Hong Kong 1980: The Savage Era

Chapter 532 534 [Merger is Difficult]

It is possible that Robert Kuok's intention is to wait until the Lo family is weak to seize the F&N Group again. His intention is both sinister and understandable. After all, the prospects and assets of the F&N Group are excellent, and anyone would be tempted.

Luo Qihong thought about it and decided to give in. "Okay, I'll give in a little, but you can't hold the shares of Frasers Group and convert them into shares of Frasers Real Estate Company. How about that?"

Frasers Property has a market capitalization of around S$3 million, making it a fairly strong real estate company in Singapore. Of course, its market capitalization is underestimated, and quite seriously so.

According to the information obtained by Luo Qihong, the actual market value of Frasers Property Development exceeds S$6 million. It is a medium-to-large real estate company in Singapore with great potential and can be transformed into an industrial park rental company within a few years.

Robert Kuok will not be satisfied with this. He still wants to hold shares in F&N Group, stay on the board of directors, and wait for the next opportunity.

However, it would be difficult for him to fight a takeover war. It is not that the Guo family cannot afford it, but that a war would seriously damage the interests and big plans of Wilmar Group and Kerry Group.

Robert Kuok is well aware that his chances of winning are slim and the right thing to do is to rationally reap the greatest benefits.

As for compromising with Luo Qihong and losing face, of course it did happen, but he was not the only Singaporean tycoon who was defeated by Luo Qihong.

Huang Zuoyao of United Overseas Bank was so strong, but he was still defeated by Luo Qihong.

"Mr. Luo, can't you really keep my board seat?" Seeing that Luo Qihong had given in, Robert Kuok naturally wanted to further test Luo Qihong's bottom line.

Luo Qihong smiled and said, "Mr. Guo, we are all smart people. How can I let you keep threatening me?"

"I have the upper hand now, but if Mr. Guo can sign an agreement that will not threaten my position, I can consider giving up two board seats."

Robert Kuok glanced at Luo Qihong and knew that he could not test him any further. This should be Luo Qihong's bottom line.

"Okay, how much equity does Mr. Luo intend to let me hold?"

"10% is the maximum." Seeing that Robert Kuok was still talking, Luo Qihong waved his hand to interrupt him and said, "If Mr. Kuok wants more, then I can only accept the challenge."

"Okay, 10% of the shares and two board seats." Robert Kuok nodded in agreement. When you are under someone's roof, you have to bow your head. Now Luo Qihong has the advantage.

“Can we hold some shares in Frasers Property?” Guo Kongcheng asked carefully.

Luo Qihong smiled slightly and said, "Little Guo, you can do whatever you want. After I take control of the Frasers Group, I will increase my stake in the companies under it, and it will be infinitely close to 50%."

This is to tell Guo Kongcheng not to play any tricks, as it is futile in the face of absolute equity and will only put them in a deadlock.

The two sides discussed some details and announced the deal only after it was completed.

Naturally, the share prices of F&N Group and its subsidiaries plummeted upon hearing the news, but they soon returned to their previous share prices and market capitalizations.

Hengan Investment Company Office.

Zhang Wenhe reported, "All the backbone members of the Guo family have resigned and transferred to Wilmar Group and Kerry Group. However, other directors still have some confidants who control important departments. Should they all be cleared out?"

"Give notice to those directors. If they are willing to remove their confidants, that would be a good thing. If not, then clear them all out, and those with problems will be dealt with severely." Luo Qihong will not show mercy to these people who do not know the current situation.

These directors obviously wanted to test whether Luo Qihong's sword was sharp enough and fast enough, so they had to cut the Gordian knot quickly. F&N Group must be his.

The situation now is very different from when he first acquired Yeo Hiap Seng Group. Luo Qihong has a mature talent reserve system and can completely dispatch enough people from Yeo Hiap Seng Group to control F&N Group, and he also has the cooperation of Robert Kuok.

"Yes, I know how to deal with it." Zhang Wenhe nodded heavily. He is now quite famous in Singapore, thanks to Luo Qihong's three acquisitions, which defeated three famous families in Singapore.

"The securities department of F&N Group should be taken over as soon as possible. The Food and Beverage Group should focus on its core industries and not engage in other businesses." Luo Qihong said. In fact, many large companies have securities departments to make quick money, but Hengan Investment Company is engaged in securities investment, so there is no need for its subsidiaries to have securities departments.

Of course, there may be a chance in the future, but that is the business of Luo Qihong’s son, and it will not happen as long as he is in power.

"Okay!" Zhang Wenhe said excitedly, this would increase his power.

"Is there any way to merge F&N Group and Yeo Hiap Seng?" asked Luo Qihong.

Zhang Wenhe's eyes widened. Isn't this too fast? Both groups are large enterprises. It would be quite troublesome to merge them. It might even fail and cause many adverse reactions.

"The problem of Yeo Hiap Seng Group lies with the Kuok King Lian family. Yeo Tien Cheng and others may not agree because their equity will be diluted and they do not have enough funds to make up for it," said Zhang Wenhe.

Luo Qihong smiled faintly, "This is not a problem. We are the largest shareholder and can veto. The main problem lies with the Frasers Group. Robert Kuok and others may ask for more benefits."

"The merger of the two groups is also beneficial to them, why should they oppose it?" Zhang Wenhe was a little puzzled.

"Because of greed, I want more." Luo Qihong said with a smile.

"What do you mean?"

"Take it slow, this is just an idea." Luo Qihong remembered the merger of Hutchison Group and Whampoa Dockyard in 78. This was a pioneering move that directly saved two large companies.

The reference here is not very meaningful because Yeo Hiap Seng Group has been back on track and has gotten rid of its operating difficulties, while Frasers Group has not yet fallen into crisis, so there will be great resistance to the merger.

After all, everyone wants more.

After acquiring F&N Group, the Lo Chi Hong family’s apparent assets exceeded S$12 billion, making it one of the top ten richest families in Singapore.

This news came from Sing Tao Daily, which published detailed assets of the Luo Qihong family in Singapore. The properties in Orchard Road alone were worth more than S$3 million.

Singaporeans call Luo Qihong the most powerful immigrant in Singapore, and many young people regard him as an idol.

You have to know that other foreign companies are still trying hard to open up and occupy the Singapore market, but Luo Qihong has already opened the door to Singapore and even became one of the owners.

A private room in a hotel in Singapore.

There were various dishes on the table, smelling delicious, but the people sitting there were not very interested in them.

"Mr. Luo is really sharp. He actually dared to acquire the F&N Group. No wonder he was so tight-lipped at the beginning." Huang Tingfang joked, with some admiration in his eyes.

Huang Tingfang certainly thought about acquiring F&N Group, but the funds involved were too huge, and he did not have the confidence to beat Robert Kuok, and he was also afraid that someone else would take advantage of the situation.

Luo Qihong smiled and said, "It's just luck. I was just trying my luck. Robert Kuok is not a pushover."

Robert Kuok has his own family business, and F&N Group is at most a joint venture, which is not something that Robert Kuok has full control over. That’s why Lo Chi-hung dared to launch a takeover campaign.

If it were Wilmar Group or Kerry Group, Robert Kuok would definitely fight desperately and would never let go.

At that time, Luo Qihong would also be in trouble, but the subsequent Tiger Balm Enterprises would be more difficult to acquire than the F&N Group.

(End of this chapter)