Chapter 203: China-Pakistan listing and veto power

Chapter 203: China-Pakistan listing and veto power

Chapter 203: China-Pakistan listing and veto power
Our few days of Spring Festival holiday passed quickly.

For Yang Wendong, there is actually no difference between going to work and taking a holiday. Unlike other business owners who work very hard, Yang Wendong is very relaxed as he knows the future changes in economic development.

As long as the strategic direction is correct and no serious operational problems occur, the company can basically develop in its own direction.

Time soon came to the end of the month, and Yang Wendong arrived at the Hong Kong China Building very early, earlier than most people went to work.

Also arriving early was Zheng Zhijie from Changxing Real Estate and several trustworthy people around him.

"Morning, Mr. Yang."

After Yang Wendong arrived at the meeting room, Zheng Zhijie and his acquaintances hurriedly greeted him.

"Good morning." Yang Wendong nodded with a smile and said, "Thank you all for coming so early. You have worked hard."

"Mr. Yang, you're too polite. This is what we should do." Zheng Zhijie said with a smile, and several people around him echoed him.

After Yang Wendong sat down, Zheng Zhijie said, "Mr. Yang, we have reached a cooperation agreement with Standard Chartered Bank. After China-Bus is listed today, they will buy idle China-Bus shares for us in the stock market."

"Can you ensure that they will keep it absolutely confidential?" Yang Wendong asked.

Zheng Zhijie said: "No problem, we have already signed the agreement, and Standard Chartered, HSBC, Luckin and even some Chinese banks or financial companies will also serve many other companies in Hong Kong.

If the secrets of a partner are leaked, even if it is unintentional, it will cause a huge loss of reputation for them. "

"Okay." Yang Wendong nodded and said, "Then wait for China-Pakistan Bus to go public. How many shares will they release this time?"

Zheng Zhijie said: "According to the public information from the Hong Kong Stock Exchange, China Bus has a total of 100 million shares, priced at HK$12 per share, and plans to release 25 shares to the public."

"The total market value is 1200 million Hong Kong dollars? It should be able to increase by several dozen percent after listing." Yang Wendong said with a smile: "The market value is still quite high."

Zheng Zhijie said with a smile: "That's about right. Chinabus has a monopoly on travel in Hong Kong Island. Although it costs a lot, hundreds of thousands of people need to take the bus every day. In a year, the net profit is about one million Hong Kong dollars.
In addition, China Mobile also has a lot of real estate and land, which is also valuable. According to the general price-earnings ratio, 1200 is considered low. I estimate that it will eventually stabilize at around 1800.”

"Well, a profit of more than one million a year is pretty good." Yang Wendong nodded and said, "It can also be considered a small cash cow."

In the mainland in the past, many people knew that most city buses were operated at a loss, but this is actually a characteristic of the mainland and some other countries. After financial subsidies, bus prices are cheap, making travel convenient for the people and indirectly stimulating economic development.

But in many other countries or regions, which are purely capitalist societies, it is good enough if these governments can restrict monopoly enterprises from raising prices indefinitely.

Zheng Zhijie said: "Yes, otherwise Yan Chengkun would not have thought about listing for financing and expanding more routes."

"Then let's get started." Yang Wendong continued, "After China-Pakistan is listed, let Standard Chartered start buying shares immediately. This is the first day, so even if multiple accounts buy shares on a large scale, it won't arouse any suspicion."

Under normal circumstances, a company's stock is stable unless something major happens, so when buying listed stocks, one needs to be extremely cautious, because a transaction that is too large can easily be discovered by the other company or even many outsiders.

But when it was first listed, it could be completely explained as the market being optimistic about the company's stock.

Zheng Zhijie smiled and said, "Okay, if we acquire enough, maybe Yan Chengkun will see such high returns and issue more shares later."

"That's even better." Yang Wendong said with a faint smile: "The more stocks they issue, the better."

Zheng Zhijie added: "But, if this is the case, Yan Chengkun will have a lot of funds in his hands."

"This is a double-edged sword." Yang Wendong nodded and asked, "How is the media preparing?"

Zheng Zhijie said: "It's already prepared. Reporters from several newspapers have already interviewed many places with inconvenient travel. We just need to wait for the right time to announce it."

"Okay, then get ready. After the IPO financing is completed, we will give it another push." ​​Yang Wendong said, "We can also create momentum by saying that the Hong Kong government may invest heavily in infrastructure in Hong Kong Island in the future, and citizens need more public transportation.

In addition, there are people like Huang Yaonan in China Bus, who can encourage Yan Chengkun to make up his mind to expand the fleet. "

"Okay." Zheng Zhijie agreed.

Yang Wendong then said, "Then shall we go to Standard Chartered Bank now?"

