Started from Hong Kong Island

Chapter 289 287 [No Shame]

Since they had to jointly build two Grade A commercial buildings, the workload was quite large and involved many matters, so after discussion, the two decided to open a new company, with Changxin Real Estate and Changheng Real Estate jointly investing, each holding 50% of the shares, and sending their respective employees to join the new company, and recruiting for other vacant positions from the society.

According to the report submitted by Zhang Wentao, a medium-sized commercial building in Sheung Wan owned by Changxin Real Estate Company is about to be completed and will be put up for sale around the Spring Festival next year. The floor area is 1.4 square feet. The bottom two floors are shopping malls and shops, and the 18th floor is all offices, with a total area of ​​26 square feet.

According to the current office prices in Sheung Wan, Changxin Real Estate Company can obtain a profit of about 1000 million yuan. This piece of land was purchased by Changxin Real Estate Company at a low price, so the profit will be slightly higher.

As for the Grade A commercial building jointly built with Changheng Real Estate Company, it will not be sold until the second half of 76. The price will be even higher at that time. Moreover, the price of Grade A commercial buildings is higher than that of medium-sized commercial buildings, so the profit will be much higher.

The two of them discussed it slowly, and the impatient Chen Xingzhou was somewhat dissatisfied with the slow speed of making profits from building a commercial building. He then directly proposed that the new company take over some land and hype it up. Although the profits would not be as much as from building a commercial building, the speed would be fast enough.

Li Wendi refused because this plan would not last long. Even though he was in great need of funds now, he would not do such a business that would only quench his thirst with poison.

This kind of business is only suitable for those who have not yet made a fortune and want to use this method to quickly gather funds, increase the capital in their hands, and leverage bigger projects. For example, the fledgling Chen Songqing also used this method, but he soon gave it up.

How could Li Wendi use a method that even a madman like Chen Songqing had abandoned? Moreover, Li Wendi is now a real estate tycoon. What he needs is to accumulate a large amount of land reserves and realize large-scale "rotation of goods".

Chairman's Office of Kai Tak Properties Limited

Li Wendi has announced at the board meeting that all the shares of Kai Tak Properties held by Mingcheng Real Estate will be sold to Baochuanwang. At the same time, the shares of Mingcheng Real Estate owned by Kai Tak Properties will be sold to Ducheng Real Estate, retaining only about 10% of the shares.

Therefore, Bao Yugang became the largest shareholder of Kai Tak Property Company, but was not elected as the chairman of the board of directors immediately. Instead, he waited until Mingcheng Real Estate Company completely withdrew from Kai Tak Property Company before Bao Yugang became the chairman of the board of directors.

Under Bao Yugang's management, Kai Tak Property Company bought a number of high-quality properties with loans, including a lot of good land, most of which were transferred from Bao Yugang's private company, thus strengthening the strength of Kai Tak Property Company.

Therefore, Bao Chuanwang needed to compensate Li Wendi for the difference. Li Wendi said that he could not take the money and just wanted to follow the previous transaction price. However, Bao Yugang insisted on giving Li Wendi the difference and reduced the 3600 million lent to Li Wendi to about 3000 million.

Li Wendi couldn't argue with the argument and had to accept the kindness of the ship charter king.

In order to repay the favor to the king, Li Wendi took the opportunity to make a new suggestion, "Mr. Bao, Hong Kong Land still holds 26.8% of the shares of Wharf Holdings. If Mr. Bao is interested, he can work with Mr. Cheng Yutong of New World Development to acquire this 26.8% stake."

Today, Wharf Holdings is in the hands of Li Wendi. Without Li Wendi's invitation, even if Baochuan Wang and Zheng Yutong were tempted, they would not have bought Wharf Holdings' shares, let alone joined the board of directors.

The charter king was somewhat tempted. The Wharf Group would definitely be a treasure in the future. The Harbour City in Tsim Sha Tsui alone was the envy of others, and the annual dividends in the future would be extremely substantial.

"I accepted the gift from Mr. Li, but I wonder how much I can get?" asked the boat charter king.

"About 12%. This is the result of my discussion with Mr. Cheng Yu-tong. If Bao Sheng feels it is too little, he can buy more from the stock market. Don't exceed 18%." Li Wendi continued, "No matter how many shares you have, I will recommend you two to the board of directors of Wharf Holdings."

"Okay, 12% is already a lot. If there is a chance in the future, I will buy some more stocks from the stock market." The charter king felt that the current price of Wharf Holdings was a bit high, and it would be wise to buy at a low price.

