Hong Kong 1980: The Savage Era

Chapter 529 531 [I don’t value real estate]

In Singapore, the Huang Zuoyao family controls a number of high-quality companies with the help of United Overseas Bank. Its strength is far more than it seems on the surface and may be several times higher.

Luo Qihong had taken this into consideration at the beginning, and that’s why he hastily let go of the United Industrial Group and waited for other opportunities.

After all, even if a business war is launched with the Huang Zuoyao family, the acquisition may not be successful. Instead, it will cause huge hidden dangers for Hengan Investment Company and Yeo Hiap Seng Group in Singapore.

The main reason is that the foundation in Singapore is not stable enough. If it were in Hong Kong, Luo Qihong would definitely not have such concerns.

"How does Mr. Huang plan to distribute the profits? Will he split up Tiger and Leopard Enterprise or run it as a joint venture?" Luo Qihong asked.

Huang Tingfang thought about it and responded by asking, "How do you think the distribution should be done, Mr. Luo?"

"Mr. Huang is the leader, so of course Mr. Huang has the final say." Luo Qihong said with a smile.

Luo Qihong believed that the consortium he was forming was as powerful as the Huang Zuyao family and had a great chance of success. No matter which distribution plan he adopted, he would stand to gain because it would be difficult for him to take over Tiger Balm Enterprises alone.

"Let's run it jointly. This way, we can take over the company quickly after the successful acquisition. The splitting procedures are very complicated and not good for the company itself." Huang Tingfang reluctantly found two reasons.

In Luo Qihong's opinion, these two reasons were poor, but they also showed Huang Tingfang's attitude.

"Okay, Mr. Huang's Far East Group is the largest shareholder, so I will be the second largest shareholder. As for Huang Zuyao's family, I think it is better to clear them out of Tiger Balm Enterprises. What do you think, Mr. Huang?" Luo Qihong explained clearly his position after the successful acquisition.

Huang Tingfang smiled and said, "Of course. After the matter is accomplished, I will find a way to make Huang Zuyao give up Tiger Balm Enterprises. It will never hinder our cooperation."

"However, this acquisition will be delayed for some time. I have another acquisition case in Singapore that needs time to deal with." Luo Qihong said bluntly.

Huang Tingfang was slightly surprised. He originally thought that Luo Qihong had been silent for a while and would no longer launch any major acquisitions. He did not expect that the acquisitions had been going on, but were not known to the outside world.

"Mr. Luo, can you tell us which company you are acquiring? Maybe we can help." Huang Zhixiang immediately became interested.

Luo Qihong shook his head and said, "Keep it secret for now. Mr. Huang will know it soon."

"Mr. Luo, I just want to ask one question, is your acquisition related to Huang Zuyao's family?" Huang Tingfang was a little worried.

Luo Qihong smiled and said, "Don't worry, Mr. Huang! It has little to do with the Huang Zuyao family and will not affect the acquisition of Tiger Balm Enterprises."

"Mr. Huang, I have a good idea. Let's secretly purchase the shares first. After I hold a certain amount of shares in Tiger and Leopard Enterprises, Far East Group will initiate the acquisition on its own?"

"Luo Sheng doesn't want to offend Huang Zuyao?" Huang Tingfang asked suspiciously.

Luo Qihong chuckled and said, "Not really. If I didn't want to offend Huang Zuyao, I wouldn't have acquired his family's company in the first place. I just thought that this would help Mr. Huang save some money and let Huang Zuyao lose more."

Huang Zhixiang continued, "We originally wanted to use the power of the two companies to force Huang Zuyao to give up Tiger Leopard Enterprise. Without Luo Sheng's support, it will cost more money."

"Okay, in that case, let's set up a new company. How much equity should I own?" Luo Qihong said.

What Huang Zhixiang said made sense. They did not want to sacrifice their own interests to satisfy Luo Qihong's interests. After all, there were billions of Hong Kong dollars involved.

"How about 40% equity?" Huang Tingfang asked tentatively. Of course, the concession would be within 10%. They must have a dominant stake.

