Rebirth: The Era of Hong Kong Tycoon

Chapter 175 [Gold objects]

10 month 30 day.

When the market opened on Monday, the stock market finally broke out in a takeover battle between Hong Kong Land and Dairy Farm. On this day, the shares of Hong Kong Land and Milk Company attracted attention; however, the evening papers and radio stations remained silent.

At this time, Hongkong Land has not yet published an acquisition advertisement in the newspaper, but obviously many stock veterans and insiders know about the situation; so that the stock of Milk Company rose by 28.8% that day, closing at HK$186; 9 Hong Kong dollars to close.

The stocks of the two companies fluctuated so much that Dairy Milk Company and Hongkong Land did not choose to suspend trading, and the stock exchange remained indifferent, allowing the two companies to list and trade. This shows that the financial market in this era is chaotic, supervision is lax, and securities laws are empty.

Not only that, there are no experienced securities reporters in the media, and the level of investor awareness is lacking; for various reasons, there are too many opportunities for veteran stock speculators, sensitive investors, and insiders to take advantage of.

Although Lin Rongheng knew that Hongkong Land's acquisition of the milk company had already begun, but because he had invested a lot of money, he naturally would not be nosy and let his newspaper publish the news, which could lead to changing history.

The next day, Hongkong Land published a full-page advertisement in the newspapers: Hongkong Land announced the acquisition of the milk company, Jardine Fu Limited and Waltery Limited (both Hongkong Land's financial advisers) are now drafting documents, ready for November 1972 Sent to each shareholder of Milk Ice Factory Co., Ltd. on the 11th; the document will contain a proposal to exchange two Hong Kong shares with a face value of 7 Hong Kong dollars for one share of Dairy Milk Company with a face value of 5 Hong Kong dollars.

The first acquisition of the classics of this century has finally begun.

Among them, exchanging two Hongkong Land shares with a face value of 5 Hong Kong dollars for one Dairy Milk company stock with a face value of 7.5 Hong Kong dollars means that two Hongkong shares are exchanged for one Milk Company stock; the reason for fixing the price is actually to ignore the period between the two companies. How much the stock rises does not affect the meaning of two shares for one share.

Based on the closing of the two companies on the 27th, two shares of Hong Kong Land are worth 190 Hong Kong dollars, and one share of Milk Company is worth 145; then two shares of Landmark are exchanged for one share of Milk Company. 45 Hong Kong dollars.

The acquisition war at this time is not like future generations that require cash payment. Stocks for stocks, and stocks for properties are very common methods.

These are actually numbers games. People who bully this era don’t understand. For example, if Hongkong Land’s stock price is 95 Hong Kong dollars, can Hongkong Land guarantee that it will remain unchanged?If the milk company's 145 Hong Kong dollars is calculated, and one is exchanged for two, then can it be said that the land is only worth 72.5 Hong Kong dollars?

Therefore, Lin Rongheng is well aware of this kind of acquisition trick, but it is a pity that the stockholders have been completely intoxicated in this number game; the stock market crash came, and the shares of Hongkong Land fell to one-fifth; , Where did you lose so much?

On the day of the declaration of war, the stock price of milk broke through the 200 Hong Kong dollar mark, but Lin Rongheng remained on hold.

What is elusive is that in the face of such earth-shattering changes, the milk company has remained silent.

Wednesday, April 11.

"Modern Daily" published a piece of news: Milk's board of directors has not held a meeting to study the acquisition proposal.Chairman of Hongkong Land, Henry Keswick, visited Dairy Milk Chairman Sir Zhou Sinian last weekend to discuss the acquisition.Keswick expressed his sincerity for the acquisition, and believed that the development of the remaining land of the Milk Company would be of great benefit to the shareholders of both parties.Keswick also praised Zhou Xinian's high morals and hoped that after the successful acquisition, Sir Zhou Xinian would continue to serve as the chairman, while himself as the deputy.But Zhou was unmoved.

When the market opened in the morning, Lin Rongheng came to Galaxy Securities to sit in charge. Although there is no Internet in this era, Lin Rongheng can still know the real-time situation of the stock; the information is all transmitted from the exchange, and the broker of Galaxy Securities informed Galaxy Securities through the infield phone. Clerk, and then write the price on the blackboard.

