Hong Kong Island's wealthy era

Chapter 109: First time investing in other places (Happy National Day! Please vote for me!)
The next day, Lei Liquan came to the West Coast headquarters of Universal Bank in California to meet with his old friend York, which was also the main purpose of coming to the beautiful country this time.

York had been transferred back to the beautiful country from Hong Kong the year before last and worked as an executive in the West Coast California of IWC Bank. Before leaving, Lei Liquan even went to say goodbye and agreed to see him again in the beautiful country.

This is Lei Liquan and York. The two are considered very good friends. After all, they have known each other for many years, have collaborated many times, and have maintained contacts.

"York, you should have investigated the SITC Bank I talked about on the phone last time, right?"

"Well, I did some special work! I don't know if you want to invest or acquire? If it is an acquisition, I advise Mr. Lei to give up. SITC Bank is not very optimistic now!"

Lei Liquan said with a smile: "Of course I know this! But I am optimistic about the future of Bank of America. I am just investing. After all, I also have too much work on my hands."

"How many shares does Mr. Lei want to get?"

""I need about 25% of the shares! "Lei Liquan said with a smile.

SITC Bank is the sixth largest bank and the largest retail lending bank in New York State. Due to the impact of the oil crisis and the global economic recession in 6 and 74, a large number of non-performing loans appeared, and it was in trouble.

Lei Liquan also asked people to investigate the company. The current market value of SITC Bank is only US$2 million (approximately HK$12 billion). How could we miss this bargain hunting opportunity.Moreover, investing in the beautiful country is also a kind of career guarantee at this stage.

York said: "So many shares? I'm afraid the board of directors and management of SITC will not agree! After all, this will harm the interests of most shareholders."

"The current stock price of SITC Bank is only US$11, which is far lower than their company's net assets. Calculated based on net assets, the value per share should be US$30. If it is acquired on the stock market, it will be considered a hostile acquisition. At that time, it will It’s not a good deal to cause you endless trouble.”

Lei Liquan smiled and said: "If I inject US$1.5 million, I will get 25% of the new shares issued at US$25 per share (the proportion after the additional issuance). Moreover, I promise not to be overly involved in the company's operations! You Is it possible for them to agree?"

York was surprised. He had already lost 60% before he started. Can't he be so messy in investing?

"Are you really prepared to invest for the long term? If so, I will report it to the New York headquarters immediately. I don't know whether it will succeed or not!"

Lei Liquan said with a smile: "Wan Guo Baotong Group is a large conglomerate in the beautiful country. I believe that good news will come soon."

Lei Liquan had no intention of using his own cash to invest, but planned to borrow all of it from Wanguo Baotong Bank.Of course, you must use your own Hong Kong assets as collateral.

York also agreed with Lei Liquan's loan investment from Wanguo Baotong Bank.After all, if Wanguo Baotong Bank completes this business, they will not only get commissions, but also loan interest, and it is a very high-quality loan.

----

As expected, Wan Guo Baotong Bank was very efficient, and the news came within a few days.

They actually persuaded most members of the board of directors of SITC Bank within a few days to accept Lei Liquan, a Chinese, as the major shareholder.

Of course, SITC Bank is in operating difficulties, has a large number of non-performing loans, and is on the verge of running out of funds. They are also eager to introduce new capital, so they are willing to meet and negotiate.

In the conference room of SITC Bank, Lei Liquan’s team arrived.After all, this is a major negotiation, and Lei Liquan brings his own personal lawyer, accountant, assistants and others.After a brief introduction from both sides, everyone officially started negotiating.

First of all, Thomas, chairman of the board of directors of SITC Bank, said: "Mr. Lei, we want to clarify your intention to invest in SITC Bank?"

Fortunately, the beautiful country at this time did not allow different rights for the same shares, otherwise Lei Liquan was really worried that SITC Bank would use this trick to restrict itself.

If this happens, then the investment this time has no practical significance. Lei Liquan's purpose is to use him as a bargaining chip in his transaction with HSBC.

Lei Liquan said with a smile: "I am not a banker, and I have no time and energy to participate in the operation and management of SITC Bank. I just treat it as an investment, nothing more! And as a Chinese, I am the owner of SITC Bank." Bank of America is also in a lot of difficulties, so everyone can put down their guard."

In the previous life, after HSBC acquired SITC Bank, it followed the same pattern as it does today.First, 20% of the shares were obtained from the public market at $25 per share, and then 30% of the shares were obtained through a private placement at $25 per share.

HSBC naturally goes for control.Seven years later, HSBC directly acquired the remaining shares and slowly gained a foothold in the beautiful country.

The directors of SITC Bank discussed one after another. They had enough confidence that Lei Liquan, as a Chinese, could not interfere with the management even if he bought a large number of shares. They quickly agreed to Lei Liquan becoming one of them. .

Next, everyone began to discuss the details, and Wanguo Baotong Bank also agreed to Lei Liquan's loan.

Lei Liquan used 1.5 million U.S. dollars and loan interest, a total of almost 1.8 million U.S. dollars (about 10 billion Hong Kong dollars), to make a bargaining chip with HSBC. Even this bargaining chip may be redundant, and it can be said that the price paid is high.

And what does Lei Liquan want from HSBC?Lei Liquan wanted HSBC to support him in acquiring Hutchison Whampoa.

Just, just a support!
Although HSBC held a supportive attitude throughout the entire process of acquiring Wharf.But what if you don’t want to have more chips in your hand?

Lei Liquan still dare not take the acquisition of Hutchison Whampoa lightly. What if HSBC prefers 'good boy' Li Chaoren?What if you support the Charter King again?
Even if you have money, you can't catch up, because Hutchison Whampoa's controlling stake is in the hands of HSBC, which holds 35% of Hutchison Whampoa's shares.

In any case, Lei Liquan not only needs to have the financial resources to fight against British capital, but also to be wary of Chinese capital, so he must have chips so that HSBC needs to support him in turn.

Xiangjiang is about to enter a period of rapid development. We must speed up our layout and give ourselves the opportunity to step onto a larger stage, so that we can make greater contributions to Xiangjiang.

Lei Liquan has been in the beautiful country for about a month, and the Walkman has also been successfully launched in the beautiful country, with sales reaching 2 units per month, and sales are rising.

Lei Liquan has another cash cow.

Xinghui Media’s listing date has been postponed to June 6.

It was time to return to Hong Kong, so on June 6, Lei Liquan boarded the flight back to Hong Kong.

　Happy National Day to all my book friends!The motherland is prosperous!
　　Now is the double monthly pass period, please give me a monthly pass!Asking for a monthly ticket!Asking for a monthly ticket!
　　Ask for a reward!Ask for a reward!Ask for a reward!
　　
　
(End of this chapter)