In fact, this is not the best time to acquire Tiger Balm Enterprises. UOB is in its prime, and a takeover war requires more funds, and there will be many unexpected events. But Luo Qihong thought of a saying, "A fly never bites an egg that has no cracks." Huang Tingfang must have known some inside information about the Huang Zuoyao family or UOB, and thought the time had come.

A few days later, Luo Qihong finished all the official business of his company and flew to Singapore.

The secret purchase of Tiger Balm Enterprises shares will take some time, but Hengan Investment's acquisition of F&N Group will not be resolved in a week or two. If it gets stuck, it may take several months.

"How much equity do we hold? What is the current situation?" Luo Qihong asked. Although Zhang Wenhe often called to report, the specific situation still needed to be experienced in person.

"17.6%. We haven't contacted Sime Darby yet. I'm worried that it will be exposed in advance." Zhang Wenhe reported, "City Development Corporation is still in the process of acquiring shares. The shareholding is around 8.2%. The Guo family may have discovered our intentions."

"Mr. Luo, aren't you working with Guo Lingcan of Hong Leong Group? Aren't Guo Lingming and Guo Lingcan of City Development cousins? Perhaps Guo Lingcan can help us complete this acquisition."

Guo Lingming's father is Guo Fangfeng, and the Hong Leong Group was also founded by Guo Fangfeng, but it has already been split up.

"Let's wait until the shareholding exceeds 20%. The current shareholding is too small." Luo Qihong nodded. He also had the same idea.

However, as Zhang Wenhe said, approaching Guo Lingcan without authorization would easily expose the purpose of the acquisition and give Robert Kuok time to react. Luo Qihong's only advantage at this time was to acquire the company secretly and take the initiative.

Sime Darby holds 6%, and together with City Developments’ stake, it only holds 31.8%, which is comparable to that of Robert Kuok. It will definitely be a fierce takeover battle.

Although Luo Qihong is not afraid, this is not what a businessman should do. A smart businessman should consider the gains and losses.

the next morning.

Luo Qihong injected a large amount of Hong Kong funds into the new company Huamei through Singapore Heng'an Investment Company. Of course, this was a secret and difficult for outsiders to find out.

There are only a dozen people in Huamei Company, but they are basically elites. They were transferred from Luo Qihong's Heng'an Investment and Huang Tingfang's family's Far East Group, and are specifically responsible for secretly purchasing shares of Tiger and Leopard Enterprises.

In just a few days, Huamei Company had gathered HK$27 billion in funds, and other funds were still being transferred into the account.

According to the agreement signed by both parties, Huamei Company's book cash flow will reach HK$50 billion. However, even with such a huge amount of cash, there is still no guarantee that the acquisition will be successful.

Originally, Luo Qihong wanted to suggest that the acquisition be handed over to OCBC. This way he could befriend OCBC. Even if OCBC could not support him, it was possible to make OCBC neutral, causing the Kuok family's shareholding to drop to 26.4%.

If it is only 26.4% of the shares, Luo Qihong's chances of winning will increase by 1% to 2%.

Unfortunately, Huang Tingfang had his ideal financial company, so he didn’t continue to insist.

"It is true that OCBC and UOB are rivals, but OCBC is not yet a rival of UOB," Huang Tingfang said lightly.

Luo Qihong smiled and said, "UOB was established first, and OCBC was established later. As long as OCBC is given some time, it will definitely be able to leverage UOB's position. I think Mr. Huang is also very experienced in this area, otherwise how could he carve out a path in the Hong Kong real estate industry."

"Forget it, let's not talk about this." Huang Tingfang waved his hand and changed the subject, "In fact, I value Tiger Leopard Enterprise's pharmaceutical and financial investment businesses more than those real estate properties."

Of course Luo Qihong thought Huang Tingfang was talking nonsense. Tiger Leopard Enterprise Company had completed the first round of transformation. The pharmaceutical business went from being the first main business to one of the three main businesses. When the second round of transformation is completed, the pharmaceutical industry may no longer be the main business.

The importance of real estate properties will become more prominent. Haw Par Corporation has a large factory in Jurong area, which is now being developed. Once completed, it will be one of the company's treasure troves.

(End of this chapter)