Chapter 749 Hutchison Whampoa Shareholders Meeting and Competition

Chapter 749 Hutchison Whampoa Shareholders Meeting and Competition

Chapter 749 Hutchison Whampoa Shareholders Meeting and Competition

For Hutchison Whampoa today, whether it is through a shareholder meeting or a forced acquisition on the stock market, the probability of success is very high. The only difference is that the money spent may be different.
What Yang Wendong is most concerned about is that after taking over, if the internal management does not cooperate, he will be in big trouble. Even if he has confidence in the future of the Hong Kong market, Hutchison's bond banks, other shareholders, partners and suppliers do not. Once Hutchison is caught up in internal friction between the management and major shareholders, and a debt crisis, he may be caught up in it. Even if he can finally survive, it will take a lot of effort.

Now that Richard Xin, the veteran of Hutchison Whampoa, can bring his team to join him, it will be much more convenient for him;
Although Richard Xin cannot be fully trusted, he certainly still hopes to be able to control Hutchison Whampoa like Qi Dezun, but as long as he can survive one or two years, when the Hong Kong economy recovers, Hutchison Whampoa can make a good internal rectification. If Richard Xin also pretends to obey him but actually disobeys him, then he can just replace him. One or two years is enough for him to slowly train his own management team, whether they are Chinese or British.

Of course, if he cooperates with me, he can stay in this position safely. He is not young anymore. Letting him retire in the 80s can be regarded as a good business story. Just like Wharf Holdings before, it can be a good example for other acquisitions in the future.

In the following days, before the shareholders' meeting, Richard contacted Fang Xianming individually and introduced him to some of Hutchison's future management personnel. As the representative of Changxing Group, Fang Xianming also made some promises to these people to make them surrender with peace of mind.
Time soon came to March 3th, and the shareholders' meeting of Hutchison Whampoa Group was held today;

As one of the four largest trading companies in Hong Kong, its scale even threatened Jardine Matheson at one point. However, it is now caught in an almost irreversible debt crisis, affecting the jobs and investment interests of at least tens of thousands of people in Hong Kong. This incident has become the biggest economic news in Hong Kong this year, with countless media flocking to it to get first-hand information about the shareholders' meeting.

However, Qi Dezun seemed to know that he would not be glorious at this shareholders' meeting, so he flatly refused the interview with reporters. As a result, a large number of reporters were stopped outside the Hutchison House and could not enter;

"Is it Yang Wendong's motorcade?" A sharp-eyed reporter spotted a line of Mercedes-Benz cars and quickly aimed his camera to take pictures.

Most of the wealthy people in Hong Kong like luxury cars such as Rolls-Royce and Bentley, but Yang Wendong is an exception. He has always driven a Mercedes-Benz. You should know that although Mercedes-Benz is a luxury car, it is generally driven by Hong Kong's barristers and small businessmen.

However, there are also rumors that the Yang family's Mercedes-Benz fleet is specially customized bulletproof cars from Germany. Each car is worth more than a luxury car like Rolls-Royce. There are more than a dozen cars in total. Every time he travels, Yang Wendong sits in one of the cars at random and does not require his car to drive in the center. In addition, the glass is light-proof, so outsiders cannot know which car he is in, which also increases safety.

Many reporters also ran forward, but were soon blocked by more security guards. They could only watch Yang Wendong get out of the car, taking pictures in their hands;

A reporter asked: "Mr. Yang, what do you think of Hutchison's current debt crisis? Does Changxing Group intend to save Hutchison?"

"Mr. Yang, there are rumors in the market that you are acquiring Hutchison Whampoa shares? Is this true? Are you planning to acquire Hutchison Whampoa?"

"Mr. Yang."

Reporters asked questions one after another, but Yang Wendong didn't answer any of them. However, he still waved to the reporters politely, and then, under the guidance of his assistant, he passed through the bodyguards and entered the Hutchison House.
When Yang Wendong arrived, most of the shareholders and senior executives of Hutchison had also arrived. This was normal. People with higher status tended to arrive later, usually a little before the exact time.

"Mr. Yang." Many people greeted him.

Qi Dezun also stepped forward and said hello: "Mr. Yang, the shareholders' meeting is about to be held. I still want to ask you one last time. As long as you maintain the current internal situation of Hutchison Whampoa, I can support you to become the largest shareholder of Hutchison Whampoa."