By doing so, Li Wendi not only repaid the favor of the ship chartering king, but also earned a favor from Cheng Yutong. Moreover, with the support of the two Chinese tycoons on the board of directors of Wharf Holdings, Li Wendi could do things more freely and his control was taken to a higher level.

The two chatted for a while and then left Kai Tak Properties together.

The acquisition of shares of the India-China Shipping Company went very smoothly. Such a large amount of shares did not cause any reaction in the stock market, which made Li Wendi feel a little strange.

"Mr. Li, we have successfully acquired 0.5 million shares of India-China Shipping Company at a price of 950 yuan. Do we want to buy them in a big way now?" Hu Jinyan asked.

When Li Wendi had bought more than half of the shares, he asked Hu Jinyan to inquire about the situation of Jardine Matheson, so he asked Hu Jinyan, "What's the situation at Jardine Matheson?"

Hu Jinyan's face became serious. "The senior management of Jardine Matheson has secretly contacted the shareholders of the India-China Shipping Company. I heard that they promised to buy out their shares at a price of 1.2 yuan. It seems that they have already discussed it with the four shareholders."

Li Wendi holds about 24% of the shares of Indo-China Shipping Company. If he wants to acquire the entire company, he must obtain the consent of Li Wendi as a shareholder. Therefore, Li Wendi is not in a hurry at all and wants to wait for Jardine Matheson's operation.

"Keep absorbing, and at the same time release everything we know, including the proportion of shares I hold in the India-China Shipping Company." Li Wendi instructed.

"Okay, I'll do it right away!" Hu Jinyan immediately disappeared in the small conference room.

By the afternoon, the news had spread widely, and many investors flocked into the stock market, scrambling for shares of the China India Shipping Company. The share price rose from 0.5 yuan to 0.8 yuan, and by the close of the market at 4 o'clock, the share price had reached 1 yuan.

Newby, the boss of Jardine Matheson, was so angry that his face turned black, not because the acquisition would cost more money, but because of why the acquisition was leaked. This was news that only the top executives of Jardine Matheson knew.

Shareholders who had agreed to the deal in advance turned against the offer and wanted Jardine Matheson to buy out their shares at a 1% premium on the original price of RMB 5, to RMB 1.5.

This alarmed the board of directors of Jardine Matheson. Although Newbigin had considerable prestige in the board, after the incident at Wharf Holdings, he no longer had the same status as before. So the directors all questioned Newbigin and asked how to deal with the matter.
Several directors suggested withdrawing the acquisition of the China-India Steamship Company and allowing Newbigin to choose another company to acquire it.

However, Newbijian believed that the China-India Steamship Company was of excellent quality and very much in line with the interests of Jardine Matheson, and that even at the current price, it would still be very profitable.

Under the support of Bao Fuda, Newbijian's proposal was approved and the acquisition of Yinhua Shipping Company was continued. In fact, Newbijian had already found out that it was Li Wendi who was behind it. He thought that Li Wendi wanted to acquire Yinhua Shipping Company and expand his shipping investment company, so he made up his mind not to let Li Wendi get what he wanted.

"It's Li Wendi again, this guy! We haven't settled the score with him yet, but he wants to weaken us." Bao Fuda's roar was heard in the office.

"That's why I strongly support the acquisition of the Indo-China Shipping Company. We have already lost to Li Wendi once, and we cannot lose again, otherwise those Chinese will only think that our Jardine Matheson Company is on the decline and they can deal with us." Newby thought deeply about the problem.

"Boss Newbijian, you are right! Li Wendi must be taught a lesson." Bao Fuda was so angry that his teeth were itching.

"However, according to investigation, Li Wendi holds about 24% of the shares of the Indo-China Shipping Company. Our privatization plan may be shelved." New Bijian said with a frown.

"Li Wendi still owes Canadian Commercial Bank and Citibank a loan of 2 million yuan. In addition, his companies are engaged in a massive bottom-fishing attack, so he is now short of funds. As long as we take over 60% of the shares from other shareholders and stockholders, Li Wendi will definitely not keep up. He is very likely to sell at a high price in the stock market, make a profit and exit." Bao Fuda analyzed.

"Well, even if we can't privatize it, we can't let Li Wendi succeed in the acquisition." Niubijian glanced at Bao Fuda and said, "Mr. Bao Fuda, this matter is handed over to you. I will ask the financial director to assist you."

"Okay, Mr. Newbijian, I will successfully defeat Li Wendi." Bao Fuda said firmly.

On the morning of the third day, Jardine Matheson announced that it would take over the China-India Steamship Company at a price of 1.3 yuan.

As a result, many shareholders went to the Huoduoli Company entrusted by Jardine Matheson to register for sale.

