The rise of Hong Kong's wealthy families

mid-september

Huamei Real Estate raised RMB 320 million from the rights issue and raised RMB 240 million from the stock market, with a total income of RMB 560 million.

He Jiahao asked Tan Zhenzhen to repay the 450 million loan of the Golden Gate Tower, and the remaining 110 million to repay part of the loan of the International and Federal Buildings, reducing the interest burden of Huamei Real Estate Company.

At the same time, the share price of Huamei Real Estate Company has risen to 15.4 yuan, and its market value has exceeded 2 billion. It is nearly double the market value of companies such as Sun Hung Kai Properties, but it has also become one of the top ten medium-sized real estate companies in Hong Kong.

After acquiring two buildings in Central and one building in Admiralty, the actual asset value of Huamei Real Estate Company has exceeded 2 billion.

Half of the first batch of companies under the Hutchison Group have been sold, with a capital of 430 million yuan. Ho immediately asked Fok Jianning to pay off the previous debts of the Hutchison Group in advance, and at the same time exchanged the Hilton Hotel with a market price of 600 million yuan for Manulife Development Company Kwong Sang Hong International Co., Ltd. has a 32.1% stake and Taota Food Company has a 67.53% stake.

Although Manulife Development Company suffered some losses, He Jiahao also pinched his nose and admitted that they were all his own companies and it was better not to take advantage of outsiders. Moreover, He Jiahao could free up his hands from these two companies to do other things and at the same time grow Hutchison. The size of the group.

The Hilton Hotel is located in Central, the headquarters of the Yellow River Industrial Group in its previous life. Ho Ka-ho planned to privatize it during the 1987 stock market crash, then knock it down and rebuild a modern commercial building to add some assets to Manulife Development Company.

Inside the office of the Chairman of Hutchison Group

Lu Fangqiong came in with two cups of tea and glanced at the boss's guests unconsciously.

"Lisheng, take a look, this is the Wuyishan Dahongpao in the Mainland this year." He Jiahao said with a smile.

These tea leaves were also given to him by others, and they were only half a catty.

"Well, as rumored, it has the fragrance of orchids and a mellow and sweet taste." Li Xiaohe commented seriously, "He Sheng knows how to enjoy it."

He Jiahao said, "Today Li Sheng came over and took it out to taste. Normally I would be reluctant to drink it."

"Actually, I came here today because I wanted to do a business with He Sheng." Li Xiaohe finally returned to the topic.

He Jiahao pretended to be surprised and said, "Oh, does Li Sheng have any good business concerns?"

"Hutchison Group holds a 30% interest in One Hysan Avenue, Causeway Bay, and a 20% interest in Leighton Centre. Hysan Industrial Company is willing to repurchase it at a premium of 20%. What does He Sheng think?" Li Xiaohe said seriously.

Hutchison Group owns interests in many shopping malls and commercial buildings. Hysan Holdings, Wheelock and other established companies also own property interests, and their weight is not low.

"The price offered by Hysan Holdings is not low. However, the equity held by Hutchison Group was originally a long-term investment. Nowadays, real estate prices have risen rapidly. If it is sold now, it seems that Hutchison Group has made a lot of profits, but it is actually a loss. of.

Lisheng, please forgive me! Although I am the majority shareholder and chairman of Hutchison Group, I cannot ignore the interests of shareholders. "He Jiahao told the truth.

Li Xiaohe wants to get back his rights and interests and become the real real estate overlord in Causeway Bay. He Jiahao can understand this, but a 20% premium is acceptable this year, and it will easily rise to this price next year, so it is not a premium.

"Then what does He Sheng think can be done to prevent Hutchison Group from suffering losses?" Li Xiaohe asked.

He Jiahao thought for a while and said, "I remember that Hysan Industrial Co., Ltd. holds equity in Hong Kong Electric. If it can be exchanged for Hong Kong Electric's equity, I think it will be an explanation to the board of directors."

