Hong Kong 1980: The Savage Era

Chapter 507 Chapter 509 [Spring Festival Approaching]

"This is some background information about Genting Group. More detailed information is still being collected." Zhang Wenhe handed over a document.

The controller of Genting Group is the Lim Goh Tong family, which started out as a hardware trader. In 65, they acquired the operating rights of the Genting Highlands D casino, making it the first legal D casino resort in Southeast Asia.

Genting Group was listed on the Kuala Lumpur Stock Exchange in 1989. In just one year, the company's market value jumped into the top five in Malaysia. Now the group's businesses cover casinos, theme parks, hotels, palm oil and a small amount of energy.

The forces in Southeast Asia are inherently complex. Anyone who can stand out here and make a lot of money through illegal means must not be a simple person. Now that the Yeo Hiap Seng Group is moving to Malaysia, this makes Luo Qihong a little worried.

"No need to collect." Luo Qihong put down the documents and said in a very serious tone, "Be prepared to sell Parkview Holdings' shares."

Losing face is not a scary thing, but losing all business in Southeast Asia or being confined to Singapore is the scariest thing. It is not worth it for Parkway Holdings to take such a big risk.

Zhang Wenhe asked at an inopportune moment, "Are you afraid that Genting Group will cause trouble?"

Luo Qihong glanced at him coldly, but he was not angry at all. He said, "Who wouldn't be afraid of those who make money through illegal means? We are serious businessmen. How can we beat other people's machine guns?"

“As far as I know, Lim Goh Tong of Genting Group is not so domineering. He is a rule-abiding person. He also hopes that his family can be promoted to the real upper class,” said Zhang Wenhe.

"It's better to be cautious. If you hurt their core interests, even a rabbit will bite you, let alone someone who is already cruel." Luo Qihong looked at his palm.

It is true that making money through illegal means can be profitable, but what is tested is ruthlessness. For example, Cheng Yutong and King D opened a business in the Philippines, but were cheated. This shows how powerful the Lim Goh Tong family is in Malaysia and how ruthless their methods are.

"Yes, I will arrange it before the market opens tomorrow." Zhang Wenhe stopped persuading him. After all, his boss had made up his mind, and further persuasion would only make him dislike him.

No matter in which era, the medical and pharmaceutical industries are the most valuable and promising. Luo Qihong believes that his family must have a position in these fields, and he also wants to live a few more years.

The current situation is indeed not suitable for further acquisitions, but there will still be opportunities in the future.

Medical groups in Western countries are stronger and are a good choice.

Sure enough, on the third day, Parkway Holdings announced that Genting Group would acquire 3% of the newly issued shares for S$4.5 million and become the largest shareholder.

This piece of news exploded like a bolt from the blue over the heads of stock investors. They were able to make money just two days ago, but now their money has been taken away.

Luo Qihong was naturally not immune. The market simply could not accommodate such a large volume of shares. He could only sell them slowly and try not to incur losses.

It was a pity for Luo Qihong that a large amount of cash was tied up, but it did not affect his subsequent acquisition plans.

In order to clean up his mess and arrange things, Luo Qihong decided to stay in Singapore for half a month and return to Hong Kong on the eve of the Spring Festival.

In order to make up for the failure of the acquisition of Parkson Holdings, Zhang Wenhe has been looking for other alternative companies and has also been keeping an eye on United Industrial Group.

Tuesday, March 1

Zhang Wenhe walked into the office quickly. "Mr. Luo, this is the information I just collected. Perhaps we don't need to acquire United Industrial Group. We can still strengthen the Yeo Hiap Seng Group while achieving our goal. However, this acquisition is a bit large and requires more funds."

Zhang Wenhe's words aroused Luo Qihong's interest. He wanted to know how big this plan was.

After taking the document, Luo Qihong suddenly saw the name of F&L Group and his eyes gloomy.

