Siheyuan (courtyard house): My name is Shazhu!
Chapter 349 Land Acquisition Fails!
"Our Mr. Macdonald proposed the 'Ten-Year Housing Plan,' and Hong Kong's financial sector has developed rapidly over the past decade, which has provided fertile ground for the emergence of these new ideas."
An impending real estate market revolution is quietly brewing, taking place amidst favorable conditions. They understand this, and Jardine Matheson's aggressive actions are therefore understandable.
Let them go crazy first; Hongkong Land's share price fell from HK$94 (some say HK$66) to HK$3.4.
Even Cheung Kong Holdings, which was owned by our Superman brother in his previous life, has fallen from HK$28.6 to HK$1.7. How is he doing now?
A year later, we gradually accumulated Hongkong Land shares, starting at around HK$4.50. Acquiring 50.1% of Hongkong Land shares for only HK$500 million, which was already below net asset value!
Half of their company's 1.9 billion yuan debt was shared by someone else.
When the time comes, they'll repay the loan and clear out the other shareholders. If they don't repay the loan, their shares will be diluted. Buying their shares won't be a loss, as they're only four or five dollars!
In five years, Hongkong Land will be worth at least six billion, and in 80 years, a Hongkong Land building can be sold for three billion!
This means we got at least 3 billion for 1.45 billion. Jardine Matheson is left with only the electric lighting company and a largely useless financial company. We're not losing money!
"Superman still runs a toy factory, has a million-dollar insurance policy, hasn't paid off three million in debt, has some connections, and is already listed on the stock market; the stock price of listed companies is doing very well now!"
Kuang Biao kept his eyes on several people, including a child and an elder, all of whom were well-known figures in his previous life!
"We will also sell some shares in January or February next year. The price is too high and we have to sell them. We will buy them back a year later. This time we can make a net profit of more than 37 billion."
If he can strike Superman one last time and succeed as he did in his previous life, destiny is on his side!
"He won't succeed!" Kuang Biao was used to discouraging him!
"The stock market is really crazy. Our auto stock has reached 280 yuan per share, with 500 million shares and earnings per share of 5.8."
The price-to-earnings ratio is nearly 50! Selling 29% of the shares would yield a profit of no less than 43 billion.
This includes the funds needed to acquire 29% of the shares at a price of fifty dollars, a strategy that could continue into the 1980s.
"If they dare to play, we'll play along. A milk ice factory can sell 38% of its shares, and a bunch of lunatics pushed the stock price to two hundred dollars. What makes them think they can? It's absurd!"
"That's pretty good. We can earn an extra 1.6 billion. Why not? The milk company is doing well. The milk ice factory earns 3.65 yuan per share, while Hongkong Land's two shares only earn 2.58 yuan."
The land company is one dollar less than them, but the dairy company has a bright future, with large tracts of land for raising dairy cows in a good location!
Niu Real Estate Company acquired Dairy Farm Company by printing shares, thus becoming the leading real estate developer in the area.
"Sell it! We'll retain a 50.1% stake!"
On October 30th, Hongkong Land Company indeed announced as scheduled:
Two HK$5 Hongkong Land shares were exchanged for one HK$7.5 Dairy Farm shares, with no cash involved in the entire acquisition.
The first major takeover battle to have an impact on the Hong Kong stock market has emerged!
At that time, Hongkong Land's shares were priced at HK$94, and Milk Ice Factory's shares were priced at HK$135. Subsequently, Milk Ice Factory's share price rose all the way up, reaching a new level of HK$200 per share in 12 days.
The beneficiary was the Oriental Group, which started selling off its shares in the milk ice factory at 180 yuan and sold off its extra 38% in three days.
The stock market was in a frenzy, with countless people buying shares at prices exceeding 180 yuan. The stock price only hovered around 196 yuan, failing to reach 200 yuan per share.
Sir Zhou obediently refused the acquisition and even urged shareholders not to sell their shares in the milk ice factory.
When the real is made to appear fake, the fake becomes real!
In the end, it's still the retail investors' money that gets lost.
