Reborn in Hong Kong as a Tycoon

Chapter 516 The Golden Gate Building Transaction Completed (Two in One)

Lin Baicheng, who returned to Xiangjiang, contacted the two directors of Xinhua News Agency, Wang Yiping and Li Fuquan, and told them about his mother Zhao Huilan and himself wishing to visit relatives in the Mainland, and hoped that the authorities could make arrangements.

After Wang Yiping and Li Fuquan heard this, they immediately agreed, they had already obtained permission from their superiors, and there was no need to report it.

After the two presidents agreed, Lin Baicheng told them the time to go to the mainland to visit relatives. He hoped to go there before the Mid-Autumn Festival, and he could spend the Mid-Autumn Festival there this year.Now that it's over, it's best to spend a festival together, especially a festival of family reunion like Mid-Autumn Festival.

Of course, the time does not have to be the Mid-Autumn Festival. This year the Mid-Autumn Festival happens to be a few days after the National Day. If the time is inconvenient or for other reasons, the time depends on the official arrangement, and Lin Baicheng will not force it.

Wang Yiping and Li Fuquan expressed that they would communicate with the mainland and try to arrange the time for Lin Baicheng and the others to visit relatives in the mainland when the Mid-Autumn Festival is approaching. Once the domestic side has fixed the time that can pass, they will notify Lin Baicheng as soon as possible.

Lin Baicheng naturally thanked him, then took his leave and left.

Hutchison Whampoa, Lin Baicheng went to the company and called Wei Li to his office.

"Wei Li, how is the discussion with Carrian Group going?"

Because it was confirmed that he would return to Xiangjiang in a few days this time, Lin Baicheng asked Wei Li and the others not to report, but to talk first, and not to make a decision right away.

Wei Li said: "The current price has reached 10.3 billion Hong Kong dollars, and Carrian Group will not make any concessions after that. If the company is willing to spend time to continue the negotiation, the price may increase by about 1000 million Hong Kong dollars. However, Shen Taipan of HSBC expressed good Ning Group is already very sincere, and I hope the company will also show sincerity, which means I hope the company can complete the transaction at a price of 10.3 billion Hong Kong dollars."

"Is that so?"

Lin Baicheng nodded and asked, "So, what is the valuation of Carrian Group?"

Wei Li replied: "Because the company has not reached a transaction relationship with Carrian Group, there is no way to send people to investigate in depth. We can only follow the staff of HSBC to conduct due diligence. The current initial valuation of Carrian Group's market value is 3.5 million. Around Hong Kong dollars."

"3.5 million Hong Kong dollars? From this point of view, Carrian Group is doing well."

Lin Baicheng was a little surprised. Carrian Group was valued at 3.5 million Hong Kong dollars. Even if there was financial fraud, its real valuation would be around [-] million Hong Kong dollars. Now Chen Songqing has developed this company well.

Wei Li shook his head gently: "The reason why Carrian Group can have a valuation of 3.5 million Hong Kong dollars is because it has 1.5 million Hong Kong dollars in cash in its company account, and the scale of the companies under the group is not large."

"Based on the current transaction price of 10.3 billion Hong Kong dollars, Carrian Group paid 5 million Hong Kong dollars in cash, and the remaining 5.3 million Hong Kong dollars were converted into shares of Carrian Group. For the time being, the valuation of Carrian Group is calculated based on 3.5 million Hong Kong dollars. Now, after being merged into Golden Gate Building, the company’s valuation is only 13.8 billion Hong Kong dollars, and the company’s 5.3 million Hong Kong dollars accounted for 38.4% of Carrian Group’s shares, isn’t that too much?”

Lin Baicheng calculated and found that if the transaction is carried out by paying 5 million Hong Kong dollars in cash and converting the rest into shares, Hutchison Whampoa will hold more than one-third of Carrian Group's shares, which is a bit too much.

"I mentioned this to Mr. Chen. Mr. Chen said that HSBC would invest 6 million Hong Kong dollars in Carrian Group, which means that the company will receive 4.3 million Hong Kong dollars in cash after the transaction is completed, and the remaining 31.16 million Hong Kong dollars will be converted into Carrian Group. [-]% of the shares.”

"fair enough."

Lin Baicheng had a strange look on his face, and he didn't know how Chen Songqing was fooling Shen Congee. He didn't expect Shen Congee to use the money to invest when he loaned to Carrian Group, and he didn't know if the Carrian incident would break out run away.

Lin Baicheng was eager for HSBC to fall on Carrian Group, so he has no objection to HSBC investing HK$[-] million. If HSBC is willing, he doesn't mind transferring all the shares of Carrian Group to HSBC.

It's a pity that Lin Baicheng can't take the initiative in this kind of thing, and Shen Porridge is not stupid. It is impossible to invest so much money in Carrian Group at once.

