Hong Kong Island's New Rich Era

Chapter 40 Huamao Qing
It was the end of June 1975.

A blockbuster news came out from the Sihui market, which is that the two British companies, Hutchison Whampoa Group and Hutchison Holdings, are about to change hands.

At first, this news did not cause much reaction among stockholders. The news that Hutchison International was about to change its owner had been circulating for almost a year, but there was no sign of Hutchison actually changing its owner.
Moreover, since the beginning of the year, there have been rumors in the stock market that Hutchison Group is going to go bankrupt and all of its subsidiaries are going to change ownership. But aren’t they safe now?

So, when investors heard the news, they just smiled and didn't take it too seriously.

As a result, on the morning of June 6th.

As Huangpu Group and Hebao Group were involved in major equity transfers, an emergency suspension of trading was applied for.

TVB, ATV and RTV, three television stations, broadcast a current news story happening at the Hong Kong Stock Exchange in real time.

At the same time, Citibank issued two announcements.

Commissioned by Shanfeng Investment, it acquired 6.04 million shares of Whampoa Group at HK$31654 per share, accounting for approximately 67.7% of all issued shares of Whampoa Group. It has now become the largest single shareholder of Whampoa Group.

In accordance with the Company Law, Shanfeng Investment officially took over the management of Huangpu Group. In order to reassure investors, it promised that the above shares would not be transferred within 12 months.

Entrusted by Chigo Industry, Chigo Industry acquired 5.6% of the shares of Ho Po Company at HKD 71.3 per share and is now the largest single shareholder of Ho Po Company. According to the Company Law, Chigo Industry officially took over the management of Ho Po Company.

These two announcements have been officially released in the Sihui market and have been confirmed.

At noon of the same day.

Liu Zhicheng, the boss of Shanfeng Investment, sat under a huge sign with the logos of Shanfeng Investment, Chigo Industry, Whampoa Group and Hebao Company, and released news to hundreds of media reporters across Hong Kong.

"Without affecting my original business, I have made greater breakthroughs in new areas. My Shanfeng Investment Company has become the largest shareholder of Huangpu Group and has officially taken over Huangpu Group."

"Chigo Industry has officially become the absolute majority shareholder of Hebao Company."

As soon as he finished speaking, reporters rushed to Liu Zhicheng, raised their microphones and asked about the acquisition process.

Liu Zhicheng's bodyguards were shocked and worried that their boss might be accidentally injured.

It is said that Liu Zhicheng welcomed everyone who came to him and actively interacted with reporters, and he was very popular for a while.

After dealing with the interviews with the reporters, Liu Zhicheng left the press conference.

In the afternoon, the Sihui market posted a new announcement from Citibank regarding Huangpu Group and Hebao Company:
Given that the shares purchased by our client Shanfeng Investment have triggered a general takeover offer, we will continue to acquire the 6.04% shares held by the remaining shareholders at a price of HK$32.3 per share in cash. The offer period will last for one month.

Given that the shares purchased by the client Chigo Industry this time have triggered a general acquisition offer, we will continue to acquire the 6.5% shares held by the remaining shareholders at a price of HK$28.7 per share in cash. The offer period will last for one month.

This is a mandatory regulation of the stock exchange, and Liu Zhicheng had to take the initiative to issue a takeover offer announcement.

Investors suddenly discovered that there was a takeover bid at par and a takeover bid at a premium. Why did this happen?
The main reason was that, at the suggestion of Hao Qingwen, Liu Zhicheng retained the listing status of Huangpu Group and used it as a financing platform, allowing it to issue additional shares to raise funds at any time.

After the privatization of Hebao Group was completed, Liu Zhicheng planned to merge with Chigo Industry and officially enter the manufacturing industry.

During the one-month offer period, if investors believe that Liu Zhicheng's entry into Huangpu Group and Hebao Company is a good thing, then these investors will not go to Shanfeng Investment to register for sale, but will wait for appreciation.

If investors register their stocks and sell them all to Shanfeng Investment, once their shareholding reaches 75%, Huangpu and Hebao will voluntarily delist.

If Liu Zhicheng really wants to privatize Huangpu Group, he should buy out the shares held by investors at a premium, but he still has too little cash. The next step for Huangpu Group must be to reorganize, expand shares and increase capital to repay debts. Now the announcement has been issued, but no one is sure what the remaining shareholders will choose. They can only wait patiently for the offer period to end before the truth can be revealed.

In fact, no matter what the result of the offer is, it will not be bad for Liu Zhicheng. In addition, Liu Zhicheng did not think that the acquisition of Huangpu and Hebao was anything special.

Therefore, Liu Zhicheng accepted Hao Qingwen's suggestion and behaved calmly and nonchalantly.

With reports on the radio and in newspapers, the acquisition began to enter the public eye and became known to everyone within a day.

The citizens of Hong Kong were shocked and began to talk about it.

Since the founding of Hong Kong, there have only been news reports of British capital acquiring Chinese capital, and this time Chinese capital acquired an old British-owned enterprise.

There is no doubt that this is a major event that boosts the confidence of Chinese businessmen and makes Chinese people feel proud.

Ever since the TV station reported the news of Liu Zhicheng's acquisition of Huangpu and Hebao at noon that day, the influence has spread like a tsunami, and Liu Zhicheng's name has become known to more people.

The bigwigs of Hong Kong's business community also began to discuss this matter at the Mandarin Oriental Hotel.

He Hongsen was drinking tea with some old friends. When he saw the news, he was speechless for a long time, smoking a cigar, and finally couldn't help but sigh.

"Chengzai is quite courageous. I have watched him grow up, but I have never seen him be so bold. I never thought he would actually succeed."

Zheng Yutong and He Hongsen have been friends for many years, and have known each other for decades.

"This incident also made us realize that the era of British capital is really over."

"He has found a treasure. What do you think? We should take this opportunity to get involved. There are so many British subsidiaries."

At this time, He Hongsen said to Feitingtai: "Mr. Huo, why don't we form a group? I think Hutchison Whampoa, a subsidiary of Jardine Matheson, is also good."

Uncle Tung took over the conversation: "Wharf Holdings is now facing the same situation as Hutchison Whampoa, with a shortage of funds, depressed stocks, and high-quality assets. It is a good deal worthy of investment."

"Mr. He, Mr. Zheng, you all know my situation. The Hong Kong government is keeping an eye on me every day, so I won't get involved." Feiting Tai said helplessly.

"Old Zheng, don't be jealous. You have a lot of treasures too. We are the ones who are envious and jealous." Guo Desheng said with a smile.

At this time, Li Zhaoji put down the newspaper in his hand and said, "We also have to thank Liu Zhicheng, the young man. This time, their successful acquisition of Huangpu and Hebao has pointed out a path for us. As long as we try, everything is possible."

"Besides, Hong Kong is so small, we must grab food from it, otherwise, we won't be able to grow stronger."

Li Ka-shing analyzed the current difficulties and opportunities in business development to them one by one.

"Liu Zhicheng's acquisition of Huangpu and Hebao will definitely require a large amount of follow-up funds. We Chinese investors should unite and never let him fall as an example. I'd like to tell you that I will definitely increase my investment in Liu Zhicheng in the future."

Others naturally understood what Li Ka-shing meant. After all, the power of example is infinite.

Only Li Chaoren, who was standing aside, remained silent, as if he was thinking about something.
Times have changed, and the myth of the invincibility of British capital has been shattered.

As for ordinary citizens in Hong Kong, they admire Liu Zhicheng more. This matter has nothing to do with them, but it does not affect their happiness. Everyone has an inexplicable sense of pride!
(End of this chapter)