Reborn as a tycoon in Hong Kong

Lin Baicheng, who returned to Xiangjiang, contacted the two presidents of Xinhua News Agency, Wang Yiping and Li Fuquan, and told them that his mother, Zhao Huilan, and he himself wanted to go to the mainland to visit relatives, hoping that the authorities could make arrangements.

Wang Yiping and Li Fuquan immediately agreed after hearing this. They had already received permission from their superiors and did not need to report it at all.

After the two presidents agreed, Lin Baicheng told them about the time to go to the mainland to visit relatives. He hoped to go there before the Mid-Autumn Festival and celebrate the Mid-Autumn Festival there this year. Now that it's over, it's best to celebrate a festival together, especially a festival like the Mid-Autumn Festival that is a family reunion.

Of course, the time does not have to be the Mid-Autumn Festival. This year's Mid-Autumn Festival happens to be a few days after the National Day. If the time is inconvenient or for other reasons, the time will depend on the official arrangement, and Lin Baicheng will not force it.

Wang Yiping and Li Fuquan said they would communicate with the country and try to arrange the time for Lin Baicheng and his friends to visit relatives in the mainland as the Mid-Autumn Festival is approaching. Once the time in the country is determined, they will notify Lin Baicheng as soon as possible.

Lin Baicheng naturally thanked him and then left.

Hutchison Whampoa, Lin Baicheng went to the company and called Wei Li to his office.

"Wei Li, how's the discussion with Jianing Group going?"

Because they were sure to return to Xiangjiang in a few days this time, Lin Baicheng asked Wei Li and the others not to report that everything was fine, but to talk first and not make a decision immediately.

Wei Li said: "The current price has been discussed at 1.03 billion Hong Kong dollars. After that, Jiani Group refused to give in. If the company is willing to spend time to continue the negotiation, the price may increase by about 10 million Hong Kong dollars. However, Shen Daban of HSBC said that it is good Ning Group has been very sincere and hopes that the company will also show sincerity, which means that it hopes that the company can complete the transaction at a price of HK$1.03 billion."

"Is that so?"

Lin Baicheng nodded and asked, "So, what is the valuation of Jianing Group?"

Wei Li replied: "Because the company has not yet reached a transaction with the Jiani Group, it cannot send people to conduct an in-depth investigation. It can only follow the HSBC staff for due diligence. The current preliminary valuation of the Jiani Group's market value is 350 million. Around Hong Kong dollars.”

"350 million Hong Kong dollars? It seems that Jianing Group is developing well."

Lin Baicheng was a little surprised. The valuation of Jianing Group was 350 million Hong Kong dollars. Even if there was financial fraud, its true valuation was probably around 100 million Hong Kong dollars. Now it seems that Chen Songqing has developed this company well.

Wei Li shook his head slightly: "The reason why Jianing Group has a valuation of HK$350 million is because it has HK$150 million in cash in its company account, and the companies under its group are not large in scale."

"Based on the current transaction price of HK$1.03 billion, the Carinone Group will pay HK$500 million in cash, and the remaining HK$530 million will be converted into shares of the Carina Group. The valuation of the Carina Group will be calculated based on HK$350 million for the time being. After being merged into Golden Gate Tower, the company’s valuation is only HK$1.38 billion. The company’s HK$530 million accounts for 38.4% of the shares of Jianing Group. Is this too much?”

Lin Baicheng calculated and found that if the transaction was carried out by paying 500 million Hong Kong dollars in cash and converting the remainder into shares, Hutchison Whampoa would hold more than one-third of the shares of Jiani Group, which was a bit too much.

"I mentioned this to Chen Sheng. Chen Sheng said that HSBC will invest 100 million Hong Kong dollars in Jiani Group, which means that after the transaction is completed, the company will receive 600 million Hong Kong dollars in cash, and the remaining 430 million Hong Kong dollars will be converted into Jiani Group. 31.16% of the shares.”

"fair enough."

Lin Baicheng had a strange look on his face. He didn't know how Chen Songqing deceived Shen Chou. He didn't expect that Shen Chou would use the money to invest while lending money to Jianing Group. He didn't know if he would be able to deal with the Jianing incident when the incident broke out. Run away before.

Lin Baicheng is eager for HSBC to fall into the hands of the Jianing Group, so he has no objection to HSBC investing HK$100 million. If HSBC is willing, he would not mind transferring all of his Jianing Group shares to HSBC.

It's a pity that Lin Baicheng can't take the initiative in this kind of thing, and Shen Zong is not stupid. It is impossible to invest so much money in Jianing Group at once.

"The price of the Golden Gate Tower should be sold to the Carnegie Group for HK$1.03 billion. The valuation of the Carnegie Group can be reduced a little, as much as possible. But everything is based on the normal completion of the transaction. If you really can’t lower the valuation, then forget it and don’t force it.”

