Rebirth: The Era of Hong Kong Tycoon

Chapter 216 [Influence]

Before the stock market crash, Qi Tak Real Estate, due to excessive investment, caused the company's operating difficulties once every two years; after two years, although the company has come out of the predicament, the boss Wang Zengxiang is also somewhat depressed.

At this time, Evergrande Real Estate suddenly came to the door and proposed a merger.

The so-called merger is actually a merger and acquisition. The market value of Evergrande Real Estate is 8 million Hong Kong dollars, and the market value of Kai Tak Properties is 8000 Hong Kong dollars. If there is a share swap, Kai Tak Properties will naturally become a subsidiary of Evergrande Real Estate.

Wang Zengxiang thinks this way, exchanging his own shares for shares of Evergrande Real Estate, in terms of economic benefits, it is definitely a better prospect for Evergrande Real Estate shares; moreover, after Evergrande Real Estate annexed Kai Tak Real Estate, the company's strength will be stronger , the stock will naturally be more valuable.

You know, the stock of Evergrande Real Estate has fallen more than Landmark, and it can be regarded as a very strong real estate company.

The only shortcoming is that Wang Zengxiang feels that he and Lin Rongheng do not have a deep friendship, and have only met a few times; instead, he is good friends with Zheng Yutong of New World, Li Ka-shing of Cheung Kong Industrial and others.

If a friend came to discuss this matter, Wang Zengxiang felt that he would be more happy!
However, the strength of the friend company is not as good as Evergrande Real Estate, and it can be determined by economic benefits.

That being the case, then go talk to Lin Rongheng, the owner of Evergrande Real Estate, and see his sincerity!

Evergrande Real Estate Conference Room.

The major shareholders of Evergrande Real Estate and Kai Tak Real Estate sat together to discuss the matter of mergers and acquisitions.

Lin Rongheng tempted: "Currently, although most of the listed companies in Xiangjiang have a market value lower than the company's net assets, Evergrande Real Estate is definitely the most undervalued real estate company. You may not know that at the beginning of last year, we fully With a cash flow of 8 million Hong Kong dollars, the cash alone is equivalent to the current market value. After the stock exchange, are you still worried about your own interests being damaged?"

The net assets of Evergrande Real Estate are definitely above 18 billion Hong Kong dollars. The reason why the market value is so low is that the confidence of shareholders has been hit; it is like Wharf in the previous life. In 1978, the market value was only more than 13 billion. The land of the warehouse is already worth 50 billion Hong Kong dollars.

Of course, regardless of the current market value of Evergrande Real Estate which is only 8 million Hong Kong dollars, if someone wants to acquire Evergrande Real Estate, the market value will skyrocket several times soon. It is impossible to realize a full acquisition without 50 billion Hong Kong dollars; it is like Wharf The market value before the acquisition was 13 billion Hong Kong dollars, and the market value at the time of the acquisition was more than 100 billion Hong Kong dollars.

The reason why Lin Rongheng likes Kai Tak Real Estate is that besides Kai Tak Building and AIA, Kai Tak Real Estate also has a lot of land; of course, Kai Tak Real Estate only made a few million Hong Kong dollars last year, which is obviously due to poor management. swallowed up; while there is a large amount of land in the sky, but the situation is not clear, and the confidence in the real estate is lacking
Wang Zengxiang and others were immediately moved, and the exchange of shares was indeed the best way. As for the cash purchase, it was a one-shot deal, which was not worthwhile at all.

And Lin Rongheng is naturally willing to exchange shares. Evergrande Real Estate won a listed company as a subsidiary company without spending a penny. Land, when these lands are waiting for real estate to flourish, Evergrande Real Estate will issue new shares and cash in exchange for their own land.

Wang Zengxiang asked: "Will Evergrande Real Estate launch a comprehensive acquisition after it acquires Kai Tak Real Estate?"

Lin Rongheng didn't have a clear answer, but said: "This may not be true, but at least I don't have this idea now!"

Wang Zengxiang asked again: "After Evergrande Real Estate acquired Kai Tak Real Estate, how will the original management of Kai Tak make arrangements?"

Lin Rongheng replied: "Wang Sheng can continue to serve as the chairman of the board of directors. We will send several managers to take over Kai Tak Real Estate and fully develop Kai Tak Real Estate. At the same time, Evergrande Real Estate can reserve a board seat for Wang Sheng!"

