Started from Hong Kong Island

Chapter 429 427 [Grand Hotel Group]

"Now that the mainland market has opened up, can Junfu Jewelry enter the market ahead of time and occupy the market?" He Qijun closed the account book and asked Li Wendi.

She knew that many of the family's companies had already entered the mainland, most with the aim of occupying and expanding the market.

Li Wendi smiled and replied, "Other industries may be suitable for occupying the market early, but jewelry stores are not suitable. Because they have just opened, the public security is not very good, and jewelry stores are clearly open to people to rob."

He Qijun frowned. She recalled the scene where the Junfu Jewelry Company store was robbed and some employees were injured. "Forget it, those robbers are inhumane."

"Maybe there is a place where we can enter in advance." Li Wendi suddenly had an idea.

"Where?" He Qijun asked puzzledly.

"Under the feet of the emperor! Such a place should be relatively safe, you can give it a try." Li Wendi said lightly.

So far, all of his companies are doing projects in Guangdong Province. Li Wendi also wants to use this opportunity to expand the market scope and has also conducted investigations to facilitate future land acquisition.

"Yanjing?! Then let's open two stores and give it a try. When the situation is right, I will take Mom and Xiaonan to Yanjing to see the Great Wall." He Qijun said with a gentle smile.

"I often hear my grandfather talk about Shanghai. Is there any place where we can open a store?" He Qijun continued.

"It's hard to say! You can send someone over to investigate." Li Wendi had forgotten a lot of things from his previous life, and he had never lived in the Magic City in the 80s, so it was hard to explain clearly.

The couple was chatting, and even the secretary didn't dare to disturb them and quietly left.

In fact, Li Wendi knew that the best time to enter the mainland would be the late 80s and early 90s, and those who entered now would mostly be used as guinea pigs.

Changxin Group Office

Gao Yi submitted a document to Li Wendi regarding the Grand Hotel Group.

The owner of the Grand Hotel Group is the Kadoorie family, a Jewish family that also owns the electricity industry. Unlike the Hong Kong Electric Company, this family monopolizes the manufacture and transmission of electricity in the New Territories.

The Grand Hotel Group has now grown into a diversified company with hotel, real estate and cable car businesses.

The hotel businesses include The Peninsula Tsim Sha Tsui (five-star), Kowloon Hotel (four-star), The Peninsula Manila (five-star), The Peninsula New York (five-star), and The Peninsula Beverly Hills (five-star), Los Angeles (five-star).

Real estate businesses and properties include Repulse Bay Repulse Bay (high-end residential apartments), Repulse Bay Shopping Centre, St. George's Building (Central), Harbour Enterprises, and Peninsula Club management rights.

The cable car business includes the Peak Tram (clubhouse and transportation services).

The Grand Lisboa Hotel Group is one of Hong Kong's blue-chip stocks with extremely large assets. It is an important asset of the Kadoorie family, one of the top ten families in Hong Kong, and is known as the left wing of the Kadoorie family.

In fact, the Kadoorie family is not the largest shareholder of the Grand Hotel Group. Its largest shareholder is the Chinese Liang Zhonghao, who holds 3100 million shares, accounting for 31% of the total share capital, while the Kadoorie family only holds 1023 million shares, accounting for 10.23% of the total share capital.

For a long time, the largest shareholder of the Grand Hotel Group was the Kadoorie family, but the family had a special liking for the power industry and gradually reduced their shares and used the cash to expand the power plant. After the 70s, the Liang Zhonghao family became the largest shareholder. In the previous life, the Grand Hotel Group attracted the acquisition of sniper Liu Luanxiong and capable man Luo Xurui, making the Kadoorie family a powerful family.

Even though Leung Chung-ho is a major shareholder, he has no intention of "taking over the reins". It may be that Leung Chung-ho does not want to spend too much, so the two families have a gentleman's agreement. The Kadoorie family is in charge of the group's hotels and related businesses, while the Leung family runs the group's real estate business. The chairmanship of the group is rotated between the two families.

The Kadoorie family's controlling stake is unstable and its market value is lower than its net asset value, so it naturally became a coveted prey for the Cheung Kong Group.

"Do you want to acquire a large hotel group?" Li Wendi closed the document and asked with his fingers crossed.

"Yes! The Liang family, the major shareholder of the hotel, suffered heavy losses during the crash and has been struggling to hold on for so long. I think as long as I come to their door and ask, I am confident that I can convince the Liang family to sell their shares in the hotel." Gao Yi said.

Today, the share price of the Grand Hotel Group is only 17 yuan, a 80% drop from 34 yuan in the early 50s. This is a good opportunity to buy.

Although its market value is 17 billion yuan, the hotel group is of high quality. The equity of St. George's Building in Central, The Repulse Bay Residences residential building and shopping mall, and Harbour Enterprise alone is worth 17 billion yuan, not to mention other properties.

According to Li Wendi's idea, even if Changxin Group spends 34 billion yuan, it will still make a profit, and of course it does not need 34 billion yuan.

However, the Changxin Group had just bottomed out in Hong Kong and was really short of funds.

"So how much money do you plan to use to get it?" Li Wendi asked.

"I plan to acquire the company at 23 yuan per share, which will require 7.13 million yuan. Then I will purchase about 3.5% of the shares from the stock market, increasing my stake to 34.5%." Gao Yi continued to explain, "According to my research, most of the Kadoorie family's funds are invested in China Power Group, so it is unlikely that they can stop our attack."

Li Wendi shook his head and said with a wry smile, "The Kadoorie family has occupied the Grand Hotel Group for many years. I don't believe that the Liang family is not tempted by the Grand Hotel Group. It should be the result of powerlessness. Those board shareholders are likely to support the Kadoorie family. 34.5% of the shares will not have much effect."

"Boss, do you mean we need more funds?" Gao Yi frowned. "If it exceeds 35%, we will face a full takeover, and the funds needed will probably increase exponentially."

"Can Mingcheng Real Estate Company raise enough funds? Or will Ducheng Real Estate Company need to bear part of the responsibility?" Li Wendi asked.

Li Wendi does not plan to acquire the big hotel group now because they do not have enough funds. The economic crisis in 87 will be an opportunity. It will be better to acquire it then because the funds will be more sufficient.

"Ducheng Real Estate Company will bear part of the cost." Gao Yi replied.

"Let's not make the acquisition yet. I will talk to Liang Zhonghao in person (the two of them have talked at the banquet before) and try my best to take over the shares held by the Liang family. I will replace the Liang family and be responsible for the non-hotel business of the hotel group." Li Wendi said lightly.

"Boss, do you want to join the board of directors of the Grand Hotel Group and wait for an opportunity?" Gao Yi asked with sudden realization.

"Well! If we can get those shareholders who support the Kadoorie family to support us, wouldn't it cost less?" Li Wendi said with a smile.

"Boss, you're smart!" Gao Yi flattered him.

(End of this chapter)