Rebirth 1991: My Financial Era

Zhao Heng held a senior management meeting.

"Now our port construction company is being attacked by barbarians and is at risk of being acquired. Do you have any countermeasures?" Zhao Heng asked straight to the point.

Everyone looked at each other in confusion. Everyone is engaged in company management and not in the capital market. You should ask the secretary of the board of directors.

"Why don't you say anything!" Zhao Heng said a little angrily, these people don't obey me!

"Secretary Zhang, you are the secretary of the board of directors, please tell me." Zhao Heng asked by name.

"Sheng Zhao, there are two ways to deal with brutal acquisitions. One is to announce a buyback and increase the shareholding of major shareholders; the other is to issue private placements and major shareholders subscribe for shares." Secretary Zhang answered in a satisfactory manner.

"What are the pros and cons of each?" Zhao Heng didn't give it for free.

"No matter which method is used, we need to abide by the regulations of the Hong Kong Stock Exchange. The repurchase plan uses the company's money and does not require major shareholders to contribute. It will increase the stock price and increase the acquisition cost. However, it will be very difficult for major shareholders to increase their holdings. .”

Secretary Zhang continued his analysis.

"The effect of private placement is best, provided that the major shareholders have funds, and the procedures need to be followed, and a shareholders' meeting needs to be held. However, in order to avoid related transactions, major shareholders cannot express their opinions, and the shareholders' meeting may fail."

Secretary Zhang said he was done.

"Director Hu, how much money is there in the company's account?" Zhao Heng asked the financial director.

"Sheng Zhao, we have more than 10 billion in cash." Director Hu answered truthfully.

Large companies are constantly rotating goods, but their capital reserves are actually small.

"Sheng Zhao, that's the money to buy land." At this time, the investment director hurriedly interjected. If the funds are used to buy back stocks and cannot buy land, this year's development performance will be completely ruined.

"Focus on the overall situation." Zhao Heng said directly.

The investment director wailed in his heart, there is nothing he can do, you are the boss and you have the final say.

"Then it's settled, Secretary Zhang, we will make an announcement tomorrow that the company will use 10 billion to repurchase shares." Zhao Heng thought for a while and continued, "Director Hu will meet with Huifeng Taipan with me to discuss financing."

"Okay, Zhao Sheng." The two replied.

After Zhao Heng finished the meeting, he went to visit Huifeng's senior classmate Shen Ji.

"Shen Sheng, the company is currently facing this situation. I hope you can raise funds to help me overcome this difficulty." Zhao Heng's posture was very low in front of Shen Daban.

"Zhao Sheng, your father and my old friend, I will definitely help you if you have collateral." Shen Ju put himself in the same position as Zhao Heng's father.

"There is a mortgage. We currently hold 38% of the company's shares, and the stock price has risen." Zhao Heng said.

"So, are you planning to use stock pledges to raise funds?" Shen Ji wanted to confirm.

"Yes." Zhao Heng confirmed.

"Okay, you have 3.8 million shares. Calculated at 15 yuan and a pledge rate of 50%, you can raise 26 billion yuan. You have already raised 2 million yuan before, and you can raise 24 billion yuan this time." Shen Ju said.

"Shen Sheng, isn't the price of 15 yuan a bit low? The current price is 38 yuan." Xu Jinheng said with a frown.

"We think the current price is artificially high. The company's real stock price is 15 yuan." Shen Ji refused to give in.

"Okay." Except for HSBC, no other institution can raise so much money. Zhao Heng could only agree.

"Okay, happy working together." Shen Zi stood up and shook hands with him.

The next day, the Hong Kong Construction Company issued an announcement that the company announced a stock repurchase of 10 billion Hong Kong dollars.

The market immediately became enthusiastic, and the stock price jumped directly to the 43 platform.

Here, Zhao Heng also received 24 billion yuan in cash and prepared to participate in the private placement.

Stimulated by the buyback announcement, Hong Kong Construction Company's trading volume increased again throughout the day, with the final closing price of 45 yuan.

"Sheng Zhao, the company has completed the stock repurchase. A total of 2300 million shares have been repurchased. The total share capital is now 9.77 million shares, and your shareholding ratio has reached 38.9%." Secretary Zhang reported after the market closed.

