People in Hong Kong create super chaebols

Chapter 113 Targeting Hong Kong Electric Group
The purchase of crude oil was finalized, and Sioux City breathed a sigh of relief.

He has been preparing for this for a long time, and if he doesn't make more than several billion, it won't be worth his efforts.

"By the way, boss, I have something to report to you." Zhang Qizheng said suddenly.

"Oh? You said it." Su Cheng asked curiously.

"You should know about Xiangjiang Electric Lighting Group, right?" Zhang Qizheng asked.

"Of course I know. It is one of the two major power supply companies in Xiangjiang, and it is said that their family owns a lot of land on Xiangjiang Island." Su Cheng said with a smile.

The Heung Kong Electric Group was formerly known as the Heung Kong Electric Company. It was founded in 1889 and is referred to as the Hong Kong Electric Group. Its power supply mainly covers Heung Kong Island, Ap Lei Chau and Lamma Island. It is one of the oldest power companies in the world.

Another power supply company is China Electric Power, which supplies power to Kowloon and the New Territories in Hong Kong, as well as Lantau Island, Cheung Chau and some small islands.

"The Nanyang Refinery we bought is not on Lamma Island. GMBSalmon, the head of Xiangjiang Electric Group, contacted us. Due to the increasing shortage of power, they need to build a larger power plant that can use fuel flexibly. They are interested in it. We have chosen the location of Nanyang Oil Refinery on Lamma Island and hope we can sell that land to them," Zhang Qizheng said.

At the same time, he also took out a few pages of information and handed them to Su Cheng.

"These are the information I investigated from Brother Wu. Boss, please take a look." Zhang Qizheng said.

Su Cheng nodded, took the information and read it.

It turns out that the former power station of Hong Kong Electric Group was located in North Point, which is the North Point Electric Road Power Station not far from Tin Yuen Building.

Since the 60s, North Point has gradually developed into a dense residential area due to its proximity to the city center. Therefore, it was decided to relocate the power plant, and eventually a large oil-fired power plant was built at Ap Lei Chau in the south of Xiangjiang Island.

However, with the gradual rise of Xiangjiang's economy, more and more electricity is used on Xiangjiang Island. Coupled with the outbreak of the oil crisis in 1973, Xiangjiang implemented energy control at that time. As a result, Ap Lei Chau Power Station, which uses fuel to generate electricity, often suffers from insufficient power supply. .

Therefore, Hong Kong Electric Group now wants to build a power plant that can use fuel flexibly to support the power supply of Xiangjiang Island.

The Pineapple Tsui on Lamma Island has become the target of Hong Kong Electric Group.

In the information, it is reminded that Hong Kong Electric Group is a very profitable enterprise. In addition to power supply, it has also diversified its development, including real estate development and management, technical services, retail, advertising and finance, and other operations to make money. Extremely capable.

Since the Hong Kong Electric Group has a long history, they own many land parcels, such as the former site of the North Point Electric Road Power Plant, No. 8200 Inner Section of Jardine's Lookout, many lots in Tsuen Wan, and many more.

These places were very remote in the past, so Hong Kong Electric, the electricity company at that time, easily held these land parcels.

But with the urban development of Xiangjiang, these places have already become urban areas, and their value has increased countless times.

In particular, the former site of the Electric Road Power Plant in North Point and No. 8200, the inner section of Jardine's Lookout, are valued at more than HK$20 billion.

Moreover, as a publicly listed company, Hong Kong Electric Group has never had any major family shareholders.

Su Cheng's eyes lit up when he saw this.

Why did he plan for five years just to win over Hutchison Whampoa? Isn't it because he was interested in Hutchison's land?
In the future, land in Xiangjiang will become more expensive.

It would be better to try to acquire the Hong Kong Electric Group.You know, the electricity business is almost monopolized. Just like the north side of Hong Kong is monopolized by China Electric Power Company, and the south side is monopolized by Hong Kong Electric Group. There are no other competitors at all. The result is that this business is guaranteed to make profits without losing money.

Last year, the comprehensive net profit of the Hong Kong Electric Group reached HK$6.84 million, of which the profit from electricity sales was HK$4.11 million, and the remaining profits from real estate, financial management, retail, etc. reached HK$2.73 million, accounting for 40% of the profits of the entire Hong Kong Electric Group. profit.

It can be seen that Hong Kong Electric Group's businesses other than making profits from selling electricity are also very profitable, and it is a public utility company with great potential for development.

It can be said that with the income from electricity sales, holding shares of HK Electric Group will only make a steady profit without losing money.

Nowadays, Hong Kong Electric Group does not have an actual shareholder controller. Isn't this a good opportunity to start?
"How much did they bid?" Su Cheng put down the information and asked with a smile.

"I'm very sincere. I bid HK$500 million directly." Zhang Qizheng said with a smile.

Su Cheng nodded, indeed very sincere.

You know, when they purchased Nanyang Petroleum Company in June, they only spent more than 200 million Hong Kong dollars. Now it is only August. In less than two months, their profits have doubled. It can be seen that Hong Kong The Lamp Group was determined to buy that piece of land.

Su Cheng also learned from Xiao Ai that according to the original historical development trajectory, Hong Kong Electric Group also decided to build a power plant in Boluozui, Lamma Island this year, and in order to build a larger scale, it would use land reclamation. , expanded a lot of territory outwards, and finally the Lamma Island Pong Luo Tsui Power Plant was put into operation in 1982.

After understanding this history, Su Cheng couldn't help but feel that this was such a coincidence.

If Sioux City had not bought Nanyang Petroleum Company, Hong Kong Electric Group would have easily acquired the land in Pineapple Tsui to build a power plant.

Now that they have bought Nanyang Petroleum Company in advance, if they want to build a power plant there, they must obtain their consent.

"Tell them that you can sell it to them, but you have to wait until early next year." Su Cheng said.

At present, a small number of oil storage tanks have been built at the Nanyang Refinery on Lamma Island, and there are complete refining equipment there. Naturally, it cannot be sold to the Hong Kong Electric Group in such a hurry.

After a period of time, after all the refining equipment there is gradually relocated to the Tuen Mun Oil Base, the crude oil in the oil storage tanks will be sold out, and it can be sold to the Hong Kong Electric Group.

"Okay boss, I will reply to the person in charge of HK Electric Group later." Zhang Qizheng replied.

"Do you know the current stock price of Hong Kong Electric Group?" Su Cheng asked.

"Understood, the current issuance of HK Electric Group's shares is 6.3 million shares, and the stock price per share fluctuates between HK$5.8 and HK$6.2. And because there are many ordinary small shareholders, the liquidity of HK Electric Group's shares in the market is very large. "Zhang Qizheng nodded and said.

The stock price per share is around HK$6, and there are 6.3 million shares in total. In other words, the current market value of HK Electric Group on the stock market is less than HK$40 billion.

And based on its profitability, this is indeed a rare high-quality stock.

Such a listed company has no family shareholders to control it. It would be a shame not to acquire it.

"Starting from today, you will reorganize a trading team and secretly absorb HK Electric Group's shares in the stock market at low prices. Just like Hutchison, you must make acquisitions in the market without others knowing, keeping confidentiality It's very important. I'll transfer [-] million Hong Kong dollars to Tianyuan Company's account first. If you run out of money, you can come back to me." Su Cheng said directly.

For crude oil procurement, since the actual purchase price was lower than the original price, it also saved Su City a lot of money. This money can be used just right.

(End of this chapter)