Started from Hong Kong Island

Chapter 251 [Stock Exchange]

Monday, September 3
怡和公司宣布以每117股面值6元的怡和公司股票，换取715股面值1.4元的仁孚行股票另加现金150元的价值，收购该汽车代理公司75%的股权，想让仁孚行变成怡和公司的附属公司。

This is exactly the same method used to acquire Dairy Farm International in 72. Jardine Matheson acquired a company with good assets and prospects at a very low cost. Since Jardine Matheson issued so many new shares, the share price might fall slightly, and the original extra profits would be offset.

Li Wendi looked at the constantly changing share price of Renfuxing stock. He would not do the same as he did with Dairy Farm International last time. This time he would exchange the stocks for cash plus Jardine Matheson shares. He just wanted to wait a while.

"Mr. Li, do you want to sell off Renfuxing's shares this time, or do you want to exchange them?" Wu Xiong said seriously.

"Let's exchange it. There won't be much profit from selling it." Li Wendi shook his head.

"Okay, according to calculations, the Renfuxing shares held by Mr. Li can be exchanged for 65.52 shares of Jardine Matheson Holdings and 84 yuan in cash." Wu Xiong reported. He was naturally prepared for both options.

Li Wendi nodded and said, "Use all the cash you get to buy shares of Golden Gate Construction Company for me."

Wu Xiong finally figured out some things. There have been quite a few acquisitions on the market recently. Could Kinmen Construction Company also be among those being acquired by Jardine Matheson?

"Okay, Mr. Li!" Wu Xiong glanced at Li Wendi and asked, "I want to ask Mr. Li a question. Does Jardine Matheson also want to acquire Kinmen Construction Company?"

Li Wendi smiled and said, "Who can say for sure? However, Kinmen Construction Company is of better quality than Renfuxing. Jardine Matheson may be tempted."

Wu Xiong was stunned for a moment, then nodded and said, "Thank you Mr. Li for your advice!"

"Mr. Wu, please don't tell anyone else. It would be bad if it turns out to be inaccurate." Li Wendi smiled slightly, implying that today's conversation should not be leaked.

"Don't worry, Mr. Li, I'll keep my mouth shut." Wu Xiong quickly promised not to tell anyone.

After the failure of the Hong Kong Electric Company's acquisition of the China Gas Company, it still refused to give up and began to purchase a large number of China Gas Company shares from the stock market, trying to enter the board of directors and become a director through this method.

However, stockholders were very alert and had also heard about the acquisition of China Gas by Hong Kong Electric Company. So after the rumor spread that "Hong Kong Electric Company wanted to buy enough shares from the stock market and then launch a takeover of China Coal Company", stockholders began to be reluctant to sell their shares and the stock price rose slightly.

Hong Kong Electric Company did not get many shares and was not qualified to join the board of directors, so Connor went to visit John Madden, chairman of Wheelock Company, and asked John Madden to propose that he join the board of directors of China Coal. Connor proposed a project in which Wheelock Company and Hong Kong Electric Company jointly developed the land of the old power plant in Hong Kong. Under the temptation of huge profits, John Madden agreed to Connor's request.

This made Li Wendi feel uneasy. If he wanted to acquire China Gas Company in the future, he was afraid that Connor would become a stumbling block.

However, Li Wendi does not intend to privatize the company. He just wants to be elected as the chairman of the board of directors of China Coal Corporation. It will be enough for him to hold about 45% of the shares. As long as he takes away the shares held by Li Fushu and John Madden, that should be enough.

"It seems that a battle with the Hong Kong Electric Company is inevitable. But this is also good. As long as there is sufficient funding, we can take over the blame." Li Wendi showed a somewhat creepy smile.

Monday, September 3
Jardine Matheson also announced that it would acquire Kinmen Construction Company and privatize the company by exchanging 4 Kinmen Construction Company shares with a par value of HK$6 for every 10 Jardine Matheson shares with a par value of HK$2.1.

