Started from Hong Kong Island

Chapter 308 Chapter 306 [Acquisition and Sale]

The negotiations ended unpleasantly, and the hatred between the two sides increased significantly.

Starting from the second day, Run Run Shaw increased his efforts to bribe newspapers. He wanted to promote his own movie while continuing to slander Li Wendi. He wanted to make Li Wendi bow her head in this way.

Li Wendi ignored all this. Even when reporters came to interview him, he just said, "I have worked hard to get to where I am today. I always keep my promises. Isn't trust the key to being a businessman?"

This sentence does not mention Run Run Shaw, but it does mention Run Run Shaw.

The reporters all make a living by writing, so after a little thought, they understood what Li Wendi meant and conducted an analytical report on it.

Hong Kong reporters once again dug up some negative information about Uncle Shaw and discovered that he never abided by contracts. As long as there was profit involved, the contract was meaningless.

Run Run Shaw was naturally furious and sent a lawyer's letter to several newspapers, demanding that the newspapers restore his reputation.

But the newspaper was also stubborn and published the lawyer's letter together with the evidence, and wrote a sentence below: "Does Mr. Shao want to cover up the sky of Hong Kong?"

This statement made Run Run Shaw even more famous. Legal professionals publicly said that Run Run Shaw abused the law. If the court dared to hold a trial, they would complain to the Governor of Hong Kong. Some people in the business community said that this was a daily operation of Uncle Six and it was harmless.
Li Wendi sat on the leather chair, grinning from ear to ear, "It's already over, but you guys are holding on to it. I've been bullied by you guys for years, and now someone finally got you."

In fact, there are a lot of negative news about Run Run Shaw, which were not exposed before because he was very powerful and those people did not want to offend this tycoon in the film industry. Now it is different. Li Wendi has made a good start, and Run Run Shaw is being pushed down by everyone.

Early November

Since Li Wendi was short of funds, he asked Lin Dongmei to use all of the millions of funds she had to buy Longde Insurance stocks, so that she could make more profits.

On the 4th, Jardine Matheson announced that it would acquire Longworth Insurance Company for $110 per share in cash, thereby strengthening the company's strength in the insurance industry and improving the business structure of the Jardine Matheson Group.

Li Wendi asked Hu Jinyan and Lin Dongmei to go to the Huoduoli Company hired by Jardine Matheson to register the sale of the shares of Lund Insurance Company in their hands.

In the office of Changxin Real Estate Company, Lin Dongmei reported the profits this time: "We bought a total of 90 shares of Longde Insurance Company, using a 10-fold leverage method. After deducting all expenses, the funds returned were 2754 million yuan, of which the profit was 2004 million yuan."

Li Wendi nodded. He did not use leverage in his investment in Longde Insurance shares at Sun Hung Kai Securities. He only bought about 10.5 shares, and the funds he received were 1131.9 million yuan, with a profit margin of nearly 47%.

This investment was very good. Both private investment companies and personal investments had good returns. Li Wendi now had over 10 million yuan of funds at his disposal, which gave him a sense of security.

"Boss, do you have any specific investment direction for the 2700 million yuan in the account?" Lin Dongmei asked.

Li Wendi thought for a moment and said, "Buy all the shares of Hutchison Financial. There is no need to use leverage this time. Hutchison Financial's plate is not large and cannot accommodate such a large amount of funds."

"Is it going to be privatized like Longde Insurance Company?" Lin Dongmei asked after a moment of hesitation.

Li Wendi smiled and said, "It's very likely. Willis is a tough guy. There's no reason why he can't see the role of Hutchison Finance. Instead of sharing the profits with others, it's better to put some of the cost into your pocket. If you're lucky, you can make back the cost in one or two years."

He was obviously fooling Lin Dongmei, but Li Wendi was good at half-truths, so Lin Dongmei couldn't tell whether Li Wendi's words were true or false.

Lin Dongmei thought of something else and asked, "All the major companies are acquiring or privatizing. Doesn't Changxin Real Estate have any other plans? It's the right time to privatize some high-quality companies."

Li Wendi responded calmly, "There will be such opportunities again. We are not in a hurry at this moment. We should focus on bargain hunting and earn more cash."

