The Son of Finance of the Great Age

  Chapter 130 Changing hands (5)

  Shortly after the thrilling acquisition battle ended, a member of the Huo family was co-opted as a director of Huade Real Estate and officially entered the board of directors of Huade Real Estate.

   It's hard to say that the appearance of the white knight this time saved the Zhao family. After all, the Huo family is not a good person, and they will not show kindness in this kind of thing and do charity.

   After a honeymoon period of more than a month, the two parties quickly clashed in terms of business and management. Zhao Shixiong had to step up his efforts to win over Zeng Guoye, hoping to use the strength of his old partner to counter the Huo family.

   Zeng Guoye was so full of ambition during this time, even the wrinkles on his face were reduced a lot. Originally, he was not a decisive player in Huade Real Estate. Except for some small shareholders, other people didn't care much about his opinions, but after a takeover and anti-takeover battle, he actually became the first two major shareholders to win over. Object, this raised his status a lot at once, and his opinions on the board of directors were also taken seriously.

As the saying goes, people are in good spirits on happy occasions. During this time, everyone Zeng Guoye met had a smiling face, and he showed his good mood unabashedly. Even his wife was a little surprised. I found a Xiaomi outside, and actually found a private detective to investigate quietly, and I was relieved to confirm that Zeng Guoye was not messing around outside.

However, in Zeng Guoye's heart, there was always a heartache, that is, Lin Li once said that the mainland government would regulate the overheated real estate in the South China Sea Island. He also mentioned this matter at the board meeting, and the result was unexpected. However, the attitudes of the Zhao family and the Huo family on this matter are surprisingly consistent, and they still increase their investment in South China Sea Island, which runs counter to Zeng Guoye's original intention.

   In 1992, the head of the South China Tour issued a speech, proposing to speed up the reform of the housing system, and funds quickly rushed to the South China Sea Island. In this year, the average price of commercial housing in Nanhai Island was 1,400 yuan per square meter. In 1992, it soared to 5,000 yuan per square meter, and in this year, it had reached 7,500 yuan per square meter.

   That is to say, the one dollar invested in the South China Sea Island real estate market in 1991 has now turned into five dollars, and this momentum is still growing rapidly. Anyone can see that this is a game of drumming and passing flowers, which is a complete bubble, but no one intends to get out of it, this is the greed of human nature.

   For such a lucrative project, Huade Real Estate will definitely not give up easily. On this point, both Zhao Shixiong and the Huo family have a clear consensus, that is, to maximize profits. Zeng Guoye had nothing to do about the cooperation of the two major shareholders, and he also had a dubious attitude towards what Lin Li said, so he just said it casually at the board of directors, and after seeing the opposition from all parties, he also Don't hold on anymore.

  The bubble of Nanhai Island was finally burst in June of 1993.

  On June 23rd, announced the termination of listing of real estate companies and full control of bank funds entering the real estate industry. Then the government issued the document "Opinions on the Current Economic Situation and Strengthening Macro-control", which listed 16 strong control measures, including strictly controlling the scale of credit, reducing infrastructure investment, and cleaning up all projects under construction. With the promulgation of these policies, funds from all over the country, including Hong Kong, Macao and Taiwan, have faded like a tide, leaving devastation everywhere.

According to later statistics, after the regulatory document was issued, Nanhai Island left more than 600 unfinished buildings with a construction area of ​​over 16 million square meters and nearly 20,000 hectares of unused land. The funds accumulated in these lands and unfinished buildings were as high as 80 billion.

  Before the introduction of the exchange rate reform, 80 billion yuan of funds was compared to 20 to 30 billion U.S. dollars. This huge amount of funds disappeared quietly after a wave of waves. Among them, Huade Real Estate has invested more than two billion yuan.

   With such a big incident, Huade Real Estate must not be able to cover it up. Before announcing the news to the public, they first held an emergency board of directors internally.

   "Let's talk about it, what should we do now?"

The speaker was the current chairman of the board of directors, Huo Jikang. After successfully taking over the Huade Real Estate, the board of directors was reorganized. chairman.

  At this time, Huo Jikang's face was serious. Although he still spoke softly, anyone could hear the helplessness in his tone. That's right, after just over two months in charge of this real estate company, the company has encountered a major policy change. Although the Huo family also maintains a good relationship with the Yanjing government, such news is absolutely impossible to find out. In fact, it's not just them, even many princelings are involved in this matter.

  What they can do now is to minimize the impact on the stock price as much as possible, but now that Huade Real Estate lacks liquidity, even survival has become a problem, let alone relieve the pressure on the stock market.

  Most of the shareholders here understand this situation, but most of them are small shareholders and have no right to speak at all. Even if they can speak freely now, who can fill such a huge hole! Some of them are even thinking about how to cash out their shares while avoiding supervision.

