Rebirth: The Era of Hong Kong Tycoon
Chapter 255 [Two-Line Battle]
Chapter 255 [Two-Line Battle]
Soon, Lin Rongheng and HSBC reached an oral agreement, and HSBC will transfer its 22% of Hutchison Whampoa shares to Evergrande Bank at the right time.
The reason for the verbal agreement is that Evergrande Real Estate still needs to prepare to acquire more Hutchison shares; currently, Evergrande Real Estate only holds 6% of Hutchison shares.
While secretly buying shares in Hutchison Whampoa and Wharf, Lin Rongheng convened a high-level meeting of Evergrande Real Estate.
Lin Rongheng said at the meeting: "Evergrande Infrastructure Company will be established immediately. The core business includes: energy infrastructure, transportation infrastructure, water treatment infrastructure and infrastructure-related businesses. The three companies held by Evergrande Real Estate, Hongkong Electric, China Coal, and British Clay The holdings will be included in Evergrande Infrastructure!"
He Rui asked: "The boss wants to use the annual dividends of the three companies to invest in the infrastructure business?"
Lin Rongheng said: "These are the things that will come later. After the establishment of Evergrande Infrastructure, Evergrande Real Estate will exchange Evergrande Infrastructure for shares in Hutchison Whampoa."
All the high-level executives were taken aback. They never thought that Evergrande Real Estate would become the owner of Hutchison Whampoa.
One day in early June, two pieces of news set off a typhoon of magnitude 6 in Hong Kong.
One piece of news is: Evergrande Real Estate and Hutchison Whampoa have reached an agreement that Hutchison Whampoa will issue 1 million new shares in exchange for Evergrande Infrastructure under Evergrande Real Estate.
The second piece of news is: the financial company of the Lin family, Huodoli Company, and Yinhe Finance Company issued an announcement to launch an acquisition of Wharf, and acquired about 102% of the shares of Wharf Group at a cash price of 18 Hong Kong dollars per share.
Cheung Kong Industries.
Li Chaoren was at a loss, and muttered to himself: "The last time HSBC Bank told me that if it is actually mature, it doesn't rule out selling Hutchison Whampoa to me. How can it change for no reason now?"
He picked up the phone, dialed Shen Bi's office, and soon got an answer: Lin Rongheng had something that HSBC had to get.
Li Chaoren naturally did not dare to complain, and he could not afford to offend HSBC with his own strength; what's more, when he came to ask Hutchison Whampoa's willingness to sell, HSBC did not give him a clear reply, just saying Accepting Cheung Kong's proposal is not ruled out.
"Now Lam Rongheng has captured all the high-quality companies and properties in Heung Kong, and his comprehensive strength is not even comparable to Jardine Matheson, and even HSBC is not as good as it."
"No, I can't go down like this. Real estate is still my main business. Cheung Kong will focus on real estate development, earn huge profits and then do other things!"
Li Chaoren quickly stabilized his mind. Originally, Cheung Kong’s annual profit is only more than 7000 million Hong Kong dollars, and it is not considered top among real estate companies. This time, Li Ka-shing took a fancy to Hutchison Whampoa. Just a big opportunity.
Now this big opportunity is just a mirror image, so we have to leave and stabilize our mentality and continue to work hard on Cheung Kong.
Lin Rongheng encountered a problem, that is, his cash bottomed out.
Originally, Lin Rongheng's funds were only enough to pay for the acquisition of Wharf, but the Universal Building at the Central MTR station was about to go on sale; Illegal.
The total price of Universal Building is 6 million Hong Kong dollars, which shows that the real estate has increased greatly in recent years.
The Central Building under Evergrande Real Estate is worth at least 5 million Hong Kong dollars, and the cost of construction and land costs of Evergrande Real Estate is only 1 million Hong Kong dollars.
In the end, Lin Rongheng had to find Shen Bi of HSBC.
After hearing this, Shen Bi said in disbelief, "What? You want to buy Universal Tower and Haifu Center?"
Lin Rongheng nodded and said: "If these two buildings are sold to the public, it will inevitably cause management chaos and reduce the quality of the entire building, so I decided to buy the two buildings in one phase. I estimated that the two buildings The value is almost 16 billion Hong Kong dollars, so I want HSBC to provide a full loan with a term of two years!"
Universal Building has a floor area of only 25 square feet, and its value is only 6 million Hong Kong dollars. That is because its location is not only in the banking district, but also on the subway station; the total floor area of Haifu Center is as high as 50 square feet , worth HK$10 billion.
The value of these two buildings is naturally higher than that of the Golden Gate Building in the previous life. In a few years, the value will be 20 billion. In the 21st century, the value will be tens of billions of Hong Kong dollars.
Shen Bi nodded and said, "Then these two buildings will be mortgaged to our HSBC Bank. After all, although your gold is worth 30 billion Hong Kong dollars, you still have a loan of 10 billion Hong Kong dollars!"
Lin Rongheng said: "Of course it is mortgaged to HSBC Bank!"
