Chapter 457: Yacht Secret Discussion
In a haven for a yacht club in Deep Water Bay, a beautiful yacht makes a splash and sails away from the dock with light and grace. This yacht is much smaller than Li Xuan's "Nuomi", but the layout inside the hull is equally elegant and luxurious.
And the owner of this yacht is Mr. Kwok Henian, the richest man in Malaysia, who has the reputation of "Asian Sugar King". His popularity in Malaysia is no lower than that of Li Xuan in Hong Kong. The Deep Water Bay Yacht Club where the yacht just left is the property under Guo Henian's name. With a total investment of HK$400 million, the yacht club has just taken two years to build and will officially open its doors next month.
In the luxurious banquet hall of the yacht, in addition to the host Guo Henian sitting at this moment, there are several other wealthy people who are famous in Xiangjiang. Lin Guitai, chairman of the Lin Group, Xu Shixun, chairman of China State Construction Group, Huo Yingdong, chairman of Huo Xingye Tang Company, and Li Xuan, the boss of the Oriental Group.
Of course, there are some juniors on the yacht, such as Lin Guitai's two sons Lin Yuli and Lin Yuhao, Huo Yingdong's eldest son Huo Zhenting, Xu Shixun's eldest son Xu Jiangan, nephew Xu Jiankui, and Li Xuan's eldest brother Li Ke and others.
However, their main task today is to be responsible for serving tea and water. In order to achieve absolute secrecy, there were no waiters on the yacht except for the captain at the helm and Li Xuan's two bodyguards.
"Ladies and gentlemen, let me first introduce you to the situation of Hongkong Land. Keswick has been undergoing a strategic contraction since taking over as the head of Hongkong Land. For example, not long ago, Hongkong Land sold its shares in HK Electric to Hutchison Group, bringing back a large amount of cash.
Hong Kong's real estate industry is also picking up, and Hongkong Land has just opened its flagship property. The occupancy rate of One Exchange Square is already very good. After the sharp rise in Hong Kong stocks at the beginning of last year, the total market value of Hongkong Land has recovered to about 15 billion Hong Kong dollars!
Jardine Matheson Group is interested in gradually divesting from Hong Kong. But Hong Kong will certainly not be completely abandoned. Now that Hongkong Land's situation is improving, it is unlikely that Keswick will be able to sell his stake in Hongkong Land at this time. In the event of the loss of the Land Company. Then the scale of Jardine Matheson will shrink by more than half in an instant!
Therefore, if we want to buy Hongkong Land, we can only tear our faces and make a hostile takeover! Hongkong Land's total market capitalization at the close of trading at noon today was HK$15.25 billion, but Hongkong Land's style has always been conservative, and its properties are only rented but not sold, so the company's financial statements are not as bright as other real estate companies in Hong Kong.
Previously, due to the high price of land, Hongkong Land suffered huge losses in the last wave of land price crash, which caused its market value to fall by six or seven percent. Although there has been a lot of gains in the recovery of Hong Kong stocks last year, the valuation is still low!
If we can successfully acquire Hongkong Land, then split off its two major subsidiaries, Dairy International and Mandarin Oriental, and go public independently. I have full confidence that the total market value of the Hongkong Land Department will be doubled!" Zhuang Yuhai was the first to speak under Li Xuan's signal. As he spoke, he handed out the detailed analysis of Hongkong Land that had been prepared to several bigwigs present.
New Year's Day has just passed, and it is already 1986 in terms of the Gregorian calendar. After several months of contact with Li Xuan, he finally formed the current pattern of five groups to launch acquisitions of Hongkong Land.
Although Li Xuan promised to solve the capital of 7 billion Hong Kong dollars, according to his previous estimate, he would need to use 12 billion funds to complete the forced acquisition, which means that there is still a funding gap of 5 billion Hong Kong dollars.
And the Lin family and the Xu family obviously did not have the ability to bear such a huge amount of money alone. So each pulled a partner. Kwok Henian is one of the most famous Chinese businessmen in Southeast Asia, and his Karrie Group has been foray into Hong Kong since the 70s, with the Shangri-La Hotel as its first project.
Last year, the prestigious British Travel Business Magazine ranked the best hotels in Hong Kong, and the Shangri-La Hotel by Kuok was ranked third. At the top of the list is the Mandarin Oriental Hotel, a subsidiary of Hongkong Land. Mandarin Oriental was originally called Mandarin Hotel Group. Later, Hongkong Land acquired Thailand's Oriental Hotel Group more than a decade ago, and the two merged to form what is now Mandarin Oriental.