"Is it the principle of when others retreat I advance and when others advance I retreat?" Lin Dongmei had some understanding.

"Not entirely, but almost." Li Wendi touched Lin Dongmei's face and smiled, "It's mainly because there are no suitable companies. Blind acquisitions will not only consume a lot of funds, but also require more energy to restructure assets. It's better to buy at the bottom and reduce the workload for employees."

Acquiring properties is also much easier than acquiring a company, and the workload is simply not on the same level.

Shortly after the Spring Festival in 76, major Chinese companies began an even more frantic shopping spree. For example, Cheung Kong Holdings acquired a company called City Properties and then privatized it.

This was caused by the butterfly effect. After all, Li Wendi robbed Li Huanggua's Capital Real Estate Company, so Li Wendi did not receive the news until Li Huanggua launched the acquisition and did not catch up with the acquisition. Otherwise, he would definitely have entered the market to make a fortune.

This City Properties Company is similar to Metropolitan Real Estate Company in that both are specialized in collecting rental income. Its assets are relatively high-quality. It owns two 9-storey buildings in the urban area of ​​Kowloon and several industrial buildings in North Point, Kowloon Bay and Yau Tong Industrial Zone. The monthly rental income is around HK$60, and the annual rent is HK$720 million.

When the industrial buildings are built, Li Huanggua will definitely sell these properties. After all, this guy follows the principle of "goods are in rotation". Cheung Kong Holdings has rarely held a large number of properties for rent, all of which are investment projects.

Except for Dachang Real Estate Company and Hopewell Holdings Company, the other companies of the "Five Tigers of Chinese Capital" were all attacking in all directions. Cheng Yutong of New World Development Company was a friendly acquisition, giving the founders generous benefits, and he did not carry out acquisitions in a multi-pronged manner like the others.

In fact, in addition to the 'Five Tigers of Chinese Capital', there is another person who deserves attention, and that is the ship charter king of Kai Tak Property Company. He actively exerts the power of strong cash flow and is also making acquisitions everywhere. However, like Cheng Yutong, he will never make malicious acquisitions. As long as the founder and major shareholder are unwilling, Kai Tak Property Company will withdraw immediately.

Kai Tak Property Company's several issuances of new shares allowed the charter king to reach a peak of control over Kai Tak Property Company, with his holdings exceeding 60%, thus providing Kai Tak Property Company with sufficient funds to carry out acquisitions.

Although the proportion of shares held by other shareholders has been continuously reduced, the share price of Kai Tak Property has risen a lot, so these people are also smiling. They do not expect to control Kai Tak Property, they just want to make more money from the stock market.

Li Wendi looked at the chaotic situation in 76. Some opportunities were simply missed, and when others announced acquisition plans, it was no longer suitable to enter the market. He was a little distressed, as if he saw colorful banknotes flying away.

So, he thought about whether to launch a false acquisition and reap a wave of profits in the stock market. In the end, he shook his head. There were too many opportunities this year. There was no need to reap the profits and at the same time destroy his reputation that he had worked so hard to accumulate.

The privatization of Hutchison Financial might happen during this period, so Li Wendi put down his work and came to Sun Hung Kai Securities.

"Mr. Hu, help me check the stock price of Hutchison Financial." Li Wendi gave a direct order.

Since Li Wendi had asked about Hutchison Financial last time, Hu Jinyan paid special attention to the company's situation, so he could immediately answer Li Wendi's question, "1.8 yuan per share!"

"Hutchison Financial suffered heavy losses at the hands of the previous boss Qi Dezun. Now that the stock market has recovered, the situation of most companies has improved, and the stocks held by Hutchison Financial are now worth a lot of money." Hu Jinyan briefly talked about the situation of Hutchison Financial.

Li Wendi nodded and said, "Including the funds recovered by Longde Insurance Company, I should have 1200 million yuan in my account. I will use this money to buy Hutchison Financial shares. I will take as many as I can and try not to alert Hutchison Whampoa (which has already been successfully merged)."