"The price of Golden Gate Building should be sold to Carrian Group at 10.3 billion Hong Kong dollars. Carrian Group's valuation can be suppressed a little bit, as much as it can be suppressed. However, everything depends on the normal completion of the transaction. If you really can’t lower the valuation, forget it, don’t force it.”

"Once we are willing to make concessions, I think Carrian Group will also make some concessions in terms of valuation. However, Mr. Lin, the valuation of Carrian Group itself is only 3.5 million Hong Kong dollars. Even if there are some concessions, the extent of the concessions It won't be too big either."

"I know this, but even if the valuation of Carrian Group is only reduced by 100 million Hong Kong dollars, Hutchison can earn about 30 Hong Kong dollars more, so how much can be suppressed, don't you think?"

"Well, I will fight for the best interests of the company."

Wei Li nodded to show that he understood that he himself also holds shares in Hutchison Whampoa. Although there are not many shares, there is still a big difference between having and not having.

Lin Baicheng said: "The transaction is still left to your management."

"Yes, Mr. Lin!"

Wei Li agreed.

After receiving Lin Baicheng's instructions, Wei Li arranged for people to continue negotiations with Carrian Group, and HSBC still acted as a third party to facilitate the transaction between the two parties. When HSBC and Carrian Group learned that Hutchison Whampoa had accepted the sale of Golden Gate Building for HK$10.3 billion, they both very happy.

As for the overvaluation of Carrian Group raised by Hutchison Whampoa, under the efforts of HSBC, Chen Songqing of Carrian Group still agreed to lower the valuation of some companies. The valuation of Carrian Group is 3.45 million Hong Kong dollars.

At this point, the two parties reached an agreement on the price transaction of the Golden Gate Building.

Hutchison Whampoa sold Golden Gate Building to Carrian Group for HK$10.3 billion. Carrian Group paid HK$5 million in cash to Hutchison Whampoa. HSBC invested HK$4.3 million in Carrian Group. The money was also paid to Hutchison Whampoa, and then Hutchison Whampoa invested the remaining 31.27 million Hong Kong dollars in the Carrian Group, which acquired the Golden Gate Building, and held [-]% of Carrian's shares.

If Hutchison Whampoa, Carrian Group and HSBC negotiate a smooth transaction, then Hutchison Whampoa and HSBC together hold nearly 40% of the shares of Carrian Group, and the remaining shareholders of Carrian Group are a total of six With a little more shares, the control of the company is still in hand.

After the three parties reached an oral agreement, the transaction was not carried out immediately, because Hutchison Whampoa still needed to conduct an in-depth due diligence assessment of Carrian Group.

In this regard, Chen Songqing did not take any action to prevent it, and generously asked Hutchison Whampoa to conduct a due diligence assessment.If he was worried about this, there would be no way for him to obtain a loan of hundreds of millions of Hong Kong dollars from HSBC, let alone [-] million Hong Kong dollars to invest in Carrian Group.

Therefore, Chen Songqing did not think that Hutchison Whampoa could find out the problems between those accounts.

After Lin Baicheng learned that Hutchison Whampoa sent people to conduct a due diligence assessment of Carrian Group, he did not give any instructions. He was also curious whether his company could find out that Carrian Group had financial fraud.He was not afraid that Hutchison Whampoa would find out, anyway, Hutchison Whampoa would not suffer any losses if it was found out, it was nothing more than the failure of this transaction and the loss of the opportunity to make a profit by shorting the Carrian Group in the future.

Hutchison Whampoa’s due diligence did not find any financial problems with Carrian Group. The survey results were similar to those of HSBC, and recognized Carrian Group’s valuation of HK$3.45 million.

Lin Baicheng couldn't help shaking his head secretly when he learned about it, but he didn't say anything, he just approved the deal with Carrian Group, and everything went according to the negotiation.

On the morning of Friday, August 8th, Hutchison Whampoa held a press conference. Lin Baicheng and Chen Songqing signed the contract under the watchful eyes of the media.In fact, the official contract had already been signed before the press conference, and now it is just a show for the media to see.

10.3 billion Hong Kong dollars, this is not a small amount, so the media was shocked when they learned of the transaction price.

"Lin Sheng, Hutchison made a profit of 4.2 million Hong Kong dollars from the property transfer of the Golden Gate Building. Will the other properties held by the company continue to be sold?"

"Lin Sheng, He Huang suddenly sold the property, is it because he is not optimistic about the future market of the property?"

"Lin Sheng, I don't know where the 10.3 billion Hong Kong dollars obtained by Hutchison from selling the Golden Gate Building will be used?"

"Lin Sheng."

Media reporters asked Lin Baicheng a series of noisy questions.

Upon seeing this, the master of ceremonies immediately said: "Dear friends from the media, please ask questions in an orderly manner, General Manager Lin will answer your questions one by one."

"In response to the questions from the reporters, I will give targeted answers."

