The Industrial Giant Reborn.

Chapter 464 Arrangements of Hong Kong Telephone Company

"Then I will start arranging this matter tomorrow. However, since it involves the transfer of funds from public to private, and the amount is so large, it may take at least a month for the Hong Kong government's taxation. Will it affect Chen Sheng's plan?" Huo Jianning asked again.

"It's okay, it won't be that fast. Privatization will always take a while, and those small shareholders will definitely clamor to raise the price." Chen Zhiwen shook his head.

You can't say that others are greedy. If this matter is left to Chen Zhiwen, the price will still skyrocket. However, the law will also have certain restrictions in this regard. Otherwise, some small shareholders will not sell, which will not affect the big consortium. Various plans.

"As long as Jardine becomes ours, the acquisition invitation has actually been triggered. The advantage is that only 30% of the remaining shares are left." Zhou Jiayang said with a smile.

"That's right, 30%. Just break through them one by one. How about leaving this matter to Niubijian and telling him that if he succeeds, Hisense will give him more convenience in the future." Chen Zhiwen added.

Although I look down upon Newbijian's character and ability, he has been running Jardine Land for ten years, and his various relationships and knowledge are definitely in place. It can only be said that Newbikin does not have the ability to run Jardine Land. In such a large company, the average ability, especially social ability, is far above the average.

"Okay, I'll contact him. If he succeeds, it's okay to give him a little more credit." Huo Jianning said with a smile. The former head of Yihe Land has now become an ordinary small businessman in their eyes. No, there is no way, this is the reality.

Newbijian himself knew that, so people like them would not start their own business. After all, starting a business would mean a narrow escape. But it was also because of the Keswick family's pressure that at the moment of desperation, they embarked on this path. Now, We can only rely on a little charity cooperation from Hisense Bank and Hutchison Whampoa.

"The shares of this Hong Kong telephone company are worth almost HK$35 billion. After the privatization, we can sell them to Midea at the normal market price. Midea also has some foundation in the communications business, which is just right." Chen Zhiwen saw the information behind it. Said later.

In addition to the properties it owns, Land also owns stocks of many other companies. For example, it once invested in Carneon, but of course it has become a waste now. The Hong Kong Telephone Company is currently the most valuable stock in Land's hands. At the beginning of 1982, Land acquired 33% of the shares of Hong Kong Telephone Company for HK$34.9 billion. Today, the market value is almost HK$35 billion. As the most hard-line demand, the business of the telephone company will not be greatly affected by the real estate crisis. Those who have installed telephones, There will definitely still be consumption, and for those who have not installed it, there will still be more or less people who install it, unless some companies go bankrupt, but this base is almost not much compared to the number of telephone calls in Hong Kong, even when the economy is bad, Maybe the phone will be used more frequently.

"Sheng Chen, there is a problem with this Hong Kong telephone company. Land only has investment rights in it and does not have any rights to participate in its management?" Zhou Jiayang said.

"Oh, so? That Niubijian is really an idiot. Even if he is optimistic about Hong Kong Telephone Company, he shouldn't invest 34.9%." Chen Zhiwen said with a frown.

Under normal circumstances, when a company's stock is less than 5%, it is a high-quality financial asset. When you are short of money, you can just sell it. It will hardly affect the entire stock price, and your own interests will not be damaged. Cash out The time will also be very short.

But if the proportion is high, such as more than 10%, then this kind of investment needs to have some purpose. Not to mention controlling the other company, at least it will have a certain say in voting for directors, or it can cooperate to a certain extent. In short, it should not It is only for investment, because once too many shares are sold, it will cause the stock market to plummet, loss of own assets, and other problems. In some places with perfect listing regulations, major shareholders' cash outs are still subject to legal control. The requirements are very strict and need to be advanced in advance. Just make it public.

And if it acquires 34.9%, it must be to control the other company. If you can't do it and still do it, you are absolutely stupid.

For example, Chen Zhiwen's investment in Hong Kong, except for a few top future giants, will invest a little more, and the rest will definitely be below 5%, and even more will only be about 10%. This is because Hong Kong's stock market regulations are not very perfect, and cash out It’s not difficult to get up, and it’s unlikely that you’ll get to this point.

The same goes for investments in the United States. Those with high returns will exceed 5% because they are prepared to be held for a long time.The same goes for investment in Japan. In addition to real estate, various listed real estate companies are also the focus of investment, especially those real estate companies with land reserves, but they will be kept below 5% no matter what, so that they can cash out quickly in the end.

"Newbijian's ideas are different from ours. He is a professional manager. He may only care about increasing the value of the company's shares without considering long-term returns. Or, he may want to invest in shares first and then slowly get the Hong Kong phone number. He had the management rights of the company, but the real estate crisis later gave him no chance." Zhou Jiayang analyzed.

"That's right to think about it. Forget it, forget about the past. Since we have 34.9% of the shares of the Hong Kong Telephone Company, we have to get it first. In this way, we can slowly win over the shareholders of other telephone companies. Among these shareholders, there should be There are also real estate companies, right? As long as they are sure to support us in the future, Hutchison Whampoa and Land can cooperate with them, and Hisense Bank can also give them some preferential financial policies." Chen Zhiwen paused and said: "Or if there is a physical factory As a shareholder, we can ask Galaxy Trading to cooperate with him. In terms of electronics, Midea is also fine. In short, we must use the resources of our group to accomplish this."