The building is mortgaged to HSBC Bank. As long as Lin Rongheng does not default on the contract, he will not be affected at all.
For a loan of 16 billion Hong Kong dollars, the annual interest needs to be 1.6 million Hong Kong dollars. In addition, the two buildings are off-plan houses, and it will take another year for delivery, which is equivalent to Lin Rongheng's loss of 1.6 million Hong Kong dollars this year.
Not only that, but one year later, it was handed over to the Lin Rongheng family. The rent of the two buildings was about [-] million Hong Kong dollars. After excluding the management fee, it was still only enough for the interest of HSBC Bank. Lin Rongheng still did not earn a penny.
Therefore, during the two years of the loan, Lin Rongheng was equivalent to working for HSBC.
Two years later, Lin Rongheng naturally has the money to repay the 16 billion loan.
When the Lin Rongheng family borrowed [-] million Hong Kong dollars from HSBC to purchase the Universal Building, many people said that Lin Rongheng was crazy.HSBC made no losses, and Lin Rongheng couldn't make a penny in three years, so he had to bear huge risks.
Because if the real estate price falls within three years, Lin Rongheng will not only lose the Universal Building, but also owe money to HSBC.
Of course, this is what might happen if Lin Rongheng has no funds in his hands based on the analysis of Lin Rongheng's full loan to purchase the building.
Lin Rongheng was poor personally, but Evergrande Real Estate began to get rich.
Haifu Building was sold, and Evergrande Real Estate immediately recovered nearly 2 million Hong Kong dollars in funds, because Evergrande Real Estate had paid 53 million Hong Kong dollars in land fees to the subway company and a large amount of construction fees for this project in the early stage; after the house was sold , You only need to pay 1.17% of the net profit of this project, which is [-] million Hong Kong dollars, and the rest of the funds belong to Evergrande Real Estate.
Not only that, in the first half of the year, Evergrande Real Estate also withdrawn 5 million Hong Kong dollars in real estate funds, and the company already has 10 billion Hong Kong dollars in its accounts.
For the purchase of Hutchison Whampoa this time, Evergrande Real Estate only needs to pay HSBC 5.5 million Hong Kong dollars (9000 million shares), but it only needs to be paid in one year.
So Evergrande has sufficient funds, so it started to pay off some debts.
If Evergrande Real Estate does not make other large-scale project development plans this year, it is estimated that there will be a surplus of 8 million Hong Kong dollars, but Lin Rongheng intends to continue to use it for investment, and only pays [-] to [-] million Hong Kong dollars in dividends.
(End of this chapter)
Soon, Lin Rongheng and HSBC reached an oral agreement, and HSBC will transfer its 22% of Hutchison Whampoa shares to Evergrande Bank at the right time.
The reason for the verbal agreement is that Evergrande Real Estate still needs to prepare to acquire more Hutchison shares; currently, Evergrande Real Estate only holds 6% of Hutchison shares.
While secretly buying shares in Hutchison Whampoa and Wharf, Lin Rongheng convened a high-level meeting of Evergrande Real Estate.
Lin Rongheng said at the meeting: "Evergrande Infrastructure Company will be established immediately. The core business includes: energy infrastructure, transportation infrastructure, water treatment infrastructure and infrastructure-related businesses. The three companies held by Evergrande Real Estate, Hongkong Electric, China Coal, and British Clay The holdings will be included in Evergrande Infrastructure!"
He Rui asked: "The boss wants to use the annual dividends of the three companies to invest in the infrastructure business?"
Lin Rongheng said: "These are the things that will come later. After the establishment of Evergrande Infrastructure, Evergrande Real Estate will exchange Evergrande Infrastructure for shares in Hutchison Whampoa."
All the high-level executives were taken aback. They never thought that Evergrande Real Estate would become the owner of Hutchison Whampoa.
One day in early June, two pieces of news set off a typhoon of magnitude 6 in Hong Kong.
One piece of news is: Evergrande Real Estate and Hutchison Whampoa have reached an agreement that Hutchison Whampoa will issue 1 million new shares in exchange for Evergrande Infrastructure under Evergrande Real Estate.
The second piece of news is: the financial company of the Lin family, Huodoli Company, and Yinhe Finance Company issued an announcement to launch an acquisition of Wharf, and acquired about 102% of the shares of Wharf Group at a cash price of 18 Hong Kong dollars per share.
Cheung Kong Industries.
Li Chaoren was at a loss, and muttered to himself: "The last time HSBC Bank told me that if it is actually mature, it doesn't rule out selling Hutchison Whampoa to me. How can it change for no reason now?"
He picked up the phone, dialed Shen Bi's office, and soon got an answer: Lin Rongheng had something that HSBC had to get.
Li Chaoren naturally did not dare to complain, and he could not afford to offend HSBC with his own strength; what's more, when he came to ask Hutchison Whampoa's willingness to sell, HSBC did not give him a clear reply, just saying Accepting Cheung Kong's proposal is not ruled out.