Wang Zengxiang was overjoyed that he was able to become a director of Evergrande, which undoubtedly made people overjoyed.He holds 40% of the shares of Kai Tak Real Estate, which can be exchanged for more than 450 million shares of Evergrande Real Estate, accounting for 4.2% of Evergrande's total share capital, and seeking a director, the conditions are indeed very good.

The two parties initially reached an agreement in the meeting room, planning to hold a formal press conference tomorrow and sign a contract.

It seems that Kai Tak Real Estate has some difficulties in operation, but Wang Zengxiang can’t manage it. After Evergrande Real Estate takes over, it will immediately start developing its land; and then sell AIA to Lin Rongheng at a low price to obtain cash to pay off debts, and Commencement site.

In short, it is inevitable that Qi Tak Real Estate will be divided up by Lin Rongheng and Evergrande Real Estate.

Of course, after the carve-up, Kai Tak Real Estate will still be a listed company, but it is a listed company with rich experience in real estate development and can concentrate on property development.

On the second day, under the witness of the media, Evergrande Real Estate and Kai Tak Properties formally signed a share exchange agreement: Evergrande Real Estate issued 550 million new shares in exchange for 3850 million shares held by shareholders of Kai Tak Properties (held by core shareholders such as Wang Zengxiang) , After the share swap is completed, Evergrande Real Estate holds 48.12% of the shares of Kai Tak Real Estate, and Kai Tak Real Estate becomes a subsidiary of Evergrande Real Estate.

For a time, huge waves arose in the Xiangjiang River.

When Kai Tak Properties went public in 1972, it raised 8300 million Hong Kong dollars, which was more than double the 3200 million Hong Kong dollars raised by Cheung Kong.

Now let’s take a look at the five tigers of Huazi real estate at the beginning. Two companies overturned:
Hopewell, which had the highest market value at one time, lost its reputation due to the fake stock incident. From 1973 to 1974, its profit level was only 2100 million and 2700 million Hong Kong dollars, widening the gap with other real estate tigers.

Hang Lung, which was the first to enter the real estate industry, because most of its funds were involved in the high purchase fees of Shaw Brothers Building and Xinhua Theater, resulting in Hang Lung having no funds to buy bottoms, and its profits were not high from 1973 to 1974, which were 4000 million and 4200 million Hong Kong dollars respectively.

On the contrary, Cheung Kong, the smallest company, has performed brilliantly in the past two years. From 1973 to 1974, its net profits reached 4400 million and 4800 million Hong Kong dollars respectively, second only to Sun Hung Kai and New World, which are among the top five real estate companies in China. Li Chaoren raised hundreds of millions of Hong Kong dollars in the stock markets of Hong Kong, London, and Toronto. In addition, Li Chaoren has the support of foreign banks, and he is crazy about bottom-hunting real estate in Hong Kong. No wonder he can stand out from the crowd.

Generally speaking, Kai Tak Real Estate is the worst, and the confidence of the boss has been blown away.

New world development.

When Zheng Yutong heard that his friend's company was acquired by Evergrande Real Estate, his first reaction was—why didn't New World acquire Kai Tak Properties?

Missing such a good opportunity in vain made Zheng Yutong very annoyed, but there was nothing he could do!

Just call Wang Zengxiang and pretend to comfort him, but actually ask Wang Zengxiang why he doesn't consider the development of the new world.

Wang Zengxiang said helplessly: "I didn't know that you were all interested, and the conditions offered by Evergrande Real Estate were so good, our few shareholders agreed in a daze! By the way, Yu Tong, I am now the director of Evergrande Real Estate. "

Zheng Yutong had no choice but to pretend to be relaxed and said: "Evergrande Real Estate is strong, and your cooperation is a win-win situation!"

Cheung Kong Industries.

Li Chaoren convened several high-level executives and said: "Evergrande Real Estate is attacking everywhere, and we, Changjiang Industrial, can't lag behind. You should inquire more recently, there are high-quality land for sale there. The problem of funds is easy to solve. Our company can raise funds in three places. This is unmatched by other real estate companies, and we also have the support of the Canadian Imperial Bank."

Li Chaoren is not only worried about the dilution of the stock, because in the past two years, Xiangjiang's stock market has been like riding a roller coaster; Cheung Kong's stock price fell to 1.7 Hong Kong dollars at the lowest, and Li Chaoren was frantically buying at that time; once the stock exceeded 3 Hong Kong dollars, Li Chaoren again Will sell stock or raise funds.

After coming and going, the stocks held by Li Chaoren increased instead. A few days ago, he reached a deal with Huodoli Company. For stocks, Li Chaoren only spent 2000 million Hong Kong dollars.

(End of this chapter)