Chapter 196 The Great Acquisition on
Founded in 1832, the Jardine Group, headquartered in the Jardine Building in Xiangjiang, started by selling tooth tablets at the beginning, and sold tooth tablets to modern China for more than 100 years (later the Manchu government axe in order to stop the outflow of silver, encouraged the common people to grow their own tooth tablets to defeat Jardine, which makes people laugh bitterly).
Moreover, the first and second tooth wars were provoked by Jardine, Xiangjiang was proposed by Jardine to be occupied, and the Treaty of Nandu, Jincheng, and Kyoto were all involved. Jardine also controlled the prices of all exported agricultural commodities in modern China, and the red-capped merchant Hu Xueyan was killed by Jardine (of course, Li Hezhang and Sheng Xhuai also had a share), and Huaxia Customs was also proposed by Jardine to take over.
After the establishment of New China, Jardine Matheson and Taikoo (in modern China's Yangtze River and offshore waters as a prestige, to see which fisherman knocked over the fishing boat if it was not pleasing to the eye), Hutchison Whampoa, Wheelock four major ocean companies ran from the magic capital to Xiangjiang, and after the return of Xiangjiang, Jardine Matheson ran to Singapore. In the 21st century, more than 100,000 Hong Kong people will help Jardine Matheson, and Hong Kong's Cathay Pacific Airways, Hongkong Land Group, Mandarin Oriental Hotel Group, Gammon Construction, etc. are all subsidiaries of Jardine Matheson.
In particular, after more than 100 years of operation, Jardine Matheson has become a diversified multinational group based in Asia, operating a number of market-leading businesses and having extensive operating experience in the region. And because of this, Gu Weiqi made up his mind and was determined to win.
In 1980, after Li Chaoren successfully took control of Hutchison Whampoa, the then chairman of the Jardine Matheson Group, Niu Bijian, came up with the idea of mutual control and investment between Jardine Matheson Group and Hongkong Land to protect the controlling stake of the company. With the assistance of financial advisers, Niche restructured the entire holding structure, the core of which was the mutual control between Jardine Matheson and Hongkong Land, spending a lot of money to increase its shareholding in Hongkong Land to 40% in the market, and Hongkong Land also increased its shareholding in Jardine Matheson to 40% from the market to prevent Jardine Matheson from being acquired. That is, Jardine Matheson Holdings and Jardine Securities control 4% of Hongkong Land's equity, and Hongkong Land in turn controls 4% of the equity of Jardine Holdings.
Securities analysts refer to this as the "chain ship structure", and Jardine Land controls each other, greatly strengthening its ability to defend against foreign enemies. However, the structure of the chain ship is also quite flawed, and if one ship is controlled by the enemy, it can start hand-to-hand combat with another chain of ships. If you lose everything, the consequences will be even more terrible!
Hongkong Land uses the method of expansion to protect itself. In 1981, Hongkong Land acquired control of HK Electric and Heung Kong Telephone Company, and in early 1982, it spent HK$4.7 billion on the development rights of Exchange Square Phase 1 and Phase 2 with a number of real estate giants such as Jianing Real Estate. A series of acquisitions, of course, have greatly increased Hongkong Land's debt, which is also extremely detrimental to its development.
In 1982, Sino-British negotiations began, and the "No. 1 Chief" insisted on recovering the sovereignty of Hong Kong in 97 years. Hongkong Land's finances were struggling with high interest rates (the prime rate reached 20% in October 1981), and the Sino-British negotiations lasted until 1984, adding to Hongkong Land's financial position with two years of high interest rates. Since 1982, the Hong Kong dollar has been hit even more, and the bank interbank interest rate has remained between 30% and 40% for three months.
As a result, Hongkong Land was forced to sell its equity in the telephone company to the British Fortune Dadong Telegraph Office at a low ebb, and finally sold its equity in the Heung Kong Electric Light Company to Hutchison controlled by Li Chaoren at an ultra-low price. But with the collapse of Xiangjiang Real Estate due to the return of 97, Yizhi mutual control has become a burden on Yizhi.
And this gave Gu Weiqi an opportunity, and with his order, the team of Tang Dynasty Fund and Yanlong Development Bank, headed by Yan Qiudi and Luo Jianan, launched the acquisition of shares of Jardine Group. And because he has sufficient funds in his hands, not only the acquisition of Jardine Matheson's shares, but also the "Heji Whampoa", "Polygram Music", and "Xinhong Base Real Estate", which have seriously shrunk their shares, have been the first wave of acquisitions in Gu Weiqi's plan.
Jardine Matheson is one of the four major foreign companies in Hong Kong, and its position in Hong Kong can be said to be pivotal. Most of the Jardine Taipans after the twentieth century came from the Keswicks, descendants of the cousins of one of the founders, William Jardine.
The current Jardine Taipan is Jerry Keswick, which is collectively known as Simon Taipan. Previously, due to Hongkong Land's blind expansion, both Jardine Matheson and Hongkong Land were in a dilemma, and the heavy debt caused investor confidence to plummet, and the company's stock price also fell.
In particular, the fall of the "Iron Lady" in Kyoto this time caused the stock prices of the two companies to plummet. Jardine Matheson is the worst, with a market value of only about HK$2 billion; Relatively speaking, Hongkong Land's situation is slightly better, with a market value of more than HK$10 billion, but because Hongkong Land has previously lent a large amount of money in the bank, the company's due debt is also nearly HK$6 billion, and the asset-liability ratio is amazingly high, and it is vividly called the "King of Xiangjiang Debts" by the public.
