Hong Kong's new giants

Chapter 166 [Cathay Properties]

In the conference room of New Era Real Estate, Lin Zuhui set up a working group on the acquisition of "Cathay Pacific Real Estate" and asset restructuring; New Era Real Estate mainly includes Lin Zuhui, Liang Zhenxun, and external consultant Liang Botao.

Cathay Real Estate is a listed company with an investment nature. It invests in real estate, industry, securities, catering, etc., with an asset value of about 6 million yuan; of which, the property value is 3 million yuan, the securities value is 1.5 million yuan, and the remaining assets are 1.5 million yuan; the company has 4 million yuan in debt. The market value is 1.3 million.

There are many reasons for high debt:
[-]. The property is rent-collecting. Although the property will appreciate in value, the high interest (loans to purchase the property) will eat up the rent of the property and increase the company's debt;

[-]. The rate of return in catering, industry and other fields is not high, which occupies a lot of assets of the company.

1985. The company's net profit last year (2000) was only [-] million yuan, which was not enough to pay for bank interest.

Of course, this company is essentially different from those listed companies that are on the verge of bankruptcy. It can be regarded as a listed company with potential.

In the conference room, everyone has already done some research on Cathay Property, guessing that Lin Zuhui will make an official attack today; last month's "Hong Kong and Macau Development" has made a lot of money for New Era Real Estate's subsidiary, Huaren Property. The entire group system.

Lin Zuhui said: "From now on, we will communicate with the board of directors of Cathay Real Estate on 'capital injection' and get the resolution of the shareholders' meeting; at the same time, we will formulate an asset restructuring plan to 'turn waste into treasure' to make Cathay Real Estate look brand new."

Everyone in the conference room was full of energy. Their boss had too many nicknames, and they all praised him for his ability.

As an advisor to Lin Zuhui and his company, Liang Botao said, "After the acquisition, how does Lin Sheng plan to position Cathay Real Estate? We all know that Huaren Real Estate is the flagship company of the New Era real estate department that collects properties and invests in securities."

He was entrusted by Lin Zuhui to advise on the equity planning and structure of the New Era Real Estate Department, so he must understand Lin Zuhui's intentions.

Lin Zuhui nodded. He attaches great importance to Liang Botao, and no one else pays a dry salary. They are purely helpful consultants in the structure and planning of his company.

"My idea is that we can use a series of operations to enlarge the asset value and net assets of Cathay Pacific Real Estate; in this way, the interests of New Era Real Estate will increase. This is like a treasure hunt game, and we have found the treasure. Of course, The most important thing is the company’s positioning that Liang Sheng mentioned, which is actually very simple, Cathay Pacific Land will become the flagship company of real estate management hotels in the new era.”

Hotels are too important for a real estate company, not to mention that Lin Zuhui also likes to stay in hotels and open rooms.

Liang Botao nodded in satisfaction, and said, "This is perfect!"

Liang Zhenxun also said: "According to the strength of our company and the wisdom of the boss, Cathay Real Estate will soon be able to take on a new look, and its assets and market value will greatly increase. We will use the stock market to raise funds and will soon be able to acquire hotel assets."

If you want to enter the hotel industry, you will definitely need a lot of capital, so you must know how to use the principle that listed companies can raise funds through rights issues and use shareholders' money for your own use, to acquire hotel business, and then digest it.

For example, New Times Real Estate intends to use 1 million yuan to develop the hotel industry this time; but New Times does not consider buying the hotel business directly, because it will not buy too many or high-quality businesses; , and then reorganize the assets of Cathay Pacific Real Estate, the next step is to use high-quality listed companies to make large-scale acquisitions of the hotel business, and the funds are still continuously raised from the stock market.

Lin Zuhui looked at Liang Botao and said, "For this acquisition of Cathay Real Estate, your Wanguobaotong will provide a loan for the funds. Is there any problem?"

Liang Botao said without hesitation: "No problem, I will handle this!"

Loans provided by Citicorp are equivalent to part of Liang Potao's remuneration; while New Era Real Estate's debt ratio ranks among the top in Hong Kong, but it has a good reputation and great development potential, so many bankers ignore the debt ratio.

What's more, as far as this business is concerned, the mortgage is the shares of Cathay Real Estate, which has nothing to do with the New Era Real Estate Department, and does not increase debts. It is a special loan.However, Cathay Real Estate has no problems in its own operations, and its net assets are 2 million yuan. Why would the bank worry about it!

Lin Zuhui went on to say: "As for Cathay Real Estate's asset reorganization plan, I have referred to many cases and roughly summarized a few points: First, use our relationship with the bank to strive for a new loan of 2 million yuan, leaving us enough Time to restructure assets."

If you want to restructure assets with peace of mind, you also need the consent of the bondholders. There are always some bondholders who are worried, worrying that you will lose the company's assets and cannot repay their debts; debt.

At that time, Wei Li and Luo Xurui joined forces to acquire Regal Hotel and Paliburg. The key point was that Wei Li used his relationship with HSBC to borrow a huge loan of 7.6 million yuan at one time to ensure that the assets of the two listed companies were heavy. all.

"Second, sell non-real estate and securities businesses and withdraw part of the funds."

"Third, buy new high-quality real estate assets quickly, sell 'unprofitable' assets, and buy high-quality assets that make money."

"Fourth, raise funds through rights issue, and then purchase high-quality assets."

Listening to Lin Zuhui's command, everyone took notes one after another. Although what the boss said was the outline, it was the 'good medicine' for the company.