"Once we are willing to make concessions, I think that the Jianing Group will also make concessions in terms of valuation. But Mr. Lin, the valuation of the Jianing Group itself is only HK$350 million. Even if there is a concession, the extent of the concession will be It’s not too big.”

"I know this, but even if the valuation of the Jianing Group is only reduced by 1 million Hong Kong dollars, Hutchison Whampoa can still earn about 300,000 Hong Kong dollars more, so how much can be reduced, don't you think?"

"Well, I will fight for the best interests of the company."

Weili nodded to express his understanding. He himself also holds shares in Hutchison Whampoa. Although it is not a lot, there is still a big difference between having it and not having it.

Lin Baicheng said: "The transaction is still left to your management."

"Yes, Mr. Lin!"

Wei Li responded.

After receiving instructions from Lin Baicheng, Wei Li arranged for continued negotiations with the Carnegie Group. HSBC still acted as a third party to facilitate the transaction between the two parties. When HSBC and Carnegie Group learned that Hutchison Whampoa had accepted the sale of the Golden Gate Tower for HK$1.03 billion, both very happy.

As for the overvaluation issue of the Carnegie Group that was subsequently raised by Hutchison Whampoa, with the efforts of HSBC, Chen Songqing of the Carnegie Group agreed to lower the valuation of some companies. The Carina Group was valued at HK$345 million.

At this point, the two parties reached an agreement on the price transaction of the Golden Gate Tower.

Hutchison Whampoa sold the Golden Gate Building to the Carnegie Group for HK$1.03 billion. The Carnegie Group paid HK$500 million in cash to Hutchison Whampoa. HSBC invested HK$100 million to invest in the Carnegie Group, and the money was also paid to Hutchison Whampoa. Whampoa, and then Hutchison Whampoa invested the remaining 430 million Hong Kong dollars in the Golden Gate Group to acquire the Golden Gate Tower, holding 31.27% of the shares of the Garden Group.

If the transaction between Hutchison Whampoa, Carnegie Group and HSBC is negotiated smoothly, then Hutchison Whampoa and HSBC together hold nearly 40% of the shares of Carnegie Group, leaving a total of six original shareholders of Carnegie Group. With a little more shares, control of the company is still in hand.

After the three parties reached a verbal agreement, the transaction did not proceed immediately because Hutchison Whampoa still had to conduct an in-depth due diligence assessment of the Carnegie Group.

In this regard, Chen Songqing did not do anything to prevent it, and generously asked Hutchison Whampoa to conduct a due diligence assessment. If he was worried about this, he would not be able to obtain hundreds of millions of Hong Kong dollars in loans from HSBC, let alone get HSBC to invest 100 million Hong Kong dollars in the Jianing Group.

Therefore, Chen Songqing simply did not think that Hutchison Whampoa could find out the problems between those accounts.

After Lin Baicheng learned that Hutchison Whampoa sent people to conduct a due diligence assessment on the Jiani Group, he did not give any instructions. He was curious whether his company could find out that Jiani Group had financial fraud. He is not afraid that Hutchison Whampoa will really find out. Anyway, there will be no loss to Hutchison Whampoa if it is found out. It is just that the transaction did not succeed and the opportunity to make a fortune from short selling the Carinone Group will be lost in the future.

Hutchison Whampoa's due diligence did not find any financial problems with the Guardian Group. The investigation results were similar to those of HSBC, which recognized the valuation of the Guardian Group at HK$345 million.

Lin Baicheng couldn't help but shake his head secretly after learning about it, but he didn't say anything. He just approved the transaction with Jia Ning Group and everything went according to the negotiation.

On the morning of Friday, August 10, Hutchison Whampoa held a press conference. Lin Baicheng and Chen Songqing each signed the contract under the gaze of the media. In fact, the formal contract was signed before the press conference, and now it is just a show for the media.

1.03 billion Hong Kong dollars is not a small amount, so the media was shocked when they learned of the transaction price.

"Sheng Lin, Hutchison Whampoa made a profit of HK$420 million from the property transfer in Golden Gate Tower. Will the other properties held by the company continue to be sold?"

"Lin Sheng, Hutchison Whampoa suddenly sold the property. Are you not optimistic about the market outlook of the property?"

"Sheng Lin, where will the HK$1.03 billion Hutchison Whampoa received from selling the Golden Gate Building be used?"

"Lin Sheng."

The media reporters asked Lin Baicheng a series of noisy questions.

Upon seeing this, the emcee immediately said: "Dear media reporters, please ask your questions in an orderly manner. Mr. Lin will answer your questions one by one."

"In response to the questions raised by journalists, I will provide targeted answers."

