Reborn in America, I'm serious about making money.
Chapter 154 1 A Family with a Daughter Seeks Help
Just as Zhang San was orchestrating his own grand drama of Lihua Group acquiring Stephen's Supermarket, he received a call from an employee of Stephen's North America.
"Boss, Walmart is preparing to make an offer to acquire our supermarket business in mainland China."
"Oh, how did they know?" Zhang San said something he himself found silly, then asked, "Did they make an offer?"
"They are willing to acquire it for five billion dollars in stock."
"They're not being sincere at all. Our supermarket's prices are definitely higher than this. Last year, we made nearly a billion dollars in profit. Based on this, we can claim ten billion dollars." Zhang San complained to his employees in an exaggerated manner, as if he had been greatly wronged.
"Boss, I haven't finished yet. In addition to Walmart's offer, Carrefour in France has also made an offer to us. They are willing to offer $4.5 billion in cash to acquire us."
"Please continue." Zhang San felt that his employee was an idiot for not finishing his sentence.
"Oh, there's another one, it's Iwado from the island nation, they want to acquire it for six billion US dollars."
Zhang San was astonished to discover that Yihuatang was incredibly wealthy, having offered six billion US dollars. He exclaimed, "Wow! They're really rich!" After his exclamation, Zhang San said, "Tell them that in a month, we will hold a sealed-bid auction in Hong Kong. Participants will need to pay a deposit of two billion US dollars."
Since you want it so badly, then fine, take it and let him have it; as the saying goes, a family with a daughter is sought after by a hundred families, so let's see if your 'bride price' satisfies him.
Stephen announced to newspapers and media worldwide that he was determined to sell Stephen Company’s retail business in mainland China. A sealed bid will be held in one month, and interested companies are welcome to attend and bid. This transaction will not accept equity, only cash transactions.
This has caused quite a stir, with many companies immediately willing to join in. The fact that last year's sales were nearly $10 billion and profits were nearly $1 billion has attracted a lot of people to participate.
Walmart issued a statement saying that Stephen's retail business has a very similar operating strategy to Walmart's philosophy, and Walmart will join the bidding.
Carrefour also issued a statement: Mainland China is an emerging market, and Carrefour will also enter this market. Stephen Retail is a very good company and a retail company with great potential.
……
Global retail giants have announced their intention to join the bidding, showing their optimism about the mainland market. Meanwhile, Lihua Group has officially secured a loan from Golden Globe Bank, preparing to enter the competition.
Lihua Group announced that it has secured a $10 billion credit line from Golden Globe Group and will conduct a massive 10-for-5 rights issue to raise funds for the acquisition of Stephens Supermarket's business.
The darling of Hong Kong media, the most dazzling star in Hong Kong, is the Lihua Group. The former Lihua Hotel, its extravagant spending even shocked the whole of Asia. Its market value was only US$12-13 billion, yet it dared to borrow US$10 billion and conduct financing of more than HK$50 billion.
General Manager Yang is now extremely uneasy, feeling immense pressure, but Zhang San has called him.
"Boss."
General Manager Yang was still somewhat curious about this mysterious boss.
"Don't feel pressured. This was a decision made by the board of directors. Don't feel pressured. I still hope you can stay in that position."
"Thank you, boss. I won't let you down."
The brilliance of Hong Kong media lies in the fact that with a group of top-notch paparazzi, a small tabloid published a story titled: "The Mystery of the Renaming of the Lihua Hotel!"
Is Lihua Hotel a hotel group or a real estate group?
On the surface, Lihua Hotel appears to be a hotel group, but after investigating not only its fixed assets but also visiting many cities in mainland China, I discovered a secret: in addition to Lihua Hotel in Hong Kong, the current Lihua Group owns a large amount of land, including plots with huge appreciation potential. Furthermore, its recent rights issues and fundraising have transformed Lihua Group into a real estate company disguised as a hotel company.
The article then lists the land and properties owned by the Lihua Hotel, the sheer number of which and the vast size of its land holdings astonished everyone in Hong Kong, especially in mainland China, where it owns a massive amount of commercial properties in Beijing, Shanghai, Guangzhou, Shenzhen, and various provincial capitals and central cities.
Investors who initially thought Lihua Group's stock price was in a bubble have discovered that it's actually a gold mine. Land prices in Hong Kong are now rising dramatically, which is quite surprising.
Following the exposure of Lihua Group's ambitious moves, its stock price soared, making it the focus of the market. Major investment banks raised their ratings for Lihua Group, and investors flocked to it.
However, beneath this seemingly prosperous facade lies a fierce battle. Major retail giants are sharpening their knives, determined to win. This war without gunpowder is about to begin in Hong Kong…
"I never expected that the old Lihua Hotel would be completely different after changing owners. It's really impressive."
The most discussed topic in Hong Kong right now is the battle for Stephens Supermarket and whether Lihua Group can win in the end.
"That Walmart is very shrewd, and they have plenty of funds. If they take over Stephens Supermarket in one fell swoop, they will have more than 2,000 supermarkets in mainland China. You could say they are a model of how one generation plants the trees and another enjoys the shade."
"If Lihua wins, it could become one of the top five conglomerates in Hong Kong."
"Yes, its market value is at least HK$200 billion, comparable to Cheung Kong Holdings."
"The Hong Kong property market is heating up, and there are still so many properties available."
Who will win this time?
In fact, the script had already been written. As the man behind these companies, Zhang San would have Lihua Group quote an extremely high price, and then expose the actual number of budget hotels Lihua Group owns in mainland China, as well as its performance.
At that time, the price issue will not lead others to question whether Lihua Hotel's stock price is too high.
In fact, this financing will not drain much capital from the stock market; despite the large amount of funds raised in this rights issue, exceeding HK$50 billion, the actual capital outflow is only HK$10 billion.
80% of the shares are held by Zhang San's companies, and they are just waiting for an opportunity; waiting for Zhang San to announce the opportunity to reduce his holdings.
After completing the acquisition of Stephens Supermarket, Lihua Group will enter a period of rest and recuperation, which will be referred to externally as digesting the acquired Stephens Supermarket.
Internally, the approach involves cutting some unrelated positions to redirect people's attention elsewhere.
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