On November 27, two days before the final share conversion deadline, Hongkong Land Company pulled out another "secret weapon" and announced a large bonus share distribution of 5 shares for every 1 share held. This condition was indeed very tempting for many shareholders of the milk ice cream factory.
He Yuzhu and others were just waiting for Hong Kong Land Group to do this, diluting their own company's shares to below 5.5%. If they didn't have the funds to buy more shares, they could only dream about it!
The milk ice factory did not take any further countermeasures, but only appealed to shareholders not to sell their shares!
On the 29th, Hongkong Land announced that it had acquired a 48% stake in the milk ice factory, believing that the overall situation was settled!
That afternoon, Sir Chow held a press conference to announce that his shareholding plus the authorized shares amounted to 50.1%, and that Hongkong Land had not completed the acquisition!
The milk ice factory is still in his hands.
At the same time, it was clearly stated that the current stock price is too high, and it is not advisable for investors to blindly speculate on stocks, as the risk is too great.
It was further stated that the milk ice factory's stock should be around 40 yuan, which is 11 times the price-to-earnings ratio; anything more would be unworthy.
This is a saying taught by He Yuzhu. Stock market investors won't listen. The stock market will continue to rise, but the milk ice factory's stock price will plummet.
The purpose was to lock up Hongkong Land's 48% stake in the Milk Ice Factory, preventing them from selling the Milk Ice Factory shares at a high price and making it impossible for them to buy back Hongkong Land's shares, which were still at a high price.
As expected, the stock price of the milk ice factory began to fall, dropping from 195 yuan to 130 yuan in two days, which was 5 yuan lower than the previous surge.
The stock price is expected to fall to 66 yuan per share in the next twelve trading days and then stabilize.
Hongkong Land's stock only dropped slightly by six dollars to eighty-eight dollars a share. Just hold onto it and let it rot.
Having achieved their goal, He Yuzhu and the others raised their glasses in celebration!
Sir Zhou wiped the sweat from his forehead. It was no crime for his company to own land; there would be no financial loss if it were acquired.
This has greatly impacted his reputation; perhaps it's someone from Niu Niu's side trying to damage his once-dominant prestige. He still doesn't need to retire to maintain his considerable influence.
Very likely!
There are many old companies in the port city with a lot of land, so why was the first target shot at them?
Luckily, I have a good niece's husband!
When it comes to business warfare, I'm far from qualified!
Listening to advice will ensure you have enough to eat!
The failure of the acquisition had a huge impact on Hongkong Land, causing massive bleeding that was incurable.
The milk ice cream factory's stock fell too quickly, so they only sold 2% of their shares when the price was above 100 yuan, and at most bought back 2.3% of their own stock.
Holding only 6.9% of the company's stock is too risky; it could easily be acquired by another company.
It means that even if you sell all the milk ice factory stock and buy back your own company stock, your shareholding will still not exceed 19%, which is equivalent to giving away 11% for free.
No one on the stock market is buying our company shares, because we are a top-performing company and they dare not!
The people at Jardine Matheson are still trying to comfort themselves!
"Mr. Ho, none of the fourteen listed companies we've been eyeing have been acquired. These companies are using the funds they've raised to develop real estate, targeting the New Territories and rental properties in older buildings."
"You don't have much money on hand? We waited until the lowest price in 74 to acquire seven companies, taking 30% to 40% each, and then acquiring the remaining seven. We had a plan."
"I really enjoy the stock market's ups and downs now. We've raised the average wage of our company's workers to 600 yuan. It's bound to rise sooner or later, so we'll take the initiative to do so!"
It will leave you with a good reputation!
Let's go celebrate.
"Three days ago, Superman's toy factory caught fire because the warehouse keeper was smoking. The fire was so large that it burned the entire factory down, and their stock price plummeted to two cents."
Don't keep a close eye on him anymore. Unless his great-uncle leaves him a huge inheritance, he has no chance of making a comeback and becoming incredibly wealthy.
"He's been through a lot these past few years, let's do a good deed and let him off the hook."
"it is good!"
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