What was the process of Hongkong Land's acquisition of the Dairy Farm Company?

In 1961, Jardine Matheson went public, issuing 900,000 new shares, accounting for 25% of the share capital, at an issue price of 16 yuan per share, which rose to 31.25 yuan on the first day of listing, an increase of 95%. Pen × fun × Pavilion www. ｂｉｑｕｇｅ。 infoDuring the 1967 riots, Jardine Matheson's share price fell below its listing price, and Jardine Matheson lacked confidence in Hong Kong Real Estate and feared that Hong Kong would repeat the 1949 version of Shanghai.

It was not until 1969 that an American businessman bid for the land of the Sheraton Tsim Sha Tsui Hotel, that Jardine Matheson's confidence in Hong Kong was restored. Following in the footsteps of Hutchison, engaged in the acquisition of listed companies. In the entire Jardine system, the most popular among shareholders is Hongkong Land.

Hongkong Land owns high-value properties in Central and luxury properties in Mid-Levels, and Hongkong Land's market value reflects investors' confidence in property companies. Hongkong Land's share price has outperformed the rest. After the successful auction of the Sheraton site, Hongkong Land immediately planned to acquire City Hotel, which still owns the ownership of the Mandarin Hotel. As a result, the acquisition was an easy one.

Then, Hongkong Land deployed another major acquisition, targeting the dairy company. Given the limited amount of land that can be redeveloped, Hongkong Land has to buy cheap land to develop properties for sale. At that time, the dairy farm company was wealthy, owning a large plot of land in Pok Fu Lam for pasture, cattle breeding and milk extraction, which is today Fortune Garden.

The Dairy Farm Company is also the first supermarket company in Heung Kong and owns a number of supermarket properties. The dairy farm company also operates a catering business, partnering with the Ng family to operate Maxim's Western Restaurant.

Hongkong Land has the ambition to acquire Mandarin Hotel and acquire Dairy Farm, which can develop the Dairy Farm's land for sale as a property on the one hand, participate in the operation of a supermarket on the other hand, and make use of Maxim's Group to set up a high-end restaurant in Hongkong Land's Central building to provide more comprehensive quality services. Before the acquisition, the stock price of both companies was 45-50 yuan, but when the news of the acquisition spread, Zhou Xinian, the chairman of the dairy farm company, made a defensive battle and increased his stake, pushing the stock price up. The stock price of the Dairy Farm Company once rose from tens of dollars to more than 200 yuan, and the share price of Hongkong Land also rose, but it could not be higher than that of the Dairy Farm Company.

In order to complete the acquisition, Hongkong Land must push up its own share price. As a result, Hongkong Land gave away 5 new shares for each share, which once caused Hongkong Land's share price to rise to more than 300 yuan, and hit a record high price of 67 yuan after net exclusion. The high price of $67 at the time of the day's ex-net was only maintained for a short period of time, but it was much higher than the stock price of Dairy Farm, and as a result, most of Dairy Farm's shareholders were willing to accept the acquisition and exchange the Dairy Farm shares for new shares issued by Hongkong Land. Hongkong Land eventually acquired the Dairy Farm Company. It took advantage of the popularity of its shareholders and issued new shares to buy the dairy farm company, rather than using cash for the acquisition.

The takeover war caused shareholders to lose a lot of money, because it took dozens of days to exchange the shares of Dairy Farm for Hongkong Land's shares, and as a result, when Hongkong Land's share price hit an all-time high after the net was removed, Dairy shareholders could not get Hongkong Land's shares for sale at all, and Hongkong Land's shareholders only held one old share because of one free five, and the five new shares had to wait for dozens of days to be received.

Only one-sixth of the holdings could be sold, and by the time the new shares arrived, Hongkong Land's share price had fallen sharply and fell out of control, quickly falling from $67 to $12. Hongkong Land's share price rose from $7 to $67 and then fell back to $12 in two months, and at $67, Hongkong Land's price-to-earnings ratio was as high as 230 times. From Hongkong Land's management, it was very successful for them to buy Dairy Farm with such a high price-to-earnings ratio, which is an economic patent given to Hongkong Land by the market. Regrettably, to this day, Hongkong Land's share price has not returned to its 1973 highs.

In late 1972 and early 1973, the battle between Hongkong Land and Milk was the main driving force behind the frenzy in the Hong Kong stock market. From Hutchison's acquisition of Whampoa Dockyard and Hongkong Land's acquisition of milk, it can be seen that the visionary businessmen of the time believed that the prospects of Hong Kong real estate were optimistic, and the subsequent development also proved their unique vision. After 1967, real estate was indeed an industry with market economy patents.