Galaxy Securities also has a trading hall, where customers can inquire about stocks and trade stocks by phone.

When Lin Rongheng and Ye Tianhe came to the trading floor, they saw that the stock price of Dairy Milk had risen to 210 Hong Kong dollars, and Landmark also had 105 Hong Kong dollars.

According to Lin Rongheng's calculations, according to history, milk stocks seem to be able to rise to 290 Hong Kong dollars per share, but now that he has 9% of the profit, can he let go in advance.

What if the milk stock is fired up later, but others can't eat so much, can't I only have to exchange shares?

However, it seems that Hongkong Land's stock is the highest at 127 Hong Kong dollars. Even if I exchange shares, I can still make more profits than I am now.

Therefore, in the end, Lin Rongheng decided to wait. After all, the milk company has not resisted, and Hongkong Land has not yet attacked. He wants to maximize profits, and he will not lose money anyway.

"Wait for the announcement from the milk company!"

"Yes, boss!"

Seeing that the number of people on the trading floor gradually increased, Lin Rongheng returned to the office and calmed down to think.

This time, after liquidating the stocks of Milk Company and Hongkong Land Company, we can get almost 1.8 million Hong Kong dollars in funds; the other stocks will almost be liquidated, and we can get 3.5 million Hong Kong dollars in funds; And about 1 million Hong Kong dollars in interest plus commission, I can get 2000 million Hong Kong dollars in November.

These funds need to be invested in the purchase of gold immediately, and there is no delay. After all, only from November to January next year, these three months are the best buying points, and the price is around 11 US dollars per ounce; $1 off.

Lin Rongheng plans to use leverage to buy physical gold, that is, first buy 4 million Hong Kong dollars of gold and deposit it in the bank, and then borrow 4 million Hong Kong dollars from the bank to buy gold; this is equivalent to doubling the investment, and the future income will also increase. twice as much.

At the same time, Lin Rongheng has to start reducing his shares in Evergrande Real Estate. The current market value of Evergrande Real Estate is 35 billion Hong Kong dollars, or 46.5 Hong Kong dollars per share. Lin Rongheng holds 4630 million shares, with a total share capital of 7480 million shares.

Considering the hot market, the market value of Evergrande Real Estate can rise to at least 50 billion Hong Kong dollars by March next year, and the average reduction price is expected to be around 55 Hong Kong dollars per share. Lin Rongheng plans to reduce his holdings by 3000 million shares and cash out 16.5 billion Hong Kong dollars!
As for the other two listed companies, Lin Rongheng intends to cash out 2 million Hong Kong dollars each.

这样一来，林荣亨要在市场上套现20.5亿港币；从这里面拿出16亿港币，去投资32亿港币黄金；加上前面的8亿港币黄金，林荣亨一共投资40亿港币的黄金实物（实际支出20亿港币）。

Therefore, Lin Rongheng plans to go to the UK and Switzerland in November to find cooperative banks and let those banks buy gold on their behalf; such cooperation will never be rejected by those big banks, after all, they already have this business; such a huge investment, light It is the commission and interest that make a lot of money.

The gold worth 40 billion Hong Kong dollars is actually worth 7 million U.S. dollars. Based on the average price of 66 U.S. dollars per ounce, it is less than 300 tons of gold.

London gold and Zurich gold markets, in this era, are gold spot transactions, that is, entrusting major banks to open gold accounts without withdrawing gold; of course, customers can also request to be transported by transportation companies. If they want to ship to foreign countries, all freight, Insurance premiums and import duties and related taxes are to be borne by the customer.

The London gold and Zurich gold markets have tens of thousands of transactions per day, with a total transaction volume of about 90 tons.

Especially in Suez, Switzerland, the gold market is extremely hot. 80% of South Africa’s gold flows into Zurich, and gold from the Soviet Union also flows here, making Switzerland not only the world’s largest transfer point for newly added gold, but also the world’s largest private gold storage. center.

In short, although Lin Rongheng's investment is large, these two markets can be easily digested, and the acquisition may be completed in a month, so Lin Rongheng is not worried that this investment will be wasted.

What's more, even if gold rose to $85 an ounce, it would still be profitable; after all, by the end of 1974, the price of gold would be between $188 an ounce.

(End of this chapter)