This time, Li Wendi did not come to HSBC in person to instruct Wu Xiong, but called Wu Xiong to tell him to do it the same way as last time. Although he did not propose a cash payment this time, Li Wendi was more willing to use this method because he could get more Jardine Matheson shares.

The stock market is gradually recovering. As the leader of blue-chip stocks, Jardine Matheson's stock will certainly not disappoint. This stock has a high prestige and many followers. Even in 74, Jardine Matheson's stock was the strongest.

Therefore, at this time, it is not a problem for the stock with a face value of 6 yuan to rise to 10 yuan. In this way, Li Wendi can at least earn 6% profit.

Jardine Matheson's acquisition of two such high-quality companies caused a huge reaction in the market. The stock price began to rise from 6 yuan, and after a morning, it had risen to 6.4 yuan.

However, Jardine Matheson's replacement plan has not changed at all, causing more shareholders to flock to Jardine Matheson to register to sell their shares.

At the same time, Li Wendi received news that Eagle Properties Limited used 1500 million in cash and borrowed 6000 million from the bank to plan to acquire a large amount of industrial land, and it was expected to gradually build industrial buildings of no less than 100 million square feet.

The real estate market is gradually recovering, but many real estate developers are developing around "commercial land and residential land" and are very indifferent to industrial buildings with slightly lower profits, although the industry in Hong Kong is booming and the demand is not low.

Li Wendi suddenly came up with the idea of ​​following the Eagle Properties Group. In the early 80s in his previous life, the Eagle Properties Group made a lot of profits from industrial buildings and then moved to Tsim Sha Tsui and Causeway Bay, where it built famous buildings such as the Eagle Centre in Causeway Bay and the Regal Hotel in Tsim Sha Tsui.

Of course, the best ways to make money in Hong Kong are commercial buildings and residential properties, but insufficient funds are a common problem for most real estate developers.

So, Li Wendi came to China Entertainment Real Estate Company and summoned Wang Tichuan.

"I've learned that industrial land is very cheap now. For example, industrial land in Kowloon Bay is 180 yuan per square foot, and in Kwai Chung it is 150 yuan per square foot. I plan to let China Entertainment Properties specialize in the development of industrial buildings during this period of time. What do you think?" Li Wendi said thoughtfully.

Wang Tichuan understood that Li Wendi meant to no longer acquire any commercial properties and land, but China Entertainment Real Estate Company had no experience in industrial building development. If it rashly entered the industrial building industry, it would require constant time to adjust. It would be better for it to continue to focus on commercial buildings.

However, Wang Tichuan said tactfully, "The competition for industrial buildings is also fierce. We have no experience in development, so it is difficult to achieve results in a short period of time. It is better to acquire industrial buildings first, and then Zhongyu Real Estate will develop the land when the opportunity becomes clear. What do you think, boss?"

Li Wendi knew Wang Tichuan's concerns, and he didn't think about getting Zhongyu Real Estate Company to accept this plan overnight. Things needed to be done slowly, and he also needed to communicate with the construction engineers of Wenyan Decoration Engineering Company to see if the time could be shortened. After all, industrial building development would be more profitable in the next 3 or 4 years. Around the 80s, speculation in industrial buildings made as much money as development, and they could be sold in time to recover funds (construction takes time).

“Okay, you first come up with a plan to acquire the industrial buildings in Kowloon Bay. As for the development of industrial land, I will find out more about it. You also need to be prepared for the development.” Li Wendi said.

"Yes, boss!" Wang Tichuan continued, "We still have 2000 million in cash in our company account. According to the current situation of industrial buildings in Kowloon Bay, the average price is 50 yuan per square foot. We can buy three 3-story industrial buildings."

"Okay, pay attention to the use of funds and don't affect the company's operations." Li Wendi reminded.

Industrial buildings are indeed not valuable nowadays, but once the economy recovers, a large number of companies will naturally move into Hong Kong, and industrial buildings will gradually become popular.

According to my memory from my previous life, by the first quarter of 76, the price of industrial buildings would have risen to the highest peak since 71. At that time, China Entertainment Real Estate would have made at least 6% profit.

(End of this chapter)