Chapter 647 The Plan Behind

Chapter 647 The Plan Behind

Chapter 647 The Plan Behind

As the official news was announced, Hong Kong stock investors and large and small financial groups went crazy.

As the largest conglomerate under the Jardine Matheson Group, Hong Kong Land has a market value of more than HK$60 billion. Although Dairy Farm International is much smaller, its market value is also more than HK$8 million. The chairman of Dairy Farm International is Sir Chow Sin-nin, who has a very high status in the political and business circles of Hong Kong and even the whole of Asia.
Now the two sides have different opinions, and the attitude of Swire Properties is obviously to prepare for a forced acquisition. There have been hostile takeovers in Hong Kong's history, but most of them were small in scale. Now Swire Properties' behavior towards Dairy Farm International is the first such large-scale super hostile takeover.

Anyone with a little financial knowledge knows that once a hostile takeover is involved, the shares may be driven up to the sky. There have been many cases in overseas financial history. The same thing is happening in Hong Kong now, but the shareholders who hold Dairy Farm International shares are almost doubling their assets.

Of course, it should not be too late to follow suit now. As long as you can buy some shares of Dairy Farm International now, even if the share price is a bit high, you will just make less money in the end. After all, Swire will definitely be willing to take over at a high price.

As a result, Dairy Farm's stock continued to rise early the next morning. Countless people came to the scene or bought Dairy Farm's stock over the phone. For a while, people at the exchange were very busy.

In a VIP room above the Hong Kong Stock Exchange, Qi Dezun and his assistant looked at the crazy crowd below and frowned, saying, "It seems that if we want to acquire HK Electric, if we don't reach an agreement with their board of directors, it will probably lead to such a situation."

The assistant said quickly, "It may be even scarier than it is now. The market value of HK Electric is much higher than Dairy Farm International, and we are no match for Hong Kong Land. If we use force, I'm afraid we are unlikely to succeed."

Dairy Farm International’s business is actually average, that is, delivering milk to many people in Hong Kong, plus some livelihood businesses such as ice making and beverages. However, because it developed early, it has accumulated a large amount of high-quality Hong Kong Island land with the help of livelihood businesses. This is the most valuable part of Dairy Farm. Everyone knows that Hong Kong Land is interested in Dairy Farm for the land, not the business of Dairy Farm, although this business is not bad either.
But it is different for HK Electric. Just as Dairy Company hoarded land during its development, HK Electric naturally did the same. It even hoarded more land and in better locations. Moreover, HK Electric's own business is also the most important part of Hong Kong people's livelihood, which is much stronger than Dairy Company.

As one of the top ten listed companies in Hong Kong, HK Electric's scale is not much different from Hutchison Whampoa. If it uses force to acquire the company, it will be courting death.

Qi Dezun smiled and said, "Yes, Yang Wendong's reminder seems to be really helpful to me. If I launch the acquisition first, the failure will definitely affect Hutchison Whampoa. Now that Hong Kong Land has launched a merger and acquisition of the Dairy Farm Company first, I can learn from this process.

Even if we don’t launch a hostile takeover of HK Electric, we may be able to take action against other smaller companies in the future.”

The assistant agreed, "Yes, this kind of hostile takeover is rare and worth studying. However, this matter should be a top secret of the Jardine Matheson Group. Why did Yang Wendong know about it in advance?"

When it comes to large-scale acquisitions, any consortium will maintain strict confidentiality. For example, Hutchison Whampoa's previous acquisitions of Junyi Cang, Huangpu and other companies were unknown to anyone except a very small number of senior executives and major shareholders. Even the traders who manipulated the stocks were strictly restricted in their freedom, and were not allowed to leave until certain goals were achieved. Of course, this was not illegal or forced, but an agreement was signed in advance, a large sum of money was given, and then it was a legal exchange.

Qi Dezun thought for a moment and said, “If I were the boss of Jardine Matheson and were to acquire Dairy Farm, I would probably think that it would be successful nine out of ten times. The only variable is whether the Dairy Farm Company’s board of directors would invite a powerful white knight.

Among the many financial groups in Hong Kong, the British capital will not be the enemy of Jardine Matheson for the sake of the Dairy Farm. Among the remaining Chinese capital, although there are some capable ones, the most threatening one is Yang Wendong. "

“So Yihe informed Yang Wendong in advance and asked him not to interfere?” The assistant also understood.

"I guess that's the case. Jardine Matheson must have paid a price." Qi Dezun said with a smile, "That's why Yang Wendong reminded me in advance. One reason is that he was afraid that I would take action first and affect Jardine Matheson. The second reason is that he was afraid that Hutchison Whampoa would suffer unnecessary losses."

The assistant nodded and said, "That's a good idea. If Jardine Matheson acquires Dairy Farm, then we can control HK Electric, and the market will get used to it."

"I hope so." Qi Dezun paused, and then said: "In any case, a large amount of funds are flowing in the stock market now, and it is very chaotic. This is a good time for us to secretly increase the scale of our acquisition of HK Electric. Maybe many shareholders of HK Electric will take the opportunity to speculate on the shares of Dairy Farm."

The assistant smiled and said, "That's great. I'll arrange it right away."

