The birth of the Hong Kong Island family

May.

Lin Zhichao, together with Zheng Yutong, Rong Zhi and others, discussed the establishment of GreatStgle Company as the flagship company for the acquisition of Hengchang. The company is composed of 9 shareholders: CITIC Jingfeng 36%, Lam Chi Chiu Foundation 19%, Cheng Yutong 18%, Peregrine 8%, Robert Kuok's Kerry Trading 7%, Wing Chi personally 6%, and Ho Hau Chong brothers 4% , Xi Weijian 1%, Feng Jingxi’s widow Feng Liang Baochen 1%.

this day.

The shareholders of GreatStgle gathered in a private room of the Shangri-La Hotel to discuss the acquisition strategy. The financial advisor was Peregrine Financial Company, which is also a shareholder.

Although Lin Zhichao joined GreatStgle, he was actually supporting Rongzhi, so this team still stars Zheng Yutong. At the scene, everyone sat on the sofa and started talking.

Zheng Yutong said enthusiastically: "The reason for the failure of the Beiyi company I joined before was that there were rumors of a 'share split' in the market, and the price was too low, which was unattractive to other shareholders. So this time, as long as we don't make the same mistake again, we will be successful." Big increase.”

He was very enthusiastic about this acquisition and thought that even if CITIC Jingfeng took the majority, he could still use it as a dividend-paying investment in the long term. As everyone knows, people from the mainland do not follow "martial arts", and Rong Zhi may have already thought about it. Solo.

As for Lin Zhichao, even if he knew Rong Zhi's true thoughts, he would not have any objection. As long as this acquisition can make him money, then it doesn't matter if he gives up the shares in the end, it can be regarded as a one-time investment.

Rong Zhi said: "Hengchang's valuation is 390 Hong Kong dollars per share. This price is too high!"

The implication is that I don’t want to pay too high a price.

Zheng Yutong immediately said: "Of course! The price we offer only needs to be attractive to other shareholders. Once the small shareholders break through, the large shareholders will follow the market."

He Shanheng, Liang Qiuyao, and He Tian are the major shareholders, but they are by no means monolithic. After all, none of the three have any intention of continuing to run Hengchang, so it is not considered a betrayal. As long as one of them sells the stock, the remaining two will soon let go. And if you want one of them to sell, you have to impress the small shareholders, and the price has to be well controlled.

Everyone nodded, and it was Lin Zhichao's opinion that Zheng Yutong defected and joined. After all, Zheng Yutong had been in contact with the elders of Hengchang.

"What's the right price?" Everyone asked Liang Botao of Peregrine.

Peregrine was also supported by Lin Zhichao, and Liang Botao and To Huilian were both members of his advisory group. In essence, this is the consortium effect in Hong Kong.

Liang Botao said: "We did some research and felt that HK$330 per share is more reasonable, involving a capital of HK$6.94 billion."

Everyone started thinking.

Hengchang's annual profit is HK$1.022 billion, which takes almost seven years to recover its capital. The only pity is that the large amount of cash flow in Hengchang's account has been divided twice by He Shanheng and others, otherwise it would be more cost-effective.

But then again, the business that Hengchang Enterprise does has "no prospects and no greater space"; so this price is indeed the greatest sincerity.

"I agree"

"I agree"

after.

The core members of GreatStgle are negotiating with the veterans of Hengchang.

At the same time, Lin Xiufeng brothers and Xu Zhantang formed another consortium to bid for the company, but their camp was not as strong as GreatStgle's. GreatStgle's bid is HK$330 per share, involving HK$6.94 billion. This is a decrease of 63 yuan from Hengchang's revalued assets of 393 Hong Kong dollars per share. However, the acquisition consortium has vowed to ensure that Hengchang will not be dismantled or employees will be laid off. Hengchang's mechanism will remain the same as before. Hengchang founded by the older generation will flourish under the new leadership.

Although He Shanheng and Liang Qiuyao thought the price was still low, they were a little moved.

The important thing is that He Tian, ​​the veteran and major shareholder of Hengchang Ventures, saved GreatStgle's life at a critical moment and promised to give up his equity.

In addition, Hengchang's small shareholders believed that GreatStgle's offer was acceptable, and some people successively sold their shares to cash out.

When things have developed to this extent, GreatStgle's acquisition has been tense, and negotiations with He Shanheng and Liang Qiuyao began.

Wharf Group.

Lin Zhichao was sitting in his office, reading an article published in "Asia Daily" - "How Much Do Real Estate Developers Make?"

The content of the article is roughly as follows: Working as a cow or a horse as a tile, some people have to spend their whole life to own property. The price of property has accounted for 70% of the family income. After all, how much money does a real estate developer make between building a building and selling it? It’s hard to count how much blood and sweat is out there. However, numerous wealthy people in Hong Kong are engaged in the real estate business. More than 50% of the market value of listed companies are real estate construction companies, which shows the profitability of real estate.

The article next takes Cheung Kong Group, a major profit maker in the property market, and the development of Laguna City in Cha Kwo Ling as an example to analyze and estimate how "Lin Chaoman" will obtain an astonishingly huge profit of HK$11.1 billion in this real estate project.

At the same time, the article also uses the metaphor of "one will become a thousand bones withered" to adjust the brilliant performance of real estate developers, which is made up of the hard-earned money of citizens who buy and rent houses.

Lin Zhichao slowly put down the newspaper and sighed: "I still live like the kind of person I hate the most!"

In the past, he was not the government that hated real estate developers and sold land at high prices. He was once a victim of high housing prices, but now he has become a 'perpetrator'.

