Chapter 217: China-Pakistan Acquisition War
Chapter 217: China-Pakistan Acquisition War (1)
"Yes, some of them will definitely be tempted." Huang Yaonan nodded.
"That's enough. We are only short of 5%." Yang Wendong asked again, "How has the money in China-Pakistan account been spent in recent months?"
Huang Yaonan replied: "It cost a lot. Yan Chengkun purchased hundreds of buses from the UK and bought the new route franchise from the Hong Kong government. In addition, there are many properties on these roads. The financing money has almost been spent."
Yang Wendong smiled and said, "It's only been a few months, right? How many millions have you spent?"
"Mr. Yang, this bus company itself is a heavy asset investment. The routes and imported buses are very expensive." Huang Yaonan smiled and said, "But as long as these are invested, it is almost impossible to lose money.
As long as the line is operational and there is capital inflow, we can use this as collateral to apply for a bank loan.”
"Yeah, that's right." Yang Wendong also understood a little bit. There is no small investment in transportation. Then he said: "Since his money has been almost spent, it is the best time for us to take action."
"Yes." Huang Yaonan nodded and said, "Now is the most vulnerable time for the Yan family."
Yang Wendong added: "Mr. Huang, there is one more thing. On the surface, this acquisition is still you and the Yan family competing for the shares of Zhongba. I am just a helper invited by your family."
It is still too early to take action against Chinese-funded listed companies in this era, but the Huang family is also the founding family of China-Pakistan and has been suppressed for a long time. It is normal for them to seize control of the company now.
"Okay, I understand." Huang Yaonan nodded.
Although Yang Wendong will obtain the controlling stake in the future, according to the agreement between the two, the company will still be managed by the Huang family. This acquisition is ostensibly a counterattack by the Huang family against the Yan family.
Then he asked, “So what should I do next?”
Yang Wendong smiled and said, "Think about how to manage the China-Pakistan Bus Company in the future."
A few days later, it was soon the end of the month.
On June 6, Ta Kung Pao was the first to break the news: Liao Baoshan of Liao Chong Hing Bank died of cerebral infarction.
“It is extremely difficult for a bank that has been run on to recover.” Yang Wendong sighed after reading the newspaper.
He is not considering working in a bank for the time being because the risk is too great. Not to mention the violations of Liu Chong Hing Bank, even if Hang Seng Bank operated normally a few years later, it would not be able to withstand a bank run and would eventually be taken advantage of by British capital.
Every era has its own trends, and there are also some industries that are inconvenient to engage in. In the era when British controlled Hong Kong, running a bank was too risky.
It would be fine if it was smaller, as British capital would not mind Chinese capital taking some of the profits. But when the scale becomes too large and threatens British banks, the same fate will occur as with Hang Seng Bank.
Zheng Zhijie next to him also said: "Yes, Liao Baoshan passed away yesterday. It is said that it was because his own banking industry was acquired by HSBC and Standard Chartered, and he couldn't get over it. He had a brain problem, and that's how it happened."
"I think the Liao family will be very conservative in the future." Yang Wendong added: "There is nothing outsiders can do to help with this matter. If they need us in the future, we can also cooperate with them on some projects with low risks, just to take care of our former friends."
"Okay." Zheng Zhijie agreed and said, "Mr. Yang, Huang Yaonan has already bought Liu Yulin's stocks, plus we secretly bought Lu's stocks, now we have 45% together.
According to your previous policy, I am ready to buy it in the stock market tomorrow."
"One day later, on July 7st." Yang Wendong shook his head and said, "I have already discussed with Qin Zhiye that he will tout Hong Kong's future transportation industry and praise the Hong Kong government's road infrastructure on the newspaper headlines of that day.
Stock market experts will also be invited to tout several listed companies involved in the transportation industry, including China Bus.
The commercial radio station will do the same, broadcasting news in this area, and will also add a traffic program to inform you of which bus to take to which place. This will be of some use after we acquire the radio station in the future."
Zheng Zhijie also understood immediately: "Mr. Yang wants us to make a quick acquisition when the stock price rises very quickly, so he can find a reason to paralyze Yan Chengkun?"
