Hong Kong 1980: The Savage Era

Chapter 514 Chapter 516 [Hotel Industry]

Tuesday, May 5th.

Springland proposed a full acquisition of Asia Securities at RMB 1.54 per share. This move disrupted the deployment of the Chinachem Group. In addition, Springland's acquisition price was far lower than the net asset value of Asia Securities, which was very unreasonable.

Faced with such a fierce acquisition, Bai Jinyan was very happy, as if there was some good news.

"Guess how much equity I got from small shareholders?" Bai Jinyan said mysteriously.

Luo Qihong was slightly stunned. How could he possibly guess it? So he casually asked, "10%?"

"Almost! 8.9% of the shares, although much less than what Li Wenzheng and Gong Ruxin hold, but we are hiding in the dark and still have some advantages." Bai Jinyan said with some pride.

Luo Qihong was just about to respond to Bai Jinyan with a smile on his face when there was a sudden knock on the door.

"Boss, Huadi Company has just announced that it has purchased 1.91 million shares of Asia Securities from independent investors at a price of HK$9198 per share, accounting for 15.8% of the issued share capital. Huadi Company already holds 50.32% of the shares of Asia Securities and has obtained control of Asia Securities." Cheng Jianshen reported.

Bai Jinyan was very surprised, which meant that she had no chance again.

Luo Qihong came back to his senses and asked, "What is the reaction of Chinachem Group? They won't give up just like that, right?"

"I don't know for now. I just heard that Nina Wang urgently convened a high-level meeting, probably to discuss countermeasures." Cheng Jianshen replied.

"I understand. You continue to pay attention to the actions of the Chinachem Group and report to me immediately if there is any movement." Luo Qihong also started to take it seriously. He felt that there was still a chance.

Bai Jinyan sensed Luo Qihong's intention and asked, "Do you have any other ideas?"

Luo Qihong smiled and said, "What can we do? All we can do now is wait. It's a bit strange to suddenly acquire 15.8% of the shares, but it's impossible to fake it."

"There is another piece of news worth noting. Li Wenzheng wants to restructure the assets and finances of the Lippo Group, so Asia Securities will inevitably be involved. However, the company's major decision-making requires more than 75% of the voting rights, and Chinachem Group will definitely not agree. Then the next step will be interesting."

"You mean that Li Wen Zheng will not allow the reorganization of Asia Securities Influence Group and therefore will give it up?" Bai Jinyan asked with his eyes wide open.

"Will you give it up? You can also put yourself in their shoes and judge. If Zhaoan Group is reorganized and Qichang Life and Fire and Marine Insurance Company hinders the plan, will you give up Qichang Life and Fire and Marine Insurance Company?" Luo Qihong asked with a smile.

Lippo Group is a huge company. If there is a problem in any link, the opposition will definitely seize it, which will likely cause the internal restructuring plan of the group to fail, and then the prestige of Li Wenzhen's family will be hit, and other problems will arise.

The restructuring plan cannot be withdrawn. Li Wen is a man of great courage and will not allow hidden dangers to occur. He can only make a bold move. After all, he can still acquire a company similar to Asia Securities in the future.

However, Bai Jinyan is not a true entrepreneur, he is still hesitant and reluctant, he just wants to have the 'best of both worlds'.

"If I were Li Wen Zheng, I would persuade Gong Ruxin, even if it means threatening her. But Li Wen Zheng may not have the courage to do so. He is more likely to give up Ya Zheng, but he will not sell it to Gong Ruxin." Luo Qihong said with a faint smile.

"Then our chance has come?" Bai Jinyan was stunned, feeling a little dreamy.

Luo Qihong nodded and said, "Well, wait, Yazheng won't be able to leave."

The next afternoon, Chinachem Group complained to the Securities and Futures Commission, requesting the committee to investigate China Resources Land's large-scale purchase of Asia Securities shares to ensure that the transaction complies with the Takeover and Merger Code.

The purchase price of China Resources Land was lower than that of Chinachem. Chinachem questioned why the holders of the 9198 million shares of Asia Securities sold them to China Resources Land at the same price instead of Chinachem, thus receiving less than HK$600 million.

