Hong Kong's new giants

Chapter 217 [Grand Hotel in Power]

Thursday, November 10.

In the meeting room of the big hotel, the eyes of all the directors and executives looking at Lin Zuhui have changed; and as the initiator of this meeting, Lin Zuhui enjoys everyone's admiring eyes.

It turned out that in September, under the suggestion of Lin Zuhui, the hotel issued 10% of new shares, and the rights issue raised funds to obtain a cash flow of 7.5 million.

Today, this amount of money is equivalent to a 'sharp weapon' for the development of a big hotel.

Through this incident, Lin Zuhui has established a great prestige in the hotel;
If the chairman of the board of directors is re-elected, Lin Zuhui may not lose to Michael Kadoorie.

At this time, Michael Kadoorie could only watch helplessly as Lin Zuhui's influence on the board of directors increased. He only now realized what his father said, "Lin Zuhui is a tiger and wolf, and being on the board of directors of a big hotel is absolutely necessary for the Kadoorie family." great influence'.

Even Michael Kadoorie heard some rumors from Xiangjiang: Lin Zuhui sold all the securities and futures contracts he invested in before the stock market crash, and obtained a large amount of cash flow, which not only repaid his personal debts, but also had surplus; Its listed companies have successfully reduced their debts before the stock market crash, and have become high-quality companies in the eyes of banker Yan.

This is definitely not a good thing for the Kadoorie family, because it means that Lin Zuhui has the strength to privatize the hotel, and the Kadoorie family can only be out of the game.Even, before this board meeting, Lin Zuhui intentionally or unintentionally revealed the meaning of "do not hesitate to privatize".

Michael Kadoorie said a few words briefly, and then threw the topic to Lin Zuhui.

"Vice Chairman Lin, the board meeting is entrusted to you!"

Lin Zuhui nodded. Since the shareholders' meeting, he has been forbearing in the big hotel, and it is time to take power now.

He didn't want to be a decoration on the board of directors of the big hotel.

"I'm calling everyone this time to formulate a strategy for the development of the big hotel for the next year!"

Michael Kadoorie's eyes suddenly jumped up, he secretly thought it was bad!

A kind of directors and senior executives were a little surprised, and some people also looked at Michael Kadoorie.

Lin Zuhui said bluntly: "I have three development strategies. If I tell them today, everyone can discuss them freely!"

"The first item is to redeem the equity of The Peninsula Hotel in Manila. I have said this before, and I will say it again today. The reason is very simple. The political turmoil in the Philippines is an opportunity. At this time, the 5000% equity of the Peninsula Hotel in Manila, We can redeem it with less than [-] million Hong Kong dollars. And once the situation in the Philippines stabilizes, we can recover the cost in only one to two years."

Lin Zuhui knew that the political situation in the Philippines tended to be stable from 1989 to 1991. Although the economy did not develop at a high speed, it was stable and excessive. In 1992, the Philippine economy began to recover.

Before the stock market crash, Lin Zuhui raised this opinion, but although the board of directors had the intention, they did not take specific actions for a long time, which aroused Lin Zuhui's dissatisfaction.

A director immediately said: "I agree with Vice Chairman Lin's strategy. As the economic center and largest port of the Philippines, the Peninsula Manila can bring huge profits once the political environment stabilizes. In today's environment, it can Let us repurchase all the shares at a minimum cost, it is a very cost-effective investment."

Michael Kadoorie didn't understand this truth. He just deliberately planned to finish it later in order to reduce Lin Zuhui's influence.

Many directors echoed this strategy!
Lin Zuhui then said: "Let's start voting. After the vote is passed, we will start action immediately!"

Soon, this article was unanimously approved, and Lin Zuhui took the opportunity to name a high-level executive, asking him to take full responsibility for this matter and implement a responsibility system.

Lin Zuhui continued: "The second strategy is that the global stock market crash will have a profound impact, especially on the U.S. economy. We also have to prepare for the redemption of the equity of the Peninsula Hotel in Los Angeles and the Peninsula Hotel in New York. .”

These two peninsula hotels are both joint ventures with American companies!

In the previous life, together with the Peninsula Hotel in Bangkok, the Kadoorie family of these three hotels spent nearly US$1994 billion to redeem the remaining equity in 10.

Everyone looked at each other in dismay, because the plan was too big, even with the market after the stock market crash, it would cost more than 20 billion Hong Kong dollars, and the peninsula hotel's account was only 11 billion Hong Kong dollars.