After Hongkong Land's acquisition of milk, rumours spread again in the market that Hongkong Land would acquire Wharf. The chairmen of Wharf and Hongkong Land are both senior executives of Jardine Matheson, but Jardine Matheson has no controlling stake in either company, so the legend was once popular in the market. At one point, the stock price of Wharf was pushed to $800, and this price did not reappear until 1980, when Charter King bought Wharf. In fact, Hongkong Land took time to digest the business of the dairy company, and Jardine Matheson also thought that Wharf was in the bag, so he took it lightly, and was successfully attacked by the charter king.

In the decades-long history of the stock market, there have been several major booms. For the first time in the 70s, the stock price index soared from 341.4 points at the end of 1971 to 17,743.96 points on March 9, 1973, but then after more than two years of short market, the stock price fell to 150.11 points on February 10, 1974. The second rebound began in 1975, and the multi-year bullish market rose to 1810.20 points on July 17, 1981, breaking through the peak of 1973. In other words, it took nine years for the Hong Kong stock market to recover its losses after the previous wave of sharp declines. This shows how much damage that plunge has caused to the Hong Kong stock market and economy.

The sharp rise and fall of the stock market in Hong Kong was an unprecedented blow to the economy and society of Hong Kong. If it weren't for that stock market storm, Xiangjiang's economy would not have been easily chased by Taiwan Island and sticks.

The reason why the Xiangjiang stock market rose sharply and then fell was understood by Zhang Junyi in textbooks in his previous life, but because of the time limit, it was too long ago from the events at that time, and what he knew was only the surface of the paper.

It is not easy to cross to Xiangjiang, and for the first stock market crash in Xiangjiang, Zhang Junyi can be said to have spent a lot of time to investigate the reasons clearly.

After all, with the improvement of his status and status, although nearly ten years have passed, Zhang Junyi has also learned some little-known things about the shock of the Xiangjiang stock market through some channels.

In other words, Zhang Junyi's painstaking investigation of these things is not that he has nothing to do, anyway, Zhang Junyi was engaged in financial editing in his previous life, and the occupational diseases in his previous life were inevitably brought to this life, of course, this is only a small part of the reasons.

The bigger reason is that Zhang Junyi knows that with his continuous involvement, the history of Xiangjiang will inevitably deviate from the previous life, and this sense of urgency will catch up with Zhang Junyi all the time and need to constantly recharge himself, otherwise, this big bug in the memory of the previous life will become worthless with the passage of time.

Although his own business in Xiangjiang has slowly grown into a towering tree, but Xiangjiang's financial market is also an indispensable means for himself to be an ATM in the future, Zhang Junyi does not allow his ATM to disappear in a short period of time, so even if there are some small deviations in the history of Xiangjiang in the future, as long as he can continue to grow in the financial field, these small deviations will not affect too much.

In fact, to say that the cause of the first big bull market in the Xiangjiang stock market is also formed by the mutual influence of many reasons, although there are some uncertain factors, but in addition, there are still some rules to follow.

1 As a free economic system, Heung Kong benefited from the Vietnam War and made a lot of war money, which led to rapid economic development. The government's loose monetary policy has caused the money supply to rise sharply, inflation has continued to expand, and prices have fluctuated, with real estate and the stock market bearing the brunt.

2 Foreign Funding Involvement: Hot money from London and Jewish groups continues to pour in.

3. Mergers and acquisitions between companies: companies merge with each other, and use their bidding to inflate stock prices. Most of the buyer companies issue huge amounts of their own shares in exchange for the other party's shares, and then use the shares of the acquired company to pledge the money to the bank. This is a practice of creating something out of nothing and not spending money, and all large and small companies have taken effect, and the stock market is getting hotter and hotter.

4 The Hong Kong government has too few restrictions on the issuance of new shares by listed companies, and the board of directors of listed companies can decide to increase their capital without the consent of the general meeting of shareholders, so that the more allotments of shares, the higher the stock price will be speculated. For example, at that time, the Hongjiang HSBC Bank had increased its capital significantly, with 15,000 shares for every 1,000 shares, which was a staggering amount of money.

5. At that time, there were only about 100 listed companies on the Xiangjiang Stock Exchange, and the chips were concentrated, which was convenient for major shareholders to speculate with the market.

6 At that time, the financing ratio of the Hong Kong stock market was extremely high, and the financing households only needed to bring 20% of their own funds and borrow 80% of the loans to buy stocks, so that the stock market's credit expansion and purchasing power were enhanced.

As for the reason for the first big plunge in the Xiangjiang stock market, it is also the inevitable product of the abnormal bull market in Xiangjiang in recent years.

1. Fake stocks were found, which caused chaos in the stock market trading order. At the same time, it is rumored that foreign funds have withdrawn from the stock market on a large scale, and people's hearts have fluctuated.