  The one who regrets the most is Zeng Guoye with a frustrated face. He never imagined that the people behind Skyline International Holdings are so powerful, and they are actually much more informed than the news of the Huo family. If he had listened to his words at that time, he would have been able to fully cash out and at the same time get a promise from such a character, which would be much better than the current situation.

At this time, he held about 13% of the shares of Huade Real Estate, and sold less than 5% of the shares in exchange for more than 400 million Hong Kong dollars in cash. 6% of the stocks invested have lost more than 120 million Hong Kong dollars.

Now the group has suffered huge losses in South China Sea Island. Once the news is announced, the current stock price of 12 yuan will definitely not be guaranteed, and it may even be cut in half. By then, his total net worth will be about 700 million or 800 million. One billion is a lot less than that.

  At this moment, he regretted the decision he made at the beginning, but there is no medicine for regret in this world, and time will not turn back. But Zeng Guoye was still very angry: "It is said that domestic policies are changing. Like this investment behavior, the government sentenced it to death with a single document. It does not follow the laws of the market at all. How do we do business? Say it earlier. Let’s not get too invested in the mainland market…”

   At this time, it is too much for others to say that this kind of insult is too much, but Zeng Guoye is different. He is the third largest shareholder, and he has made similar suggestions in the previous board of directors. Now only he can say what seems to be an afterthought.

  Huo Jikang and Zhao Shixiong's faces were blushing. They knew very well that they were the ones Zeng Guoye was complaining about, but it was their own fault in the first place, and now they could only endure these sarcastic remarks.

   "I don't think there is any other way. If we sell the company now, maybe we can sell it for a good price!" Zeng Guoye said surprisingly, and suddenly made such a suggestion after complaining.

A company with a market value of 50 to 6 billion usually does not have much cash, and like a real estate company, it usually makes full use of financing from banks and the stock market to grow stronger, in other words, it has relatively high leverage. The advantage is that it can expand rapidly, but the disadvantage is that once the amount of funds is broken, it is easy to fall into the brink of bankruptcy.

As Zeng Guoye thought before, the stock price cut in half would be considered an ideal situation. In fact, after the news is disclosed, the stock price is likely to plummet immediately. For bank loans, don’t even think about borrowing funds from other banks during this process, and it’s even impossible to issue bonds. In the end, the company’s inherent assets may be sold, and then the price will be lowered in every possible way until the debt is repaid. At that time, the next step is to lay off staff, reduce expenses, etc. It is estimated that by that time, the stock price of Huade Real Estate will only be a few "cents" left.

  Of course, this is the most extreme situation. This situation can be avoided with the injection of new funds, but who can spend more than 2 billion funds at once to fill this huge hole!

There is only one possibility, that is, the person behind Skyline International Holdings, which aggressively wanted to acquire Huade Real Estate more than two months ago, but this time he will definitely suppress the price with all his strength, and the condition proposed last time is absolutely impossible .

   Compared with losing everything, the current shareholders undoubtedly do not want them to leave empty-handed, so after a little consideration, most of them nodded in agreement.

As for Huo Jikang, the largest shareholder, and Zhao Shixiong, the second largest shareholder, their faces were extremely ugly. For the Huo family, it was not a problem to spend 2 billion yuan at a time. The problem was that Huo Jikang did not have the right to There is no such possibility. You must know that in the house of Huo's parents, he is not the only heir, but also two other brothers and a person with a foreign surname who are coveting the huge family property.

   It is even more impossible for Zhao Shixiong. Seeing the collapse of the business he created, he is extremely unwilling, but the latter is undoubtedly a better choice than giving in. After all, it wasn't the first time he had done the thing of giving in.

  Finally, the two nodded helplessly under the gaze of the audience.

In July 1993, Huade Real Estate issued an announcement to transfer all equity to Skyline International Holdings Co., Ltd. at a price of 5.0 yuan per common share and 1.8 yuan for warrants, and applied to the exchange for private ownership after the completion of the equity transfer. This time, there was no white knight who robbed halfway, and the transaction was completed at a fast speed.

  The smoke of the acquisition two months ago has not dissipated, and this sudden change of hands has shattered the glasses of most investors. Some media described it this way: "This war of acquisitions and anti-acquisitions finally ended with the success of the Huo family, a veteran wealthy businessman family, and the mysterious Skyline International Holdings. The ups and downs and treacherous waves in it did not need to be described too much." Having said that, I believe the screenwriters of TVB, ATV and other TV stations can't write such a bizarre plot."

In the end, critics estimated that Skyline International Holdings Co., Ltd. controlled a former giant in the Hong Kong real estate industry at a price of less than three billion Hong Kong dollars. This makes it impossible for most people to know the real situation inside the real estate company.

   Here, I would like to thank book friends abx353 and lao knife for their monthly support! Regarding the acquisition written in the recent paragraph, some book lovers are not very satisfied with it. In fact, the real focus is not on this, it is just a transition process required by the plot. A new battle will start tomorrow, I hope everyone will continue to pay attention, thank you for your support~

  (end of this chapter)