Qi Dezun nodded and said, "Well, no matter whether we can successfully control HK Electric in the end, at the very least we can become a major shareholder and a board seat. Then cooperating to develop HK Electric's land in the future would be a good option."

After all, HK Electric is one of the top ten listed companies in Hong Kong. It is difficult to guarantee the success of a company of this size. So it is more conservative to become a major shareholder before cooperating.

Anyway, the people inside HK Electric don’t understand real estate operations. Like other British companies, they only know how to cooperate with Chinese companies and share a large amount of profits with outsiders for nothing, which is simply a waste.

Inside Changxing Group:

Fang Xianming brought some information and went to Yang Wendong's office with Zheng Zhijie. He smiled and said, "Mr. Yang, according to the current increase in Dairy Farm International's stock market, we have made a net profit of more than HK$11.9 million from our 5800% stake."

"5800 million? This finance is really profitable, comparable to Changxing Industrial's half-year performance." Yang Wendong said with a smile. Changxing Industrial's current annual profit has exceeded 3 million, but that involves more than a dozen large factories in multiple countries and regions, with nearly employees;
However, Hong Kong's real estate finance can easily achieve this result as long as it is managed well. If we wait a little longer, the returns may even be higher.

Fang Xianming said: "We have to thank the Land Development Company for this, otherwise we wouldn't have such a high profit."

"Is Jardine Matheson now using cash to purchase the shares of the dairy company?" Yang Wendong asked.

Fang Xianming felt a little strange about this question, but still said: "Yes, the share price of Dairy Farm is already 7.6, and the Jardine Matheson bought it all in cash."

Yang Wendong then asked: "What about the dairy companies? Are they also buying back shares?"

Although Hong Kong Land still launched the acquisition of Dairy Farm as it did in the original history, the process seemed different;

Historically, Hong Kong Land proposed a stock-for-stock strategy on the first day, exchanging Hong Kong Land shares for Dairy Farm shares at a preferential price, so that Dairy Farm's existing shareholders and stockholders would directly become shareholders and stockholders of Hong Kong Land.
In order to reap the profits, Hong Kong Land also used the media to publicize the grand plan of the merger between Hong Kong Land and Dairy Farm. In addition, they manipulated the market to drive up the share price of Hong Kong Land. Although the investors got Hong Kong Land shares, they did not know that the shares they got were a huge bubble and could not be cashed out in the short term. They had to wait for half a year or a year.
As a result, after Hong Kong Holdings successfully acquired Dairy Farm, the share price plummeted, and countless original Dairy Farm shareholders suffered heavy losses. Subsequently, the 73 economic crisis occurred, and many people lost their fortunes. This also led to the fact that in subsequent acquisition wars in Hong Kong, shareholders no longer believed in share-for-share swaps and only wanted cash. Therefore, Pao Yue-kong's acquisition of Wharf Holdings was also a success of the "cut-off arm" model.

Now it seems that due to the influence of Yang Wendong, Swire Properties actually initially acquired the property in cash.

Fang Xianming replied: "Yes, Dairy Farm International is also buying back its own shares. Many shareholders are holding on to their own shares, waiting for which party to offer the highest value."

"Haha, that's a lot to wait for." Yang Wendong smiled and said, "If we compete in cash, I'm afraid the Dairy Company is no match for the Landmark."

Although the Dairy Farm Company is not small in size, it is still far behind the Landmark Group and is not on the same level at all.

Fang Xianming said, "Yes, if we use cash, Dairy Farm will definitely not be a match. However, we have an agreement with the Keswick family, so it is not easy for us to come forward to help Dairy Farm International."

"I can't help you directly, but I can still introduce a white knight to you." Yang Wendong said with a faint smile.

Since the agreement has been announced, even if it is not on paper, Yang Wendong will abide by it. After all, for a businessman of this level, reputation is very important;

However, the agreement itself only restricts myself, and I will abide by the agreement and will not let my funds be used by others to help Dairy Farm International.

But if you introduce some capable people to participate, that’s another matter.

Fang Xianming asked, "Who should we look for? It seems that no one in Hong Kong has sufficient financial resources. And this time HSBC has also publicly expressed its support for Jardine Matheson, so those people in Hong Kong probably won't go against HSBC."

A few wealthy Chinese people are still able to participate, such as Pao Yue-kong, but their main business is not real estate and they have close relations with HSBC, so they are unlikely to get involved.

"Just look for someone outside of Hong Kong." Yang Wendong smiled and said, "However, we are not in a hurry for now. Zhou Xinian's connections are also very strong, and he will not be defeated so easily. Let's just wait and see."

Historically, Crown Holdings and Dairy Farm also fought for several months. The milk company was not that fragile, and Zhou Xinian also found many Chinese allies to fight against Crown Holdings. However, they ultimately failed.

Moreover, Yang Wendong also needs to wait and see. If both parties continue to use cash for the acquisition, then it will not make much sense for him to participate or not, because Swire will not dilute his shares.

If this is true, it would be a pity. Historically, it was because Swire Properties massively diluted its shares to acquire Dairy Farm, claiming that it acquired Dairy Farm without spending a penny, but it also laid the groundwork for itself to be targeted by Chinese giants in the future.

His plan behind this matter was actually to wait for Swire Properties to dilute his own shares.

PS: Can you give me a monthly ticket?

(End of this chapter)