Reborn in America, I'm serious about making money.
Chapter 98 The Acquisition of Lihua Hotel 1
As a wealthy man, Zhang San's main business and income are in Europe and America; however, as a time traveler, he distrusts this place extremely much. He says one thing but does another, and behind the scenes, he engages in robbery.
But he didn't know where to put his wealth more safely; the ideal place was Hong Kong, where the stock market, over the long term, has a return rate of 19%, which can be said to be the highest in the world.
He invested over HK$40 billion there, and based on current market feedback, its market value should be between HK$60 billion and HK$70 billion.
His global influence is still insufficient, but that doesn't stop him from continuing to increase his investment in Hong Kong.
Recently, he received news about the Lihua Hotel. Looking at the information in front of him, he fell into deep thought.
Judging from the information, many people are interested in this hotel, including the Li family, mainland tycoons, Uncle Li Si, and of course, many other big names.
There's a reason why it's been chosen by so many big shots, and the reason is quite simple.
This hotel group owns numerous properties in Hong Kong and has also made progress in the mainland market. Among them, the Lihua Hotel and Keewin Building in Tsim Sha Tsui have redevelopment value.
Due to the presence of Kai Tak Airport, the floor area ratio of these two properties was not fully utilized. By 1998, when Kai Tak Airport was to be demolished, the opportunity for redevelopment of these two buildings would arise, potentially increasing their total value.
Uncle Li had a very good relationship with the Yang family, the founders of the Lihua Hotel, and he had long wanted to acquire the hotel group.
As for Rongxin Group, it also has its eye on this lucrative opportunity and wants to acquire this hotel group.
From the mid-to-late 1980s to the early 1990s, large mainland-backed conglomerates went public through backdoor listings, making Hong Kong Chinese investors feel that the other side was trying to seize their market share.
Over the past two years, Li Ka-shing helped Ronshine acquire Hang Seng Bank, enabling it to establish a foothold in Hong Kong. Then, Ronshine acquired Hang Seng Bank in its entirety last year.
The initial idea for this acquisition was quite simple: after Mr. Yang, the founder of Lihua Hotel, passed away in 1985, the hotel was taken over by his eldest son, Yang Zheng.
The company's shares belong to the Yang family's family trust fund, with beneficiaries including Mrs. Yang and several siblings. However, apart from the eldest son, most of the other siblings have emigrated to the United States and Canada, and they wish to sell their shares in the Lihua Hotel to pursue their own businesses.
However, Yang Zheng wanted to continue developing his father's business. This led to internal conflicts and disputes. He had worked at the Miramar Hotel since he was young, rising from an ordinary employee to become the company's leader. However, his abilities were not recognized by the market or other shareholders.
After the conflict arose, he complained in the media that he was often restricted and unable to give full play to his abilities.
These things, naturally, could not be kept secret from the bigwigs of Hong Kong, a small place like the city.
To thrive in the turbulent and competitive world of Hong Kong is a testament to the elite among elites; the scheming and planning involved are beyond the comprehension of ordinary people.
Moreover, it takes several years or even decades to see the calculations behind many things; and their steadiness, accuracy, and ruthlessness are naturally unmatched.
As the saying goes, fortresses are always breached from within. It was precisely when the Miramar Hotel was facing internal and external difficulties that Li Ka-shing began to seek out the company.
It is said that in addition to him, Rongxin, and Uncle Li, Hong Kong jewelry tycoon Shark Darling Tung is also interested in the Lihua Hotel.
Zhang San saw an opportunity and naturally wouldn't let it pass, but he couldn't show his face, otherwise, he feared these people would have their eyes on him.
In late April, a newly registered company in Delaware quickly assembled a negotiation delegation and flew to Hong Kong, deciding to strike first before anything happened.
The Lihua Hotel welcomed a business delegation from North America that day. As for why they were a business delegation, it was because of their elite demeanor. After they checked in, they did not attract much attention.
However, the next day, they found the hotel manager.
"Hi, hello, we'd like to meet your boss, Mr. Yang."
The other party was very direct, which surprised the manager. They thought the foreigner was being rude and wanted to refuse.
"I advise you to ask your boss for help, otherwise, you won't be able to take responsibility if something goes wrong."
The other party spoke very seriously, and in the end, the manager still made a phone call to contact Yang Zheng. When Yang Zheng received the manager's message, he was a little angry. What, who does he think he is, that he can be seen whenever he wants?
An hour later, the two sides met in the conference room of the hotel where the foreigners were staying.
A stark contrast to their previous arrogance, this group of North Americans greeted each other with warm smiles. The delegation leader smiled and said, "Mr. Yang, thank you for coming to see me. I am Jack Wood, a representative of Pan American Hotel Management Company."
Yang Zheng was still a little unaccustomed to the foreigner's enthusiasm and asked curiously, "What brings you here?"
He didn't want to have anything to do with these people and wanted to resolve the matter as soon as possible.
"Mr. Yang, we would like to acquire all of your shares at HK$21 per share." Jack paused for a moment, then continued, "We will also continue to entrust the hotel to your management."
Although the price of HK$21 had already tempted him, what truly moved him was the last sentence: continue to entrust the business to him.
"We will not split up this hotel, and we will continue to maintain its listed status and brand."
After thinking for a long time, Yang Zheng said, "You are very sincere, but I still need to consider it."
"Of course, Mr. Yang, but before that, you cannot disclose our affairs. Therefore, you need to sign a confidentiality agreement."
Yang Zheng felt that these foreigners, especially those from North America, were really troublesome; however, he still signed the agreement with a smile.
After they parted ways, Yang Zheng was unable to concentrate on work. He went home, found his mother, and prepared to discuss the day's events with her.
"Ah Zheng, why are you back so early today?"
He invited Old Madam Yang to his study. He had signed a confidentiality agreement, which he naturally had to abide by, as he was also afraid that the matter would be leaked.
"Mommy, some guests came from North America yesterday, and they came to see me today..."
Inside the hotel, Yang Zheng explained everything to Old Madam Yang in detail. Upon hearing all the conditions, not only Yang Zheng was tempted, but Old Madam Yang was also tempted. These conditions were really... impossible to refuse; they were too much, and moreover, they allowed Yang Zheng to continue managing the hotel, ensuring the Lihua Hotel's listed status and brand.
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