"I know, pay close attention to the stock price. How about the additional issuance?" Xu Jinheng asked.

"Already reported to the exchange and waiting for inquiries." Secretary Zhang replied, "After the exchange gives its opinions, it will announce the convening of the shareholders' meeting."

"I know." Zhao Heng felt that he had a chance to win.

The next day, Starlight Daily revealed the big news. The headline on the front page was: Mr. Zhao decided to increase his investment to save himself, and the price was unfair.

"Damn it, the Zhao family is so insincere. The average price in the first fifteen trading days was 25, and now it is 45. I don't agree." Lao Zhang, a stock investor, cursed.

"Yes, tmd, I went to vote at my own expense, I don't agree."

……

The reaction of the stock investors is the same. I finally caught a big fish and I just took off my pants. You show me this?

It must be intolerable!

Trading was light that day. Upon seeing this, Sun Chen directed Lin Hui's accounts to reverse each other's accounts, increase the trading volume, maintain the stock price, and create a cover-up.

That night, the Hong Kong Construction Company issued an announcement that the private placement had been approved by the exchange and a shareholders' meeting would be held to vote tomorrow.

The headline of the Star Daily on the second day was: Hold shares in Hong Kong Construction and practice value investing.

The article deeply analyzes the value of Hong Kong Construction Company. As an old real estate company, with the real estate market so good, its performance will definitely explode. It is expected that profits will double, and the stock price cannot cover the valuation at all. The implication behind the words is that the fixed increase plan is not sincere.

Shareholders think so too.

Therefore, the general meeting of shareholders unanimously disagreed.

"Damn it, your Zhao family looks so ugly, you're worried that you won't be able to give birth to a good boy!" Stock investor Lao Zhang almost threw the sugar cane on Young Zhao's head.

"Go to the street..."

Zhao Heng left in despair with his bodyguards.

The on-site staff looked at each other, and the shareholders' meeting ended hastily.

The company announced that the fixed increase plan was not approved.

Zhao Heng had no choice. Based on the trading volume, the other party may have held more than 20% of the shares. He had no choice but to buy stocks.

In fact, Lin Hui used 5 million funds to buy 5 million shares through 1.4 times financing, accounting for 14% of the shares. The acquisition only needs to go through multiple independent securities companies, and each account does not exceed 5%. No announcement is required.

The day after the scheduled increase failed.

Star Daily published an article saying that rejecting the increase plan is a victory for shareholders, a victory for value investing, and a victory for justice.

Zhao Heng entered the market to buy stocks and was immediately caught by sensitive investors.

The stock price reached a higher level again, jumping to 55 yuan, the trading volume increased again, and finally closed at 54 yuan.

Zhao Heng ran out of bullets and acquired 24 million shares for 4300 billion, holding a total of 4.23 million shares and a shareholding ratio of 43.3%. Together with the 10% held by other directors on the board of directors, the situation is basically under control.

"We repelled the barbarians." Zhao Heng told a reporter from Ming Pao. "The barbarians recognized the value of our company and I hope he can get long-term rewards."

Zhao Heng celebrated himself and invited Li Jiaxin to spend the night together.

The next day, the Ming Pao headline read: Hong Kong Construction Co., Ltd. defended its equity, and the barbarians fled.

The Star Daily headline read: Barbarians take advantage of the opportunity to cash out, the shame of value investing.

As soon as the two newspapers came out, the market was in an uproar again. It turned out that the barbarians had escaped? !

The stock price of China State Construction Engineering Corporation was like a waterfall falling off a cliff, and it did not stop until it fell to 12 yuan.

That's right, when Zhao Heng bought, retail investors were still waiting for the capital war, and Sun Chen took the opportunity to run away. He has too many chips and must sell them when someone calls for market support.

Sun Chen's buying cost was 18, the selling price was 58, and he bought 5 million yuan with 5 times leverage. After deducting interest, he made 75 billion.

Zhao Heng was left standing guard on the top of the mountain, along with a group of stock investors.

Zhao Hengzhi was very talented and did not hire a securities financial consultant. Sun Chen easily resolved the two moves.

After this experience, the Zhao family and the Hong Kong Construction Company will completely miss this wave of real estate dividends.