"Mr. Lee, on behalf of the Board of Directors of Cathay Pacific, I would like to make a goodwill offer to AHK. Hong Kong's small local market, with a population of only 7 million, makes it difficult to accommodate two airlines at the same time.

Rather than Huamin and Cathay Pacific losing because of vicious competition, it is better for the two sides to merge and find a balance of interests that everyone can accept, so as to achieve a win-win situation for everyone!

On behalf of Cathay Pacific, I can make a commitment that the merger between CNMIN and Cathay Pacific will not only retain the right to operate independently, but that we will also assist in the integration of Dragonair.

For example, among the routes between Hong Kong and all cities in Chinese mainland, the two routes with the most outstanding profitability are undoubtedly Hong Kong-Beijing and Hong Kong-Shanghai. We can transfer these two routes from Cathay Pacific to Dragonair, and in the future, Dragonair can focus on the aviation market from Hong Kong to Chinese mainland, so as to form a differentiated operation with Cathay Pacific!"

While Li Xuan was looking through the plan for Cathay Pacific's comprehensive acquisition of Huamin that he had brought over, Adrian Schwyaer sat on another sofa next to him and briefly introduced the purpose of Cathay Pacific Group.

"Hehe, the so-called win-win plan of the Cathay Pacific board of directors is that you use cash to acquire Huamin? Adrian, do you think I am in urgent need of cash now? If it weren't for Huamin's orders to Boeing and Airbus, it would take 15 months to deliver the new aircraft at the earliest, otherwise I wouldn't want them to lease the old aircraft!" Li Xuan gently threw the acquisition offer brought by Shi Huaiya on the coffee table, shook his head and said.

In order to reduce operating costs, cargo airlines often have a much higher proportion of older aircraft in their fleets than passenger airlines. This has led to a series of problems, such as more frequent logistics maintenance and an increase in the potential accident rate.

Because of Li Xuan's covert support, AHK has been placing orders with Boeing and Airbus, two aircraft manufacturers, since its establishment. But because these two oligopolies monopolize the production of most of the world's large civil aircraft, the orders of various national airlines are often overstocked, and it is not that they can mention the stock if they have money, but they need a long waiting period.

Therefore, when the new aircraft cannot be quickly arrived and the cargo aviation market is growing rapidly, the best solution taken by AHK is to temporarily lease some old aircraft to meet the emergency!

Li Xuan's words made Shi Huaiya frown involuntarily, he had already guessed that his trip would not go smoothly, but he didn't think that he had suffered a major setback at the beginning. Before he flew to Beijing, Cathay Pacific's board of directors held a long and intense discussion and finally made an offer to buy AHK Air in its entirety with HK$5 billion in cash.

In large-scale mergers and acquisitions, cash acquisition is usually the easiest plan for the shareholders of the target party to accept! As long as the money is in place and the money is given happily, the success of the acquisition is just a matter of course!

For example, in the recent merger and acquisition of Hong Kong Dragon by Air Force, Bao and Hong Kong and Macau shares were very happy to withdraw with cash checks, and only Cao Guangbiao was firmly optimistic about the future development prospects of Hong Kong Dragon, and chose to replace his part of the shares of Hong Kong Dragon with the shares of the merged parent company Air Crewair.

According to the financial data of the merger and acquisition obtained by Swia, the final valuation of Dragonair is 450 million, and the valuation of Huaxing Airlines is 3.5 billion Hong Kong dollars.

In other words, with the two major shareholders of the original Dragonair cashing out, the actual valuation of Huamin and Dragonair after the merger should be around HK$3.6 billion. And Thai Airways has now directly raised the offer to 5 billion Hong Kong dollars in cash, which is already very sincere.

It's a pity that this plan is obviously not favored by the largest shareholder of AHK Airlines, the God of Wealth Li. Li Xuan said very clearly, he is not bad for money, and even Huamin's fleet originally wanted to use all new planes.

"If Cathay Pacific really wants to buy Huamin, under other conditions, if you can change the cash acquisition to an equity exchange, I can ask Huamin's management to talk to you!" Li Xuan suddenly proposed his own plan again, and Shi Huaiya couldn't even hold back the last trace of a forced calm smile on his face when he heard Li Xuan's thoughts, and his expression became very serious.

In large-scale mergers and acquisitions, the acquiree most wants to acquire in cash, and the acquirer usually prefers to complete the annex by way of equity exchange. Because the huge cash expenditure for the acquirer will directly lead to a spike in the company's debt, which will lead to a series of subsequent troubles.

For the acquiree, it is undoubtedly the safest way to settle directly into the pocket. If you swap it out for shares in a new company, who knows if the stock price will plummet to just a fraction of its original size after the lock-up period ends.

But now the dispute between Huamin and Cathay Pacific on this issue has just been reversed. The cash acquisition meant that Li Xuan was out of the market with the money, and he had entered Huamin in order to build it into a part of the logistics system of the Oriental Group. The reason why he was willing to take over Ganglong was not because he wanted to attack Cathay of the Shi Huaiya family. Rather, it is because he is more optimistic than anyone else about the development of the domestic economy in the next two decades.

In Li Xuan's view, the most valuable thing about Dragonair is actually the dozen or so routes from Hong Kong to the mainland that they have applied for in recent years. In the eyes of Cathay Pacific's board of directors, except for the Hong Kong-Beijing and Hong Kong-Shanghai routes, other routes to the mainland are chicken ribs, which did not hinder Ganglong's route application. It is a pity that the strength and durability of China's economic growth in the future will far exceed the expectations of the world.

This has even directly changed the global economic and political landscape, and for Hong Kong's aviation industry, the next flood of mainland passengers will flood Hong Kong's airport. During this time, Cao Guangbiao had been trying to move Li Xuan to fight against the aviation bill passed by the British authorities in Hong Kong a few years ago, but he didn't know that Li Xuan and his views were completely in mind.

Li Xuan not only does not dislike the policy of "one route, one airline", but is also ready to actively maintain this policy. Because only monopoly can maximize profits, and the reason why most people hate monopoly is because they have no right to monopolize others.

With the rapid development of China's economy, China's exchanges with the world will become more and more frequent, and Hong Kong is one of the most important transit points. Many travelers between China and the rest of the world transit through Hong Kong. In addition to the huge number of tourists, Hong Kong will be one of the most important destinations for Chinese expatriates in the next 20 years. In particular, after the "Individual Visit Package", the whole of Hong Kong and Kowloon was crowded with tourists from the mainland.

If Ganglong can use the exclusive right to operate the route to squeeze Cathay Pacific out of the mainland market, even if it can't overthrow Cathay Pacific, at least it will have the confidence to be on an equal footing with the other party! Therefore, Li Xuan doesn't care about Ganglong's short-term losses at all, and he can't look down on the more than one billion Hong Kong dollars that Shi Huaiya is now giving. He's ready to cast a long line to catch a big fish, and this fish is the whole Hong Kong aviation industry!

.。 m.