However, Chinachem Group did not give up and continued to acquire Asia Securities shares in the market, and currently holds a 25% stake.

If the transaction of Huadi's 15.8% equity interest in Asia Securities was fake, Huadi's shareholding would be restored to 34%. The difference between the two is not big, and there is still a possibility of winning. A few days later, the China Securities Regulatory Commission issued an investigation report. Huadi bought 1.91 million shares of Asia Securities at a price of 9198 yuan per share through three transactions. The first transaction involved 1470 million shares, and the second transaction involved 2195 million shares, which were held by an American businessman and Cheung Kong Holdings respectively.

The third transaction, involving 5490 million shares, was held by Singaporean businessman Wang Zhaocai. It originated from the new shares issued by Asia Securities in 91, which were priced at S$2.5 per share.

Although the third transaction is questionable, it was essentially a mutual agreement and Chinachem Group could do nothing about it.

On May 5, Chinachem Group announced that since China Resources Land already held more than 21% of Asia Securities' shares, Chinachem would not be able to obtain more than 5% control of Asia Securities, so it decided to give up the acquisition of Asia Securities.

Thus, the half-month-long acquisition battle of Asia Securities ended. On the surface, Huadi Company won, but in reality, both sides suffered losses.

At the end of May, Henderson Land Development announced that it would launch a full acquisition of Miramar Hotel Group at HK$5 per share, which was a 17% premium and showed great sincerity.

Miramar Hotel is one of the three blue-chip hotel stocks in Hong Kong, and its properties are very rich.

The properties under his name mainly include Miramar Hotel on Nathan Road and Miramar Plaza on Kimberley Road. The former has 3.6 square feet and the latter has 8.6 square feet, with a total floor area of ​​160 million square feet.

In addition, it owns the joint operation and management rights of Pengcheng Shekou Nanhai Hotel, and has restaurant businesses in Knutsford Terrace and Cuihengtun in Hong Kong.

The rental income from the properties on Nathan Road alone can exceed HK$10 billion a year, and its value is over 100 billion, which is really mouth-watering.

Hengan Investment and Zhaoan Group both hold a lot of Miramar Hotel shares, accounting for about 8%, which can earn HK$1.8 million, but Luo Qihong wants more.

Therefore, the company asked its economic publication to issue an asset analysis and future prospect estimation on Miramar Hotel, and other newspaper companies also followed suit with their "analysis".

Under such speculation, the share price of Miramar Hotel immediately climbed from HK$12.5 to HK$15.3.

Li Zhaoji was helpless and could only continue to increase the purchase price to HK$20.5 per share.

Seeing that it was almost done, Luo Qihong asked the senior executives of the two companies to register the sale, and Heng'an Investment Company made a profit of HK$1.52 million.

The old power plant of China Power Group in Hung Hom has been relocated, and Siu On Real Estate Company has sent people in to prepare to level the land and start construction.

Fortunately, we had already negotiated with the Hong Kong government about the land compensation fee a few years ago and the money had been transferred to the Hong Kong government’s account. Otherwise, the land compensation fee would now be astronomical, greatly damaging the profits of the two companies.

According to the current situation, the first phase of Haiyi Garden will be launched for sale in early 95. The floor area is 64 square feet, and the estimated selling price is NT$9000 per square foot. Each building is 20 stories high and is a low-density villa-style residence.

According to the plan, the first phase will have four residential buildings, which can earn about HK$4 billion.

Starting from the second phase, other residential buildings are high-rise buildings with 36 floors. Most floors have 4 households, and some high-rise floors have 2 households. It is estimated that each residential building can make 5 million yuan.

And this does not include the 20 square feet of shopping mall property, estimated to be worth HK$60 billion.

Siu On Real Estate Company has already advanced more than 95 billion yuan in costs. Luo Qihong and the Kadoorie family reached an agreement that the first phase of funds recovered in would first be used to repay Siu On Real Estate Company's costs, and the rest would be the start-up capital for the next phase.

Therefore, the second and third phases will be the ones that really start to make money, and are expected to be developed in the early 21st century.

This means that Luo Qihong will have to wait until the 21st century to completely control the hotel group. After all, he has to wait until the Haiyi Palace project is completely completed.

(End of this chapter)