Chapter 457: The beginning of the plot against the British-owned foreign company

Chapter 457: The beginning of the plot against the British-owned foreign company

Chapter 457: The beginning of the plot against the British-owned foreign company

After talking with Huo Yingdong, Yang Wendong returned to Changxing Building and called Zheng Zhijie to ask, "How is the negotiation on the land of the former Navy site going?"

Zheng Zhijie replied: "We are still negotiating the price with the Hong Kong government. I am offering 900 million, and the Hong Kong government wants 1050 million. I estimate that the final transaction price will be between 950 and 1000 million."

"Half a year ago, Huo Yingdong's bid price was 1650 million. This time, the Hong Kong government has lost almost 700 million. I don't know if they regret it." Yang Wendong smiled faintly and said, "It may be a good thing that Huo Shengshao lost so much money."

Although the Hong Kong government has taken back the land, it still has to return the money it had previously obtained, otherwise it would be blatant robbery. Even though they may want to do so in their hearts, they actually dare not do so. If they really do so, they will immediately become a global laughing stock, and even global capital will not dare to invest in Hong Kong.

Zheng Zhijie said: "It's hard to say. After all, for political purposes, losing a little money is nothing."

"Let him do whatever he wants. We just need to lower the price." Yang Wendong asked again, "Do you have any requirements for the subsequent construction? In terms of time?"

Zheng Zhijie replied: "The Hong Kong government has made concessions in this regard. They only require us to start construction within three years and complete the project within five years. The plot ratio is 3."

"3 years? Okay, that's acceptable." Yang Wendong nodded and said.

It is now the end of 1965, and in three years it will be the end of 68. In fact, Hong Kong's real estate market began to gradually recover in early 68, and it was a good time to build houses.

As for the floor area ratio, 12 is already very high. This 3.9-square-foot plot of land can be used to build a 47-square-foot building, which is about 5 square meters. Perhaps compared with many buildings in the past, it is not very large, but it is very good in this era. After all, even in Central, 20-story buildings are common.

Zheng Zhijie replied: "Okay, in this case, as long as the price is agreed, the matter will be settled."

"Okay." Yang Wendong nodded and said, "Just leave the land alone after you buy it. The core of the real estate company is still in Singapore. Build the hotel and plaza there as soon as possible."

"I understand." Zheng Zhijie agreed.

Yang Wendong added: "In addition to real estate, we should also send people to learn from the people in Singapore in the port area. In addition, you should also send someone to contact Huo Yingdong. I have reached a small cooperation with him. It's like this."

Zheng Zhijie also listened carefully to the boss's description, and then said: "That's no problem, I will provide the funds. Anyway, I still have a lot of Hong Kong dollars in my hands. I can take this opportunity to directly exchange them for US dollars with HSBC;
If we can participate in the construction process of a container terminal port, it will also be of great significance for our future entry into the port operation industry."

Judging from what the boss said, Changxing Group will definitely invest heavily in container terminals in the future. This is indeed a very good opportunity. The new industry can provide opportunities for new people and new companies.

It’s just that this industry is very challenging. It’s not as simple as building a house in Hong Kong. Although it can be outsourced, as an operator, it will be much more convenient if you know the specific circumstances.

"Yes, this is what I value." Yang Wendong nodded and said, "I don't expect to make much money from this cooperation, but I can learn relevant experience. Then when Hong Kong builds a container terminal in the future, it will be much more convenient for us to participate."

"Once this real estate crisis is over, the Hong Kong government will have money and all sectors of society will have confidence. I estimate that the Hong Kong container terminal will begin construction," Zheng Zhijie also said.

Yang Wendong said: "If we don't build it, I'm afraid we won't have the position of Asian Trade Center in the future. The whole world is moving towards containerization now, and those who refuse to make progress will only be eliminated."

Zheng Zhijie added: "Unfortunately, all the docks in Hong Kong are controlled by British companies. Otherwise, if we acquire one, it will be much easier to operate it later."

Although today's docks are different from container terminals, other aspects are similar except for the loading and unloading mode, such as providing facilities such as ship berthing, transshipment anchorage, buoys, etc., ensuring the safe entry and exit and berthing of ships, cargo loading and unloading plans (containers also need plans), ship entry and exit, ship material supply, dock management, etc.

These are all very complicated. Even if a new enterprise can recruit a large number of people, there will inevitably be many bumps and bumps in the early stage. The operation of ships also involves safety. If something goes wrong, it will be an international event.
"British capital?" Yang Wendong thought for a moment and said, "There are three major docks in Hong Kong now. Jardine Matheson controls the Wharf Dock, Swire controls the Taikoo Dock, and Whampoa Group controls the Whampoa Dock.
Jardine Matheson and Swire are as powerful as us, so we can’t make a move. Huangpu is a good target.”

Many people don’t know about the three major docks in Hong Kong before the 70s, but their docks will become famous buildings in Hong Kong in the future, corresponding to Harbour City, Tai Koo Shing, and Whampoa Garden respectively;
Among them, Harbour City is the largest commercial plaza in Hong Kong, with an annual rental income of tens of billions, which is rare in the world;

Taikoo Shing was the largest residential project in Hong Kong in the 70s and early 80s. Its prime location earned the Swire Group more than one billion Hong Kong dollars and was the fundamental reason why Swire Properties was able to become one of the top ten in Hong Kong in the future.

