Chapter 723 Discussion and Coercion

Chapter 723 Discussion and Coercion

Chapter 723 Discussion and Coercion

"Wow~"

Although everyone was mentally prepared, when Fang Xianming said it, everyone still found it unbelievable. This was the largest privatization in the history of the Hong Kong stock market.

You know, in this era, almost all companies are thinking about listing their companies and then making money. Even during the current economic crisis, many companies can still make some money in the stock market, but it is not as convenient as during the bull market.

"Mr. Fang, what are the considerations of Changxing Group in privatizing Hutchison Whampoa?" a reporter asked.

Fang Xianming replied: "This is an internal decision of our company. I'm sorry I can't comment on it!"

In fact, it is because the big boss Yang Wendong is very optimistic about Harbour City that he is preparing to privatize it. However, many people within Changxing Real Estate think that this is not appropriate.

However, Yang Wendong's founder halo is too big in the company, and since it is his own money, other people have no right to speak. As professional managers, they will appropriately inform of the risks, but if the boss has made a decision, then there is nothing to say. Besides, considering Yang Wendong's previous achievements, no one dares to be confident that his decision is problematic.

"Isn't the price of HK$9.1 per share too low?" someone else asked.

Although the privatization operation is a bit strange, considering that stock prices are generally low nowadays, it is also possible to take advantage of the land price, and then make a lot of money again when the stock price rises in the future and goes public again.

Fang Xianming smiled and said, “The value of Wharf Holdings’ share price is naturally determined by the market. This was already explained six months ago when Jardine Matheson took control of Wharf Holdings.

The current price of 9.1 puts Wharf Holdings at HK$8 million, which I think is normal. As you all know, Wharf Holdings is heavily in debt, so this valuation is not low.

As a listed company, many of Wharf's financial data are now public. According to the requirements of the Hong Kong stock market, it must be announced every quarter, including various information such as turnover, profit, and debt.

With an infrastructure project as large as Harbour City, plus three or four additional small office buildings under construction, it is completely going against the market. Even though HSBC has provided a lot of help and the interest rate is not very high, the overall debt is still extremely heavy.

Many reporters and media professionals below also started discussing with each other. The privatization operation was something that several small companies had tried before in the Hong Kong stock market, and there would still be some bargaining in terms of price in the future.

But this is the first time that a giant like Wharf Holdings has emerged. In addition, with the end of the oil crisis, the Hang Seng Index seems to be hitting bottom. Capital from all sides is waiting for the recovery of the Hong Kong economy. The privatization of Wharf Holdings at this time also shows that the giant capital of Changxing Group is optimistic about the future of the Hong Kong market.

It is completely unpredictable how many things will be triggered by this. Maybe the Hong Kong economy will start to recover from now on.

Next, different reporters asked some questions one after another, and Fang Xianming politely answered each one, but they were all irrelevant answers. It was impossible to disclose Changxing Group’s views on Hong Kong’s economy in the future at this time. Otherwise, if it really attracted the participation of capital from all parties, then its own privatization would cost more money.

……

Early the next morning, all newspapers used "Wharf Privatization" as the cover story on their front page. However, as there were no recent photos of Yang Wendong, they could only use the skyscraper of Kang Lok Building or the Harbour City under construction as the pictures, which also looked quite impressive.

"Wharf Holdings is really going to be privatized, buy it now!"

Although all kinds of rumors were flying around yesterday, they were officially confirmed today, which still made countless investors excited as if they had been injected with chicken blood. You know, they had been losing money in the stock market for more than a year, especially during the six months of the oil crisis. No one was willing to cut losses, and ultimately lost more.

Now, some large financial groups are privatizing their large listed companies. It is obvious that there will be no losses. It would be foolish not to enter the market at this time.

The share price of Hutchison Whampoa soon exceeded HK$9.1 and continued to rise. After all, this was the lowest price that the Cheung Kong Group could offer. Only a fool would bid lower than this.

Jardine Matheson Headquarters, Hong Kong:

John Keswick looked at the English newspapers on the desk in front of him and said with a sigh, "I never thought Yang Wendong would privatize Wharf Holdings. If I had known this, I would not have sold those shares. In this way, I could at least make some money from it."

After Hutchison Whampoa was taken away by Cheung Kong Holdings, Jardine Matheson still had about 20 points of shares in its hands, making it one of the major shareholders and able to become a director.

However, for the Jardine Matheson Group, it would be a pure waste to put money in a company over which it has no control. It would be better to cash out the funds and then use them to invest in other properties or companies. At least the profits belong to itself, and because it has control, it can also transfer funds from the joint venture to its own family's private equity funds through various means.