He certainly knows Frasers Group, a large group that produces carbonated drinks, dairy products, beer, real estate and publishing, with a current market value of more than S$25 billion. In the 90th anniversary, Frasers Group spun off its real estate business into Frasers Property and raised S$2.8 million through an independent listing.

Although this group does not have much real estate development capabilities, its factory land is located in the Jurong Industrial Zone and has great prospects in the future.

As long as it takes over F&N Group, Yeo Hiap Seng Group can make up for its shortcomings in the beer industry and at the same time enter the publishing and media fields.

In the Southeast Asian market, Tiger Beer, owned by F&N Group, accounts for 25%, including 60% of the beer market in Singapore, which can almost be said to be a semi-monopoly business.

Such a good thing will naturally have certain difficulties. First, the market value is too large, and second, the equity is dispersed.

If a forceful entry is made, it will certainly be blocked by the major shareholder and the acquisition will most likely fail. Therefore, the time span required is very long and the difficulty of the acquisition is higher than that of United Industrial Group.

Zhang Wenhe has given him a difficult problem. Luo Qihong is unlikely to give up such a big piece of fat, but he is also afraid of locking in too much cash flow, which will end up being a waste of golden time for development.

"This matter needs to be done slowly. How do you think it should be carried out?" Luo Qihong closed the document and asked.

Zhang Wenhe thought for a moment and said, “First, we need to acquire Yeo Hiap Seng Group in its entirety, then cooperate with Frasers Group, acquire a certain amount of equity, join its board of directors, and then proceed step by step.”

"In fact, there are some things I have never dared to say. People outside are very afraid that we will take action against their companies. Therefore, if we absorb the stocks of other companies, they will definitely be prevented. That's why there is a suggestion of cooperation."

Luo Qihong smiled and said, "Okay, I agree with your plan. After the Spring Festival, the first thing Hengan Investment Company will do is to fully privatize the Yeo Hiap Seng Group and let the top management look for opportunities to cooperate with the Frasers Group."

"Okay, Luo Sheng." Zhang Wenhe said happily.

On the afternoon of the next day, Luo Qihong flew back to Hong Kong.

Hop Cheung Trading Company was officially renamed Heng Chang Hong Holdings Limited in early December last year. After liquidation, its asset value was determined to be more than HK$12 billion. Its business covers 363 countries and can provide the company with more than HK$37 billion in profits each year. It is the largest trading company in Hong Kong.

The reason why it was renamed Heng Chang Hong Holdings Company is that Heng Chang Hong has been established for decades and was once the largest trading company in Hong Kong. This brand name can bring many benefits to the company.

He doesn't care what the company is called, he only cares which name can bring more profits.

Luo Qihong knew that after 97, Hengchang Bank's controlling position would be taken away, so he needed to split the business focus to prevent irreversible losses in the future.

"Boss, the company's total operating revenue last year was HK$334 billion, of which HK$71 billion came from Hong Kong and HK$78 billion came from the United States. The net profit was HK$33.3 billion, with a net profit margin of nearly 10%. This year's plan is to increase expansion into the European market," Qian Yu reported.

"I have read your plan. What we are most concerned about in trade is price and quality. Now many factories in the mainland can achieve these two points, so you should increase your purchases of mainland goods, and at the same time increase the delivery of goods to the mainland, so as to make money on both ends." Luo Qihong said.

The mainland will become the world's largest manufacturing factory, and he must take advantage of this opportunity.

"Yes! In fact, we have been doing it." Qian Yu said.

"We also need to strengthen our trade business in Southeast Asia." After careful consideration, Luo Qihong decided that he should work together with his subsidiaries to open up a gap in Southeast Asia.

Although Luo Qihong is showing off his power in Singapore, he is actually very weak in other Southeast Asian countries and doesn't even have any interpersonal relationships. As for people like Kuang Teck Puat and Huang Zuoyao, they are just nodding acquaintances. When it comes to cheating people, he will never show mercy.

(End of this chapter)