1200 million yuan can buy 2100 million shares of Hutchison Financial, but the total share capital of Hutchison Financial is only 7500 million shares, and 2100 million shares account for 28%, which is unlikely to be acquired.

"Yes, I will try to get as much as possible." Hu Jinyan responded. He knew that this time it must be Hutchison Whampoa that wanted to privatize Hutchison Financial.

Suddenly, an employee came over and whispered a few words to Hu Jinyan, who nodded repeatedly.

"Mr. Li, do you have anything else to say?" Hu Jinyan asked respectfully.

Li Wendi shook his head. "No, Mr. Hu, if you have something important to do, go and do it first." "Nothing important, but our boss wants to see you. Do you have time?"

Seeing that Li Wendi was a little hesitant, Hu Jinyan explained, "Our boss is still on the way, so let us keep you, Mr. Li."

"Okay, then I'll wait for Mr. Feng." Li Wendi said to Hu Jinyan, "Mr. Hu, tell me about the current stock market situation, and also tell me about the explanations of those economic analysts."

Li Wendi is a good little prophet, but some of his memories are fuzzy and he needs to use some experiences to recall those things.

So Hu Jinyan told Li Wendi everything he knew. As for what decision Li Wendi would make, it didn’t matter to him.

Twenty minutes later, Feng Jingxi finally arrived. He apologized to Li Wendi and then led Li Wendi into his office.

As usual, the secretary brought a cup of tea and then left.

"Mr. Li, thank you for taking care of the securities company's business during this period!" Feng Jingxi said with a sincere smile, "In just three months, we have made 2 million yuan in profits from the stock market and repaid all the bank loans. Mr. Li is really sharper than people like me who are engaged in securities and stocks. We are really ashamed to say this."

"Mr. Feng is flattering me! If others hear me, they will think I am a fortune teller." Li Wendi joked, "It's just luck and courage that have such a good return. If there is a loss, I can't do anything about it. I may even face bankruptcy."

The two of them complimented each other for a few more times, and Feng Jingxi began to get to the point. "The reason why I wanted to keep Mr. Li was that I wanted to discuss something with him and to ask for his opinion. It doesn't matter whether it succeeds or not."

The premise was laid, and Feng Jingxi directly asked, "I wonder if Li Wendi is willing to sell his Tiehang Building?"

This sentence reminded Li Wendi of an event in his previous life. The China Construction Bank Building was originally acquired by Hong Kong Land Development, and later sold to Sun Hung Kai Securities. It became the headquarters and important asset of Sun Hung Kai Securities in Central.

Of course, the current China Railway Building is also an important asset under Li Wendi. After all, it is a commercial building in Central and is priceless.

Seeing Li Wendi's hesitation, Feng Jingxi continued, "I know that the real estate market is recovering now. After a while, the price of Central Building will definitely rise. Selling it now will be a bit of a loss. In order to make up for Mr. Li's loss, Sun Hung Kai Securities is willing to buy it at a 5% premium to the market price. If Mr. Li still feels that he is at a loss, Sun Hung Kai Securities is willing to offer a batch of stocks with great prospects in exchange."

"What do you think, Mr. Li?"

Li Wendi glanced at Feng Jingxi and said, "Mr. Feng's offer is very attractive. I don't want to see Mr. Feng suffer a loss. Why don't Sun Hung Kai Securities select a batch of stocks for me to see? If the prospects are similar to those of the Iron Building, it is not impossible."

"Okay! Then I'll have someone prepare it right away. Mr. Li, please wait a moment." Feng Jingxi has always been decisive in doing things.

Li Wendi did not want to sell the Tiehang Building. After all, it was an important asset and he might not come across it again in the future. However, considering some bigger opportunities in the future, the Tiehang Building could raise a large amount of funds for it and even make several times the profit, so he was tempted.

Not long after, Feng Jingxi came back and chatted with Li Wendi to relieve his boredom.

Li Wendi asked with a smile, "Mr. Feng, can you tell me why it is the Tiehang Building? I have quite a few buildings in Central."

"The reason is simple. The Iron Building is closer to the heart of Central." Fung King Hey explained, "Mr. Li is not in the securities business. He may not understand that those clients only come in because of the strength of the securities company. How can Sun Hung Kai Securities win the trust of new clients if it does not have its own property?"

