Hong Kong 1980: The Savage Era

Chapter 477 [Breakthrough]

This is a lucrative business. According to the development path of the Coca-Cola Company in the past, the distribution rights are too important. Moreover, the Yeo Hiap Seng Group has its own beverage brand and enjoys a very good reputation in Southeast Asia.

"I suggest supporting Yang Zhiyao's faction. This faction is currently in a weak position, so we can increase our shareholding in a fair and just way."

"I think we should support Yang Tiancheng (Yang Zhiyao's uncle). These people are ambitious. Even if they defeat Yang Zhiyao, they will immediately fall out among themselves. We can take this opportunity to expand our victory."

Every senior executive expressed his or her own opinion, and some even suggested supporting the Yang family members that Yang Zhiyao had recruited to help maximize their interests, but this was very dangerous.

"I've decided." Luo Qihong thought for a long time and said seriously, "Contact both Yang Zhiyao and Yang Tiancheng and let them name their own prices. The one with the highest price wins. We can't let our guard down either. We must continue to secretly acquire shares of the Yang Xiecheng Group and keep it confidential."

"Yes!" The senior executives responded in unison. The boss had made the decision and they could only follow.

Luo Qihong is not the Yang Jinglian family, which will not tolerate any resistance from them. Luo Qihong is the first generation entrepreneur and possesses unparalleled prestige. It can be said that as long as he is not dead, there will be no problems with the family and its companies.

Then Luo Qihong and the senior management began to study the stock market and shareholders of Yang Xiecheng to see if they could start from these shareholders. After all, the Yang Jinglian family had limited funds and it was difficult to make any acquisition moves on these shareholders.

At that time, Yeo Hiap Seng Group had a market value of S$3.9 million (US$2.8 million in total), making it a well-known large company in Singapore. Many investment companies held shares in Yeo Hiap Seng Group, but they were relatively small.

If a large-scale attack is launched, it will inevitably arouse the vigilance of Yang Jinglian's family, and the gains will outweigh the losses, so it is necessary to carefully identify those shareholders and at the same time give one's side more chances of winning.

This acquisition has put a lot of pressure on Luo Qihong, probably because he cares too much about it, and it is a bit like going back to the mentality when he acquired the "China Gas Company".

By the time the meeting was over, night had already begun to fall.

Luo Qihong had no appetite for food. He bit a cigar and stared at the night view of Singapore in front of the huge floor-to-ceiling window.

"Boss, are you worried about the failure of the acquisition?" Yuan Tianfan asked while sitting down.

“Tian Fan, this is our first battle in Singapore. If we fail, we may end up being useless in Singapore like Kuok Teck Puat did.” Luo Qihong’s voice was deep.

Yuan Tianfan certainly knew about the acquisition of Wheelock and Company. Although Luo Qihong did not swallow up Wheelock in one fell swoop, he also got half of Wheelock and Company. This was also one of the few classic battles in Luo Qihong's life.

After this battle, although Qiu Delu was still investing in Hong Kong, he found it difficult to make a breakthrough and was far inferior to the Huang Tingfang family.

If he were to run his business in Singapore slowly over five years like the Huang Tingfang family did, Luo Qihong would have an 5 to 8 percent chance of turning things around, laying the same foundation as the Huang Tingfang family, and becoming a new wealthy Chinese family in Singapore.

However, the piece of fat meat of Yeo Hiap Seng Group is so tempting that Luo Qihong naturally dare not give it up.

"Doesn't the boss have a good relationship with Citibank? Citibank has considerable influence in Singapore, perhaps we can use it to our advantage," Yuan Tianfan suggested.

Luo Qihong exhaled a puff of smoke and said in a deep voice, "I've thought about it. Wan Guo Bao Tong Bank is too big a target. Don't use it lightly unless it's absolutely necessary."