A director said: "How serious the impact of this global stock market crash on the US economy is, it is still unknown!"

Lin Zuhui said with a smile: "How big the impact is, there are signs of it now. But I think whether there is any impact or not, we should actively acquire the equity of these two hotels, because we now have funds to drive, and the rest of the funds You can also use bank loans! As long as we redeem the remaining shares, our annual profit will greatly increase. If we don’t take the opportunity to redeem this time, we will spend several times the price in the future.”

As Lin Zuhui's subordinate and also the director of the hotel, Lu Donglai immediately added: "It is a very good congenital condition for us to complete the rights issue to raise funds before the stock market crash!"

One kind of directors nodded one after another. Before the stock market crash, they completed the rights issue to raise funds and obtained 7.5 million in cash, which made the hotel very competitive.The market value of the big hotel has dropped by only 60% (the current market value is [-] billion), and it is considered the most popular blue chip stock in Xiangjiang, second only to HSBC, Landmark, Wharf, and Hutchison Whampoa.

At this time, Michael Kadoorie said: "If it is really possible to negotiate next year, I am afraid that these two investments will cause the big hotel to bear 10 billion to 15 billion in debt. The big hotel has always been operating steadily, is it too big a step?" , we can choose to repurchase shares one by one!"

Inadvertently, Michael Kadoorie gained everyone's approval. Of course, he also wanted to take advantage of this rights issue to raise funds to buy back the shares of a hotel. After all, with so much cash, he had to find a way out.

Lin Zuhui had been prepared for a long time, how could he let Mi Gao spoil his own prestige!
"No need to worry about debt, the third development strategy I mentioned can solve this trouble!"

Mi Gao was taken aback. Could it be that this guy can make money out of thin air?
You know, the current stock market is a bad market, and it is impossible for anyone to respond to the rights issue!
Lin Zuhui didn't keep everyone waiting, and said: "As for the company's so many debts, I think we can spin off the real estate business under the big hotel after the stock market recovers next year, and take part of the cash to repay debts or develop the company." !"

The so-called spin-off listing is equivalent to a big hotel (listed company) packaging its real estate business, selling part of its shares to the public in accordance with the listing regulations, and the parent company can extract a sum of cash for development, and there is an additional listing Subsidiary.

In the previous life, the Kadoorie family said they would not spin off the hotel, but in 1988, they also split and reorganized the real estate business.

Everyone's eyes lit up, this method is really good!
Even Mi Gao believes that he plans to spin off the hotel business and real estate business next year.

"Then let's vote!" Michael Kadoorie said directly, and he raised his hand first to show his support.

Unanimously approved!

The three proposals put forward by Lin Zuhui today were all approved.

After the meeting, Lin Zuhui came to Mi Gao's office.

After sitting down, Michael Kadoorie said, "Lin Sheng, I want to ask a question, have you ever thought of buying a big hotel?"

Lin Zuhui nodded and said, "I really want to! And my funds are not under pressure!"

Mi Gao's heart was shocked, he believed what Lin Zuhui said was true!

At this time, the net assets of the big hotel are more than 70 billion (appreciation of assets, plus funds and profits obtained by rights issue, etc.), and the market value is 60 billion. If it is fully acquired, Lin Zuhui will need almost 50 billion (a premium will be paid) .

"Then why don't you initiate a full takeover?" Michael Kadoorie said with the restlessness suppressed in his heart.

"It's very simple. I'm not good at running big hotels, and I also need the Kadoorie family name." Lin Zuhui said frankly.

In the final analysis, the Grand Hotel has been deeply imprinted by the Kadoorie family, and the old aristocrats are not in vain.

Michael Kadoorie asked again: "Would you be nervous if we increased our stake?"

Lin Zuhui laughed so arrogantly!
"No, I support you to increase your shareholding!"

Michael Kadoorie suddenly showed a wry smile, and said: "I think you think that our family will have no funds to increase its holdings for a while, and then when our holdings exceed yours, we will launch a comprehensive acquisition at all costs."

Lin Zuhui is noncommittal or not!
The Kadoorie family really didn't have the strength to increase their holdings to 34% in the last year, otherwise they wouldn't have been attacked by Luo Xurui twice in their previous life.As for the Kadoorie family daring to initiate a full takeover, Lin Zuhui will also accompany him.