This is the advantage of being a dominant player in several fields in Hong Kong. Basically, those who run businesses in Hong Kong will more or less be involved in their own industries. They are either the same or can cooperate. If you become a giant company, they can cooperate with you. If they just ask you to choose his side when voting in the future, how many people will not agree?
"Understood." Zhou Jiayang said.

"Midea is not good at this kind of thing. Before obtaining actual control of Hong Kong Telephone, let's return it to the place of ownership. After success, we will hand it over to Midea. I will let Midea pay more for the hard work." Chen Zhiwen said again, Midea's business , mainly in electronic products and to deal with other international competitors, allowing Midea to participate in this kind of thing is a bit overkill, and they have no such experience.Hong Kong Telephone Company, Chen Zhiwen is also bound to get it, because this is a license to enter the communications market. Although this license can only be used in Hong Kong, with this foundation, we will have the opportunity to compete for licenses in other countries in the future. Otherwise, we would not have this license. With so much experience, it’s impossible to even get started.There are still great opportunities in Europe, Asia, South America, etc. in the future. As for ZZ, there are actually only a few countries that may not allow foreign investment to participate. Historically, Li Jiacheng was engaged in telecommunications business in Europe, Asia and other regions. It has become very big. Telecom has also become one of the five most important businesses of Li Jiacheng's Hutchison Whampoa. The scale is no less than that of ports, especially the most powerful investment in Orange Company, which made 1000 billion in just a few years. Hong Kong dollar, this transaction shocked the world at that time. Li Jiacheng's fame even suppressed Bill Gates for a time.

Today's Hutchison Whampoa, under the guidance of Chen Zhiwen in several directions and a large amount of investment, is much larger than in the original history. There is no need to participate in the telecommunications sector. The original Hutchison Telecom in history was actually Investment operators, and Midea, have relevant technologies. Once the test in the mainland is successful, these universal switching telephones can also be exported in reverse. It will be more suitable for Midea to hand over the telecommunications business.

Furthermore, even in the Hong Kong market, the future of the telecommunications market is huge. It is as necessary as electricity. In the future, a person will generally spend no less on telecommunications than electricity, and Chen Zhiwen only controls half of the electricity in Hong Kong. The Hong Kong Telephone Company is a complete monopoly, at least for now.

"Okay, I will discuss this matter with Lei Sheng and Lei Sheng." Zhou Jiayang said.

"Do you think Landmark should continue to operate this Cultural Oriental Hotel? How many years have passed and there are only two of them, although it is relatively well-known in Hong Kong." Chen Zhiwen asked again.

Five-star hotels are indeed a big capital for ordinary people, but for the super rich, they are worthless. Speaking of making money, they can usually make a little bit, but compared to investing so much money, the rate of return is too low. .

This is why many international brand hotel companies adopt an asset-light operating model. They do not participate in the construction of any hotels. They only cooperate with local tycoons and invest in them. They are responsible for management. Although there may be the impact of local resource issues, Hotels do not have a good rate of return, but some local tycoons are willing to invest because their ability to make money is limited and cannot compare with those powerful people in the world. If they invest in hotels locally and operate chain brands, for them, this is The rate of return is sufficient, and it is much more convenient to have local connections. Then they combined to form the basic business structure of the global hotel industry today.

This was one of the reasons why Chen Zhiwen was able to acquire Hilton Hotels in the first place.

"Currently there are only two hotels in the Cultural Oriental Hotel, one each in Hong Kong and Macau, which is basically enough. It is impossible to build a third hotel in Hong Kong. So if we continue to operate, we will have to build hotels in other countries and regions. This kind of The investment efficiency is too low and not cost-effective, so I think we must either sell it or follow the asset-light model like the international hotel giants." Zhou Jiayang said.

“But we don’t have experience in the asset-light model?” Chen Zhiwen asked.

"This is not a problem. There are so many European and American international hotel giants, and there are many middle- and high-level Chinese people inside. It is not a problem to invite them over. If we adopt the asset-light model, we actually won't spend much money. The main thing is to control a large number of travel agencies. Get higher tourists," Zhou Jiayang said.

International giants are able to grow bigger and allow different local snakes in thousands of cities around the world to cooperate with them. In addition to having high-quality management experience, they also have long-term cooperative relationships with many travel agencies to ensure that their customer base is sufficient. , Of course, this is also mutual, and travel agencies will definitely benefit from it.

"So this also needs to be managed seriously." Chen Zhiwen nodded and said, "Okay, let's try the asset-light model, but it won't work in China. In the mainland, we should invest in it ourselves."

"Okay." Zhou Jiayang nodded and said. The boss has made the decision himself, so naturally there is nothing to say. Although the economy in the mainland is not good, the vacancy level of foreign hotels is still very high. Currently, there are many hotels in first- and second-tier cities. But it is not enough in itself.

And if the economy continues to improve, not only will more overseas people come to the mainland, but mainlanders will also go on various types of tourism, business trips, etc. This is also a good market.

Of course, the most important thing is that the boss, Chen Zhiwen, is optimistic about the future of the mainland's economy and real estate market. Under normal circumstances, the residential real estate market in a region is unlikely to allow large-scale foreign investment. It is possible for office buildings, but there may not be many. For the rest, the hotel's control will be looser.

The current mainland is obviously not suitable for adopting an asset-light model. You can only invest by yourself, but you can also enjoy the future land price returns.

"OK, let's be like this. There is actually nothing to discuss about other real estate assets. Keep everything related to real estate. If it is irrelevant, organize all the information. If our internal group is interested, we will give priority to the transaction. You and Communicate with the senior management of all the companies within the group, and sell the rest if necessary," Chen Zhiwen said again.

(End of this chapter)