As for Whampoa Garden, it was the largest residential project in the 80s and 90s, and Li Jiacheng made billions from it.

Whether it is to acquire these skilled employees to help enter the port business in the future, or to acquire port properties and look for opportunities to develop real estate after the container terminal starts construction, it is a huge profit.

"Mr. Yang, do you want to acquire Huangpu Group?" Zheng Zhijie said in surprise.

Yang Wendong asked, "What is the market value of Huangpu Group?" Zheng Zhijie replied, "I looked at it some time ago. It seems to be more than 8000 million Hong Kong dollars. This market value is not high, but British capital controls more than 5% of the shares. If we want to make a move, we must convince their board of directors to make a friendly acquisition."

"I don't think so." Yang Wendong thought for a moment and said, "But a hostile takeover is even less feasible. Let's not talk about whether it can succeed financially. Even the Hong Kong government, HSBC, and Jardine Matheson would not agree to a hostile takeover of British capital by Chinese capital."

Economic factors mean that we cannot do this kind of thing in this era, but we should be able to plan ahead. After all, it is almost 67, and more than a year is not too long for a large group to plan.

"Yes, although the Hong Kong government currently maintains fairness on the surface, if Chinese and British capital compete in a certain field, it will most likely suppress Chinese capital." Zheng Zhijie continued: "Although the bank run at the beginning of the year was not promoted by the Hong Kong government, its deliberate inaction is enough."

As a government, often times, pretending to be dead can cause a large-scale collective attack. Appearing to be fair on the surface is one thing, but the actual operation is another, and it will not be caught by others.

Yang Wendong thought about it, then picked up the phone and called his assistant: "Aying, ask Fang Xianming to come over."

Fang Xianming is the head of Changxing Financial Company. He has been in charge of investment and acquisition business for some time. However, it is not yet 67 years old, so there has not been much progress. His main business is to collect global financial information and organize various financial assets within the group.

Soon, Fang Xianming arrived: "Mr. Yang, Mr. Zheng."

"Mr. Fang." Zheng Zhijie nodded.

"Sit down." Yang Wendong waved his hand and said, "This is what happened."

After listening to the boss and Zheng Zhijie finish their story, Fang Xianjue replied: "It is indeed impossible to acquire Huangpu Group. Although their equity is not concentrated, it is all in the hands of British capital. If we want to acquire it, they will definitely communicate internally.

Although Huangpu Group is a listed company, it has only been listed for a few years and there are not many shares in circulation. Even if we acquire all of them, it will be useless.”

"Then we can only use other methods." Yang Wendong said after thinking about it.

When I acquired Watsons myself, it was different from this nature. Watsons was very large in its previous life, but in the 60s it was only a small company. If it were not for its long history and its involvement in Hong Kong's livelihood industries, few people would have known about it.

Ports are the core of Hong Kong's economy. Even the lowest-ranked port is a huge wealth. It is also the foundation for British capital to control Hong Kong's economy. It is so easy to let Hong Kong Chinese engage in manufacturing and then British capital control and acquire ports. They can make money without doing anything.

If the relationship between the mainland and the West does not improve in the future and Britain does not gradually decline, this parasitic relationship may never be broken.

Fang Xianjue and Zheng Zhijie looked at each other and asked, "Mr. Yang, what method?"

"We can choose a medium-sized British company, acquire a certain amount of shares first, and then let it invest in Huangpu." Yang Wendong said: "In this way, we can indirectly control Huangpu."

Since he couldn't do it himself, he would find an agent. Many European and American capitals like to operate in this way. Therefore, he quickly remembered that in history, Hutchison first invested in Whampoa, and then looked for an opportunity to acquire it, and it became the most famous Hutchison Group in the previous life, and was listed as one of the four major trading companies.

You may also refer to this path.

"Control the British capital first, and then operate?" Fang Xianjue asked, "Mr. Yang, even if this method succeeds, it will be difficult to directly obtain the relevant rights and interests of Huangpu Wharf."

Changxing Group did not invest for profit, otherwise why would it choose British capital? The purpose of this investment is for the wharf.

Yang Wendong said: "I know that it is not possible to directly control Huangpu Wharf at the moment, but we should do the first step now and consider the next step when there is an opportunity in the future;
When it comes to acquiring a large British company, it won’t be easy to succeed, so we can only take it step by step.”

It's mainly due to political reasons, otherwise it would have been possible to succeed. The Whampoa Group was very large in the early days, but it has gradually declined over the years, otherwise it would not have been acquired by Hutchison in the end.

Seeing that the boss had already decided on two, Fang Xianjue asked, "Mr. Yang, which British company should we choose?"

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Some people may think that the Hong Kong government's "free market" strategy will not care about the acquisition of British capital by Chinese capital, but according to data, before the 70s, there were also some very powerful Chinese-owned enterprises such as the Ho family, the Guo family, the Zhang family, the Li family, etc., which did not touch the traditional British industries. So if Chinese capital acquires British capital such as Port Power, whether the Hong Kong government will intervene, no one knows.

But Chinese capital is not stupid. There must be reasons why they did not develop in this direction. In addition, it was difficult for Chinese companies in Hong Kong to go public, and there was strong rejection at that time. Therefore, this book assumes that the Hong Kong government would protect these core British industries before the 70s, which is only a few years away. This book will definitely advance some history and will not follow the history books.

(End of this chapter)