Hong Kong 1980: The Savage Era

Chapter 513 515 [Same situation? ]

Singaporean investors were very greedy and remained on the sidelines regarding the privatization of Yeo Hiap Seng Group by Hengan Investment Company. As a result, Luo Qihong ignored the interests of the Yeo family and announced to the public that the overall acquisition had failed. He then launched a fundraising and share offering plan, hoping to raise S$1 million.

There is only one purpose for doing so, which is to force shareholders to comply, dilute the holdings of small shareholders and increase the holdings of Hengan Investment Company in order to achieve the privatization plan.

Regardless of whether small shareholders respond to the rights issue or not, Luo Qihong's goal will be achieved. If they respond, the interests of small shareholders will be sacrificed, while if they do not respond, their equity will be diluted. The only solution is to sell shares.

Unfortunately, not many people would take over at this time. Everyone can see that this is a situation where "harm is inevitable", and no one wants to be the scapegoat.

Eventually, a small shareholder stepped forward and sold the shares to Hengan Investment Company at a 1% premium.

Hengan Investment Company submitted an application to the Singapore Securities Regulatory Commission to delist Yeo Hiap Seng Group, and Yeo Hiap Seng Group's rights issue plan was urgently withdrawn.

"Mr. Luo, we already hold 3.1% of the shares of Frasers Group, spending S$7750 million. The current market value of Frasers Group is S$25 billion, and the market value of another listed company, Frasers Property, is S$3.8 million," Zhang Wenhe reported.

"The largest shareholder holds 26.4% of the shares, so we need to hold at least 30% of the shares, which is 7.5 million Singapore dollars. It is not expensive." Luo Qihong said thoughtfully.

Today, F&N Group is planning to grow into a multinational corporation and is no longer satisfied with the status of a beverage giant. Therefore, its current funds are extremely dispersed and its debt is becoming increasingly serious. If it is not careful, it will "sink the ship and die".

"As the largest beverage company in Southeast Asia, Frasers & Neave has attracted the attention of many chaebols, such as Thailand's TCC Group and Indonesia's Lippo Group. They all have plans to acquire Frasers & Neave, but they have been guarding against each other."

"If we launch a takeover bid for Frasers & Neave, I'm afraid these two companies will not sit idly by. There is also Asia Pacific Breweries, which is controlled by Frasers & Neave and is the parent company of Tiger Beer. Heineken of the Netherlands holds a 60% stake in Asia Pacific Breweries, but does not have control. It should also want to fully control Asia Pacific Breweries."

Zhang Wenhe's face was gloomy. The acquisition of F&N Group would be a fierce battle between two powerful groups, which would be much more troublesome than the acquisition of United Industrial Group.

Luo Qihong said, "Asia Pacific Brewery is the most important asset of Frasers & Neave Group. We must take back 60% of the shares from Heineken and take full control of Asia Pacific Brewery. But this will have to wait until we defeat others and take control of Frasers & Neave Group."

"Since so many people are eyeing Frasers Group, we need to mobilize more cash to prevent any unexpected situations. We must be cautious in this secret stock acquisition. We must not acquire more than 25% of the stocks and must not reveal our tracks."

"Yes. Don't worry, Luo Sheng. I will keep a close eye on it this time, and no accidents will occur." Zhang Wenhe promised solemnly.

Luo Qihong nodded and began to ponder again, considering where to mobilize funds. Once the acquisition war was launched, the cash flow on hand must exceed 15 billion Singapore dollars. Now there is still a shortage of nearly half of the funds.

"What is the current exchange rate between the Japanese yen and the US dollar?" Luo Qihong suddenly asked.

Zhang Wenhe was slightly startled, then replied, "113, 113 yen to 1 dollar."

So Luo Qihong waved his hand, indicating that there was nothing else to do, and asked Zhang Wenhe to take care of other things.

Hengan Investment Company bought a lot of Japanese yen in 90 when the exchange rate was about 160. If the current exchange rate rises to 113, the company can make a 4% profit.

"We can recover about 2 million Singapore dollars in Japanese yen, which means we still need 4.5 million Singapore dollars, which can only be mobilized from the US market." Luo Qihong calculated on paper.