Li Xiaohe frowned and did not refuse immediately. Hong Kong Electric's shares were a long-term investment of the Li family, and they would not be sold easily. However, Causeway Bay was the hometown of the Li family.

"Hysan Industrial Company holds a small number of shares in Hong Kong Electric Company, only 8%. Does He Sheng intend to exchange it at market price?" Li Xiaohe thought for a long time before making up his mind.

If Ho was asked to choose between the two, Ho would definitely choose the property in Causeway Bay. After all, Lee has no ambition to acquire Hong Kong Electric.

"Well, what do Li Sheng think?" He Jiahao asked.

He is not worried. Hysan Industrial has a premium of 20%, so the property rights will naturally have a premium of 20%. There is not much difference in the coming and going.

"Okay, then we will trade at the market price and pay the excess in cash." Li Xiaohe did not hesitate.

Hong Kong Electric Company, full name Hong Kong Electric Co., Ltd., was founded in 1889. It is mainly responsible for the power transmission in Hong Kong Island. It originally operated at the North Point Power Plant. Now the North Point Power Plant has begun to be demolished and the first phase of the City Garden has been built. The current The power plant was moved to Ap Lei Chau, and a larger power plant was built on Lamma Island.

It is a listed company with a total share capital of 1.25 billion shares. Its current stock price is 3.5 yuan and its market value is 4.375 billion. It is one of the large companies closely following the three major foreign companies.

To acquire 8% of Hong Kong Electric's shares, it will cost NT$350 million. One Hysan Avenue in Causeway Bay is worth NT$420 million, and Leighton Center is worth NT$630 million. Hysan Holdings needs to pay NT$252 million to get back all of it. rights and interests.

"Based on the market price, Hutchison Group needs to pay 98 million in cash to Hysan Holdings." Ho said.

"He Sheng's arithmetic is very good, and he can calculate it in such a short time." Li Xiaohe said with a smile.

He Jiahao said modestly, "It's too rewarding to benefit students. This is my housekeeping skill and I can't lose it."

"Okay, let's sign the contract tomorrow." Li Xiaohe seemed a little anxious.

He Jiahao also nodded, "I hope Li Sheng can keep this matter secret for me for a while."

Jardine Matheson, which is about to lose the Wharf, is still expanding, but on a very small scale. If the loss of the Wharf becomes a reality, Jardine Matheson may acquire other large companies to make up for the losses, and Hong Kong Electric will bear the brunt.

Ho is now keeping a low profile, hoping that Hong Kong Electric will come into Jardine Matheson’s sight as late as possible, so that he will have enough time to raise funds.

"Okay!" Li Xiaohe promised.

The two chatted for a while before Toshitaka took his leave and left the office.

He remembered that in his previous life, Jardine Matheson began to acquire shares of Hong Kong Electric Company in 1982. It spent 2.8 billion in cash and successfully acquired 34.9% of Hong Kong Electric Company's shares, becoming the largest shareholder of Hong Kong Electric Company.

In 1981, a bill was introduced that required the acquisition of more than 35% of the shares to involve a comprehensive takeover, so Jardine Matheson acquired 34.9% of the shares.

However, it is not very safe to acquire 34.9% of the equity now. He Jiahao feels that it is safer to exceed 45% and he is not afraid of anyone's challenge.

The case of acquiring Hong Kong Electric Company will naturally be handled by Hutchison Group. Later, it will be logical for Hong Kong Electric Company to become a subsidiary of Hutchison Group. Ho Ka-ho can also use his personal funds to expand private companies.

Compared with Huamei Real Estate, Manulife Development is already very small in scale, but its cash flow will be a little more than that of Huamei Real Estate. Therefore, He Jiahao will start to focus on the expansion of Manulife Development in a while.

The current energy is still on the Hutchison Group. Hong Kong Electric is not a small company, but a large company comparable to the Hutchison Group. Naturally, it will take a relatively long time to process the acquisition.

8% of the shares is far from enough. According to the current market price, Hutchison Group still needs to pay 1.7 billion in cash, which is a huge number.