Rebirth of the Financial Crisis Sweeping the World

  Chapter 441 441 Acquisition of the largest bank in Hawaii

  Thinking about it, Wang Guanxi said: "Contact Western Group, I plan to acquire the Bank of Hawaii under Western Group, on the condition that the US$300 million loan from East West Bank is repaid."

  Now the Western Group is short of money and its cash flow is broken. His acquisition of the Bank of Hawaii under it can give Western Group a lot of cash.

  But now Western Group owes a US$300 million loan to East West Bank and has also issued US$2 billion in corporate bonds, of which Silicon Valley Bank also holds US$1.5 billion in bonds.

  Wang Guanxi does not want the Western Group to go bankrupt, and hopes that BNP Paribas will also inject capital to avoid the Western Group’s bankruptcy.

   "Greg Becker of Silicon Valley Bank has already called someone from BNP Paribas, you should also call and ask"

  Wu Jianmin quickly said: "Yes, BOSS, I will immediately contact the CEO of Western Group and the people from BNP Paribas!"

  He is also very worried now that BNP Paribas will not inject capital into Western Bank, and Western Bank will go bankrupt.

  Time passed in a flash.

  At 8:30 in the evening, Wang Guanxi was drinking tea in the living room.

  Luo Baowen sorted out the information of the Bank of Hawaii, as well as the balance sheet, and gave it to Wang Guanxi.

  "BOSS, information about these Hawaiian banks"

   "Yeah" Wang Guanxi nodded, put down the tea cup, and began to look.

  After a while, Luo Baowen asked: "BOSS, the Bank of Hawaii did not lose much in this economic crisis, and the current stock price is still quite high."

  Currently, the stock price of Bank of Hawaii is at US$25.13 per share, with a total share capital of 40 million shares, valued at US$1.005 billion.

  Wang Guanxi smiled and said: “US$1 billion is not that high, but it performed well in the economic crisis. In 2008, the stock price was around US$50 per share, and it fell by 50% during the economic crisis.

  Luo Baowen thought for a while and said: “This Hawaiian Bank’s business does not involve many places, so the economic crisis has not lost much, and its development potential is also limited.”

  "Yes." Wang Guanxi smiled: "But it is the largest and oldest bank in Hawaii. It's not bad in Hawaii, right"

  This Bank of Hawaii is only a regional commercial bank in the United States.

  Headquartered in the First Hawaii Center in Honolulu, Hawaii.

  The Bank of Hawaii was established in 1858. In terms of deposits, loans and total assets, it is the oldest and largest bank in Hawaii. It claims to be the second oldest bank west of the Rocky Mountains.

  Currently, the First Bank of Hawaii has 58 branches in Hawaii, 3 branches in Guam, and 2 branches in Saipan

  The bank’s deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC).

  In addition, the bank is also a member of the Federal Reserve System.

  Bank of Hawaii provides a wide range of financial services and products, mainly for customers in Hawaii, Guam and other Pacific islands. Its branches are engaged in projects such as equipment leasing, securities brokerage, investment services, and the provision of credit insurance.

  Bank is composed of four business departments: retail banking, commercial banking, investment services, and cash services.

  Current total assets are more than 11 billion U.S. dollars. However, due to geographical limitations, its business development is very limited.

  In 2007, bank revenue was US$538.9 million, net income was US$209 million, and there were 2151 employees.

  In 2008, it lost US$50 million and laid off 50 employees, leaving 2,101 employees.

  Luo Baowen nodded and said, “This Hawaiian bank didn’t lose much money during the economic crisis. Unlike banks in other states in the United States, they lost a lot of money.”

  "After the economic crisis, the annual profit of the Bank of Hawaii will be stable." Wang Guanxi smiled: "The acquisition of Bank of Hawaii this time is still very beneficial. This Hawaii is a world tourist attraction and the sugar island of the United States."

  The main industries of Hawaii include tourism, defense industry and agriculture.

  Pearl Harbor on the south coast of Oahu is the largest US military port in the Pacific Ocean.

  ;The state capital Honolulu is the Xiazhou industrial and commercial center.

  Agriculture is the backbone of the local economy, producing sugarcane, pineapple, coffee, bananas, etc.

  Hawaii is suitable for the growth of sugar cane.

  Two-thirds of the islands are planted with sugarcane, producing approximately 1 million tons of raw sugar each year.

  Equivalent to 10% of the total annual sugar consumption in the United States, so it is called the sugar island of the United States.

   Then Wang Guanxi asked: "Secretary Luo, what do you think?"

  Luo Baowen thought for a while and said; “Boss, have you taken a fancy to Hawaii’s tourism industry? What does it have to do with the acquisition of the Bank of Hawaii? These international tourists are basically not customers of the Bank of Hawaii.”