"That's right! Our biggest advantage right now is hiding in the dark, but other forces in Singapore may also be eyeing Yeo Hiap Seng Group, so we don't have much time left." Yuan Tianfan reminded. Luo Qihong stopped talking and his mind began to drift away.

3 days later.

Yuan Tianfan came to report the situation with a happy look on his face, as if there was some good news.

"Boss, I found a breakthrough. Although it's a bit risky, it can be put to good use."

Luo Qihong put down the newspaper in his hand and smiled slightly, "What breakthrough? Could it be that someone in Yang Jinglian's family wants to be a traitor?"

For personal gain, members of the big family, like Li Fuzhao, betrayed the Li family and sold their shares in the Chinese Estates Holdings to Wei Li.

“No! UOB holds 13% of Yeo Hiap Seng Group’s shares and is the third largest shareholder. If we can acquire this stake, our shareholding will exceed 20%. (We have acquired shares from the stock market in the past few days and already hold 7.2% of the shares.)” said Yuan Tianfan.

"United Overseas Bank?" Luo Qihong murmured, seeming to have some impression of this. United Overseas Bank is one of the three largest banks in Singapore, and it owns the famous Tiger Balm Enterprises.

The predecessor of Tiger Balm Enterprise Co., Ltd. was the business of the Hu Xian family. It fell into a business crisis in the early 70s and was seized by a British investment group. In the following five years, due to frequent capital operations, it became the fifth largest listed company on the Singapore Stock Exchange.

This investment group specialized in company splitting and arbitrage, which eventually caused Haw Par Corporation to hit rock bottom and was eventually taken over by Hong Leong Group, Chee Cheng Group and United Overseas Bank. United Overseas Bank's boss Wee Cho Yaw became the chairman of Haw Par Corporation in 78 and won the competition among the three major conglomerates in 81, making Haw Par Corporation its associated company.

Huang Zuoyao was born in 1929, when he was 62 years old, at the prime of his life as an entrepreneur. His family had many businesses, including UOL (one of Singapore's largest real estate developers), rubber manufacturing, and banking.

"Yes, United Overseas Bank. This family is very powerful, but it has encountered some troubles recently. Its subsidiary Singapore Land has fallen into financial problems and has been widely questioned by Singaporeans. Our Singapore Investment Company bought a large number of Singapore Land shares at a low price in the past few months. It currently holds 36%, which is 0.7% less than the Huang Zuoyao family." Yuan Tianfan explained.

The parent company of Singapore Land is United Industries Group, which is a group directly controlled by the Huang Zuoyao family. The company's main business is property leasing, with rental income accounting for as much as 7%. It owns 6 or 7 commercial buildings in the Marina Bay financial district and the prime location of Orchard Road (equivalent to Central in Hong Kong), and also has a place in Singapore's high-end apartment market.

Luo Qihong finally remembered this incident. Most of his attention was focused on Yang Jinglian's family, and he ignored this family.

"Do you mean that we can exchange equity with Huang Zuyao's family?" Luo Qihong said.

"Yes, we can also take the opportunity to ask the Huang family to help keep the secret." Yuan Tianfan has thought of everything.

After reading the information, Luo Qihong immediately became interested in such a high-quality company. It was a copy of Federal Realty Corporation, Real Estate Trust Corporation and Charlemagne Development Corporation.

Yuan Tianfan was no ordinary man. He immediately saw what Luo Qihong was thinking and reminded him, "UOB is very powerful and Singapore Land is their property. It is difficult for us to successfully acquire them. We can only scare them."

“Although Yeo Hiap Seng Group is not a real estate company, it has a lot of factory land. In terms of the company’s prospects, Yeo Hiap Seng Group’s potential is far greater than that of Singapore Land.”

Luo Qihong put away his thoughts and waved his hand, "I know. If we offend such a strong opponent, it will be difficult for us to develop in Singapore. But we must have some reputation, otherwise the local snakes will not take us seriously."

(End of this chapter)