"Yes, otherwise, if the stock price rises sharply without any reason, everyone will think it is abnormal." Yang Wendong nodded and said, "Although I think we are now 90% sure, but since we have launched the acquisition, we have to fight like a lion to fight a rabbit, and get it done in one go, without causing a lot of trouble.
The Yan family also has certain resources and connections in Hong Kong. The longer we delay, the more likely he will find someone to help. By then, even if we still succeed, we may pay a greater price."
A truly successful high-end acquisition should actually be completed in a short period of time, or even through negotiation. Just like in a hot war, the greatest victory is a blitzkrieg crushing victory.
However, people only remember various famous stalemates. For example, Pao Yue-kong and Jardine Matheson fought for two years to acquire Wharf Holdings, and finally succeeded in acquiring it at a very high price. It sounds cool and was highly praised in the newspapers, but in fact it resulted in huge losses.
Of course, Pao Yue-kong achieved his strategic goal, but he also suffered heavy losses tactically, and it took him several years to recover after acquiring Wharf Holdings.
Zheng Zhijie nodded and said, “Okay, then I will sell a little bit of the stock tomorrow to lower the price. In the past one or two months, China-Pakistan’s stock has been rising;
If it weren’t for the fact that the entire market was like this, Yan Chengkun might have discovered it earlier if he had been more cautious.”
"Okay." Yang Wendong nodded. During an acquisition war, it is not necessary to keep acquiring companies. It may be necessary to sell off some companies when appropriate.
February 7:
At the China-Pakistan headquarters, Yan Chengkun had just entered the office and had not had time to drink water when his secretary trotted over and said with a smile:
"Sheng Yan, Galaxy Daily's newspaper today has a long article describing the future road planning for Hong Kong Island. It also mentioned that our China Bus has great potential in the future and recommended that investors buy our stocks!"
"Oh, Galaxy Daily? Yes, this newspaper is a big newspaper." Yan Chengkun smiled, took the newspaper and read it for a while, then frowned and said nothing.
The secretary noticed that the boss's face was not right, so he hurriedly asked cautiously: "Yansheng, what's wrong?"
Yan Chengkun said uncertainly: "The information in this newspaper about the future road construction in Hong Kong Island is a little different from what I know.
Moreover, the main point of the article is not to introduce the future transportation of Hong Kong Island, but to recommend stocks of several companies related to roads, not just us, but also companies that make roads and operate taxi companies. "
The secretary thought for a moment and said, "Is this normal? The stock market has risen much higher than real estate in the past six months. It is clear that Hong Kong citizens are now interested in the stock market.
It is normal for this Galaxy Daily to recommend stocks based on the needs of citizens, right?"
Yan Chengkun shook his head and said, "It's normal for them to do this, but it's a bit strange that they don't charge any fees. How can you recommend stocks without charging any fees?"
"Perhaps they are testing the effect?" The secretary said after thinking for a moment, "Perhaps they want to see if they can influence the stock market? If so, they will make money by charging fees later."
"That's a possibility."
Yan Chengkun couldn't think of any other possibilities, so he didn't care.
The secretary continued, "Sheng Yan, these are the budgets for last month, the total is..."
Yan Chengkun listened carefully to the secretary's introduction. After the secretary finished speaking, Yan Chengkun nodded and said, "Okay, although it cost a lot of money, we have more than a dozen new routes, more than a hundred buses, and a lot of properties along the way." "Okay, then I'll hand it over to the finance department." said the secretary.
"Yeah." Yan Chengkun nodded.
……
A little before noon, the secretary came again and said, "Sheng Yan, there's something wrong with the stock market. Our stock has risen by 10% in just this morning."
"10%? Half a day?" Yan Chengkun was shocked after hearing this.
If the price had increased by 10% in a week, he would be very happy, but the increase in just half a day was too fast and made him feel unbelievable.
The secretary said: "We were also very surprised, and then I asked someone to go to the Hong Kong Stock Exchange and find several people who were buying our stocks.
After asking, I found out that they bought our stock because of the favorable news in the newspaper. "
Yan Chengkun frowned: "Can a newspaper report have such a big impact? Can it increase our company's market value by two or three million?"
The secretary added: “Sheng Yan, although our market value has increased by several million, it is not real cash, but virtual.
It is very likely that only a few hundred thousand dollars came into the market to buy our stock, but it led to the rise of the overall stock price.”