At that time, it will be a loss for both parties.

"Well, I choose to cooperate, I believe we will be the best partners!"

Michael Kadoorie took the initiative to extend his right hand and truly accepted Lin Zuhui to join the hotel.

He thought that no matter how long the battle line is, he will never be this young man's opponent, because he is too powerful!
Chen Songqing was also good back then, but he couldn't escape the big crash!
This one is even stronger than Chen Qingsong, and the key is to predict the big crash!
Lin Zuhui naturally accepted Mi Gao's friendship. He is a businessman and he cares about profit;
And the big hotel can not only bring him benefits, but also contacts and honor.

After sitting down again, Michael Kadoorie said: "But I disagree with you on one point, that is, our Peninsula Hotel cannot be franchised, because it will lower his grade!"

Lin Zuhui immediately said: "The Peninsula Hotel can only do high-end self-operated, but I hope that if my family or Cathay City need to invest in hotels, the Peninsula Hotel brand can cooperate and authorize!"

Mi Gao nodded and said, "That requires the participation of the Peninsula Hotel brand from design to management in order to join the Peninsula Hotel camp."

"no problem!"

In his previous life, there were less than 10 Peninsula Hotels in the world, and Lin Zuhui had to change this number no matter what.

Moreover, when Cathay City becomes a large hotel management group in the future, The Peninsula Hotel will only be a member of it.

The next day.

Lin Zuhui convened a meeting with the top management of Huaren Real Estate, and all the top management staff had a copy of the information of the listed company 'Futura International Real Estate Investment Company'.

This company mainly operates real estate investment in the United States, but its performance has been sluggish in recent years.Therefore, the stock price of Futura International before the stock market crash was not too high. After the stock market crash, its market value has evaporated by 40%, and it is currently only 5.2 million.

Lin Zuhui said: "Now the Hong Kong government encourages corporate acquisitions and mergers in order to save the market, so we don't want to shoot secretly. Immediately prepare to acquire Futura International at a premium of 20% to 25%, and maintain Futura International's listing status. In the future, this company will serve as our New Era Real Estate Department—a listed company (sun company) that invests in the US real estate industry.”

Because Futura International's highest market value before the stock market crash still did not exceed its net assets, there is no need to wait for the end of April next year.Most importantly, Futura International will not be privatized by New Era Real Estate.

Liang Zhenxun added: "Futura International's shares are scattered, and the current chairman of the board of directors, Wang Bingyi, only holds 10% of the shareholders. We will pay a premium first, and then pay a premium. I believe there will be no problem."

At this time, as a minority shareholder of Futura International, if someone buys at a premium, it is simply welcome with all hands.

And Chinese Real Estate is not a comprehensive acquisition, so it only needs to increase its shareholding to 34%, and then it can announce to take over the board of directors of Futura International (unlike big hotels, Futura International does not have a strong family management, and Chinese Real Estate can easily pass the board of directors and resolutions of the general meeting of shareholders).

Lin Zuhui said: "Okay, you will first send the acquisition plan to the board of directors of Futura International."

"Okay, boss!"

Liang Zhenxun is also a director of three listed companies and is responsible for the securities business of the group department.

Lin Zuhui said to Gao Yi again: "Expand the company's senior staff and talent pool. If the company wants to develop a wave, it cannot lack talents to join."

Gao Yi quickly said: "Okay! I will hurry up!"

The purpose of acquiring this company must be to lay out the real estate industry in the United States, especially the commercial office center in Los Angeles. In addition, its own net asset value is very good, which is completely worth investing in.

Lin Zuhui's real idea is that Futura International is a Hong Kong-listed company that has been operating in the US real estate industry for many years. After the acquisition, it can rely on its overseas real estate development experience and channels to cooperate with the Lin family to invest overseas.

It can also be understood that Lin Zuyao wants to expand his business overseas and signal the beginning of a global layout.

As for why it was acquired by Huaren Real Estate, there are two reasons:

First, as the parent company of New Era Real Estate, the business is still the development of real estate projects of Heung Kong.

Second, use Futura International as a sub-company, and raise funds through rights issues in the future, allowing Chinese real estate companies with lucrative rents to issue rights issues.

The consequence is that Lin Zuhui personally only enjoys about one-eighth of Futura International's profits (after the shareholding increase), which is equivalent to only holding about 12% of the shares.

