Reborn as a tycoon in Hong Kong

"There is no problem if Mr. Lin wants to use Hutchison Whampoa's share loan, as long as the loan amount does not exceed 1 billion Hong Kong dollars. As for Hutchison Whampoa's loan, there is no problem. As long as Hutchison Whampoa's board of directors can approve the loan, I can approve the loan to Hutchison Whampoa." Remember Whampoa 500 million Hong Kong dollars."

Naturally, Shen Porridge would not refuse the loan Lin Baicheng mentioned. This is how banks make money.

Shen Chou was not worried about the loan to Lin Baicheng personally. Even if Hutchison Whampoa did not develop smoothly after Lin Baicheng settled in, causing the company's market value to decrease, Lin Baicheng still had a Galaxy Games company, so he was not afraid that he would not be able to repay the money.

As for the HK$500 million loan to Hutchison Whampoa, it will not be a big problem if HSBC sells its shares in Hutchison Whampoa. Even if Hutchison Whampoa does not develop well in the future, it should be able to sustain it for a few years. At that time, HSBC will naturally be able to slowly recover part of its previous debt and reduce risks.

"Then I wonder how much the Hutchison Whampoa shares held by HSBC are worth?"

Lin Baicheng asked aloud. This was a normal inquiry.

"Let the people below negotiate the specific price."

Shen Porridge said with a smile that they only need to make the final decision, and the people below will talk first. No matter how good the discussion is, it will not collapse.

"good!"

Lin Baicheng did not refuse after hearing this.

Seeing that the two of them were almost done talking, Bao Yugang said, "Lin Sheng, it's time for us to talk."

"Don't worry, Mr. Bao, as soon as I reach a deal with HSBC, I will sell you my Wharf shares immediately."

Lin Baicheng said immediately, but only after he had bought Hutchison Whampoa's shares from HSBC. He would not sell his Wharf shares to Bao Yugang now. If his shares were sold but the transaction with HSBC failed, wouldn't he suffer a huge loss?

Although the deal has been reached with Shen Porridge, the transaction will be successful without any accident, but who can say for sure about this kind of thing, everything is possible, so it is better to be cautious.

Bao Yugang didn't urge Lin Baicheng when he heard this. He also believed that Lin Baicheng would not deceive him on this matter and have an enemy like him. However, he still reminded him loudly: "Lin Sheng, there are also shares in Cangjiang Industrial .”

"This is what I promised Bao Sheng, no problem."

Lin Baicheng nodded in agreement and continued: "But Mr. Bao, I need you to tell Li Jiacheng that unless he sells all the shares in Wharf to you, I will keep 5% of the shares."

"No problem, I will inform Li Sheng."

Bao Yugang nodded and agreed without thinking. Lin Baicheng's conditions seemed more favorable to him, so why should he refuse.

The main reason why Lin Baicheng said this was that he did not want Li Jiacheng to hold Wharf's shares and make a fortune when Bao Yugang acquired Wharf. Of course, if Li Jiacheng insists on not selling the remaining Wharf shares, then Lin Baicheng will not lose money, and holding 5% of Cangjiang Industrial shares is not bad either.

This time, Lin Baicheng secretly acquired the shares of Cangjiang Industrial and threatened Li Jiacheng to give up the Wharf shares, which will definitely make Li Jiacheng hostile to him. Similarly, Li Jiacheng attracted Bao Yugang, which also made Lin Baicheng dissatisfied and hostile to Li Jiacheng.

Nowadays, Lin Baicheng and Li Jiacheng are hostile to each other. Even if neither side does anything for the time being, they don't mind doing anything that can suppress the other.

Shen Porridge didn't say anything next to him. Although Lin Baicheng was targeting Li Jiacheng, whom he was more optimistic about, he had not reached an agreement with Li Jiacheng now, so why should he help Li Jiacheng. Furthermore, if Li Jiacheng develops smoothly and encounters no difficulties, how can HSBC extend a hand of friendship and reach a long-term cooperation with Li Jiacheng? Nowadays, a certain degree of suppression and targeting is beneficial and harmless to HSBC.

Lin Baicheng said: "Sheng Bao, we'll wait until I reach an agreement with HSBC to discuss the specific transaction. What do you think?"

"Okay, just follow what you said, Lin Sheng."

Bao Yugang nodded and agreed. At the same time, he planned to find time to talk to Shen Porridge again about the loan. The acquisition of Wharf would cost a lot of money.

After leaving HSBC, Lin Baicheng told Cheng Yufeng what he had discussed with Shen Congee, and asked Cheng Yufeng to take people to discuss with HSBC the trading price of Hutchison Whampoa shares. His bottom line was that the premium was allowed, but it could not exceed 30%. Otherwise, if the premium here at HSBC is too high, there will be a premium for acquisitions from the stock market, and the overall premium will be too much.

After turning his target to Hutchison Whampoa, Lin Baicheng asked Anyuan to start acquiring Hutchison Whampoa's stocks again. However, in order not to attract attention, he did so secretly, and the number of shares acquired every day was not large.

Cheng Yufeng took people to talk to HSBC. The talks lasted two days. This was after Lin Baicheng and Shen Congee had already negotiated and determined the general direction. Otherwise, such an acquisition negotiation involving hundreds of millions of Hong Kong dollars would take ten years. Half a month is not a long day.

With the approval of Lin Baicheng and Shen Porridge, the two parties determined the transaction amount.

HSBC sold the 90 million shares it held to Lin Baicheng at Hutchison Whampoa's stock price of HK$7.15 on the previous trading day at par, with no premium or discount, but there were other requirements in the contract. First, after completing the transaction, Lin Baicheng must pledge 90 million shares to HSBC and borrow HK$1 billion from HSBC; second, after Lin Baicheng obtained control of Hutchison Whampoa, he prompted Hutchison Whampoa to borrow HK$500 million from HSBC.

These are normal loans, with loan terms of three years and annual interest rates of 8%.

Although HSBC did not make any premium money from the Hutchison Whampoa share transaction, it made a lot of money from the two loans totaling HK$1.5 billion.

The bank's deposit interest this year is 5%, while the annual interest on HSBC's loans is 8%, which means HSBC can earn 3% interest every year, which is 9% in three years, totaling 135 million Hong Kong dollars.

More importantly, the bank can only make money by lending the money out, otherwise it will have to pay depositors interest on their deposits. As the largest bank in Hong Kong, HSBC has a huge amount of deposits from depositors every year. Therefore, the most important task of HSBC is to lend out these funds. Otherwise, HSBC will not make money, and the interest earned by depositors will kill HSBC.

In fact, it is not just HSBC, it is the same for any bank. Lending is one of the highest priority tasks of banks no matter what era it is placed in.

Although he borrowed a lot of money from HSBC, for Lin Baicheng, if he could buy Hutchison Whampoa's shares without paying a premium, it was worth it and it was a good deal.

Although the loan requires a lot of interest to be paid to the bank, this is not a problem for Lin Baicheng. The more the loan, the better, and he can use it all to buy gold futures. With the huge trading market of gold futures, he is not afraid of being blocked, so if the general trend does not change, buying long gold futures is an absolutely profitable business.

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