Lin Baicheng said into the microphone: "Hutchison is optimistic about the future development of properties and even the entire Xiangjiang real estate industry. The real estate industry has always been the main business of Hutchison, so unless there is an urgent need for funds, Hutchison will not sell the properties in hand within a year. "

"Regarding the funds obtained from the sale of the Golden Gate Building, the company will hold a board meeting and use part of the funds for this year's dividends. The specific amount of dividends will be announced after discussion by the board of directors."

"Chen Sheng from Carrian Group is the other party to the transaction. If you have any questions, you can ask Chen Sheng."

After hearing Lin Baicheng's last words, Chen Songqing, who was a little depressed because of being ignored by the reporters, felt much better, and greeted the reporters with a smile on his face.

"Chen Sheng, the price of the Golden Gate Building is 10.3 billion Hong Kong dollars. Is the price too high?"

This time, the reporters were more orderly.

"No, not at all."

Chen Songqing said sternly: "I have the same opinion as Lin Sheng, and I am very optimistic about the future market of Xiangjiang Real Estate. I think that by next year, Jinmen Building will bring no less than 30% of the profits of Carrian Group. By the end of next year, there may even be 50% profit."

The reporters couldn't help whispering after hearing the words. The transaction price of 10.3 billion Hong Kong dollars and the profit of 3 million to 5 million Hong Kong dollars next year always feel too exaggerated.

Chen Songqing didn't take it seriously. What he wanted was this effect. Once he transferred the Golden Gate Building at a price of 15 billion Hong Kong dollars or even higher next year through accounting, it would definitely cause another sensation. Carrian Group, which was already listed at that time, The stock price will inevitably be pulled up.

A reporter asked: "Chen Sheng, Carrian Group didn't have much reputation in Hong Kong before. Where did your company get the 10 billion Hong Kong dollars to trade with Hutchison Whampoa?"

"Carrian Group's capital comes from overseas. The company has capital from Malaysia and Wall Street in the United States, and its strength is strong. This time it was able to buy the Golden Gate Building from Hutchison at a price of 10.3 billion Hong Kong dollars."

It was Chen Songqing's goal to package Carrian Group into a powerful company, but now he naturally took the opportunity to publicize it.

"Chen Sheng."

Carrian Group, which was not well-known before, bought the Golden Gate Building from Hutchison Whampoa at a price of 10.3 billion Hong Kong dollars. Chen Songqing's own affairs.

Facing the reporters' inquiries, Chen Songqing answered them one by one. He packaged himself and the Carrian Group very much, giving the outside world the impression that he and the Carrian Group are very powerful.

In this press conference, although Lin Baicheng did not become a spectator, Chen Songqing's scenery was overshadowed by a lot. Fortunately, he didn't take it to heart at all, so naturally he would not feel depressed because of it.

Before the press conference was over, the Xiangjiang stock market had already reacted to the relevant situation, and the stock price of Hutchison Whampoa began to rise on a large scale.

However, the increase this time is not large, because the offshore company Golden Fleece is constantly selling its Hutchison Whampoa stocks, and HSBC is also selling its stocks at high prices.

Although HSBC is still negotiating with Suntory Co., Ltd. about entrusting the purchase of Hutchison Whampoa shares, Suntory Co., Ltd. only needs 1200 million shares, while HSBC holds 2170 million shares, and the remaining 970 million shares have to find a way to sell just do.

When Hutchison Whampoa reported that it was going to sell the Golden Gate Building, it had a positive stimulus for the stock market. Now that the good news has been realized, the funds that were on the sidelines naturally entered the market to buy stocks.If it weren't for the fact that there are two big funds selling their stocks, this benefit alone will definitely make Hutchison Whampoa's stock price soar.

There is actually another benefit to this press conference, but it's not that great.

The related benefit is the dividend that Lin Baicheng said, and he will use part of the funds obtained from the sale of the Golden Gate Building as this year's dividend.Last year, Hutchison Whampoa paid 6 million Hong Kong dollars in dividends. This year, Hutchison Whampoa's first and second quarter reports are very good. The market naturally believes that the amount of dividends this year will not be less than 6 million Hong Kong dollars.

However, even if calculated based on the dividend of 6 million Hong Kong dollars, based on the 4 million shares of Hutchison Whampoa's total share capital, each share can only be distributed to 1.5 Hong Kong dollars, and 150 Hong Kong dollars in cash will be distributed to each buyer.With the current stock price of Hutchison Whampoa, more than 6300 Hong Kong dollars are needed to buy one lot. It is not very cost-effective to buy stocks for dividends.

Therefore, for short-term stock price fluctuations, the relevant dividends are not very beneficial. The main reason is that the current market value of Hutchison Whampoa is too high.However, for long-term investors, if Hutchison Whampoa's annual dividends can be stable and not less than 6 million Hong Kong dollars, then Hutchison Whampoa is still worth investing in.

(End of this chapter)