Before the meeting ended, Lin Zuhui said: "The asset restructuring plan must be presented quickly, so that we can still win the support of Cathay Pacific's board of directors!"

The crowd happily took orders.

At this time, New Era Real Estate has not yet negotiated with the Cathay Pacific board of directors. If you want to impress others, you must consider that others want to make money before agreeing to your acquisition.

Of course, this is not a problem for New Era Real Estate. Although Cathay Real Estate has good assets, its profit performance is mediocre; even if it is a major shareholder, it does not receive dividends every year. It must be eager for New Era to join and increase the value of its shares.

In addition to these, once New Era Real Estate becomes the owner of Cathay Real Estate, the fool also knows that those stockholders who are chasing after Lin Zuhui will come in one after another, and the stock of Cathay Real Estate will increase several times immediately.

This is also the best condition!If the original shareholders want to cash out, they will naturally support New Era's acquisition.

This time, New Era Real Estate did not need to pay a penny (loan) for the acquisition of Cathay Real Estate, and it was still a white wolf with empty hands.If it succeeds, the real estate department in the new era will really gain a lot of fame.

Originally, the Hong Kong and Macau development projects in August had already made Lin Zuhui the best leader for investors; in the case of Hong Kong and Macau development, the most "myth" about Lin Zuhui was the inside story of negotiations with the Macau government and five banks , because it was not made public, those media decisively played with unconstrained ideas.

1200 million yuan to cut off 7000 million yuan of debt is already enough for people to blow a pot; many media still think it's not a big deal, and write about the grievances between Lin Zuhui and D Wang wantonly.

In fact, Lin Zuhui and D Wang did not have any conflicts, the reason is very simple, Lin Zuhui did not 'calculate' others in the whole incident;
The warrant must be issued, otherwise the money from Hong Kong and Macau Development will be used to cut off the debt.

Regarding these, King D is also very clear.

In the office of Luk Fook Jewellery, Lin Zuhui led the bankers to look through the company's account books.It's not that he doesn't trust Huang Weichang, but that he needs a loan.

Although Luk Fook Jewelery has a start-up capital of 1500 million (actually 1350 million, 150 million is assets), but because Lin Zuhui likes to start from a "big" start, when preparing for the "Central Flagship Store", he found that the funds are only so-so , nor have the ability to open a 'Kowloon Flagship Store' in Tsim Sha Tsui immediately.

Because the chain of big brands was planned from the beginning, the investment in the forging factory and headquarters is also very expensive; in addition, the rent of the flagship store in Central is more than 200 million a year, and the gold jewelry shop is also worth it. It looks like 800 million, so it is very expensive.

"Lin Sheng, Huang Sheng, and Ms. Wang, we have already checked the loan. There should be no problem with the 1000 million loan, after all, it is guaranteed by Lin Shengyu!" The person in charge of the bank said respectfully.

In the eyes of bankers, Lin Zuhui is a favorite. Even if the real estate debt in the new era is so high, there are still banks who come to the door and take the initiative to lend.

However, Lin Zuhui didn't dare to ask for it for the time being!

"Okay, Manager Sun, please go!" Lin Zuhui said politely.

He is willing to make friends with bankers, whether they are high-level bankers or these bankers.

After sending away the bankers, Lin Zuhui happened to attend the management meeting of Luk Fook Jewelery as a director; but the management still knew that Lin Zuhui was the major shareholder.

Huang Weichang is both the chairman and the general manager. Although he holds the real power, if he falls out with the boss, everyone knows the consequences.Everyone only knows that Huang Weichang only has 20% of the shares, but they don't know that there are still [-]% incentive shares (granted in batches).

Because Lin Zuhui seldom participated in Luk Fook Jewelery matters, and he even seldom gave advice. After all, he was not omnipotent, and he didn't want to play tricks in front of Huang Weichang, an old Xingzun and a jewelry tycoon from his previous life.

Xiangjiang’s jewelry industry is currently composed of four giants: Chow Tai Fook, Chow Sang Sang, Xie Ruilin, Jing Fu (Yang Zhiyun’s family), a rising star and the previous owner of No. 75 Deep Water Bay——Chen Shengze of Henghe Jewelry. The rest is probably nearly 3000 There are more gold shops than rice shops.

At the meeting, Huang Weichang endorsed the company's situation to Lin Zuhui, without putting on airs of the chairman at all, and was very respectful.

After hearing this, Lin Zuhui also respected the professional managers, so he said, "Well, as a shareholder, I am very satisfied with the company's development. If you have enough confidence, I can guarantee another 3000 million loan, and I don't mind."

Huang Weichang quickly said: "There is no further plan for the time being. We plan to digest the flagship store in Central first; except for a small part of the loan of 1000 million for the flagship store in Central and the forging factory, it will be reserved for the preparation of the flagship store in Kowloon. If development All right, after half a year, the company will be able to prepare for the third store, and the boss will not need to guarantee it at that time, the company already has the ability to be self-reliant."

"Okay, as long as you have confidence!"

Lin Zuhui is pleased to express his appreciation and trust to Huang Weichang!
In fact, even if Lin Zuhui had some opinions, he raised them to Luk Fook Jewelery through Wang Zuxian.In this way, whether good or bad, Huang Weichang can make professional decisions.

Moreover, Wang Zuxian told Lin Zuhui that Huang Weichang respected her suggestions in the company and did not treat her as a vase.

If Huang Weichang puts a director, partner, and spokesperson as a vase, Lin Zuhui might just fire him, no matter how good he is.Wang Zuxian is her spokesperson and must participate in the company's affairs!
(End of this chapter)