The Birth of the Hong Kong Island Family.

Chapter 236 [Exploring the Acquisition]

In the office of Global Shipping, Lin Zhichao was fascinated by a document.

Hong Kong Airlines has a total of 5 aircraft, including three DC-3s and two Viscounts; among them, DC-3 is a passenger plane developed by the United States in the 30s, and the Viscount is a star passenger plane developed by the United Kingdom in 1954. Both planes belong to the world's best-selling passenger planes .

For example, the Viscount airliner, after the British "Comet" jet plane was stopped due to technical reasons, the UK made a big splash with the "Viscount" propeller airliner; this aircraft can carry [-] passengers, which is already a very large aircraft.

Of course, in a year's time, Pan Am will fly with the Boeing 707, bringing the world's civil aviation into the jet age.

The three DC-3 aircraft of Hong Kong Airlines were manufactured in the 40s, and are currently valued at US$150 million each; the two Viscount airliners are all new aircraft, each worth nearly US$300 million.

Therefore, the value of Hong Kong Airlines' aircraft is around 1000 million US dollars.

The price of a Boeing 707 is expected to be 500 million US dollars.

Apart from the aircraft, the second most expensive asset of Hong Kong Airlines is of course the 'licence', so the valuation is very reasonable at US$1200-1500 million.

Putting down the materials, Lin Zhichao felt a little embarrassed.

The meaning of HSBC Bank is that it will not directly participate in the acquisition, and it is even more impossible to directly compete with Swire Matheson, so as not to give people the impression of 'the British beat the British'.

Indeed, even in later generations, HSBC will not directly help the Chinese acquire British companies.For example, when Bao Yugang acquired Wharf in the previous life, HSBC’s biggest role was to lend 20 billion to Bao Yugang; when Li Jiacheng acquired Hutchison Whampoa, HSBC only sold his shares to him, and did not help him directly seize power. Li Jiacheng It also gradually became a leader in Hutchison Whampoa.

HSBC did not participate, and Lin Zhichao was somewhat "alone and lonely", and it might become a joke.

After all, this kind of acquisition is different from the stock market, and it can be "fired" with a stance, and everything is done according to the rules of the stock market; Hong Kong Airlines is not listed, and there are only two shareholders - BOAC and Jardine Matheson.

These two shareholders have no friendship with Lin Zhichao, and they may even discriminate against the Chinese.

"You can't buy it rashly! Otherwise, it will easily become a joke." Lin Zhichao said to himself.

After all, it was only in the late 50s that the acquisition of a British-funded company by the Chinese was simply a fantasy and outrageous. Even if Lin Zhichao's wealth now exceeds that of a British-funded foreign firm, the overall environment is not good for him after all.

"You can't hold the mentality that you must succeed!"

Li Jiacheng in his previous life was Lin Zhichao's idol.

For example, he first fell in love with Wharf and bought 20% of it secretly, but was found out; he saw that the situation was not right, and he couldn't afford to offend Jardine Matheson and HSBC, so he "retired as an advance" and handed over the shares to Bao Yugang.

For ordinary people, I am afraid that in that case, the shares will be handed over to the British capital.But Li Jiacheng was able to find the most beneficial method for him, and that was to hand it over to Bao Yugang, who was "both prospered and harmed" with HSBC (at that time, HSBC and Bao Yugang cooperated in shipping and did a lot).

When Bao Yu just took over his shares, he took over Li Jiacheng's favor; this was also one of the reasons why HSBC later sold its 22.5% shares in Hutchison Whampoa to Li Jiacheng.

Because Bao Yugang was the vice chairman of the board of directors of HSBC at that time, and secondly, HSBC also admired Li Jiacheng.

This acquisition is very unfavorable to Lin Zhichao, mainly because of the unfavorable times.

First, he has just cooperated with HSBC Bank, and the relationship is not very deep, and it will be a few years before Sanders becomes the chairman of HSBC Bank.