Kwok Hol Nian entered the hospitality industry in the early 70s and opened the first Shangri-La hotel in Singapore. He is interested in Mandarin Oriental, a well-known hotel brand in Hong Kong and Southeast Asia. Naturally, it is coveted. The Lin Group, which also operates hotels, has always had a lot of cooperation with Kwok's Shangri-La Hotel. So Lin Guitai deliberately pulled the richest man in Malaysia with strong capital into the game.
And the reason why Xu Shixun invited Huo Yingdong to participate is simpler. Fok is a "red capitalist" who is famous in Hong Kong. Against the backdrop of Hong Kong's decision to return to China, allowing Huo Yingdong, a businessman with the closest ties to the mainland, to participate in the acquisition can virtually produce some special effects that can only be understood but not spoken.
Of course, whether Hongkong Land, a comprehensive group that is in a leading position in Hong Kong in many fields such as real estate, hotels, and retail, can really be successfully acquired, and finally needs real funds. Although the Huo family has been very low-key in the past two or three decades, the Huo family has actually been one of the top wealthy families in Hong Kong.
"I have communicated with General Manager Ma of the Bank of China, he can provide Huo Xingye Tang with a credit authorization of up to 1 billion Hong Kong dollars, and we, Huo Xingye Tang, can withdraw 300 million Hong Kong dollars in cash to participate in this acquisition!" Huo Yingdong was the first to give his own capital commitment.
"Karrie Group itself can raise no less than 500 million Hong Kong dollars in cash, while Singapore's DBS Bank and Thailand's Bangkok Bank can provide no less than 1.5 billion Hong Kong dollars of credit to Karrie Group!" Kwok Henian's calm tone fully demonstrated his strength as the richest man in Malaysia.
Bangkok Bank is one of the largest regional multinational banks in Southeast Asia, with total assets of over US$8.3 billion. Its founder, Mr. Chen Bicheng, is the most famous Chinese banker in Southeast Asia and has friends with many Chinese businessmen in Southeast Asia. At the beginning, there was a funding gap in the construction of Genting Casino, and it was with the support of Bangkok Bank that he got through the most difficult time.
"The Lam Group has secured a total of HK$1 billion in credit lines from the Bank of East Asia and the Bank of Tai Sang, and we can raise HK$300 million in cash ourselves!" Lim Kwai Tai also said.
If an enterprise wants to become bigger and stronger, it must be inseparable from the support of financial capital. Behind almost every Hong Kong real estate tycoon. All have the backing of bank capital, most notably Bao Yugang's relationship with HSBC. Bao Yugang was able to do so in just five years. With 2.9 billion Hong Kong dollars and 2.5 billion Hong Kong dollars in cash, he won two well-known British companies, Wharf and Wheelock. Thanks to the strong backing of HSBC.
"China State Construction Group can obtain a credit authorization of HK$1 billion from Hang Seng Bank, and at the same time, we can raise HK$500 million in cash ourselves!" Xu Shixun said last.
Li Sheng has already communicated with Yang Lingjun, President of Jiahua Bank, and Sir Coatston, Standard Chartered Bank. Jiahua Bank can provide credit support of 2 billion Hong Kong dollars, of which 1 billion credit needs to be collateralized, and LH Foundation is responsible for providing securities as collateral!
Standard Chartered Bank can provide a credit of HK$3 billion for the operation, of which HK$1 billion is an unsecured trust. The remaining 2 billion yuan also needs to provide asset collateral, which needs to be resolved through negotiation among all of you! In addition, our LH Foundation will provide an additional 300 million US dollars in cash to participate in this operation!" Zhuang Yuhai reported his own capital contribution on behalf of Li Xuan.
Hongkong Land and Jardine Matheson actually have a lot of business dealings with Standard Chartered Bank. However, Li Xuan's relationship with Standard Chartered is obviously even closer! After several years of uninterrupted increase in holdings, Li Xuan's stake in Standard Chartered Bank has risen to 17.5%. He is already the largest individual shareholder in Standard Chartered Bank, having been a director on the board of directors of Standard Chartered a few years ago.
"That is to say, the five of us have now raised a total of 13 billion Hong Kong dollars. It is impossible for Jardine Matheson Group to resist on its own, and the only remaining variable is HSBC!"
Li Xuan paused, and then smiled at Xu Shixun, who was sitting opposite, "Xu Sheng, you have a good personal relationship with Shen Bi Taipan of HSBC. When we go back, you ask Sir Shen out, and we treat him to a meal together. Hopefully HSBC will make the right choice!"
HSBC is the largest bank in Hong Kong, with total assets of more than HK$100 billion. If it chooses to fully support Jardine Matheson, it will make it more difficult for them to buy Hongkong Land. Of course, HSBC and Jardine Matheson are the two flags of the British-funded consortium in Hong Kong. But the relationship between them is by no means harmonious, and there have been a lot of dirty things before.
