Hong Kong 1980: The Savage Era

Chapter 544 546 [Kingston] (New book, please collect)
mid-December.

Luo Qihong took a private plane to Los Angeles, USA.

The proportion of Zhaoan Group's investment in the United States is not high, slightly lower than that of Hengan Investment Company. Of course, this was also intentional by Luo Qihong.

Because Zhaoan Group's current focus is still in Hong Kong, Europe, Southeast Asia and the Mainland, it cannot take care of the United States.

Moreover, with Luo Qihong's private investment company based in the United States, it is enough for the family to dominate the world.

Hengan Investment Company mainly invested in information technology stocks, such as 3.6% of Microsoft and 4.1% of Oracle. By the end of the 1400s, Microsoft's stock was worth HK$600 billion and Oracle's stock was worth HK$ billion.
It has also invested in Internet companies, and the total investment value is estimated to exceed HK$5000 billion.

Before the millennium, the total assets of the Luo family would exceed one trillion Hong Kong dollars, marking their entry into the world-class family.

In an office building in Los Angeles, Luo Qihong brought Bob, president of American Hengan Investment Company, to visit the two founders of Kingston Company, Du Jichuan and Sun David.

Kingston was founded in 87 and has been in operation for 7 years now. Its main product is memory hardware. Its current turnover has exceeded US$5 million and it is one of the most rapidly growing technology companies in the United States.

The previous Kingston company was acquired by Japanese Masayoshi Son in 96, but Son's company could hardly help Kingston. Luo Qihong was different. He had Wang Laboratories and could provide Kingston with some cooperation projects.

Moreover, as a time traveler, Luo Qihong knows the development of the future world and can provide the two founders with a lot of creative ideas.

In his previous life, Masayoshi Son spent US$14.4 billion to acquire 80% of Kingston's shares. This price scared the two founders as it was too high.

However, Luo Qihong believes that it is worth it, because Kingston's turnover in the next year will directly exceed 130 billion US dollars, which means that the investment can be earned back in one year.

The memory sector is highly cyclical; if you make money this year, you may suffer a huge loss next year.

That's why Du Jichuan and Sun David were willing to sell Kingston.

"To be honest, I am very optimistic about Kingston's prospects. As long as it keeps up its momentum, it will definitely monopolize the memory field." Luo Qihong said bluntly, "I hope to acquire 80% of Kingston's shares from you two for $11 billion. Of course, you two will still have the management rights of Kingston."

After the acquisition, Masayoshi Son found that he still had more than 3 million US dollars to raise, so he called Du Jichuan and Sun David, hoping that they could give him more time.

What is surprising is that Du Jichuan and Sun David actually waived the payment of more than 3 million US dollars, which shows that Masayoshi Son gave too much.

In the end, Masayoshi Son acquired 11% of Kingston's shares for US$80 billion.

"Mr. Luo, is it because of Wang Laboratories that you want to acquire Kingston?" Du Jichuan thought for a moment and asked.

Luo Qihong shook his head. "It's a small part of the reason. The main reason is that I am optimistic about the future market of computer and other technological products, and Kingston's memory products are essential for technological products."

"Mr. Luo, you're offering such a high price, aren't you worried about losses? Last year's turnover was only 5 million US dollars, and the company also needs to develop. I'm afraid there will be no dividends in the next few years." Du Jichuan continued.

"Haha!! Don't worry. To be honest, I hold shares in many high-tech and Internet companies in the United States, with a market value of over 10 billion US dollars. I am not worried about the impact of losses at all." Luo Qihong said.

Du Jichuan and Sun David looked at each other. They had some understanding of Luo Qihong. It was not an exaggeration to describe him as "rich and powerful". You have to know that Luo Qihong's influence in the United States is no less than those oligarchs on Wall Street.

"Mr. Luo, how about I give you an answer tomorrow?"

Luo Qihong nodded and said, "Okay. This is a big deal and requires careful consideration. I'll wait for good news from you two." After leaving.

Bob asked, "Boss, isn't $11 billion a bit too high? Kingston's market value is only $7 to $8 million."

Luo Qihong smiled and said, "Not high! Wang An Computer Company has developed a new generation of computers and will soon be put on the market. The memory products purchased can be completely replaced with Kingston. The demand of Wang An Computer Company alone can support a Kingston."

"Besides, doesn't Hengan Investment hold shares in many computer companies such as HP? As long as we propose purchasing Kingston products at the board meeting, I don't think anyone will object."

"According to my conception, Kingston's products will monopolize the world's memory market, and the PC industry may usher in a big explosion next year, and Kingston will also rise with it."

Once Microsoft's Windows 95 is released, the PC industry will be more perfect and it will only be a matter of time before it becomes popular.

The next afternoon, the two parties signed a preliminary agreement, with Hengan Investment Company paying a deposit of US$1 million and the remaining US$10 billion to be paid within three months.

There is less than 3 million US dollars left in Hengan Investment's account. Luo Qihong still has 1 to 2 million US dollars in cash flow, but he also has to deal with emergencies. After all, his family has businesses all over the world.

Luo Qihong was not in a hurry. He had a very good relationship with the bank and his assets in the United States were of high quality, so a loan of $10 billion was not a big problem.

Of course, he would rather raise the money on his own, as the interest on a $10 billion loan is not small.

He also wanted to narrow his investment scope slightly and get out of the Asian financial crisis early, but the economic profits on the eve of the financial crisis were very considerable, which made him hesitate.

Ultimately, he chose the most complex approach, raising $8 million from Hengchang Hong Holdings, Fujia Newspapers, Yeo Hiap Seng Group and Hengan Investments around the world.

He also plans to sell part of the shares of Bank of China held by Heng'an Investment Company to recover some funds.

The news that Hengan Investment Company acquired Kingston for US$11 billion was quickly reported by the American media, causing quite a stir, especially among the elites on Wall Street.

The American media is very powerful. In just two days, they dug out some important investments of Hengan Investment in the United States, such as equity investment in Citibank and stock investment in Microsoft.

According to estimates by a financial magazine, Hengan Investment Company's assets in the United States have exceeded US$50 billion. Combined with assets around the world, this is nearly double Buffett's US$83 billion fortune, making him the world's richest man.

Luo Qihong held the newsprint and magazines and couldn't help laughing, "The richest man? Sam Walton's family has a wealth of more than 230 billion US dollars, but they are not on the Forbes list. It's really nonsense."

There are many hidden families in the world, such as the royal family of Saudi Arabia and the royal family of Brunei. Only a few of them have wealth exceeding 100 billion US dollars.

For example, Li Jiacheng from Hong Kong has assets exceeding US$70 billion, but he is not on the top ten list of Forbes.

"Keep a low profile recently and tell the company's employees not to respond to reporters' comments. The news will be over after a while." Luo Qihong said to Bob.

"Yes, Boss!" As the president of Hengan Investment Company (USA), Bob is very clear about the assets of the company. Five billion US dollars is too conservative. He also knows that Boss's investment in the United States is not the largest, and the main assets are still in Hong Kong.

Luo Qihong thought about it and felt that this was not a bad thing. Building a reputation was also a kind of investment. More people would come to him in the future, and this would save Hengan some of its investment energy.

He did not stay in Heng'an Investment Company for long. After inspecting Wang An Computer Company, he flew back to Hong Kong.

(End of this chapter)