Soon after Jerry Keswick took office, he brought in Davis, who is known for Briton's rescue of bankrupt companies, to take charge of the land's business. He also invited investment banker Bao Weishi from the United States, and decided to reorganize the Yizhi system, hoping to make up for the flaws in this mutual control structure. Unfortunately, now that the stock market and the foreign exchange market are falling, there is nothing they can do.
Luo Jianan and Yan Qiudi moved very quickly, and in just three days, they secretly absorbed 35% of Jardine's shares. The two then approached Jerry Keswick in the hope of buying Jardine Matheson in a peaceful manner.
Jerry Keswick was shocked when he learned that the two had secretly bought a 35% stake in Jardine Matheson. He really didn't expect that the Tang Dynasty Fund and Yanlong Development Bank, which originally seemed inconspicuous, would have such strong funds and courage. But now Jardine is indeed not having a good time, and it is not the same as the previous glory.
Due to the drag of Landmark, the scenery of Jardine Matheson is long gone. In particular, in order to maintain the operation of the group, Jerry was planning to borrow funds from the British Commonwealth, or sell Hongkong Land's HK Electric and telephone companies, hoping to recover some funds. But the situation is not rosy. Because some time ago, the British stock market was volatile, and many companies were shrinking their assets in the stock market, and they couldn't raise money for a while. And even if he sells HK Electric and the telephone company, it can only solve the urgent need, but it cannot solve the fundamental problem. Unless the entire land is sold, it may be guaranteed that Jardine Matheson will not be acquired.
"I wonder at what price Tang Dynasty Fund and Yanlong Development Bank will buy Jardine Matheson? For Hongkong Land, I wonder if President Luo and President Yan are interested? After seeing Luo Jianan and Yan Qiudi, Ejerry Keswick, who was being troubled by the group, thought in his heart that instead of being trapped in Xiangjiang like this, it would be better to end the industry in Xiangjiang as soon as possible, after all, when China really took back Xiangjiang, as a British-funded enterprise, I am afraid that he will not be able to get good fruits to eat.
"Landmark?" Yan Qiudi and Luo Jianan's eyes lit up when they heard this, after all, Gu Weiqi had explained to them when they came, and they had to find a way to buy the land together.
Although Hongkong Land's current asset-liability ratio is very high. But because it holds a large piece of land, once the real estate heats up in the future, it will be an old hen that will lay golden eggs, but after the two looked at each other, Luo Canan said quietly on the surface: "If Mr. Keswick is willing to give up, if the price is reasonable, we can't think about it." ”
As a businesswoman who has handled many acquisitions, Lo Canan naturally has good negotiation skills, although she is very interested in Hongkong Land. But it is not revealing at all, otherwise it will pay a lot of money. At this time, they naturally have to calm down, especially if they have money in their hands and don't panic.
"Oh, what do you mean by being reasonably priced? This is simply a threat to Chiguodi, I'm afraid they won't take it over if the conditions are not good! ”
Jerry Keswick turned his mind and smiled bitterly, but he was in a hurry to get rid of the two hot potatoes of Jardine and Land, so he groaned a little and continued: "The price must be very reasonable, my Keswick family holds 40% of the shares of Jardine Matheson and Hongkong Land, and now the market value of Jardine Matheson is nearly 3 billion, and the market value of Hongkong Land is also more than 10 billion Hong Kong dollars." ”
Luo Jianan sneered: "Mr. Jerry is really joking, as far as I know, 40% of the current shares of Jardine Matheson are only worth 2 billion Hong Kong dollars, right?" ”
Jerry Keswick waved his hand and hurriedly said, "No, no, no, I can't say that, I think it should be worth more." I hope that President Luo can pay 3 billion to buy it. As for Hongkong Land's shares, I ask for 15 billion Hong Kong dollars, and I can sell my shares to you. ”
3 billion plus 150 Hong Kong dollars is 18 billion, far more than the current 40% market value of these two companies. It was obvious that the offer was too inflated, but he knew that these two companies would definitely be the hens that laid golden eggs in the future. But now, the Keswick family is no longer able to support the current situation. Taking this opportunity, it is better to make more money and return to the British hometown.
Now that the privatisation industry in the Commonwealth is underway, it's time to go back and buy some good companies. After all, the British Commonwealth is their hometown, and besides, they have already earned enough oil and water in Xiangjiang, and now they take the money back to their hometown even if they don't do anything, they will not have to worry about eating and drinking for a few lifetimes. The most important thing is that now the mainland is determined to take back Xiangjiang. In the future, Xiangjiang will be the world of Chinese, and these foreigners who used to be in the land of China will naturally not be able to enjoy it anymore!
However, Luo Canan is such a shrewd strong woman who would not be stupid enough to give each other so much money. Although the development prospects of Jardine and Hongkong Land are indeed good. But don't forget, Hongkong Land now owes a lot of foreign debt to the bank.
Seeing that Luo Jianan and Yan Qiudi were silent, Jerry Keswick knew that his asking price was indeed a little too high, so he said again: "President Luo, I admit that my asking price is indeed a little high. But as long as anyone with a discerning eye can see that the development prospects of these two groups should be very good. In particular, Hongkong Land also has HK Electric and Heung Kong Telephone Company. ”
Luo Canan muttered: "I don't deny Mr. Jerry's words, but Hongkong Land's foreign debt is too high. If I want to buy Hongkong Land, I have to pay back a large amount of debt to the bank, and there are some difficulties in capital turnover, and I hope that Mr. Jerry can reduce the price appropriately. As he spoke, he looked like he was in a dilemma.