Second, the influence of the Chinese is still insufficient, at least until the 70s, so British capital still looks down on Chinese capital in their bones.

Given the above two reasons, Lin Zhichao himself does not want the price to be too high.

After all, if the aviation industry wants to make money, it needs to be in the 80s, and it needs to work hard for more than 20 years.

After thinking about this, Lin Zhichao seriously considered how to do it.

"Yes!" After a long time, Lin Zhichao's eyes widened, and he muttered to himself energetically.

Three days later, Bai Jiashi, the deputy director of the Chief Secretary of Hong Kong, came to the office of Taikoo Matheson Shiyock.

Shiyock is the most outstanding and longest serving taipan of Swire & Co., and also the fourth generation of the "Swire family". He is 64 years old this year; Withdrew Swire's assets in the Shanghai stock market; after the war, Shiyock led Swire Pacific to resume business, and it developed very smoothly, and successfully won Cathay Pacific Airways.

"Deputy Director Bai Jiashi, who are you here?" Shiyock said politely.

Swire Pacific has been rooted in Hong Kong for 90 years and has already had a close relationship with the Hong Kong government.

Bai Jiashi said: "I heard a news that Lin Zhichao, a Chinese, is discussing with the Governor and Chief Secretary of Hong Kong to acquire Hong Kong Airlines! I don't know if this news is important to Chairman Shiyock?"

Shiyock's coffee cup was fixed in the air, and then he said in astonishment: "Chinese, want to buy Hong Kong Airlines?"

Bai Jiashi nodded and said, "Yes! This Chinese is very powerful, Shiyock should know better than me, right?"

Shiyock quickly put down his teacup and said, "Yes! He owns a fleet that far surpasses that of Swire Pacific, and he also owns a huge industry, so his financial strength should be very strong. It's just that he doesn't understand that it is impossible for the British Hong Kong government to hand over the aviation industry to For a Chinese. Does Governor Ge Lianghong support this matter?"

Bai Jiashi shook his head and said, "Ge Lianghong, the governor of Hong Kong, may not directly support it, but he probably won't object either. Maybe Lin Zhichao also became a British citizen."

Shiyock quickly said, "That's still a Chinese, not an Englishman!"

The two chatted for a while, and when Shiyock sent Bai Jia away enthusiastically, it was conceivable that the two had a very close relationship.

Afterwards, Schjork mused in his office.

He is not optimistic that Lin Zhichao can acquire Hong Kong Airlines. Of course, he wants to acquire Hong Kong Airlines under Cathay Pacific.

"Lin Zhichao can't succeed! Hmph, a Chinese is trying to meddle in Hong Kong's aviation industry, it's really beyond his control." Shiyock said to himself.

Of course he is confident that Schjock is also well-connected in the British business and political circles, and he studied law, and his classmates at that time included many British MPs and government officials.

Therefore, as long as he initiates the relationship, it is impossible for Lin Zhichao to get through the British Overseas Airlines.

The second is Jardine Matheson. As a foreign firm that is also rooted in Hong Kong, the two companies will never do something like "their own family beats their own family".Although they have been rivals in the aviation industry, the one-south and one-north route did not allow the two companies to compete.

After thinking about this, Shiyock was a little nervous, but he also relaxed.

Of course, since Lin Zhichao intervened in the acquisition of Hong Kong Airlines, it also happened to give Shiyock an idea, that is to acquire Hong Kong Airlines.

He has been observing Hong Kong Airlines for a long time. Now that he thinks about it, it is really an opportunity!
British Overseas Airways and Jardine Matheson take turns operating Hong Kong Airlines, which has not been ideal, and there must be plans to let go.

Thinking of these, Schjock decided to take action!

On Lin Zhichao's side, he deliberately leaked the news through the channels of the Hong Kong government.

Because he is sure that many officials of the Hong Kong government have a close relationship with Swire Pacific.

Later, through HSBC, he sent a message to Jardine Matheson and British Overseas Airways, that is, Universal Shipping intends to acquire 'Hong Kong Airlines'.

