Chapter 724: The Yang Family’s Treasure Bowl in the Future

Chapter 724: The Yang Family’s Treasure Bowl in the Future

Chapter 724: The Yang Family’s Treasure Bowl in the Future
Fang Xianming shook his head and said, "Mr. Dong, what I said is absolutely true. Even if the privatization fails this time, the future operating strategy of Wharf Holdings will not change.

Like Changxing Real Estate, our group will carry out large-scale construction of self-owned properties. It is for this reason that we are privatizing.

The first is to consider the long-term interests of all shareholders. The second is that if it is not a sole proprietorship, the process of borrowing money for development will be very troublesome and may easily cause dissatisfaction among all shareholders. "

"Then what's the difference between you and the previous Jardine Matheson?" another person asked.

Fang Xianming explained: "Of course it's different. Jardine Matheson doesn't dare to invest in development, but we are prepared to use our own funds for development.

Although this may cause the stock price to fall, if you really have confidence in us, you can wait for seven, eight or ten years, and I guarantee that I will give you enough returns. "

"Are you crazy? Seven or eight years? Who will wait for you?" many people complained.

As stock investors, everyone wants to make quick money in seven or eight days. Seven or eight months is considered a long time, let alone seven or eight years.

Fang Xianming chuckled and said, "Then everyone, please think carefully about it. As for the quotation, we naturally have room for negotiation and will definitely not let you lose money.

As long as you get the cash, you can invest in the stocks of other companies that hold a lot of Kowloon Peninsula real estate, and it will be the same. "

The real value of Wharf Holdings is actually the land it owns. Everyone, from small shareholders to big capital giants like Yang Wendong, is optimistic about this.
It’s just that people at different levels have different goals. Small shareholders usually have little capital and are impatient. They are eager for the stock to rise sharply, so they naturally hope that the real estate companies they invest in can develop real estate as quickly as possible. It is best to find the right time as soon as possible to realize the land in their hands or develop and sell it as soon as possible, so as to obtain cash and increase the company’s profits, and then the stock will naturally rise;
But for big capital, whether it is the former Jardine Matheson or the current Changxing Real Estate, they will not be in a hurry to make short-term money. They are more optimistic about the value of long-term holding in the future. This choice cannot be said to be right or wrong, but it is determined according to their own needs and level. If it is a small company, it should actually cash out the funds as soon as possible, and then seek other opportunities to quickly increase its wealth. Big capital does not have this consideration, because they cannot grow too fast in the short term, and what is more important is "stability".

"How much are you willing to offer?" After a while, many people seemed to be interested.

After all, according to the current plan of Wharf Holdings, even if it succeeds, it will take who knows when, and they don’t want to wait that long.

Fang Xianming smiled and said, "That's easy. What I need now is the consent of enough shareholders. If we can reach the proportion we want, then next, I will negotiate with all the representatives at once to ensure the fairness of the transaction."

At this time, someone asked: "So if we can't gather enough people willing to sell, you won't pursue privatization?"

After hearing this, the others were shocked because this was very likely to become a reality. It was not easy to successfully privatize a company. If 90% of the shares could not be acquired within the specified time, it would be considered a failure of privatization, and the remaining shares would have to be sold at a low price later.
Once this happens, the ones who suffer heavy losses are not only the privatization capital, but also other shareholders and stockholders, because after the failure, the stock price plummets, and everyone will "share the difficulties";

Fang Xianming nodded and said, "Of course. If the deal cannot be concluded in one go, then we will give up the acquisition to avoid acquiring more than 50% of the shares first and then having to sell them later, which would cause everyone to suffer heavy losses."

"But the foreign shareholders of Wharf Holdings are not here today?" a middle-aged woman reminded;

There are three possible outcomes. Either Wharf succeeds in privatization and they take the money and leave. Second, Wharf gives up because the number of votes does not meet the requirement. Third, Wharf tries to privatize but ultimately fails, and everyone suffers heavy losses.

The first two situations are fine, but if the third situation occurs, those who have not sold their stocks will suffer a huge loss.

Fang Xianming smiled and said, "Don't worry about this, we will also contact the British shareholder group."

A week later, Fang Xianming came to the top floor of Kang Le Building and reported: "Mr. Yang, we have obtained the consent of the additional 22.34% shareholders to sell, but their offer prices are probably between HK$12 and HK$15."

"I can accept this increase." Yang Wendong nodded. If he wanted to acquire or privatize the company, he would have to spend more money. This was expected. He then asked, "Does that mean there are still 18 points of stocks in the secondary market?"

He openly holds 49.9% of Wharf Holdings’ shares, but in the early years, he still holds an additional 10% in various shell accounts;

By this calculation, I only need 8 points to meet my requirements. Fang Xianming said: "Yes, only 8 points."