Lin Baicheng said into the microphone: "Hutchison Whampoa is optimistic about the future development of properties and even the entire Xiangjiang real estate industry. Real estate has always been Hutchison Whampoa's main business, so unless Hutchison Whampoa is in urgent need of funds, it will not sell any more properties within a year. "

"Regarding the funds obtained from the sale of the Golden Gate Tower, the company will convene a board meeting to use part of the funds as dividends this year. The specific amount of dividends will be announced to the public after discussion by the board of directors."

"Chen Sheng of Jianing Group is the other party to the transaction. If you have any questions, you can ask Chen Sheng."

After hearing Lin Baicheng's last words, Chen Songqing, who was a little depressed because of being ignored by reporters, felt much better and greeted the reporters with a smile on his face.

"Sheng Chen, the Kinmen Tower is priced at HK$1.03 billion. Is the price too high?"

This time, the reporters were much more organized.

"No, not high at all."

Chen Songqing said seriously: "I share the same view as Lin Sheng. I am very optimistic about the future of the Xiangjiang real estate industry. I think that by next year, the Kinmen Tower will bring no less than 30% of the profit to Jianing Group. By the end of next year, it will even be 50% profit.”

The reporters couldn't help but whisper after hearing this. The transaction price of 1.03 billion Hong Kong dollars and the profit of 300-500 million Hong Kong dollars next year always felt too exaggerated.

Chen Songqing didn't take it seriously. What he wanted was this effect. Once he transferred the Golden Gate Tower for 1.5 billion Hong Kong dollars or more next year through accounting, it would definitely cause a sensation again. The Jiani Group, which was already listed at that time, The stock price will inevitably be pushed up.

A reporter asked: "Sheng Chen, Jianing Group was not very famous in Hong Kong before. Where did your company get the HK$1 billion to trade with Hutchison Whampoa?"

"The capital of Jiani Group comes from overseas. The company has capital from Malaysia and Wall Street in the United States. It is strong. The fact that it was able to buy the Golden Gate Tower from Hutchison Whampoa for HK$1.03 billion is proof of this."

It was Chen Songqing's original goal to package Jianing Group into a strong company, and now he naturally took the opportunity to promote it.

"Chen Sheng."

The previously unknown Carnegie Group purchased the Golden Gate Tower from Hutchison Whampoa for HK$1.03 billion. The impact of this incident was still very large. Reporters kept asking, wanting to know more about Carnegie Group and the Chen Songqing’s personal affairs.

In the face of reporters' inquiries, Chen Songqing answered them one by one. He packaged himself and the Jianing Group very well, giving the outside world the impression that he and the Jianing Group were both very powerful.

In this press conference, although Lin Baicheng was not reduced to a spectator, he was greatly overshadowed by Chen Songqing. Fortunately, he didn't take it to heart at all, so he naturally wouldn't feel depressed about it.

Before the press conference ended, the Hong Kong stock market had already reacted to the relevant situation, and Hutchison Whampoa's stock price began to rise.

However, the increase this time is not large, because the offshore company Golden Fleece is constantly selling its Hutchison Whampoa shares, and HSBC is also selling its shares at a high level.

Although HSBC is still negotiating with Suntory Co., Ltd. about the entrusted acquisition of Hutchison Whampoa shares, Suntory Co., Ltd. only wants 12 million shares, while HSBC holds 21.7 million shares and has to find a way to sell the remaining 9.7 million shares. Just fine.

When Hutchison Whampoa was rumored to be selling the Golden Gate Tower, it created a positive stimulus for the stock market. Now that the benefits have been realized, the funds on the sidelines naturally entered the market to buy stocks. If there were not two big funds selling their stocks, this good news alone would definitely make Hutchison Whampoa's stock price rise sharply.

This press conference actually has another benefit, but this benefit is not very big.

A related benefit is that Lin Baicheng said that he will pay dividends and will use part of the funds obtained from the sale of the Golden Gate Tower as this year's dividends. Last year, Hutchison Whampoa paid a dividend of HK$600 million. This year, Hutchison Whampoa's first and second quarter reports were very good. The market naturally believes that the amount of dividends this year will not be less than HK$600 million.

However, even if calculated based on the dividend of HK$600 million, based on Hutchison Whampoa's total share capital of 400 million shares, each share can only be distributed to HK$1.5, and one lot of cash can be distributed to HK$150. With the current stock price of Hutchison Whampoa, it costs more than 6,300 Hong Kong dollars to buy one lot. It is really not cost-effective to buy stocks for dividends.

Therefore, for short-term stock price fluctuations, related dividends are not very beneficial. The main reason is that Hutchison Whampoa's current market value is too high. However, for long-term investors, if Hutchison Whampoa's annual dividends can be stable and not less than HK$600 million, then Hutchison Whampoa is still worth investing in.