Li Wendi did not initiate a takeover of the India-China Shipping Company as Bao Fuda had imagined, but instead sent someone to the Huoduoli Company to register for sale.

It’s not that Li Wendi doesn’t want to make more money, but he really doesn’t have the mind to continue to dwell on this matter. After all, 25% of the shares will have a huge impact on the stock price, so it’s better to just save some trouble.

In this way, Li Wendi successfully made a profit of more than 700 million from the India-China Shipping Company, with a return rate of up to 150%.

This rate of return left Hu Jinyan a little stunned. This was not the bull market of 72 or 73, so it would be strange to have such a high rate of return.

The interest earned allowed Li Wendi to continue investing in the stock acquisition of Dasheng Real Estate Company. After Hu Jinyan's operation, Li Wendi already held nearly 10% of the shares of Dasheng Real Estate Company, and was getting closer to launching the acquisition.

Bao Fuda was somewhat surprised by Li Wendi's decisive decision to give up the Indo-China Shipping Company, but when he thought about it, it made sense. Without sufficient funds, how could they compete with the huge Jardine Matheson Company? Giving up cashing out was the best option.

Therefore, Bao Fuda thought that he had defeated Li Wendi once and saved some face. Of course, he would still target Li Wendi in the future.

Bao Yugang and Zheng Yutong acted quickly. After obtaining Li Wendi's permission, the two of them immediately discussed the matter and made an appointment with Bao Fuda and Newby of the Hong Kong Jardine Matheson Group to discuss the sale of Wharf Holdings' shares.

When Bao Fuda and Niu Bijian were investigating Li Wendi's interpersonal relationships, they learned about the relationship between Bao Yugang and Zheng Yutong and Li Wendi, and also knew something about their personalities and work styles. So they guessed that Li Wendi had asked the two to come and acquire the shares of Wharf Holdings.

Knowing that Li Wendi wanted to completely expel the influence of the Hong Kong Land Development from the board of directors of Wharf Holdings and strengthen his control over the board, Newby and Bao Fuda both believed that interests were the most important and that grudges could be put aside. However, they wanted to squeeze more benefits from Cheng Yutong and Pao Yugang, so they demanded a 50% premium.

Cheng Yutong and Bao Yugang are not fools, of course they would not agree. They jokingly said that they could wait for the share price of Wharf Holdings to fall before acquiring the company, because they knew that the share price of Wharf Holdings would not rise for the time being, which was also controlled by Li Wendi.

Newby and his friends also knew that the share price of Wharf Holdings could not be maintained at HK$13 for too long. Seeing that the two men were so determined, they had no choice but to give in and wanted to sell it at a 4% premium.

Zheng Yutong and Bao Yugang still refused. After several rounds of negotiation, they finally reduced the premium to 2% and acquired the company at 16 yuan per share.

After the negotiations, Newby and the other man smiled a little. Although they lost the Wharf Group, they also made a lot of profit. At least they got a consolation prize and not nothing.

After the transaction was completed, Li Wendi immediately convened a board meeting of Hutchison Whampoa and introduced Cheng Yutong and Bao Yugang to the board of directors, who became members of the board.

At the beginning, some foreign directors were quite dissatisfied. Li Wendi directly responded, saying that the shares they held combined were not as many as Zheng Yutong alone, so what qualifications did they have to object? Moreover, according to Hong Kong's company law, Zheng Yutong was absolutely qualified to be a director.

Finally, Bao Yugang held 12%, which was beyond the 16% principle of company law. However, with the support of Cheng Yutong, Li Wendi's side held more than 62% of the shares of Wharf Holdings and could have voted in favor or veto without considering their opinions.

This group of foreign directors were very unhappy. Li Wendi, who held great power, was even more unhappy when he saw this, so he proposed an even uglier suggestion, which was to clear out all shareholders who held less than 2% of the shares from the board of directors.

Bao Yugang and Zheng Yutong looked at each other and raised their hands in agreement, so another four directors were cleared out, leaving only six directors on the board, half of whom were Chinese.

The remaining three foreign directors were trembling with fear, worrying about when they would be removed from the board of directors, so they did not dare to have any opinions on Li Wendi's next proposal.

At this point, Li Wendi completely controlled the board of directors of Hutchison Whampoa and became the true chairman of Hutchison Whampoa.

Zheng Yutong and Bao Yugang admired Li Wendi's approach, but they couldn't do it because they were not shameless people like Li Wendi. Outsiders might say that Li Wendi was young and energetic, but they were already in their 50s and really needed to save face to survive.

(End of this chapter)