2. The Hong Kong government's new regulations on the collection of stock exchange income tax have caused a sudden increase in the tax payment of investors, which has affected the interest of large investors in trading stocks.

3HSBC raised its financing rate to reduce its stock financing balance by 30%.

4 Newspapers exposed that many companies used employees' pensions to speculate on stocks, causing huge losses, causing labor disputes, and affecting the stock market.

5. The outbreak of the Middle East war triggered the first oil crisis, causing a sharp decline in the world stock market, and the Xiangjiang stock market was even worse.

6 The stock market hoped that the Hong Kong government would reduce the stamp duty on securities transactions, but the government never did so, and investors' hopes were disappointed, and the stock market fell again.

7 The British government announced that all overseas companies must repatriate their profits overseas, causing panic in the outflow of funds from Hong Kong.

8 Basically, the stock price of the Hong Kong stock market is on the high side, and it has moved away from the concept of basic investment returns, and has been unable to withstand the negative impact and has disappeared like a bubble.

The Hong Kong stock market did not stabilize until 1975 after the previous period of collapse. During this period, the Hong Kong government also did a lot of work to lay the foundation. For example, the Securities Ordinance 1974 and the Protection of Investment Persons Ordinance 1974 were enacted in February 1974. At the same time, in August of the same year, the General Association of the Hong Kong Registrar established the Stock Exchange Compensation Fund in accordance with the new securities regulations promulgated by the Hong Kong Government.

In August 1975, the Securities Commission adopted the Takeovers and Mergers Rules to strengthen the control of takeovers and mergers of listed companies. At the end of the same year, the committee banned the board of directors of listed companies in Hong Kong from issuing shares in proportion to their holdings without the approval of a general meeting of shareholders.

Since then, the preferential right of shareholders to subscribe for new shares has been formalized. In February 1976, the Hong Kong Government promulgated the Rules Governing the Listing of the Stock Exchange in 1976 and began to promote the merger of the quadruples to facilitate supervision and prevent malpractice. In 1977, the Government established the Insider Trading Tribunal to adjudicate unlawful acts of insider dealing. Other relevant laws and regulations have also been promulgated.

From 1975 to 1981, the Hong Kong stock market reappeared in another wave of bullish market. This period rose from a low of 150.11 to a new high of 1820.20 on July 17, 1981, surpassing for the first time 1774.96 points set on March 9, 1973.

At the same time, the turnover also increased significantly due to the increase in the number of listed companies on the Hong Kong Stock Exchange. The Hong Kong stock market returned to its position as an important stock market in Asia after Tokyo, when the Taiwan stock market was still at a naïve level, and fell into a consolidation stage due to the greed of the person in charge of the supervisory unit, the poor market order, and the economic recession.

This period of market did not end until the end of 1981, and it was reversed.

However, while the stock index climbed to new highs, it actually announced the end of this round of bull market. On the evening of 17 July, the Hong Kong Association of Banks announced that it would raise the interest rate on bank deposits from 11% to 12% from 11% from 21 July 1981 in order to save the weakened Hong Kong dollar. At that time, the Hong Kong dollar was not pegged to the US dollar, and the result of the interest rate hike was that the interest rate differential between the Hong Kong dollar and the US dollar was as high as 3 and a half percent, which triggered a large amount of funds to move overseas to carry interest rates. As a result, after the opening of the Hong Kong stock market on July 20, the Hang Seng Index fell in response, and the stock market continued to slump since then, falling to the lowest level of the year on October 5.

As for this wave of salted hairtail, Zhang Junyi finally caught up, and because of the occurrence of this time, he made his first pot of gold, and the food was full of oil, which laid the foundation for his Yitian Group to successfully enter the top circle of Xiangjiang in just 2 years.

And this wave of salted ribbon fish opportunity is not completely over, isn't Zhang Junyi now just waiting for the final madness of this wave of salted ribbon fish, and this time his principal is not like two years ago, he has invested a full 10 billion Hong Kong dollars this time, if it is because the pool of water in the Xiangjiang River is too shallow, Zhang Junyi even looked back at the investment of a few more 10 billion, but fortunately, Zhang Junyi was not blinded by interests, he knew that 10 billion Hong Kong dollars was already the limit of the Xiangjiang stock market, and any more, it would lead to the paralysis of the entire Xiangjiang stock market, so he would really become a sinner。

Zhang Junyi knew very well that in the next few days, British Prime Minister Iron Lady would visit China and put forward a proposal to exchange sovereignty for politics, but Deng Lao refused. Later, the Chinese government explicitly announced that it would take back the Xiangjiang in 1997, and the negotiations between the two countries on the Xiangjiang issue began. The question of the future of Hong Kong triggered a crisis of confidence among investors, and the stock market and property market both fell, and then fell all the way, even to the lowest point of the current round of decline.