Zheng Zhijie said: "No, Standard Chartered Bank has a floor next to the Hong Kong Stock Exchange, which is specially used for emergency transactions; not only Standard Chartered, but many large financial companies also have such places nearby."

"Okay, let's go." Yang Wendong said.

In the era without the Internet, distance is very important, especially when it comes to financial transactions. Although you can communicate over the phone, in many cases, the efficiency of the phone is far less than that of a nearby person.

The economic center of Hong Kong is in Central, and the Hong Kong China Building is also very close to the Standard Chartered Bank branch.

When facing big customers, several Chinese senior executives of Standard Chartered also personally received them and then entered a VIP room.

Soon, it was 9 o'clock and the Hong Kong Stock Exchange opened. China-Pakistan stocks also began trading at this time.

In front of Yang Wendong, several phones started to ring. After the operator received the call, he immediately said something to the person next to him, and then the person rushed to Yang Wendong and said, "Mr. Yang, China-Pakistan stock has started to rise. It has risen by 5 yuan in just 0.1 minutes. Now it is 12.1."

"Our funds are already being used for acquisitions, right?" Yang Wendong asked.

The person on the other side replied, "Yes, the rapid increase is also due to our contribution."

"Okay, continue the purchase and report the price to me every once in a while." Yang Wendong said without any hesitation.

When launching a takeover campaign, acquiring a fixed amount of stocks is the most important thing. This is the strategic goal. As for the price, as long as it is not outrageous, it is acceptable.

"Okay." The person on the other side immediately returned to do his own thing.

Zheng Zhijie next to him said, "Mr. Yang, I'll keep an eye on them. If anything happens, I'll report to you."

"Okay, go ahead." Yang Wendong nodded.

Looking at the ancient mode of trading by telephone in front of him, Yang Wendong suddenly missed the previous computer operations.

Computers actually existed in this era, but they were all large-scale commercial ones. Civilian computers would have to wait another 15 years. Even if we intervened, it would not be possible to change much. This was the inevitable result of the gradual development of basic science, which would only appear after a certain period of time.

Personal computers, arcade game consoles, and even earlier electronic watches and calculators, all needed the emergence of corresponding basic technologies before they could be realized.

In this way, Yang Wendong listened to the newspaper while occasionally listening to the reports of the traders at Standard Chartered.

On the other hand, countless people in the stock exchange went crazy. China-Pakistan shares were also rising at a very fast pace, surpassing many newly listed stocks before. It seemed that it had the trend of becoming a dark horse after 61.

In the evening, the sun was already emitting red light in the west.

At the branch of Standard Chartered Bank, the phone that had been ringing non-stop just now suddenly went silent. Yang Wendong, who was reading a newspaper, noticed something was wrong. He then looked at the clock on the wall and asked, "It's 5 o'clock. Is the Hong Kong Stock Exchange closed?" "Yes." Zheng Zhijie came over, looking very happy, and said, "Mr. Yang, we acquired 5.6% of the shares today. It can be said to be a great success."

"5.6%?" Yang Wendong nodded. He had been receiving reports here during the day, and by the afternoon he knew it was 5%.

Then he said: "What is the final price of China Pakistan shares?"

"21.7 Hong Kong dollars per share, the total market value is 2170 million." Zheng Zhijie replied: "The increase on the first day was close to 80.8%. Not to mention this year, even in the history of the Hong Kong stock market, there are probably only a handful of such increases."

"It seems that we have made great contributions." Yang Wendong smiled and said, "How much did we spend?"

Generally speaking, when the economy is good, it is normal for stocks to increase by 80 to percentage points after listing. Fifty to sixty is already very good, and is a very good result.

Of course, this refers to this era. When it comes to the era of the technology industry or the Internet era, it will be completely different.

Zheng Zhijie replied: "Our average purchase price was 18.6, a total of 5.6 shares, costing 104.16 million."

"Well, it's acceptable." Yang Wendong asked again: "Will today's operation arouse suspicion from Yan Chengkun or others?"

"It's a little unusual, but it shouldn't arouse suspicion." Zheng Zhijie said, "It can be explained on the first day of listing. We can only take advantage of today's best opportunity to acquire so many shares at one time.

Starting tomorrow, when we buy stocks, we will buy them from stockholders or institutions. A slightly larger trading volume may attract attention.”

"Yes." Yang Wendong nodded and said, "5.6 percentage points is still not enough. Huang Yaonan only has 24.8% of the shares left;

Our first step is to obtain a veto power, and then in the next few days, we will continue the acquisition and obtain this power first. "

"Understood." Zheng Zhijie agreed and said, "It would be even better if Mr. Huang could ask China-Pakistan to increase its shares once more."

"It depends on Yan Chengkun's personality." Yang Wendong nodded and said.