However, Lin Zhichao quickly shook his head. High housing prices are by no means the main responsibility of real estate developers (from a different perspective). The current contract signed between the mainland and the Hong Kong government is that the annual land sales cannot exceed 50 acres (1.82 million square feet), resulting in a situation of less land and more people (many places in the New Territories are not developed); also, most of the government’s fiscal revenue depends on Real estate-related taxes such as land sales, real estate taxes, land supplement fees, etc.

At least, real estate developers are not the main culprit.

Lin Zhichao quickly strengthened his belief that he must stand in the same camp as Hong Kong real estate developers on real estate matters. This is beyond doubt.

"dad"

Lin Ruihai came to the office and curiously looked at the newspaper in his father's hand. He found that his father was lost in thought.

Lin Zhichao put down the newspaper and said: "The greater the increase in real estate, the greater the complaints against us, and this kind of contradiction will become deeper and deeper."

Lin Ruihai picked up the newspaper and read it, then said: "How much does this have to do with us? The rise and fall of real estate is in line with the market, and we cannot control the price trend. What's more, Hong Kong has more people and less land, and Hong Kong people like gambling. investment method, real estate speculation is a spontaneous behavior in the market."

Lin Zhichao smiled and said: "No matter how reasonable you are, can you explain it to everyone? So, keep a low profile to avoid unnecessary trouble."

Lin Ruihai nodded and said, "Yeah."

Lin Zhichao knew that among his five sons with pure Chinese blood, Lin Ruihuan and Lin Ruihai were the most low-key and stable. They rarely gave interviews, and it was difficult for the media to get anything out of their mouths, let alone humor. Lin Ruijiang and Lin Ruikai are in a slightly better situation and will be publicized in the media; Lin Ruicheng, the son, is completely loved by reporters and is often encountered by reporters.

Next, Lin Ruihaihui reported: "Dad, our investment returns in Southeast Asia have been remarkable. During the period from 1988 to 1991, the value of the entire property in Thailand and Malay increased by about three times. Therefore, our investment in Southeast Asia, excluding Singapore, In terms of real estate investment, the net assets have reached tens of billions of Hong Kong dollars."

For the first time, the Wharf Group only invested 2 billion in the Southeast Asian market (excluding Singapore), which is now equivalent to a net profit of 8 billion. Of course, this is an asset on the books.

Lin Zhichao nodded with satisfaction. The Wharf Group's debt has also dropped to HK$4 billion, and it also has a cash flow of more than 1 billion. In fact, it already has huge investment strength, and even tens of billions of dollars are not in China.

"Now you need to go to the mainland to inspect more, especially the situation in the Magic City. When the time is right, we will change direction and invest in the mainland."

"Well, the development potential of the Magic City is good, and everyone's open-mindedness and other aspects can be compared with Guangdong Province."

Next year is a critical year for investment in the Mainland. Many future projects may have to be negotiated next year.

The Wharf Group will invest in many commercial projects in the mainland, and will gradually withdraw funds from Southeast Asia and invest them in the mainland since 1994.

A week later, Cheung Kong Infrastructure, a subsidiary of Cheung Kong Holdings, announced that it would hand over the management of the Hung Hom Tunnel to the Hong Kong government, officially ending the 40-year contract (which expired in 2008).

This plan has been Lin Zhichao's idea all along. After all, the Hung Hom Tunnel has made a lot of money, with an average return rate of 8% per year. With a management period of 23 years, it has actually made a lot of profits.

As for the fact that Cheung Kong Holdings is a listed company, with Lin Zhichao's influence, it is natural to make such a decision without any obstruction or criticism.

The non-recurring profits of Cheung Kong Group are not all unexpected surprises for shareholders; Lin Zhichao should have received millions or tens of millions in director's robes every year, but he never received a penny and handed it all to the company.

At the donation ceremony, Lin Zhichao, Pu Weishi, Li Ka-shing and others signed a formal donation agreement with representatives of the Hong Kong government, and reporters clicked their shutters one after another.

Provost, representing HSBC, also decided to donate shares.

When the Hung Hom Tunnel was built, in addition to Cheung Kong Group's largest stake, it also included HSBC, Hutchison Whampoa, Wheelock Group, etc. Now that Hutchison Whampoa is in the hands of Lin Zhichao, he can naturally make the decision.

As for HSBC and Wheelock Group, they did not refute Lin Zhichao's suggestion. After all, Lin Zhichao donated most of his equity, so it would be hard for them to continue paying dividends.

Everyone has made money, and there is no need to continue. When the 40-year contract was signed, the Hong Kong government actually had no experience. Generally, thirty years is enough for investors to make a lot of money. The infrastructure industry can generally pay back its capital in 10 to 12 years, and the income is quite good.

Then it was time for reporters to ask questions.

Reporter: "Mr. Lin, what are your thoughts on taking the lead in donating the management rights of the Hung Hom Tunnel this time?"

There is a trap, does it mean it is related to the recent public opinion?

Lin Zhichao said calmly: "When I proposed investing in the Hung Hom Tunnel, I had actually thought about what happened today. After all, the original idea of ​​investing in the Hung Hom Tunnel was just to connect Hong Kong and Kowloon and achieve economic development. Now our shareholders agree that since it has After getting a good rate of return, we handed over this important infrastructure to the Hong Kong government for management. It’s reasonable and reasonable, without too many ideas!”

Seeing that Lin Zhichao was not fooled, the reporter continued to ask: "So, what do you think about the recent excessive rise in real estate prices?"

Lin Zhichao said: "This is the behavior of the market. I don't have much opinion! The problems in Hong Kong's real estate are actually caused by many reasons."

He avoided the question.

After all, it’s not time to ‘start war’ yet!

Later, he, the real estate leader, will be more affected by public opinion. (End of chapter)