It is a principle of infinite magnification!

That night, Lin Zuhui received an invitation, a very big invitation.

When he came to the box of the Regent Hotel, the biggest guys in Xiangjiang stood up one after another to welcome him.

"Uncle Tong, Uncle Fourth, Li Sheng, Guo Sheng"

Lin Zuhui greeted the heads of the four major families one by one.

"Zuhui"

"Lin Sheng"

Everyone responded.

It turned out that this meeting was a meeting of several bigwigs discussing to save the market, so Lin Zuhui was brought in.

Is Lin Zuhui qualified enough?
Of course it is enough. Among the Chinese real estate tycoons outside this box, except for the charter king who is sick, there is no big boss in Xiangjiang who surpasses Lin Zuhui.The charter king is still from Ningbo and does not belong to the Cantonese Gang.

Among the top ten chaebols ranked in 1987, Lin Zuhui squeezed out the Chen Zengxi family (Chen Zengxi died in 1986) and the Shaw family to become the ninth chaebol (including three British chaebols).

After everyone sat down, Lee Shau Kee said with a smile: "It is rumored that you Lin Zuhui sold all the blue chips and futures contracts before the stock market crash, and made billions!"

Everyone looked sideways, very curious about this question.

Lin Zuhui smiled and said, "Isn't fourth uncle? Lin Gaoyan under your banner is an expert in securities!"

Lee Shau Kee responded: "He did remind me, and I followed his analysis."

Only then did Lin Zuhui say: "Although I made a huge profit of billions, it just happened to pay off my debts."

The four major families believed in his answer very much!
They would never have thought that Lin Zuhui made 60 billion (only blue chips and buying futures contracts, excluding global short selling futures and foreign exchange)

Zheng Yutong said: "That's pretty amazing! The mines that were buried in you, and even the mines that were buried in the real estate department of the new era, were all removed by you!"

Several companies in the New Era Real Estate Department are listed companies, and their debts and capital flows are relatively transparent. Before the stock market crash, they had already made public announcements about reducing their holdings and debts.

So after the stock market crash, none of the banks came to collect debts.

While eating, Li Chaoren, as the founder, said: "The stock market is a guarantee for Hong Kong's economy. I think we, as the masterminds of listed companies, have an obligation to prevent the stock market from becoming so rotten. Therefore, we are calling everyone this time to save the market. "

Lin Zuhui thought in his heart that these people probably wouldn't have thought that the current 2200 points is almost the bottom, and the lowest seems to be only 1900 points.It is better to say that it is buying the bottom than saving the market.

Of course, everyone is not a fairy, whether they are business leaders, government officials, or even ordinary investors, they may have 1500 points in their hearts.In short, the market is too panicked, and everyone actually has no idea.

Everyone nodded and echoed Li Chaoren's point of view.

If the stock market continues to slump, everyone is indeed worried that it will affect Hong Kong's economy.

Li Chaoren continued: "So I propose that everyone apply to the 'Acquisition and Merger Committee': buy back the shares of the group at a price slightly higher than the market value."

At this time, according to the "acquisition and merger" regulations: if a major shareholder purchases more than 35% of the trigger point of the subordinate company, it must be fully acquired, and the purchase price is the highest price in the past six months.

[Lin Zuhui increased his holdings of 45% of New Era Real Estate shares in the early stage because the highest price in the last six months is not attractive to retail investors. Others will not sell it to you, so there is no need for a full acquisition. 】

[And if the increase in holdings exceeds the critical point of 35%, it must be acquired at the highest market value in September, which is unacceptable. 】

[If you want to increase your shareholding, it is also possible to increase your shareholding to 49% as long as you find the right time.Referring to the later generation, Yice increased its shareholding in Mandarin Oriental to 41%, and proposed a full acquisition price of 4.15 yuan. As a result, the shareholders saw that the net asset value was 6 yuan, and naturally they refused to sell.In this way, major shareholders will increase their holdings of shares as a matter of course. 】

Everyone once again agreed with Li Chaoren's proposal, which shows its influence!

Lin Zuhui thought it was just right to increase his holdings in New Era Real Estate to 45% (the current market value is only 72 billion), and then increase his holdings in New Era Chinese Real Estate to 49%.

In the end, everyone handed over the task of negotiating with the 'Acquisition and Merger Committee' to Li Chaoren and Zheng Yutong.

(End of this chapter)