Yang Wendong smiled and said, "Do I still need your support to become a major shareholder?"

Qi Dezun said: "It is indeed not necessary, but if you want to obtain a perfect Hutchison, it will probably be very difficult."

"You are too confident. Even with what Hutchison has become today, you still think you are not wrong?" Yang Wendong asked indifferently.
If he did not know the future, if he had made normal investments before and had not cashed out, his losses in Hutchison would have exceeded HK$10 billion. With such a huge loss, the Cheung Hsing Group would probably have suffered some serious damage.

Qi Dezun said: "Hutchison Whampoa is just experiencing temporary difficulties. As long as the Hong Kong real estate market and stock market recover, sooner or later the price will return to the previous level, or even higher."

Yang Wendong said: "Maybe, but it will probably take many years to come. And it's not like every company will be able to make money just because the real estate market is recovering. Hutchison is so heavily in debt right now that if it doesn't have a sound management strategy, it probably won't be able to enjoy the returns of the real estate market. The interest alone will crush all of its profits."

In the mid-70s, due to the surge in oil prices after the oil crisis, Europe and the United States fell into inflation. In order to control inflation, the European and American central banks began to raise interest rates. By the 80s, the peak was even close to 20%.

It is not so exaggerated at the moment, but as an export-oriented economy, Hong Kong will also follow Europe and the United States in raising interest rates. Corporate financing costs will soar, and the heavier the debt, the higher the interest payment, especially short-term interest.

Hutchison's debt is now heavier than ever before. Although it may have more assets, if it cannot control its debt well, it will not be able to wait until the real estate market recovers. Even if it does, the huge profits from real estate will be used to pay off debts.
"I was able to develop Hutchison from a trading company to its current size, so I can naturally save Hutchison Whampoa today. Mr. Yang, no matter what, the current Hutchison Whampoa is much stronger than the original Hutchison Whampoa. You were able to invest in me back then, so why not today?" Qi Dezun's tone seemed to soften;

He didn't want to completely fall out with Yang Wendong unless it was absolutely necessary.

Yang Wendong shook his head and said, "You are right, but times have changed. Your management style is no longer in line with this era. If you want to continue to control Hutchison, you have to run it my way. You were indeed successful in your business, but so was I."

In the past, he supported Qi Dezun and was indeed optimistic about his ability. He also wanted to use his British identity to acquire various British capitals. After all, in the 60s and early 70s, Chinese capital could not make a move.

Now that the mainland is on good terms with the West, and Qi Dezun is having problems with his operation of Hutchison, it is naturally time to reap the harvest;
The business battlefield is like this, use it when you need it, and leave when you don't need it. "Okay, let's talk about it later." Qi Dezun also knew that he couldn't convince Yang Wendong, after all, the other party was also a more successful entrepreneur than him;
Soon after, Yang Wendong met with bank representatives, including Stephen Sham of HSBC and Ho Sin Hang of Hang Seng Bank, as well as representatives from several Chinese, British, American, Japanese, and European banks;
It has to be said that Qi Dezun's ability in financing is really amazing. He even borrowed money from a Norwegian bank that has no business in Hong Kong. It is estimated that in terms of "deception", he is no worse than the future Hong Kong giant scammer Chen Songqing.

"Mr. Yang, are you planning on doing something big today?" Shen Bi asked with a smile.

Some market rumors may satisfy many ordinary people, but it is difficult to hide them from HSBC.

Yang Wendong did not answer directly, but asked in return: "If I really have a big move, will HSBC support it?"

"As long as it can guarantee HSBC's debt, I will certainly support it." Shen Bi nodded and said;

Hutchison's current debt problem is also a huge disaster for HSBC. If Hutchison really goes bankrupt, HSBC will also bear a large amount of bad debts. Given HSBC's scale, it will also be seriously damaged, and his career will have a huge stain.
At the same time, the Hong Kong government did not want a giant like Hutchison to go bankrupt, and the Governor even personally asked him to find a way to save Hutchison, which also gave him a headache;
If Yang Wendong really acquires Hutchison Whampoa, with his financial resources, he will certainly be able to bear Hutchison Whampoa's huge debts, which will also be a good thing for HSBC;
"That's good." Yang Wendong didn't say anything more;
In fact, he knew the future, otherwise he would be like other consortiums and only seek part of Hutchison's assets instead of the entire company with debts.

