Reborn in Hong Kong as a Tycoon

Chapter 123 Negotiate the deal
"It's no problem for Lin Sheng to use Hutchison Whampoa's shares for a loan, as long as the loan amount does not exceed 10 billion Hong Kong dollars. As for Hutchison Whampoa's loan, there is no problem. As long as the board of directors of Hutchison Whampoa can approve the loan, I can approve the loan to Heji Whampoa. Remember Whampoa 5 million Hong Kong dollars."

Naturally, Shen Porridge would not refuse the loan that Lin Baicheng said, because the bank made money from it.

Shen Porridge is not worried about the part of the loan to Lin Baicheng personally. Even if Hutchison Whampoa does not develop smoothly after Lin Baicheng settled in, resulting in a decrease in the company's market value, Lin Baicheng still has a Galaxy game company, so he is not afraid that he will not be able to pay back the money.

As for the 5 million Hong Kong dollar loan to Hutchison Whampoa, it is not a big problem when HSBC sells the shares in Hutchison Whampoa.Even if Hutchison Whampoa does not develop well in the future, it should be able to support it for a few years. At that time, HSBC will naturally recover part of the previous debts and reduce risks.

"Then I wonder how much the Hutchison Whampoa shares held by HSBC are asking for?"

Lin Baicheng asked aloud, this is a normal inquiry.

"The specific price will be discussed with the people below."

Shen Congee said with a smile, they just need to make the final decision, the people below will talk first, no matter how they talk, it won't collapse.

"it is good!"

Lin Baicheng didn't refuse when he heard the words.

Seeing that the two were almost talking, Bao Yugang said, "Lin Sheng, it's time for us to talk."

"Bao Sheng, don't worry, as soon as I reach a deal with HSBC, I will immediately sell the shares in Wharf to you."

Lin Baicheng said immediately, but the premise is that he has bought the shares of Hutchison Whampoa from HSBC.Wouldn't he sell Wharf shares to Bao Yugang right now? If he sells his shares but the deal with HSBC fails, wouldn't he suffer a big loss?

Although an agreement has been made with Shen Congee now, and the transaction will be successful without accidents, but who can say for sure about this kind of thing, there are contingencies in everything, it is better to be cautious.

Bao Yugang didn't urge Lin Baicheng when he heard the words, and he also believed that Lin Baicheng would not fool him about this kind of thing, and he would have an extra enemy like him, but he still reminded: "Lin Sheng, there are shares in Cangjiang Industry .”

"This is what I promised Baosheng, and it's okay."

Lin Baicheng nodded in response, and continued: "But Baosheng, I need you to tell Li Jiacheng that unless he sells all the shares of Wharf to you, I will keep 5% of the shares."

"No problem, I will inform Li Sheng."

Bao Yu just nodded and agreed without even thinking about it. Lin Baicheng's terms seemed to be more favorable to him, so why did he refuse.

The reason why Lin Baicheng said this was mainly because he didn't want Li Jiacheng to hold the shares of Wharf and make a profit when Bao Yugang bought Wharf.Of course, if Li Jiacheng insists on not selling the remaining part of Wharf shares, then Lin Baicheng will not lose money, and it is not bad to hold 5% of Cangjiang Industrial shares.

This time, Lin Baicheng secretly bought the shares of Cangjiang Industrial and threatened Li Jiacheng to give up the shares of Wharf, which must have made Li Jiacheng full of hostility towards him.Similarly, Li Jiacheng attracted Bao Yugang, which also made Lin Baicheng dissatisfied and became hostile to Li Jiacheng.

Nowadays, Lin Baicheng and Li Jiacheng are hostile to each other. Even if neither side will do anything for the time being, they don't mind doing anything that can suppress each other.

Shen Congee didn't say anything beside him. Although Lin Baicheng was targeting Li Jiacheng, who he was more optimistic about, he hadn't reached an agreement with Li Jiacheng now, so why did he help Li Jiacheng.Furthermore, if Li Jiacheng develops smoothly and does not encounter difficulties, how can HSBC extend the hand of friendship and reach a long-term cooperation with Li Jiacheng?Now a certain degree of suppression and targeting is beneficial and harmless to HSBC.

Lin Baicheng said: "Bao Sheng, we will discuss the specific transaction after my side and HSBC have settled it. What do you think?"

"Okay, just do what you said, Lin Sheng."

Bao Yugang nodded and agreed. At the same time, he planned to find time to talk to Shen Congee about the loan. The acquisition of Wharf would cost a lot of money.

After leaving HSBC, Lin Baicheng told Cheng Yufeng what he had talked with Shen Congee, and asked Cheng Yufeng to take someone to negotiate with HSBC on the transaction price of Hutchison Whampoa shares. His bottom line is that there is a premium, but not more than 30%.Otherwise, if the premium here at HSBC is too high, there will be a premium for acquisitions from the stock market, and the overall premium will be too much.

After turning his target to Hutchison Whampoa, Lin Baicheng asked Anyuan to start buying Hutchison Whampoa shares again, but in order not to attract attention, he secretly bought them, and the number of shares he bought every day was not many.

Cheng Yufeng took people to talk with HSBC Bank. The talk lasted two days. This was the case when Lin Baicheng and Shen Congee had already negotiated and determined the general direction. Otherwise, this kind of acquisition negotiation involving hundreds of millions of Hong Kong dollars would take ten A day and a half a month is not too long.

Under the decision of Lin Baicheng and Shen Congee, the two parties determined the transaction amount.

HSBC sold the 7.15 million shares held by Hutchison Whampoa to Lin Baicheng at a par price of 9000 Hong Kong dollars on the previous trading day. There was no premium or discount, but there were other requirements in the contract.One is that Lin Baicheng must mortgage 9000 million shares to HSBC Bank after completing the transaction, and borrow 10 billion Hong Kong dollars from HSBC; the other is that after Lin Baicheng obtained control of Hutchison Whampoa, he prompted Hutchison Whampoa to borrow 5 million Hong Kong dollars from HSBC.

These are normal loans with a term of three years and an annual interest rate of 8%.

Although HSBC did not earn a premium from the Hutchison Whampoa share transaction, HSBC made a lot of money from the two loans totaling 15 billion Hong Kong dollars.

This year, the bank's deposit interest is 5%, while the annual interest of HSBC loans is 8%, which means that HSBC can earn 3% interest per year, and 9% in three years, totaling 1.35 million Hong Kong dollars.

More importantly, when the money is lent out, the bank can only make money if it lends out the money, otherwise it will have to pay depositors interest on their deposits.As the largest bank in Hong Kong, HSBC deposits a huge amount of deposits every year, so the most important task of HSBC is to lend out the money, otherwise HSBC will not make money, and the interest of depositors alone will kill HSBC.

In fact, not only HSBC, but any bank is the same. No matter what era it is in, lending is one of the highest priority tasks of banks.

Although he borrowed a lot of money from HSBC, for Lin Baicheng, it is worthwhile to buy the shares of Hutchison Whampoa without a premium, and it is a good deal.

Although the loan has to pay a lot of interest to the bank, it is not a problem for Lin Baicheng. The more loans the better, he can use them all to buy gold futures.With the huge trading market of gold futures, he is not afraid of being blocked, so the general trend will not change. Buying long gold futures is an absolutely profitable business.

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(End of this chapter)