Wang Guanxi smiled and said: "Of course it does matter, Secretary Luo. Think about the residents of this Hawaiian island in addition to the tourism service industry, the rest is basically agriculture. The Bank of Hawaii mainly grants loans to the Hawaiian Islands. For the local farmers, basically most farmers on the island are customers of the Bank of Hawaii."

  “Of course, the Bank of Hawaii’s business is not only in the state of Hawaii, but also related to the island. Many American soldiers are its deposit customers. Many retired soldiers like to settle there. It is also good to have some retired officers serve as consultants.”

  "In the future, I may also be able to integrate Hawaiian sugar industry with the Bank of Hawaii as the center, not only selling in the states of the United States, but also exporting to the whole world, to combat my Asian opponents."

  Malaysia Public Bank, Indonesia Bank of Central Asia, and Shangri-La Hotel Group are behind three consortia. Among them, the Kuok consortium behind Shangri-La Hotel Group is known as the Asian Sugar King.

  Luo Baowen asked curiously: “Boss, are you planning to defeat the Asian Sugar King? This is difficult to do, right?”

  Wang Guanxi: "How can I know if I don’t try?"

   "Well, let's buy the Bank of Hawaii first." Luo Baowen thought for a while and said: "I don't know if Western Group will ask us to buy Bank of Hawaii at a premium."

  Wang Guanxi yawned: "If they dare to shout high prices, then East West Bank will collect the $300 million loan."

At this time, the phone rang from Silicon Valley Bank’s CEO Greg Becker, saying that BNP Paribas intends to inject 700 million US dollars into Western Group to avoid Western Group’s bankruptcy. At the same time, Western Group will sell the Bank of Hawaii. The price is to be determined. The board of directors is discussing.

  An hour later, the phone rang again. It was from Wu Jianmin, the CEO of East West Bank, and it was connected.

  Wu Jianmin excitedly said on the phone: "BOSS, Western Group agreed to our terms and sold the Bank of Hawaii to us, but we need to buy Bank of Hawaii at a premium of 20%!"

  Wang Guanxi said: “If you don’t accept premium purchases, it means buying at market prices. If they don’t agree, they will be forced to pay back a US$300 million loan.”

   "By the way, Silicon Valley Bank also forced the debt. This Silicon Valley Bank bought the Western Group's 1.5 billion US dollars of bonds and sued them for fraud!"

  "Yes, BOSS" Wu Jianmin hurriedly went to do it.

   Soon the call came again, but it was an unfamiliar call. Wang Guanxi connected and asked: "What's the matter?"

  A man on the phone said: "Hello, Mr. Wang, I am the president of Western Group, Mana Ramirez, I want to talk to you about the acquisition of Bank of Hawaii"

  Wang Guanxi smiled and said, "Mr. Mana Ramirez, let’s make a long story short."

  Mana Ramirez smiled and said, "Okay, Mr. Wang, we spent $500 million when Western Bank acquired control of the Bank of Hawaii."

  "Now you want to buy the Bank of Hawaii, you have to pay us $600 million"

When Western Bank acquired 50% of the Bank of Hawaii 7 years ago, it was also at a premium. These years have passed and they have received a lot of dividends every year. However, the economic crisis has come and these stocks have shrunk by half. If they buy at market prices, they feel not worth.

  Because the value of 500 million US dollars 7 years ago is different from the current value of 500 million US dollars.

  Selling Wang Guanxi at the market price means that their assets have not appreciated over the years, and they cannot beat inflation.

  Wang Guanxi said, "Then 600 million dollars!"

  Currently, the Bank of Hawaii has a market value of 1 billion U.S. dollars, and its future market value is 3 billion U.S. dollars. The annual net profit should also be maintained at 200 million U.S. dollars or more.

  50% equity, with an annual dividend of 100 million US dollars

  After six years, the cost is recovered, and the stock appreciation is also profitable.

  Mana Ramirez: "Okay, Mr. Wang, we are happy to cooperate!"

  So Wang Guanxi asked East West Bank CEO Wu Jianmin and Silicon Valley Bank CEO Greg Becker to take their lawyers to the headquarters of Western Group in San Francisco overnight.

  Then everyone signed the agreement.

  Western Group sold 50% of the shares of Bank of Hawaii to Wang Guanxi’s No. 1 Fund for US$600 million.

  Then Western Group repaid the US$300 million loan from East West Bank.

  At the same time, BNP Paribas also announced that it would inject US$700 million into Western Group, a branch in the United States, to avoid Western Group’s bankruptcy.

  (End of this chapter)