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Chapter 584 Swire Group
Cathay Pacific, founded in 1946, is the first airline to provide civil aviation services in Hong Kong. It is a member of the Swire Group and one of the founding members of Oneworld. It uses Hong Kong Airport as its hub. Its subsidiaries include Dragonair and Hua Min Airlines. .

On March 2019, 3, Cathay Pacific announced that Cathay Pacific had spent HK$27 billion to acquire 49% of the shares of Hong Kong Express, and that Hong Kong Express would become a wholly-owned subsidiary of Cathay Pacific.

It can be said that Cathay Pacific dominates the entire Xiangjiang aviation market.

At its peak, Cathay Pacific’s market capitalization was approximately RMB 800 billion.

Three years of cold winter have undoubtedly been fatal to the aviation industry.

Cathay Pacific is no exception. On August 2020, 8, Hong Kong Cathay Pacific released its 12 interim performance report. Cathay Pacific suffered a loss of HK$2020 billion in the first half of the year, and its profit in the same period in 98.65 was HK$2019 billion.

As soon as the interim results came out, Cathay Pacific's share price continued to fall.

In the past three years, Cathay Pacific's stock price has shown an overall downward trend. It is now about HK$21 per share, with a market value of about HK$500 billion.

Today, among the major shareholders of Cathay Pacific, Swire holds 45% of the shares and Qatar Airways holds 9.99%. These two companies alone hold almost 55% of the shares!
The major shareholders hold a total of 84.98% of the shares, and only about 15% of the shares are actually circulating in the market.

"Mr. Huo, Swire firmly controls Cathay Pacific. If Swire doesn't want to, it won't be easy to attack Cathay Pacific." Li Hao frowned slightly.

"Cathay Pacific suffered a loss of HK$2020 billion in 216.48, a loss of HK$2021 billion in 55.3, and a loss of HK$2022 billion in 71.62. This year, due to the recovery of the aviation market and the sale of some assets, it made a profit of HK$42.68 billion in the first half of the year." Mr. Huo said slowly: " Huge losses, uncertain prospects, and increasing risks. If Swire had been smarter, it would have definitely taken the money and left the market."

Once upon a time, Hong Kong was dominated by four major foreign companies, with their tentacles extending into all aspects of Hong Kong.But later, as the situation changed, Chinese capital gradually developed and expanded, and continued to steal meat from the four major foreign banks. Jardine Matheson, Wheelock, and Hutchison were defeated one after another, leaving only Swire.

Swire & Co. has developed quite well in the past few decades, operating in real estate, aviation, shipping, beverages, industry and trade.

For example, the famous Swire Beverage in the Mainland is actually owned by Swire & Co.

"The Shi Huaiya family's business in Europe and the United States in recent years has not been very satisfactory. They don't need a large amount of cash." Mr. Huo said with a smile.

Swire & Co., oh, it should be called Swire Group now. Although Swire Group is listed in Xiangjiang, the company is headquartered in London, England, and is controlled by the British Swire Group. The British Swire Group holds shares of the Xiangjiang Swire Group.

Given the stake held by the British Swire Group in the Heungkong Swire Group, it is basically impossible for outsiders to seize control of the Heungkong Swire Group from the British Swire Group.

The family that controls the British Swire Group is the Swire Group. The chairman of this company has always been a member of the Swire Group. The Swire family has a strong control over the Swire Group.

Li Hao was thoughtful.

Li Hao's understanding of Xiangjiang is obviously not as good as Mr. Huo's.

After all, this person was trained by the Huo family with great efforts, and his ability is quite good.

Li Hao had no doubts about what Mr. Huo said.

After all, life in the UK has been really difficult in recent years.

"Mr. Huo, are you sure you can win the shares of China Pacific Airlines from Swire Group?" Li Hao looked at Mr. Huo.

If it can be won, it will indeed be a good asset.

"Forty percent sure," Mr. Huo said.

Li Hao nodded. He was [-]% sure, which was enough to give him a try.

Of course, it would undoubtedly be extremely difficult to acquire Cathay Pacific if there were no local snakes like the Huo family in Hong Kong.All it takes is a little encouragement to stir up outrage.

But with the Huo family, it's different.

The influence of an established wealthy family cannot be underestimated.

"Master Huo, do you think there is any possibility of success if we acquire Xiangjiang Swire Group?" Li Hao suddenly said.

But Li Hao is very interested in Xiangjiang Swire Group.

The British Swire Group, there is no way, the distance is too far, the connections and influence are far inferior to others, it is completely impossible to win.

However, Xiangjiang Swire Group does not necessarily have a chance.

Mr. Huo was startled, and then frowned. He didn't expect Li Hao to have such a big appetite.

You know, Xiangjiang Taikoo Group is already a behemoth, even much more powerful than the entire Huo family.Today's Hong Kong Swire Group's industries include shipping, aviation, real estate, transportation, refrigeration, trade and industry, insurance, agriculture, and retail. Among them, the total market value of companies listed in Hong Kong alone exceeds HK$2000 billion.As for the scale of Swire's unlisted companies, most people don't understand it. It is estimated that only the direct descendants of the Swire family can explain it clearly.

"Twenty percent, no more than [-]% at most." Mr. Huo frowned: "And the acquisition funds require a lot."

You know, the Swire Group could earn HK$600 billion a year before, which can be said to be making money every day.

It is obviously difficult to acquire the entire Xiangjiang Swire Group, and if the Swire family is unwilling, there is no possibility at all.

Li Hao nodded slightly, already hearing the meaning of Mr. Huo's words.

It no longer targets the entire Xiangjiang Swire Group, but focuses on Cathay Pacific.

Hong Kong Swire Group owns 45% of Cathay Pacific Airways, and Cathay Pacific Airways has a market value of about HK$500 billion, which means that this part of the shares requires HK$225 billion. Considering that such acquisitions often have a premium, it requires HK$250 billion to HK$300 billion. .

After the two discussed it, the matter was settled, and the next step was to make contact.

In the evening, return to the hotel.

"You are really crazy, you are thinking of Cathay Pacific." Jingtian said with emotion: "The Swire Group is quite powerful, and its strength in Hong Kong is very strong. In the face of the eager eyes of Chinese capital, it can continue to grow and develop. The Swire family People are not simple."

The Shihuai Ya family is one of the few families that can maintain prosperity for more than a hundred years. This family has been prosperous for 150 years.

The elite education provided by many British families is indeed extraordinary.

"Yes, Cathay Pacific was quite arrogant about the blanket issue before," Tong Liya said.

"It's just a matter of contact now. I don't know if the negotiation can be concluded." Li Hao said with a smile.

It would be the best if we can win over Cathay Pacific. Not only is this a good asset, but it is also an extension of TVB’s e-commerce territory. It can be greatly accelerated through air transportation, thereby improving competitiveness.

It is still a horoscope that has not yet been written, and it is not clear at all whether it will succeed or not.

However, this time when he came to Xiangjiang, Li Hao also saw that the major families in Xiangjiang were not monolithic, but each had their own agenda.

(End of this chapter)