"I see!" Li Wendi said with a smile, "But to be honest, I came here because of Mr. Feng's reputation. If Mr. Feng wasn't in charge of Sun Hung Kai Securities, I probably wouldn't have come in."

"Speaking of reputation, Mr. Li's reputation is much better than mine. I'm afraid that in the current Chinese circle, only the ship charter king can suppress you." Feng Jingxi complimented Li Wendi with a smile.

"Mr. Feng, you're joking! But I was lucky enough to acquire the Wharf Group. People in Hong Kong think that I fought for them, so they look up to me." Li Wendi said modestly, but his eyes could not hide a hint of pride.

Soon, the staff brought up the sorted stock list.

Li Wendi took the document and joked to Feng Jingxi, "Mr. Feng, please don't put some of Sun Hung Kai Securities' core stocks on the list, otherwise I will pick them up."

"Mr. Li, I'm really sorry. Some stocks are really not for sale. Selling them will damage the most core interests. I hope Mr. Li can understand." Feng Jingxi said apologetically.

Li Wendi waved his hand and said, "It doesn't matter! I understand. Mr. Feng doesn't need to apologize."

When Li Wendi was looking down, he noticed the name of Hutchison Whampoa, so he looked up and asked, "Mr. Feng, can you tell me how many shares of Hutchison Whampoa your company holds?"

Although Feng Jingxi was old, he still had a good memory and immediately answered, "About 3000 million shares."

"Mr. Feng, I think your company will hold Hutchison Whampoa's shares for a long time." Seeing Feng Jingxi nod, Li Wendi continued, "I think if there is a need, I hope Sun Hung Kai Securities will give priority to selling to me."

These words gave Feng Jingxi a feeling that Li Wendi wanted to make arrangements for Hutchison Whampoa so that it would be easier to take action in the future.

"Okay! I promised Mr. Li." Feng Jingxi knew that as long as he agreed to Li Wendi's request, the China Railway Building would basically belong to Sun Hung Kai Securities.

Li Wendi did not excessively plunder the high-quality stocks of Sun Hung Kai Securities. Instead, he adopted the method of "dividing them in half upon meeting" in exchange for stocks of equivalent value, including stocks of five companies: New World Development, Hang Lung Group, Hopewell Holdings, Sun Hung Kai Properties, and Great Eagle Properties.

After Li Wendi selected the stocks, he handed the new list to Feng Jingxi.

"Since we have reached an agreement, can you let me release the news in advance?" Feng Jingxi said with a smile.

Feng Jingxi released the news simply to raise the stock price and attract customers, which is a very legitimate idea.

"Mr. Feng, please feel free to do as you please!" Li Wendi spread his hands.

In fact, Li Wendi was somewhat reluctant to sell the China Railway Building. After all, this building was located in the core area of ​​Central and was one of the rare buildings. However, it was not a Grade A commercial building after all. Li Wendi preferred Grade A commercial buildings, and small commercial buildings were still slightly aside.

Although he could not shake the position of the Hong Kong Land Development as the landlord in Central, Li Wendi still wanted to have the title of the second landlord in Central so that he could make a living by collecting rent in the future.

Don't underestimate the rental income. The future rent of Hysan Development's property in Causeway Bay alone is astonishing, with a rent of 30 billion yuan a year and a net profit of 22 billion yuan, which is more than what some technology giants make. And this is only the 450 million square feet of rental area of ​​Hysan Development.

Office buildings in Central are much more expensive than those in Causeway Bay, so the rental income is definitely much higher.

Li Wendi already owns Harbour City, which is enough to dominate Tsim Sha Tsui. If he can also be awarded the title of the second landlord in Central, the landlord in Tsim Sha Tsui East, and the landlord in Causeway Bay, it will not be a problem for the annual rental income to exceed 100 billion.

Add to that other businesses, Li Wendi was extremely excited just thinking about it.

Just as Feng Jingxi expected, as soon as the news came out, the share price of Sun Hung Kai Securities began to rise sharply (compared to usual), with a daily increase of 6%.

(End of this chapter)