Universal Shipping, a joint venture between Global Shipping and HSBC Bank, agrees to the acquisition of Hong Kong Airlines in all aspects.

After doing this, Lin Zhichao stopped his actions and did not continue to really contact British Overseas Airlines and Jardine Matheson.

To put it bluntly, he is now only thundering, not raining.

If there is an opportunity, he will act;

If there is no chance, then everything is just a rumor, Lin Zhichao did not participate in the acquisition of 'Hong Kong Airlines' at all.

It's not that Lin Zhichao didn't get "good terms" this time. On the contrary, he got the promise of "positive non-intervention" from the Hong Kong government-that is, if Lin Zhichao acquires Hong Kong Airlines, the Hong Kong government will not stop it.

In fact, a relatively fair condition has been created for Lin Zhichao.

In October, the sun is shining brightly.

On the site of 'Miramar Hotel' on Kimberley Road in Tsim Sha Tsui, Kowloon, it is very lively and a grand groundbreaking ceremony is being held.

The business model of 'shopping mall + hotel' is definitely a milestone in the world's commercial real estate.

When the planning department of the Hong Kong government got the plan, the officials were very excited, thinking that this project could bring a certain boost to Hong Kong's economy and tourism.Therefore, a lot of support has been given in terms of project approval.

"The governor of Hong Kong is here!" Someone among the guests shouted, and everyone looked in one direction.

I saw Ge Lianghong leading the Hong Kong government officials, shaking hands with Lin Zhichao with a smile on his face, and then Lin Zhichao introduced this project to everyone.

"Our Miramar Hotel is divided into two parts, one is a shopping center and the other is a five-star hotel. The two buildings are combined into a building complex with a total investment of over 5000 million Hong Kong dollars, of which the construction cost is about 4000 million Hong Kong dollars."

The Hong Kong government officials gasped. They did not expect Lin Zhichao to be so powerful. With an investment of 5000 million Hong Kong dollars, even Jardine Matheson in Hong Kong would not be able to spend such a huge amount of money to invest in a real estate project. (Refer to the Ocean Terminal in the 60s of the previous life, which was funded by the Hong Kong government with an investment of 6000 million Hong Kong dollars)
Ge Lianghong couldn't help asking: "Mr. Lin, what is this shopping center like?"

Lin Zhichao explained in very common words: "It should be a concept we pioneered. Simply put, it is an advanced version of 'department store'. The characteristics of a department store are: all stores and products are owned by one owner. Department stores The shop assistants serve customers one-on-one; shopping centers are different, we are just owners, after planning the shop structure of the shopping center, we rent out each shop to a brand and store, and we only collect rent and manage it When customers enter these stores, it is self-service shopping, and they can choose whatever they want. The feature of these stores is 'open cabinet self-pickup', but after customers choose the goods, they can go to the front desk of the store to check out. "

After some explanation, everyone already understood.

Ge Lianghong praised: "Mr. Lin is worthy of being a prodigy in business, and he has amazing performance in many fields."

"Your Excellency the Governor of Hong Kong has won the prize!"

Afterwards, Lin Zhichao brought everyone to the guest table and arranged for Ge Lianghong to deliver a speech.

Ge Lianghong is also very face-saving. In his speech, he also regarded today's scene as a scene of communication with the Hong Kong business community; in his speech, Ge Lianghong was also very emotional, after all, he is about to leave his job.

He said proudly in his speech: "I am optimistic about the future development of Hong Kong. Many people used to think that Hong Kong's economy would collapse because...but with the wisdom and diligence of the Hong Kong people, the industry has surpassed the re-export trade and injected Hong Kong's economy. New vitality. I am proud of my [-]-year career as Governor of Hong Kong, and I also wish Hong Kong's future! Thank you!"

All of a sudden, more than a hundred people from the Chinese business community gave applause one after another.