China-Pakistan Headquarters:

Yan Chengkun was excited at the moment and said happily: "Everyone, this time we raised more than 350 million Hong Kong dollars. It can be said to be one of the most successful IPOs in Hong Kong history."

"Congratulations, Mr. Yan." The people below immediately flattered him.

Yan Chengkun said with a smile: "Everyone present today can receive an extra three months' salary."

"Thank you, Mr. Yan." This time the people below were really grateful. You are the boss if you give me money.

Only Huang Yaonan looked indifferent, and then he gestured to another person.

A middle-aged man in his 40s wearing gold-rimmed glasses said, "Mr. Yan, the market is very optimistic about the future of our China-Pakistan Group. Do you think we should continue to expand our shares and raise more funds?"

"More?" Yan Chengkun frowned and asked, "Why?"

The middle-aged man said: "Because Jardine Matheson is about to go public, according to the estimates of many financial institutions, Jardine Matheson's listing will inevitably attract a large amount of funds;
According to this speculation, it is very likely that other stocks will fall, because many people may sell other stocks to buy Jardine’s, which may naturally include our Chinese and Pakistani stockholders.”

"That makes sense." Yan Chengkun's eyes showed a hint of appreciation, and then he said, "But it's normal for stocks to fall or rise, so there's no need to worry too much."

The middle-aged man said: "That is true, but now the market is optimistic about us, so we should find ways to raise funds;

When the market heat dies down and the stock price drops, we can use part of the funds raised previously to buy back the previous stocks. Isn’t this equal to making a fortune for free? According to the current market value of our China-Pakistan Railway, it is at least 500,000 or 600,000 yuan.”

"Five or six hundred thousand?" Yan Chengkun hesitated for a moment. Although his net worth was as high as tens of millions after the listing, those were imaginary. The actual money in his hands was much less, and the raised funds were useful.

The extra five or six hundred thousand is equivalent to the profit of China-Pakistan Company for half a year.

The middle-aged man added: "Or we don't care about money and use up all the funds, then we can get back more stocks."

"Okay, let me think about it." Yan Chengkun nodded.

Huang Yaonan didn't say anything. When he saw Yan Chengkun's expression, he knew it had worked. At the same time, he couldn't help but admire Yang Wendong in his heart. These words were indeed very touching.

A week later, it was early March.

Yang Wendong met Huang Yaonan again and said, "Mr. Huang, I still have 7.2% of the shares in my hands. How is yours?"

After the first day, further acquisitions had to be slow. In order to avoid too much trading volume, it took seven days to close at 1.6%.

Huang Yaonan said with a smile: "My stocks have not moved. I don't have the money to buy more in the stock market. I just need to maintain my existing shares."

Yang Wendong nodded and said, "Then I will slowly acquire stocks in the stock market later."

Huang Yaonan said: "That's not the case. I came here today to give Mr. Yang some good news. Yan Chengkun plans to increase the number of shares again the day after tomorrow, releasing about 5% of the shares."

"Oh, good." Yang Wendong's eyes lit up. If he seized this opportunity, he would have the veto power.

Huang Yaonan went on to say: "I have obtained the veto power, but I cannot use it yet."

"Well, it's enough to take the first step." Yang Wendong continued, "I will continue to purchase stocks later, but the circulating stocks in the market are also limited. It is difficult for me to purchase 25%. I estimate that if I reach 15%, it will be discovered that it is abnormal."

Including the next round of share financing between China and Pakistan, theoretically there will be only 30% of the stocks on the market. If one person absorbs 15%, it would be the limit.

Huang Yaonan nodded and said, "I understand. I will slowly contact other shareholders to see if I can buy their shares or bring them over to my side."

"It's unlikely that he can be brought in, so let's just buy it out directly." Yang Wendong was also clear. There was no need to save this little money. He then added: "Also, we need to use up the funds in the China-Pakistan account as soon as possible. This way, when we launch the final acquisition in the future, the less money Yan Chengkun has, the greater our chances of winning."

"Okay, leave this to me." Huang Yaonan said with a smile.

"Yes." Yang Wendong raised his glass again and said, "Then I wish us early success and that Mr. Huang can fulfill his father's last wish and take charge of China Motor Bus as soon as possible."

"Thank you very much. I will have to rely more on Mr. Yang." Huang Yaonan also raised his glass and said.

He also knew that if this matter really came to pass, then Yang Wendong would have the final say in China-Pakistan relations in the future. However, under the current circumstances, he had no choice.

Two days later, China-Pakistan raised funds again, and Standard Chartered Bank once again acquired 2.7%. At this point, Yang Wendong held 10% of China-Pakistan shares.

With Huang Yaonan’s vote, China and Pakistan have gained the veto power.

……

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(End of this chapter)