed.

"The future development direction of Wharf is to develop shopping malls. For example, can a project like Harbor City be built in other places? For example, Bay Bay, Japan or even the future mainland, or build some smaller shopping malls. In fact, just like retail supermarkets, Costco is suitable for super-first-tier cities, while Wal-Mart is suitable for ordinary supermarkets. How to develop it is up to you to decide internally." Chen Zhiwen said: "When we only have one Harbor City, we have an advantage in negotiating with the merchants who enter the city. In fact, it is not very big, but if we have dozens or hundreds of such shopping malls of different sizes, the bargaining power will be another matter entirely. When the density reaches a certain level, the effect of advertising will be low. The better."

"House prices in Japan are relatively high, and the culture is relatively xenophobic. If you want to build a new shopping mall, Wanwan is indeed more suitable. Except for Taipei, other places should be smaller, but the financial pressure will be very heavy." Zhao Lilin thought for a while and said. .

Chen Zhiwen said: "Fund pressure, I will give you some money after privatization, but always relying on my side is not a long-term solution. In addition to loans, there is another way to develop yourself by taking advantage of the rising housing prices in the local area.

You can refer to Hutchison’s Huangpu Plaza. When it was first built, Hutchison actually didn’t have much money, but because the area was large enough, there were residential and office buildings next to it. In the next few years, housing prices in Hong Kong rose sharply. It offset the original investment in building Huangpu Plaza, and made an extra profit.

Of course, the land in Whampoa Garden and Whampoa Plaza is their own, which is a bit different, but the idea is the same. As long as the local housing prices keep rising, you can buy a larger piece of land and build residences, office buildings, Hotels, apartments, and commercial plazas, we just need to keep the commercial plazas, and the rest can be sold. In this way, as long as the housing prices rise fast enough, maybe we can get a plaza for nothing. "

"Can housing prices in Wanwan and Japan rise so much?" Zhao Lilin asked, and the others were also curious. This theory can definitely be realized when housing prices rise, but if housing prices don't rise, then the funds can be given to the cardholders. Live, but the loss will not be a loss.

"Of course, Wanwan is different from Hong Kong. In Hong Kong, the housing price bull market is coming to an end, so I require all your real estate projects to pursue the strategy of rapid development and early return on capital. It is different in Wanwan. Yes, there are manufacturing industries over there, especially now that globalization has just started, and many common industries in Europe and the United States need to be transferred. As long as Wanwan takes a small part, it will not be difficult for the economy to develop continuously for more than ten years, so this is our opportunity Besides, in the future, besides the mainland, I will also invest in some manufacturing industries in Wanwan." Chen Zhiwen said: "In addition, ParknShop and RT-Mart also need to expand rapidly in Wanwan. Our procurement costs are the lowest. As long as we can maintain With long-term low-cost advantages, the local retail industry in Wanwan is no match for us.”

Although in his previous life, he hadn't studied the real estate market in Wanwan, he had never heard of any real estate crisis in Wanwan. According to the most basic law of economic development, when the electronics industry and export industry in Wanwan were developing rapidly, , the real estate market will inevitably explode on a large scale, and after the rise of the mainland manufacturing industry, a large number of factories will be transferred to the mainland, and when the Wanwan manufacturing industry begins to decline, the real estate market will calm down.

The 80s was the decade with the fastest economic development in Wanwan, and housing prices will inevitably follow suit. It is not necessary for Chen Zhiwen to bring a lot of money to speculate on houses, but he can use this opportunity to develop shopping malls, retail and other industries .

"That's no problem. Over the past few years, we have cultivated a lot of retail teams in Wanwan. When we build a new store, we don't have to worry about no one." Zhou Jiayang nodded and said.

One of the main businesses of Hutchison is retail. They are Watsons cosmetics retail, ParknShop medium-sized supermarket and large supermarket RT-Mart. The former mainly operates in Europe and the United States, while the latter two are daily retail. The first step is to target Southeast Asia. The Kerry Group of Kerry Group has a joint venture in the Malaysian market, while Wanwan is actually earlier, but the number of new stores is not large. It has been in the state of cultivating talents and learning experience. Now the time is almost the same, and Hutchison itself has more funds. Naturally, it can enter a state of rapid expansion.

"Okay, then conquer the Wanwan market first, and then enter Japan or other Southeast Asian markets after a few years of success." Chen Zhiwen nodded and said.

The advantage of Wharf is that it has a large amount of land in Hong Kong, which is of high value, but it is still far inferior to Hutchison Huang in terms of talents. In addition, Hutchison Huang has entered the state of self-management very early, and has been making talent reserves for future expansion. Therefore, Chen Zhiwen still decided to hand over complex businesses such as port business and supermarket retail to Hutchison.

The shopping mall is much simpler. Under normal circumstances, as long as you are optimistic about the location and invest in it, you can basically collect money lying down. This is also Chen Zhiwen's positioning for Wharf in his own group system in the future. Of course, it is not just shopping malls. In history, Wharf also particularly liked to build super high office buildings in China, and the rent collection was very cool.

"No problem." Zhou Jiayang and Zhao Lilin replied almost at the same time.

(End of this chapter)