"Well, that makes sense. The stock market is really amazing." Yan Chengkun nodded and said, "Then we should pay close attention to the stock market. If a newspaper article can have such an influence.
Then we will prepare to mortgage the stocks for loans, so we must make good use of them. "
The secretary agreed: "Okay."
……
In the afternoon, Yang Wendong stayed in a hotel near the Hong Kong Stock Exchange, waiting for news.
After a while, Wang Lianhua, who was in charge of the acquisition at Standard Chartered Bank, came forward and said, "Mr. Yang, our action this morning has acquired about 0.45% of China-Pakistan shares in a short period of time.
Because of our early acquisition in February and March this year, there are not many Zhongba Liquid shares on the market. Today's acquisition, plus others saw the stock price rise and followed suit, resulting in a stock price increase of about 2%. "
"Well, will you continue to make acquisitions later?" Yang Wendong asked again.
Wang Lianhua replied: "We need to wait a while. If we continue with the acquisition, the other party may find out. Although we have already made the final decision, if this matter is exposed too early, we will still lose a lot of money in the end.
The safest option is to wait until it reaches 50% before announcing it, so I will sell a little in the afternoon to suppress the stock price, and then continue tomorrow."
Yang Wendong nodded and asked, "There are not many floating shares on the market now. If you operate like this, how many days will it take for you to acquire 5%?"
According to previous estimates by Yang Wendong and others, the circulating China-Pakistan shares in the market are estimated to be less than 15% of the total shares. If one wants to acquire 5% in a short period of time, one needs to be very cautious.
Wang Lianhua said: "It may take about 10 days, but I can't guarantee whether the Yan family will find anything unusual in the last few days."
"It doesn't matter if we find out in the last few days." Yang Wendong said with a faint smile: "Then we will execute according to the plan."
When the moment of showdown really comes, just spend a little more money. Anyway, not many shares are needed.
……
Three days later, after several fluctuations, China-Pakistan's stock price rose and fell sharply, which had attracted the attention of some shareholders and the current management of China-Pakistan.
"Someone is buying up our stock, and it's quite a bit."
During the board meeting, Yan Chengkun came in and said with a sullen face, "I just contacted Mr. Ho from Hang Seng Bank, and he told me with certainty that there must be big capital buying our company's shares."
"Wow~" Several people in the conference room started whispering to each other.
Yan Chengkun glanced at Huang Yaonan, who was motionless, and said in a cold voice: "Nephew Huang, this matter has nothing to do with you, right?"
"Uncle Yan, you're joking." Huang Yaonan said with a faint smile, "Under Uncle Yan's management, the share price of China-Bus is so high. How can I have so much money to buy China-Bus shares?"
He was very careful with his choice of words. This was a board meeting, and he would need to rely on the people present to manage the company in the future, so he couldn't lie with his eyes open.
"It's true that you can't acquire it, but you must be an accomplice, right? Without your shares, who would buy China-Pakistan's shares? It would only be for investment." Yan Chengkun sneered and said, "And if it's for investment, why do you have to acquire it so quickly?"
Huang Yaonan said with a smile: "Uncle Yan, I don't dare to be called an accomplice. This is just a pure economic investment, right?"
"Who is the other party?" Yan Chengkun asked.
If you don't know who the enemy is, it's impossible to organize a counterattack, not to mention that you also need to know how many stocks the other party has.
"No comment." Huang Yaonan certainly couldn't reveal it.
In name, this acquisition was mainly led by him, and outsiders were just there to help him.
"Humph." Yan Chengkun snorted coldly: "Then let's see who's the winner. Hang Seng Bank has promised to support me with all its strength. I want to see how much financial resources the person behind you has!"
"Hang Seng?" Huang Yaonan frowned slightly. Now it was only the last few days before success. If a bank of the size of Hang Seng got involved.
That would inevitably affect Yang Wendong's plans. If the anti-takeover battle was announced and caused the stock price to soar, he didn't know whether Yang Wendong would still buy the last few points of stock at all costs.
"The meeting is over, everyone. The stock price is going to rise sharply soon, so you must keep an eye on the stocks you hold," Yan Chengkun reminded again.
Huang Yaonan looked at the people in front of him without saying anything.
After the meeting, he went straight out, found a telephone booth, and made a call.
……
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(End of this chapter)