Reborn since 1993

Chapter 423 Turning decay into magic
Seeing the expressions of Yang Bohua and Song Luancheng, Li Dongling still said, "Dongling Hi-Tech can establish a company in Gangcheng specifically for the acquisition of Gangcheng Telecom!

Dongling Hi-Tech can provide loan guarantees for the company by putting up about 15% of its equity, plus the equity of Feiyan Technology.

But this acquisition cannot affect Dongling Hi-Tech. You all know how many people’s jobs are affected by Dongling Hi-Tech. We really cannot take any risks…”

After hearing Li Dongling's last words, Yang Bohua and the others' faces changed drastically. If Dongling Hi-Tech was really implicated by the acquisition of Gangcheng Telecom and they could not keep their jobs, then they could not afford such a risk.

In recent years, the country is at the most critical juncture. Why has the Economic and Trade Commission become more and more powerful and taken over so many local central enterprises and state-owned enterprises? It is to keep their jobs and find ways to create jobs.

Dongling Hi-Tech is supported by the Yanjing Economic and Trade Commission and other departments. Being able to earn foreign exchange is only one aspect. More importantly, it can provide jobs, and a lot of jobs. This is what the Yanjing Economic and Trade Commission, state-owned assets and other departments, as well as Hanxi and various places in the country are most concerned about. Everyone now needs jobs that can pay wages. One job may be related to the livelihood of an entire family!

And if the acquisition of Gangcheng Telecom affects Dongling Hi-Tech and even affects jobs, Yang Bohua and his team will not be able to bear the blame.

However, if they want to acquire Hong Kong City Telecom, which has a market value of over HK$100 billion and want to borrow funds from banks for the acquisition, they need collateral.

In his previous life, Li Zekai, the head of the Hong Kong Changjiang Li family, was able to get something for nothing and borrow more than 10 billion US dollars without collateral from more than 30 banks to acquire Hong Kong Telecom. This was mainly because of his father.

Although there are rumors in the industry that the relationship between father and son is not good, and when Li Zekai acquired Hong Kong City Telecom, Hong Kong City Changjiang Boss Li specifically told the media that Hong Kong City Changjiang Group did not participate in the acquisition of Hong Kong City Telecom.

But whether the outside world believes this announcement or not, only God knows. Those banks and consortiums are willing to let Li Zekai get an unsecured loan mainly because of his father. If he cannot pay it back, his father will definitely have to pay it back. It is only natural for the father to pay the son's debt, so those banks are not worried at all.

Similarly, if Dongling Hi-Tech borrowed money from banks to acquire Hong Kong City Telecom by using its shares as collateral, banks, overseas financial groups, investment banks, and other parties would be happy to see it happen. With Dongling Hi-Tech's revenue capacity, the banks would be hoping that Dongling Hi-Tech would not be able to pay back the money, and then take the opportunity to swallow Dongling Hi-Tech up...

However, Li Dongling was only willing to use a portion of Dongling Hi-Tech's shares, plus the shares of Feiyan Technology, to provide guarantees for the company in Gangcheng that was used to acquire Gangcheng Telecom. It was hard to say whether the bank and the consortium were willing to give their all.

"If Dongling Hi-Tech joins this acquisition, I hope to get full support from the postal and telecommunications departments, telecommunications companies, Bank of China, State Investment Group and other companies. Moreover, it is the only company in China that supports the acquisition of Gangcheng Telecom!"

Li Dongling spoke meaningfully to Yang Bohua and Song Luancheng, and put forward the conditions for Dongling Hi-Tech to enter the market and acquire Gangcheng Telecom.

Li Dongling made it clear that if Yang Bohua could obtain these conditions for Dongling Hi-Tech from the post and telecommunications department, then Dongling Hi-Tech could march south, otherwise the plan would be abandoned.

Among these conditions, it seems that the mortgage loan is the most difficult one, but in fact, what Li Dongling cares about most is to make Dongling Hi-Tech the only company supported by the inland to acquire Gangcheng Telecom. This is crucial!
Li Dongling didn't want to let down at the critical moment. For this acquisition, the attitude of the Yanjing Post and Telecommunications Department was crucial. After all, Gangcheng was also domestic territory, and Gangcheng Telecommunications was also under the jurisdiction of the Post and Telecommunications Department and the Ministry of Information Industry.

If the post and telecommunications department can firmly support Dongling Hi-Tech and express its stance at the critical moment, it will be enough for Dongling Hi-Tech to gain an advantage at the negotiation table. What Li Dongling fears most is that the Changjiang Li family and the like will also get the support of the post and telecommunications department. Then, what absolute advantage will Dongling Hi-Tech have?
"And the most important thing!"

Yang Bohua listened to the conditions proposed by Li Dongling, thought for a moment and then looked at Li Dongling, "If Dongling Hi-Tech can acquire Gangcheng Telecom, how should it be operated to ensure that it operates normally and does not fall into losses or bankruptcy!

In the future, Hong Kong and City's telecommunications industry will continue to issue telecommunications licenses. Even if Hong Kong and City's telecommunications can maintain its advantage, it will be difficult for it to completely dominate the entire Hong Kong and City landline telephone industry as before!"

Although the postal and telecommunications department wants to get rid of Dongling Hi-Tech this time, as long as the major shareholder of Gangcheng Telecom still belongs to the country after the acquisition, the life or death of Gangcheng Telecom has nothing to do with Yanjing.