When it was Lin Zhichao's turn to give a speech, he not only introduced the "Miramar Hotel" project, but also took the opportunity to express his views on the current real estate situation as a "real estate leader".

"Hong Kong real estate has undergone several years of brutal growth. Although the development is changing with each passing day, the overall situation is very good, such as improving the living environment of Hong Kong people; however, many hidden dangers and problems have also arisen. Fortunately, the Hong Kong government formulated new regulations in time to avoid bigger crisis."

"Although Hong Kong real estate is in a downturn at this time, it is actually just the impact of 'supply and demand imbalance' and the result of brutal production in the past few years; in fact, the long-term development of Hong Kong real estate must be very good."

"Under this sluggish environment, the real estate developers who have survived will definitely regain their vitality! Thank you!"

In this round of real estate downturn, many small and medium-sized companies have closed down, and even two large real estate companies have encountered crises.However, many survived. After all, out of ten large real estate developers, only two are on the verge of bankruptcy, which already shows the problem.

Lin Zhichao's speech was also very inspiring, and everyone gave warm applause.

Schjock returned to London, found Manches, the head of BOAC, and formally proposed the acquisition of Hong Kong Airlines.

British Overseas Airways is a state-owned airline that only handles long-distance routes. At the beginning, it paid a lot of attention to Hong Kong Airlines, but after several years of operation, it has gradually lost patience and has plans to sell.

"Mr. Schjock, you heard that someone wanted to buy Hong Kong Airlines, so you plan to come to buy it?" Manchez said with a smile.

Although it intends to sell, BOAC also hopes to sell at a high price, so it is a good thing that there are two companies competing at this time; the only pity is that the other company is Chinese, although it has British elements.

Shiyock nodded and said: "Indeed, we intend to buy the shares in your company. Lin Zhichao is Chinese after all, and Hong Kong Airlines falls into the hands of Chinese. I believe this is not what the British government wants to see."

Manchez and Shiyock kept emphasizing that Lin Zhichao is Chinese, but did not make a sincere offer, so he frowned and said, "Others already have a letter of recommendation from Mr. Prime Minister, so this point is no longer a problem."

Shi York was taken aback, he didn't expect Lin Zhichao to have such a deep relationship in London, but he still didn't take it seriously.

"No, he is still Chinese! Hong Kong Airlines can only be in the hands of us British, the Chinese are unreliable!"

He said this because he didn't want to be caught in the bidding, but to play the political Z card.

Manches said impatiently: "Mr. Shiyock, this is our choice, you just need to tell us your sincerity!"

Seeing this, Shiyock still didn't take Manches' words to heart. He felt in his heart that neither the British government nor the senior management of British Overseas Airways would allow the sale of Hong Kong Airlines to the Chinese.

Manchez's behavior at this time was just to ask for a little more money.

"Since this is the case, Swire Pacific is willing to bid 220 million pounds (1:16 GBP to HKD) to buy 55% of the shares in the hands of British Overseas Airways."

Manches said dissatisfied: "This price is simply a free gift for you!"

Schjock said with a smile: "No! I know the situation of Hong Kong Airlines very well."

In this way, Schjork made a dishonest offer and insisted on not raising the price much.

Because in his opinion, the aviation industry is not profitable at this time, and Hong Kong Airlines is a non-profitable company. If the price is too high, it will not be in the interests of Swire Pacific.

As for Taikoo Matheson, it can be said that it is the only choice for Hong Kong Airlines and can only be sold to Taikoo Matheson.

In this way, Manches sent Shiyock away politely, and the first negotiation between the two did not reach an agreement.Manches is not very satisfied with the price, but Schjork is more concerned about the price.

In order to be safe, Shiyock also visited some government members to put a lock on his acquisition.

His idea was that politically, it would be impossible for Lin Zhichao to acquire Hong Kong Airlines!
Economically, the minimum cost is to get the equity of Hong Kong Airlines.

As for Jardine, he also decided to play the emotional card instead of the economic card.

(End of this chapter)