Luo Qihong then called branches in various places and asked them to sell all investments in Japanese yen and U.S. stocks as soon as possible and remit the recovered funds to Singapore.

Early July.

The share price of Asia Securities Company rose slowly from HK$1.1 to HK$1.27, an increase of more than 15%.

It is obvious that someone is secretly absorbing the equity of Asia Securities in the market with the intention of acquiring Asia Securities. Bai Jinyan has been paying attention to Asia Securities Company. She still believes that there is a chance. Even though Li Wenzheng is very confident in injecting 35.4% of the shares of Xingchen Group into Asia Securities Company, she still has no intention of giving up.

According to Hong Kong's company law, holding 35.4% of the shares is enough to control the company, so Asia Securities Company has added another Star Group, and its assets are becoming even more high-quality.

Bai Jinyan hurried into the office and said excitedly, "We have found out that it is Baoyuan Investment Company. The person behind it is Gong Ruxin from Chinachem Group. She has returned to the social scene."

In April 90, Wang Dehui was kidnapped for the second time. The ransom was as high as 4 million US dollars. But even though Nina Wang paid the ransom, she was unable to rescue Wang Dehui. As a result, Nina Wang suffered a severe blow and lived in seclusion for three years.

Hearing this, Luo Qihong fell silent, thought for a moment, and asked, "Could it be that Gong Ruxin wants to go public through the Asia Securities Exchange?"

Bai Jinyan's eyes widened. "It's possible. After losing her husband, she might want to live a different life."

"Then what do you want to do? Join directly?" Luo Qihong smiled slightly. After Li Wenzhen's management, he was impressed by the high quality of Asia Securities Company.

When three tigers fight, two will be injured, and Li Wenzhen's chances of winning will be infinitely magnified.

Bai Jinyan was well aware of the difficulty of this acquisition, and the high test of timing. She didn't think she could grasp it, so she wanted to ask Luo Qihong for help.

"Can you help me? According to a survey by Sun Hung Kai Securities, the net asset value of Asia Securities is as high as HK$21.41 billion, equivalent to HK$3.69 per share. It is definitely a hot commodity." Bai Jinyan said coquettishly.

Luo Qihong smiled. After so many acquisitions, his control over acquisitions had reached perfection, much better than Bai Jinyan.

However, he still said modestly, "I may not be able to win even if I come out, I can only say that the chance is greater."

"It doesn't matter! It's better than having no chance at all." Bai Jinyan said with a flattering smile.

"Our only chance is to take over the equity of one party at the moment of deciding the winner. I guess the possibility is greater on Li Wenzhen's side." Luo Qihong explained briefly.

It is not advisable to start a new business or support one party, because both parties are consortiums with no shortage of funds, and they hold a large number of shares in Asia Securities.

Unlike Zhaoan Group, which does not own a single share, this is similar to the situation when Liu Luanxiong acquired Chinese Estates Holdings.

"Chinese Estates?" Bai Jinyan suddenly remembered a similar acquisition case.

Luo Qihong shook his head. "It looks similar, but it's actually very different. When Chinese Estates Company introduced Wei Li, Feng Bingfen's family didn't have much money, and Wei Li didn't dare to show too much enthusiasm, which would make Feng Bingfen have bad intentions. It wasn't until Liu Luanxiong joined the game and Feng Bingfen gave up that Wei Li dared to fight Liu Luanxiong."

"It's now a direct battle between Li Wenzheng and Gong Ruxin. The two will not give up easily and bring in help. We will only join the game when they are about to admit defeat. This situation is more dangerous than that of Liu Luanxiong."

After hearing this, Bai Jinyan instantly understood that it was not that she could not think of it at all, but that she was too anxious and she did not calm down.

Huadi Company (owned by Li Wen Zheng) holds 34.47% of Asia Securities' shares and is currently the largest shareholder, about 20% higher than its rival Nina Wang, and is still in an absolutely advantageous position.

As Hong Kong's company law stipulates that exceeding the 35% equity mark triggers a comprehensive acquisition mechanism, China Resources Land is still waiting and watching.

(End of this chapter)