Video Game Empire

Unlike most British investors who are generally eager to withdraw from Hong Kong, the Kadoorie family is full of confidence in the future development of Hong Kong! Their subsidiary, Hong Kong CLP, is also one of the few British-funded companies that has taken the initiative to go north and strengthen cooperation with the mainland!

Located in the deep-sea special zone separated by a river from Hong Kong, the construction of China's first large-scale commercial nuclear power station, the Daya Bay Nuclear Power Station, is currently under intense construction.

Those monopoly industries that lack competition are usually profiteering industries! CLP, which holds the exclusive power supply rights for the entire Kowloon Peninsula and the New Territories, is a very typical example!

According to the data published in CLP's 1980 financial report, the company's annual profit was HK$5.5 billion. By 1986, CLP's annual profit had soared to HK$1.6 billion. That is to say, in just six years, CLP's profits have nearly quadrupled.

The soaring performance of CLP is naturally inseparable from the background of sustained and rapid economic growth in Hong Kong. Especially with the sudden emergence of Hong Kong's electronics industry represented by Dongfang Group, the industrial electricity consumption in Hong Kong has surged year after year in recent years!

Naturally, factories in Hong Kong cannot be built on Hong Kong Island, where an inch of land is expensive, but basically settled in Kowloon and the New Territories. Especially after the completion of Tin Shui Wai Electronic Industrial Park, the entire northwestern New Territories has become a new hot spot for Hong Kong industry.

However, even if CLP's profit prospects are so good, in the event of an unreasonable stock market crash, it cannot escape the fate of the stock price plummeting. Especially just two months before the stock market crash, CLP had just issued new shares to raise construction funds for the planned Longgutan Power Plant.

For CLP, which has just completed the blood draw from the capital market and holds a large amount of cash, even if the stock market crash is tragic, it will not affect the normal operation of the listed company itself. But for the company's stock price, it's just the opposite. The previous action of issuing new shares just made a lot of speculative capital focus on key stocks!

These speculators are naturally the first group of people to flee when the market is in trouble now. This again triggered the panic of the market chasing up and down, which inevitably resulted in the stampede tragedy of CLP's stock price!

You must know that in the global stock market crash in 1987, the Hong Kong stock market fell the most! The Hang Seng stock index has fallen by as much as 5 in less than two months! Among them, China Power, one of the most Hang Seng stock index constituents, has fallen by 55%.

You must know that the halving of CLP's share price does not mean that the company's profits have also been cut in half in an instant. This is just a short-term value distortion caused by the general panic in the capital market! That is to say, the actual value of CLP far exceeds the total market value reflected by the stock price after the bottom!

It was in this situation that the personal investment fund under Li Xuan's name began to enter the market quickly, and took the opportunity to buy a large number of CLP stocks! At that time, this move of the lh fund also caused a huge panic in the Kadoorie family, thinking that Li, the **** of wealth, was going to compete with them for the control of CLP!

However, Li Xuan obviously has no intention of becoming Hong Kong's "power king". This is just a pure value investment! But even so, the Kadoorie family has not given up their vigilance in the past few years!

It's just that the difference in strength between them and Li Xuan is too big, so they can only defend reluctantly, but can't take the initiative to attack! You must know that the surge in electricity consumption in Hong Kong can indeed bring more profits to CLP!

But there is a premise, that is, CLP must build more power plants to improve its own power supply capacity! The power plant is the most typical high-investment, long-return project. Although this kind of heavy industry project can lock in rich profits in the long term, it will also greatly increase the financing needs of enterprises in the short term!

If Li Xuan and Dongfang Group's financial resources are used to spend billions of Hong Kong dollars to build a new power plant, it is not a big deal! But more than 70% of the wealth of the Kadoorie family is concentrated in the part of the CLP shares held in its hands. These are not cash that can be easily used!

Therefore, the major shareholder has insufficient financial resources, and the only way for CLP to raise capital is naturally to publicly issue new shares! Even so, in order to ensure that their shares are not diluted, the Kadoorie family also needs to take out a large amount of cash to eat into the new shares in proportion!

Under such circumstances, the Kadoorie family did not know that the only 30% of the shares in their hands were not enough to ensure their absolute control over CLP, but they were powerless to continue to increase their shares! Fortunately, with the continuous expansion of the overall market value of CLP, the risk of being acquired is also decreasing!

Li Jiacheng said before that the total market value of CLP was not over 0 billion Hong Kong dollars, but was already approaching 0 billion Hong Kong dollars! Once someone launches a hostile merger of key points, it will definitely cause the company's stock price to skyrocket!

CLP's own profitability and room for future growth are very good, even if the premium is 50%! In other words, to successfully annex CLP, at least 500 million funds must be mobilized!

This is Hong Kong in 1990. There are only a handful of companies in Hong Kong with a market value of over 10 billion! So the funding threshold alone is enough to shut out most malicious snoopers! Just like a "stock killer" like Liu Ruanxiong, even if he releases rumors that he is going to acquire CLP, someone needs to believe it!

In contrast, ~www.readwn.com~ Another listed company under the Kadoorie family's name, Shanghai-Shanghai Hotel Group, has a large plate, with a total market value of only about 8 billion Hong Kong dollars!

If the premium does not exceed 5, Liu Ruanxiong only needs to prepare 5 billion Hong Kong dollars to have the opportunity to take the Grand Hotel Group into the bag! What's more, he has reached an agreement with the major shareholder Liang Zhonghao in advance, and successfully purchased 30% of the equity in the other party's hands!

Therefore, from the perspective of equity alone, Liu Ruanxiong has actually far surpassed the Kadoorie family who are responsible for the daily operation of listed companies. However, if Liu Ruanxiong wants to rely on shareholder votes to realize the change of control of the company, it is not an easy task!

Because after Liu Ruanxiong controls a listed company, he can either choose to directly split the company into pieces, or continue to issue new shares to raise funds for the next round of acquisitions! Therefore, the stock price of the company under Liu Ruanxiong's name often rises and falls sharply, and the major shareholders make a lot of profits from it, but the shareholders suffer heavy losses!

In contrast, the reputation of the Kadoorie family is undoubtedly much better! Under their careful management for many years, the Grand Hotel Group has become one of the largest high-end hotel groups in Hong Kong, and its Peninsula Hotel is the most well-known high-end hotel in Hong Kong!

Therefore, if Liu Ruanxiong wants to really control the hotel group, the only way is to carry out public mergers and acquisitions, so that his equity will exceed 51, so as to complete absolute control!

Of course, the capital drama of Liu Ruanxiong's acquisition of the Shanghai Hotel is inseparable from the help of Li Xuan behind the scenes to some extent! It was through the connection of Asian Securities Company that Liang Zhonghao had an intersection with Liu Ruanxiong, the receiver!