The shareholders' meeting was held soon. This time, Yang Wendong sat in the audience as a major shareholder, while those on the stage were all Hutchison's management. After all, he had no intention of "taking over" Hutchison on the surface.

After the meeting started, Qi Dezun first arranged for Richard Xin to announce Hutchison's performance in the previous quarter, which showed a total loss of HK$4800 million. When this figure came out, the shareholders at the entire meeting were shocked;
You know, the real estate market has recovered now, and the performance of many listed companies has turned positive, and some even have very good profits. However, Hutchison Whampoa has suffered such a huge loss, and this is just one quarter!
Then, a shareholder representative stood up and asked, "Qi Dezun, Richard Xin, now that the Hong Kong economy has recovered, why is Hutchison's performance still so bad?"

Richard Xin glanced at Qi Dezun beside him, and then replied: "Everyone, in terms of business operations, Hutchison Whampoa is actually similar to other companies. The real estate business has a profit of 1200 million Hong Kong dollars, but everyone knows that Hutchison Whampoa is now in too much debt, and all the profits are not enough to pay the interest, which resulted in a huge loss."

"The debt is so high, isn't it also your business?" another shareholder asked.

"Yes, if this continues, the debt will only grow. It would be better to declare bankruptcy now and let everyone get as much as they can. Otherwise, after a long time, there will be nothing left."

Some investors started complaining again, saying that they had lost too much for too long. They finally waited for the Hong Kong economy to recover, but Hutchison Whampoa's performance was getting worse and worse, which made many people lose their patience.

Even if you lose a little, you can take the remaining money and invest in other places while the stock price and land price are still low, then you may be able to make a little more.

Qi Dezun looked unhappy after hearing the words below, but he still held back. After taking the microphone, he said: "Everyone, I know that Hutchison's performance has been very poor in the past two years, but Hutchison has also grown from a small company to today's scale. Please believe me, I will definitely be able to lead Hutchison out of today's predicament;

However, Hutchison Whampoa is now in too much debt, so I would like to take the opportunity of the shareholders' meeting to raise HK$3 million from all shareholders. This money will be used to develop some high-quality land. I can promise that after the company turns losses into profits, today's investment will definitely bring a higher return. "

"Are you kidding me? Hutchison's total market value is 6 million now, and you still want to raise 3 million?" A shareholder said angrily, "I have lost millions with you, and you still expect me to invest millions?"

"That's right, if you invest more, what will you do if you have no money left after you spend it all?"

"Mr. Qi Dezun, if you really succeed in raising funds, I still suggest that you pay the money back first. You have already defaulted on our bank." A representative of a Japanese bank in a suit suddenly stood up and said.

As a bank representative, he only cares about whether his account can be repaid smoothly. He doesn't care what Hutchison will invest in next or what the return rate will be. These things have nothing to do with him.
Several other banks shared the same opinion;
This stirred up a hornet's nest for the shareholders present. The funds raised can only be used to repay debts. Then where are my rights as shareholders?
Qi Dezun's face turned pale, but there was nothing he could do. After all, he had indeed breached contracts with some banks, and some suppliers had stopped supplying goods. He was even forced to delay or partially reduce internal salaries, which also led to instability in internal management.
But there is really no other way. The company’s capital chain is about to be cut off. Without money, nothing can be done.

At this moment, HSBC representative Shen Bi suddenly raised his hand, and the scene immediately fell silent. Everyone had to give HSBC face;

Shen Bi said into the microphone: "Hutchison's current situation is critical, so I think there must be a powerful person to save Hutchison, so as to safeguard the interests of everyone;
Qi Dezun, you have successfully managed Hutchison Whampoa, but in recent years, you have made frequent mistakes, which has led to Hutchison Whampoa's serious debt. You are no longer suitable to be the person in charge of Hutchison Whampoa. "

"Wow~~" Many people at the scene were shocked. Among the shareholders, except for a few, no one else thought about changing the management.

Yang Wendong looked at Shen Bi in surprise. They were originally planning to find the right moment to strike, but they didn't expect Shen Bi to get there first.

He Shanheng, who was next to Shen Bi, asked with a smile, "Mr. Shen Bi, who do you think is suitable?"

Shen Bi smiled faintly and said, "I think Yang Sheng is very suitable."

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(End of this chapter)