Reborn in America, I'm serious about making money.
Chapter 100: The Triggering Effect of Targeted Share Issuance
The change of ownership of the Lihua Hotel Group immediately attracted widespread attention throughout Hong Kong. This is a large group with a market value of over HK$23 billion and many properties in Hong Kong.
Pan Am Hotels Management and the Yang family of Lihua Hotel Group held a press conference at 5 pm yesterday to announce the matter; as for the acquisition by the Rong and Li families, Li Sishu's offer was not mentioned at the press conference.
Most of the Yang family's children live in North America, but the Yang family still wants to live in Hong Kong, after all, this is where the Yang family's roots are, and they don't want to offend these two giants.
If the original timeline is followed, the Yang family offered HK$15 per share to the consortium formed by the Li and Rong families, and told the public that the net assets of the Lihua Hotel were HK$20, and that the company formed by Li and Rong was engaging in a hostile takeover.
In response, Li Ka-shing told reporters, "I made the acquisition with goodwill; it was not a hostile takeover at all."
The next day, Yang Zheng changed his story, saying that he had never said the Li family was engaging in a hostile takeover.
Then, Mrs. Yang approached Uncle Li and asked him to acquire the company, but with the Yang family still managing it. In this way, Uncle Li offered HK$17 and acquired the Lihua Hotel Group.
At the press conference, Yang Zheng announced: "Pan Am Hotels Management is a very sincere company. Twenty days ago, they approached me and offered to acquire me at HK$21 per share. Their sincerity impressed me, and today we are signing the agreement with Pan Am Hotels..."
When the press conference was held, the two Li executives received the news. All three companies sighed at the same time, knowing that there was no chance. HK$21 was not unacceptable. If it were a local company, they might be able to buy it from the other party. But this North American company had an unclear background, and it was not easy to make a move in a short time.
After the two parties signed the agreement, Yang Zheng announced another piece of news.
"The group will issue new shares through a private placement, with the proceeds used for investment in mainland China... This issuance represents 25% of the total shares, and the issuer is NT-MS, a North American software giant that has been eyeing the Asian market... They have already begun construction on Window of the World, the tallest building in mainland China..."
The news broke the next day and immediately caused a sensation in Hong Kong. NT-MS may not be very well-known in Hong Kong, and many Hong Kong residents may not know about it. However, once it was reported in the newspapers, it immediately attracted the attention of countless people. This company, which is listed in North America, has a market value of over US$60 billion, which is close to HK$470 billion.
Such corporate investment naturally became a hot topic among Hong Kong residents; this was a super-powerful player, reportedly with very abundant cash flow.
Following the press conference, a board meeting was held where, with a vote of seven, the private placement was approved by a four-to-three majority of the shareholders.
This vote only passed smoothly because Mrs. Yang took the lead and promised to find someone to take over their shares at HK$21.
"Madam Yang, thank you for your help. We will cooperate with the Yang family for a long time..." Jack could actually speak Hong Kong dialect, which was a big surprise to Madam Yang and Yang Zheng, but these were not important, just a small matter.
Next, the acquisition of the shares held by the three directors was put on the agenda. MCA Hong Kong branch took over the shares of one of them, New Era Financial also took over the shares of one of the directors, and finally ARM from the UK appeared on the board of directors.
When the board meeting was held again, the other three directors were very unhappy to see that the new board consisted of four foreigners. This Chinese-owned enterprise had become a foreign-owned enterprise, which made them very unhappy.
"Chairman Yang, I'd rather not be a director. I'll resign from the board now and sell my shares."
"You unfilial son, you sold your father's business to those foreigners. Humph, just you wait, I'll sell the stocks too."
The third director left without saying a word; did they really care whether this company was Chinese-owned or not?
Jack said, "Gentlemen, please wait a moment, I'm going to make a phone call." What was Jack going to do? Of course, he was going to inform New Era Financial Group to pay attention to the stock price of Lihua Hotel Group.
When Yang was the major shareholder, these three shareholders were extremely critical of him, and their meaning was self-evident. He also realized why his younger siblings were unwilling to take over the family hotel business. These people were scheming and backstabbing, and he couldn't compete with them!
He also came from the bottom and knows hotels very well.
After the three directors left, Jack said, "Chairman Yang, you can now boldly develop the hotel business; we will support you."
Yang Zheng was also very happy at this moment, feeling that the constraints had been lifted.
"Let's discuss our future development plans in mainland China. We will build budget hotels in major cities. In mainland China, we will not pursue a high-end strategy, but only focus on low-end budget hotels. There will be more and more commercial activities in mainland China in the future..."
Jack announced his plan at the board meeting, while the city was already abuzz with speculation.
"The Yang family sold all their assets to American capital, really..."
"That Yang Zheng is utterly ungrateful and has forgotten his roots, I..."
"...Alas, what unfilial descendants..."
They announced that they would sell their shares and no longer had a positive outlook on Lihua Hotel Group. As soon as this announcement was made, the stock price of Lihua Hotel Group immediately plummeted.
It dropped from HK$18 to HK$12, then to HK$11, and continued to drop until it reached HK$8...
At the close of trading in the afternoon, Lihua Hotel issued an announcement: Lihua Hotel will suspend trading for one week due to a major event.
Zhang San received the news that day that the three shareholders of Lihua Hotel were going to sell all their shares, causing Lihua Hotel's stock price to plummet, but he didn't care about that.
This is a good thing for him. The issuance price can be set at 7 yuan. As for what investors think, that's for sure. This is investing in the future. If the future is not promising, the stock price will naturally fall.
The day after the suspension of trading was announced, a newspaper reported: "The mainland's economy is underdeveloped; investing in hotels offers no growth potential, except for small inns..."
Newspapers have also reported that the acquisition of the Lihua Hotel by foreign capital is not for the purpose of developing the hotel, but rather to split up the hotel business, at which point the Lihua Hotel will be hollowed out.
Numerous negative reports appeared in Hong Kong media, but Pan Am Hotels Management did not come forward to clarify. Clarify what? They were too busy celebrating to even think about it.
Not long after, Zhang San learned about what was happening in Hong Kong. He exclaimed, "Someone's definitely stirring up trouble! Damn it!"
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