Therefore, after losing control of Wharf Holdings, Jardine Matheson Group gradually sold its shares in the stock market, basically clearing them out.

"No one could have imagined that Hutchison Whampoa would be privatized. I don't know what Yang Wendong was thinking." New Bijian said curiously.

John Keswick said: "Either he is very optimistic about the future of Wharf Holdings and is prepared to hold the company alone.

Or they are planning to go public and raise funds after the stock market improves, and then make a profit from the price difference.”

Niubijian nodded and said, "There are indeed only these two possibilities, but there is nothing we can do."

If they had not sold their stocks before, then Yang Wendong would have to seek their shares if he wanted to privatize Wharf Holdings, and he could have asked for a high price. Unfortunately... John Keswick said, "Why don't we take this opportunity to buy some?"

Niubijian shook his head and said, "I don't think it's meaningful. Even if we can make money, we can only make a million. For us, it has no strategic value."

"Okay, let's just watch first." John Keswick agreed.

……

HSBC Group Headquarters:

Shen Bi smiled and said, "I didn't expect Yang Wendong to be so optimistic about Wharf Holdings. It seems that he is more optimistic about the future of Hong Kong than I thought."

"Chairman, are you saying that he is optimistic about Harbour City?" a female assistant asked carefully.

Shen Bi nodded and said, “Yes, the Harbour City project requires such a huge investment, so Jardine Matheson originally wanted to hold a small stake, but operate it normally so that it can make a profit in the future.

But Yang Wendong obviously has a different strategy. He wants to fully own Harbour City, which shows that he is very confident in Harbour City. If Harbour City wants to do well in business, the prerequisite is that Hong Kong's economy will be better in the future."

The female assistant smiled and said, "That's good. We have lent so much money to the Harbour City project. If Harbour City can operate normally in the future, it will be a stable long-term business for us."

With HSBC's current financial resources, supporting projects like Harbour City is a big risk. Even as a "quasi-central bank", if serious losses occur, they will be in big trouble.

Shen Bi smiled faintly and said, "I hope so. We should keep a close eye on the fluctuations in the stock market and keep funds ready at all times. When the time is right, maybe we can get involved."

"Yes, Chairman." The female assistant said quickly.

……

Connaught Building:

"Mr. Yang, the share price of Hutchison Whampoa has risen to 9.5." Fang Xianming rushed over to report at noon.

"As expected, we will continue to acquire on the stock market and don't rush to make a second offer." Yang Wendong nodded and said.

It is impossible for so many shareholders to agree to a privatization offer as soon as you make it.

Generally speaking, after several rounds of gambling, gradually many shareholders will feel that it is enough and will sell their shares. Then, when the shares reach 90%, they can formally apply to the Hong Kong government for compulsory execution.

Moreover, this process may not ultimately succeed. In Hong Kong's history, many consortiums have attempted to privatize their companies but ultimately failed.

"No problem. I'm already arranging the acquisition." Fang Xianming continued, "The biggest problem now is still the many small shareholders. I've communicated with them, and they don't seem to be willing to let go of their stocks."

"It's normal that they are unwilling. It seems that they are optimistic about our company." Yang Wendong smiled and said, "But I have to make it clear to them that I need privatization for long-term considerations.

If they can also wait until ten years later when Hutchison Whampoa will have huge profits and the stock price will rise, they will continue to hold it.

Otherwise, in the next few years, I will borrow a lot of money to develop various properties under Wharf Holdings, which will inevitably lead to long-term losses, and there will be no good price for the stock. In addition, don’t even think about dividends. ”

This is not false. Hutchison Whampoa can completely become the "land" of the Kowloon Peninsula. The large number of prime locations it controls are extremely valuable at a time when Hong Kong is about to develop the Kowloon Peninsula on a large scale. The only difference is that it is not on Hong Kong Island.

But Hong Kong Island is only so big, so Hutchison Whampoa only needs to focus on developing the Kowloon Peninsula, and naturally Cheung Hing Properties will be involved in other places.

As for the development of Wharf Holdings, he is naturally not in a hurry. After all, the peak of Hong Kong's housing prices was after 85, and it is still a long time before that. He cannot sell the land now to cash in and develop other properties. That would be as stupid as the British capital.

Fang Xianming smiled and said, "Okay, I'll notify them right away."

……

In a luxurious tea restaurant in Hong Kong, a dozen people gathered together, and Fang Xianming calmly told everyone what he knew.

"Mr. Fang, you are deliberately infringing on the interests of existing shareholders in order to force us to let go." A bald middle-aged man asked rudely.

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(End of this chapter)