But this time we have to use so much foreign exchange and spend such a huge price. If we buy back a pile of scrap copper and iron, the price would be too high!

Song Luancheng also looked at Li Dongling curiously. He was from Hanxi and he had heard countless rumors about Li Dongling. From Dongling Hi-Tech to Feiyan Technology to Torch Group, it was rumored that these projects that amazed countless people were all related to Li Dongling. He didn't know how Li Dongling was going to manage Gangcheng Telecom.

"There is nothing absolute in the world. Who can say for sure about something that has not happened?" Li Dongling shook his head and said. He was unwilling to make any guarantees, as that would be like digging a hole for himself.

"However, if we can acquire Hong Kong City Telecom, we will have some ideas for the future, but no one knows whether it will succeed..."

As he spoke, Li Dongling dipped his finger in some tea and wrote two words on the stone table. After a while, the tea slowly disappeared, and the words "Internet" and "3G" also slowly disappeared. However, Yang Bohua and Song Luancheng were still thinking hard about the two words they had just seen.

Yang Bohua and Song Luancheng wanted to ask, but looking at Li Dongling's expression, they clearly didn't want to say more about the meaning of these two words. Although they were itching to do so, they had no choice but to give up.

The Internet and 3G are not new words now. They are not very popular in China, but they are not unfamiliar either.

The most important thing is how to operate it and who will operate it. It is just like the same moves in martial arts. Some people use them just like fancy tricks, while others can turn them into magic and become a famous martial arts skill. The key lies in the skills of the user!

"I will return to Yanjing today and report your intention to the department. I will give you a reply before you go to Hong Kong City!"

Yang Bohua and the other person got up and left. They both had to report to their respective departments and the company. This was no small matter and involved many more people.

After the two men left, Li Dongling was also calculating the gains and losses of the acquisition of Hongcheng Telecom. There was no such thing as a small loss or a small profit in this acquisition. It would either be a big profit or a huge loss.

For Dongling Hi-Tech, if it can take over Gangcheng Telecom and take the opportunity to enter the overseas telecommunications market, then in the future, wherever there are base station signal towers and broadband networks supplied by Gangcheng Telecom, there will be Dongling Hi-Tech's mobile phones, computers, tablets, Internet TVs and other products.

And there is no need to worry about being targeted. Regardless of whether the local city government will target Dongling Hi-Tech's products, as long as local users use the Hongcheng Telecom network, Dongling Hi-Tech's products can continue to enter the local market through contract phones or by changing the skin.

Unless the local municipal government departments are desperate and unplug their own Internet cables, they want the users in these places to live like primitive people, where their mobile phones, computers, tablets, etc. cannot chat online, watch videos, watch TV series, play games, etc. But who among those who have been exposed to these modern lifestyles can tolerate this?

Moreover, as long as the telecommunications industry has covered the initial costs of laying base stations and broadband, it can basically make money without doing anything in the later stages. For example, Hongcheng Telecom, in its former life, is still a cash cow decades later, even though its mobile and broadband businesses are almost shit and it has not been willing to spend money on development for decades.

But Hong Kong City Telecom still relies on landline business, earning 35-270 billion Hong Kong dollars in revenue every year, with a profit margin of about 52%. It is definitely a cash cow, with a dividend of billion Hong Kong dollars in five years. The second son of the Changjiang Li family almost treats it as a cash cow, and strives to distribute dividends every year, because he is the major shareholder of Hong Kong City Telecom with a shareholding of more than %. Needless to say, who will get the dividend money? !

As for how to repay the money spent on the acquisition of Hongcheng Telecom, the normal operation is, of course, to make money every year, pay interest to the bank, and slowly repay the principal. It will be paid off in a few decades, but this is tantamount to working for the bank.

Just like Li Zekai of the Cheung Kong Li family in his previous life, after acquiring Hong Kong City Telecom, he played tricks but ended up going too far. At the critical moment, he claimed that he did not need his father's support, but when he asked for help, it was his father who borrowed nearly 10 billion Hong Kong dollars from others to help him tide over the difficulties and avoid bankruptcy.

But after Li Zekai took over Hong Kong City Telecom, he was also heavily in debt and even sold the shares of Penguin to save himself. It took him more than ten years to pay off the more than 3 billion US dollars owed to the bank. However, Hong Kong City Telecom was also dragged down and missed the 4G and G markets. Decades later, it still relied on the landline telephone market to make a living.

If it was Dongling Hi-Tech that made the acquisition, it would be impossible for Li Dongling to buy back Gangcheng Telecom and then work for the bank. He would definitely have to use some other means.

The most direct one is the Internet. The concept of Cyberport in the previous life had great potential, even if it was a tricky operation. By using this name, whether it was issuing stocks for financing or operating Hong Kong City Telecom in the stock markets of America and old Europe to make money, it was much better than treating Cyberport as real estate!

If Hongcheng Telecom was really acquired, Li Dongling would not be too worried about repaying the debt borrowed from the bank. Apart from anything else, the Yahoo shares held by the Guangzhixing Foundation would be enough to repay the loan if sold in a few years.

In addition, the money earned by the Changjiang Li family from Orange Telecom in England is enough to repay the debt, and there are still various other tricks. It depends on whether Li Dongling is willing to use them!

(End of this chapter)