"Now Lam Rongheng has captured all the high-quality companies and properties in Heung Kong, and his comprehensive strength is not even comparable to Jardine Matheson, and even HSBC is not as good as it."
"No, I can't go down like this. Real estate is still my main business. Cheung Kong will focus on real estate development, earn huge profits and then do other things!"
Li Chaoren quickly stabilized his mind. Originally, Cheung Kong’s annual profit is only more than 7000 million Hong Kong dollars, and it is not considered top among real estate companies. This time, Li Ka-shing took a fancy to Hutchison Whampoa. Just a big opportunity.
Now this big opportunity is just a mirror image, so we have to leave and stabilize our mentality and continue to work hard on Cheung Kong.
Lin Rongheng encountered a problem, that is, his cash bottomed out.
Originally, Lin Rongheng's funds were only enough to pay for the acquisition of Wharf, but the Universal Building at the Central MTR station was about to go on sale; Illegal.
The total price of Universal Building is 6 million Hong Kong dollars, which shows that the real estate has increased greatly in recent years.
The Central Building under Evergrande Real Estate is worth at least 5 million Hong Kong dollars, and the cost of construction and land costs of Evergrande Real Estate is only 1 million Hong Kong dollars.
In the end, Lin Rongheng had to find Shen Bi of HSBC.
After hearing this, Shen Bi said in disbelief, "What? You want to buy Universal Tower and Haifu Center?"
Lin Rongheng nodded and said: "If these two buildings are sold to the public, it will inevitably cause management chaos and reduce the quality of the entire building, so I decided to buy the two buildings in one phase. I estimated that the two buildings The value is almost 16 billion Hong Kong dollars, so I want HSBC to provide a full loan with a term of two years!"
Universal Building has a floor area of only 25 square feet, and its value is only 6 million Hong Kong dollars. That is because its location is not only in the banking district, but also on the subway station; the total floor area of Haifu Center is as high as 50 square feet , worth HK$10 billion.
The value of these two buildings is naturally higher than that of the Golden Gate Building in the previous life. In a few years, the value will be 20 billion. In the 21st century, the value will be tens of billions of Hong Kong dollars.
Shen Bi nodded and said, "Then these two buildings will be mortgaged to our HSBC Bank. After all, although your gold is worth 30 billion Hong Kong dollars, you still have a loan of 10 billion Hong Kong dollars!"
Lin Rongheng said: "Of course it is mortgaged to HSBC Bank!"
The building is mortgaged to HSBC Bank. As long as Lin Rongheng does not default on the contract, he will not be affected at all.
For a loan of 16 billion Hong Kong dollars, the annual interest needs to be 1.6 million Hong Kong dollars. In addition, the two buildings are off-plan houses, and it will take another year for delivery, which is equivalent to Lin Rongheng's loss of 1.6 million Hong Kong dollars this year.
Not only that, but one year later, it was handed over to the Lin Rongheng family. The rent of the two buildings was about [-] million Hong Kong dollars. After excluding the management fee, it was still only enough for the interest of HSBC Bank. Lin Rongheng still did not earn a penny.
Therefore, during the two years of the loan, Lin Rongheng was equivalent to working for HSBC.
Two years later, Lin Rongheng naturally has the money to repay the 16 billion loan.
When the Lin Rongheng family borrowed [-] million Hong Kong dollars from HSBC to purchase the Universal Building, many people said that Lin Rongheng was crazy.HSBC made no losses, and Lin Rongheng couldn't make a penny in three years, so he had to bear huge risks.
Because if the real estate price falls within three years, Lin Rongheng will not only lose the Universal Building, but also owe money to HSBC.
Of course, this is what might happen if Lin Rongheng has no funds in his hands based on the analysis of Lin Rongheng's full loan to purchase the building.
Lin Rongheng was poor personally, but Evergrande Real Estate began to get rich.
Haifu Building was sold, and Evergrande Real Estate immediately recovered nearly 2 million Hong Kong dollars in funds, because Evergrande Real Estate had paid 53 million Hong Kong dollars in land fees to the subway company and a large amount of construction fees for this project in the early stage; after the house was sold , You only need to pay 1.17% of the net profit of this project, which is [-] million Hong Kong dollars, and the rest of the funds belong to Evergrande Real Estate.
Not only that, in the first half of the year, Evergrande Real Estate also withdrawn 5 million Hong Kong dollars in real estate funds, and the company already has 10 billion Hong Kong dollars in its accounts.
For the purchase of Hutchison Whampoa this time, Evergrande Real Estate only needs to pay HSBC 5.5 million Hong Kong dollars (9000 million shares), but it only needs to be paid in one year.
So Evergrande has sufficient funds, so it started to pay off some debts.
If Evergrande Real Estate does not make other large-scale project development plans this year, it is estimated that there will be a surplus of 8 million Hong Kong dollars, but Lin Rongheng intends to continue to use it for investment, and only pays [-] to [-] million Hong Kong dollars in dividends.
(End of this chapter)
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