For example, in 1978, the Madden family, the majority shareholder of Wheelock. He intends to transfer his equity in Wheelock to Jardine Matheson. And if Jardine Matheson can successfully acquire Wheelock, it will have more assets than HSBC. To become the largest company in Hong Kong. HSBC got in the way and successfully aborted the merger plan. This is the opportunity for Bao Yugang to acquire Wheelock last year.
However, Hongkong Land, as the largest real estate group in Hong Kong, has a lot of interests entangled with HSBC. A large amount of Hongkong Land's credit comes from HSBC, and Li Xuan and others are bound to communicate their interests with HSBC, a major creditor, before they start to buy Hongkong Land.
Hui is a director of Hang Seng Bank, a subsidiary of HSBC. Xu Shixun has always had a good personal relationship with Sir Shen Bi, the senior class of HSBC. And although Li Xuan had known Shen Bi as early as five or six years ago, the two did not have much personal relationship after that.
The biggest reason for this is that Li Xuan chose the latter as his main partner between HSBC and Standard Chartered. Standard Chartered, on the other hand, relies on its good relationship with the Oriental Group and has a significantly higher influence in Hong Kong's emerging electronics industry than HSBC.
Li Xuan's own Jiahua Bank was too small to support the burgeoning credit demand of Hong Kong's electronics industry, so Standard Chartered quickly filled the gap. The electronics industry is one of the most outstanding industries in Hong Kong in recent years, which has made Standard Chartered Bank's profitability in Hong Kong develop by leaps and bounds!
Originally, Hong Kong's banking industry was dominated by HSBC, Standard Chartered was the second in the millennium, and Hang Seng ranked third. And Hang Seng is a holding subsidiary of HSBC, which makes Standard Chartered squeezed at both ends, and life is very difficult. But because of the appearance of Li Xuan's little butterfly, Jiahua Bank, which he acquired, quickly surpassed Hang Seng Bank after merging Hengrong Bank and became the new third in Hong Kong's banking industry.
Moreover, in the 83-year Hong Kong dollar crisis, Jiahua Bank not only escaped unscathed, but also successfully established an excellent business reputation by virtue of its abundant foreign exchange reserves in the frenzy of blind panic selling of Hong Kong dollars by the people of Hong Kong. As a result, Jiahua Bank's deposits have grown rapidly in the past few years, and it has begun to close the gap with the two giants of HSBC and Standard Chartered.
Therefore, HSBC, the leading boss, is now facing the situation of being the second and third behind the second and third children, taking advantage of the rapid development of Hong Kong's electronics industry. This put Shen Bi, the company's senior class, under a lot of pressure, and he naturally didn't have the mood to become friends with Li Xuan, an enemy.
It is precisely because Li Xuan is not only the major shareholder of the rival Standard Chartered but also the controlling shareholder of Jiahua Bank, that Shen Bi must doubt whether Hongkong Land will fully fall into the alliance between Standard Chartered and Jiahua once it is acquired by Li Xuan? You must know that the real estate industry is one of the most important credit objects of banks in Hong Kong, and the interest on loans to HSBC from a large company like Hongkong Land is as high as hundreds of millions of Hong Kong dollars every year.
Therefore, it is necessary for Li Xuan to explain to Shen Bi and HSBC in advance that this time it is just a simple strategic investment made by his LH fund. Oriental Group has no intention of taking a controlling stake in Hongkong Land, let alone changing the previous relationship between Hongkong Land and HSBC.
After the parties have quoted their respective capital contributions, the next step is to further negotiate the distribution of benefits after the completion of the acquisition. The juniors in the banquet hall immediately began to consciously withdraw from the box and go to the outside deck to breathe the air.
"This Mr. Zhuang doesn't seem to have heard anyone mention it before, what is the origin?" Lin Yuli asked his half-brother Lin Yuhao.
Zhuang Yuhai did not come out with them, but presided over the issue of benefit distribution inside. And it is said that the entire operation of the next acquisition of Hongkong Group will also be handed over to him to be in charge of the operation. This is the right to control tens of billions of funds, and everyone can't help but be curious about Zhuang Yuhai's identity.
"I only know that he is Ah Xuan's private investment adviser, and he is responsible for taking care of some assets for Ah Xuan except for the Oriental Group! Ask Brother Ke for the specific situation, he should know better!" As soon as Lin Yuhao finished speaking, everyone couldn't help but look at Li Ke next to him.
"This Zhuang Sheng is a senior partner of a well-known investment bank on Wall Street and Salomon Corporation, and he was poached back to Hong Kong by Ah Xuan for a lot of money! I had dinner with Han Sheng last year, and he inadvertently revealed that he was not the number one working emperor of the Eastern Group, and Zhuang Yuhai earned more than him!" As soon as Li Ke finished speaking, everyone present couldn't help but gasp. (To be continued......)