"Okay, continue to buy shares on the stock market, but be careful not to raise the price too high, otherwise other shareholders will take the opportunity to raise the price later." Yang Wendong nodded and asked, "Are there any other big investors coming in to take advantage of the situation?"

Fang Xianming shook his head and said, "We haven't found anything yet. We are moving too fast. It will probably take some time for other investors to react."

Yang Wendong smiled and said, "Okay, speed is of the essence. Don't delay this matter any longer. Privatization is sometimes more difficult than acquisition. Even if the cost is a little higher now, we must get it done as soon as possible."

There are many ways to fight for the management rights of listed companies. You can use capital to throw money, or hold shareholders' meetings, or even negotiate with the other party's management, board of directors, or controlling family, or use other means of coercion, etc.
However, privatization means comprehensive control. According to the law, 90% of the shares must be acquired to be completely successful. This is extremely difficult and is also the government's way of preventing many companies from delisting at will. Historically, the only time that privatization was successful was when Sun Hung Kai Properties was developing milk, which used a share-for-share approach.

"Okay, Mr. Yang." Fang Xianming agreed.

In the following half month, Wharf Holdings' stock price fluctuated violently, rising to just over HK$12 per share, but was then pushed down by a large number of short orders.

Soon it was the beginning of May. Fang Xianming came to Yang Wendong's office with a smile on his face. "Mr. Yang, we have already acquired 5% of the shares on the stock market. As long as we sign contracts with all shareholders to take away their shares, our privatization will be successful."

"Okay, these shareholders won't regret it now, right?" Yang Wendong asked happily.

Once Wharf Holdings is privatized, the future benefits of Harbour City will belong to it alone. Unlike other industries, Harbour City is just a rent collector and does not need any special help from others, so there is no issue of sharing benefits.

Even if you really need it someday, at most you can provide a high-quality shop for rent or other assistance, but the overall rights and interests are still in your hands;
Fang Xianming smiled and said, “It shouldn’t happen. The memorandum of understanding has been signed. If they breach the contract, they will have to pay a lot of money.
The most important thing is that I have already made my move publicly in the stock market. If privatization fails, they will have to sell their extra shares, and the value of their shares will plummet, and may not recover even after many years. They cannot afford such a loss, and it will also offend others.”

"Haha, OK, then we'll sign a contract with them as agreed." Yang Wendong nodded, and then said, "In addition, let them go to the Four Seasons Hotel to enjoy some fine wine and delicious food. Even if we don't cooperate in the future, we can show our magnanimity to other future partners."

In the future, there may be privatization of other companies or acquisitions of some listed companies. In that case, he should also demonstrate his business behavior and methods in the earliest stage. After gaining recognition, the probability of success in the future will be higher.
Even if it can be 1% higher, the money spent in the hotel is nothing, not to mention it is your own hotel.

Besides, the successful acquisition of Wharf Holdings was enough to make him very happy. Over the years, his career success had not seen such fluctuations for a long time.

"Yes, I'll arrange it right away." Fang Xianming said with a smile.
On May 5, Wharf Holdings suddenly issued an announcement: Cheung Hing Group has successfully acquired 8% of Wharf Holdings’ shares, and the entire Wharf Holdings will apply to the Hong Kong government for full privatization;

The remaining 10% of the shares will lose their voting qualifications and will be forcibly acquired, leaving only their "financial value". Within the next two years, these shares can be sent to the Wharf headquarters and a special location at the Hong Kong Stock Exchange for cash exchange. The exchange price will be the highest price in the stock market before: HK$12.4 per share.

As soon as the news came out, the whole of Hong Kong was in an uproar. It was unexpected that in just one month, the Cheung Hsing Group could privatize Wharf Holdings so easily. Many shareholders were still prepared to continue holding and wait for appreciation, but they did not expect that they would be directly "compulsorily acquired";

But it's not a loss. After all, the purchase price was the highest price half a year ago, and they just made less profit.

On May 5, after Yang Wendong signed the agreement, Hutchison Whampoa's shares were officially delisted from the Hong Kong stock market and became a private company. Like Changxing Real Estate, it became a first-class subsidiary of Changxing Group.

This great event also made Yang Wendong very happy. He directly distributed various daily gifts worth about one hundred yuan to tens of thousands of employees under his company.

On the 11th, Yang Wendong brought his family acquaintances and arrived in front of Harbour City in high spirits. After about a year in his hands, this building has gradually taken shape.

Looking at the magnificent building in front of him, Yang Wendong said with a smile: "From now on, this will be the treasure pot of my Yang family."

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(End of this chapter)