Hong Kong, HSBC Headquarters:
"Have you found out who is acquiring Heji?" Sanders asked while drinking coffee with a gloomy look on his face. When it was discovered that someone was acquiring Hutchison on a large scale before, we could not rule out the possibility that someone was just taking advantage of the opportunity to buy the bottom. However, as acquisitions become more and more intense, some small shareholders of Hutchison have also been contacted to acquire their shares. For stocks, this behavior is already obvious.
"I don't know." Shen Bi, who was sitting on the side, shook his head and said: "I have asked several major British investors in Hong Kong, and they all said they were not themselves. From their looks, it doesn't look like they are lying, and I have not looked at their capital flows. What's wrong?"
"Will it be through overseas banks or other banks in Hong Kong?" Sanders then asked.
"It is possible, but unlikely. Acquiring Hutchison is not just a matter of investment. Hutchison owes so much foreign debt. Any buyer who wants to control Hutchison must contact us creditor banks. Otherwise, or Only if you have the financial resources to directly underwrite and record liabilities of at least one billion Hong Kong dollars." Shen Bi thought for a while and said.
"There should be no company with such financial resources in Hong Kong. It is very likely that it is an overseas consortium. But which consortium would be interested in Hutchison? Is it from Japan?" Sanders said with a frown.
"It is also possible that Japanese consortiums are strong and most of them have internal banks with good connections. They have this ability." Shen Bi nodded.
"Then we can only wait for the news." Sanders said: "Governor MacLehose has also paid attention to this matter. He asked me to quickly find out what is going on, and hopes that we can control the situation. Don’t cause big economic problems.”
"I'm afraid we can't control it either." Shen Bi said with a frown.
The Hong Kong government claims to have absolute economic freedom in Hong Kong. Therefore, it will not directly control what happens in the market. It will only amend the law when it finds extremely unfair phenomena. However, as a government, it is impossible to really not worry about its own large companies. If a company goes bankrupt, the Hong Kong government will be unable to bear the chain reaction. Therefore, in many cases, the Hong Kong government entrusts HSBC to stabilize the situation.
But neither the Hong Kong government nor HSBC is omnipotent in the economic field. HSBC cannot bear billions of Hong Kong dollars in bad debts, and neither can the Hong Kong government. The current measures are to try our best to stabilize HSBC and wait for the economic recovery. As long as the land price rises, Hutchison will be able to recover slowly. In other words, if it cannot be saved, it can be split and sold to pay off debts and reduce financial risks when land prices are high.
But now someone is taking the opportunity to acquire Hutchison. If the other party is strong and can bear Hutchison's liabilities, then that's okay. But if the other party just wants to make a profit or dismantle Hutchison after acquiring it, it is very likely to have a negative impact on Hong Kong's economy. Causing a lot of damage is the last thing the Hong Kong government wants to see. However, the Hong Kong government has always preached that it abides by market freedom and cannot directly interfere with normal economic activities. , at this time, we can only count on HSBC. Fortunately, HSBC is also Hutchison's largest creditor and still has a certain degree of legal influence at the legal level.
"Ding ding ding" the phone rang. Shen Bi looked at the phone number and said, "It's Chen Zhiwen from Xinghe."
"Chen Zhiwen?" Sanders frowned, as if he had heard of this name.
"The boss of Red Bull." Shen Bi reminded him, picked up the phone, and said with a smile: "Hello, Mr. Chen."
"Hello, Mr. Shen Bi." Chen Zhiwen, who was on the other end of the phone, smiled and said: "There is one thing that I would like to discuss with Mr. Shen Bi in person. If possible, can you make an appointment so that I can go to HSBC Bank. "
"Okay, but you don't need to come to HSBC. We can meet at a hotel. How about tomorrow at two o'clock in the afternoon? Mr. Chen will arrange the hotel." Shen Bi said with a smile. Hong Kong's local rich people don't like to go to each other's territory when they meet. Prefer to go to private places such as hotels, clubs, and coffee shops.
"No problem, how about we meet at the Hilton Hotel?" Chen Zhiwen said.
"Okay, see you tomorrow." Shen Bi agreed, then chatted casually for a few words and then hung up the phone.
"What can Chen Zhiwen do with you?" Sanders asked.
"I heard that recently, Chen Zhiwen's people are looking for suitable land on Hong Kong Island and are also inquiring about some commercial office buildings. I guess they want to build their own headquarters. They should be looking for me in this regard." Shen Bi thought for a while and said.
He is still very familiar with some of the things that happen in Hong Kong. Although most of them will not be taken seriously, various information will still reach his desk.
Some people want to acquire large-scale land or even office properties on Hong Kong Island. This kind of investment can easily cost tens or even hundreds of millions. Not to mention Shen Bi, even those who are slightly related may know about it.
"It's okay, at least it's a business of hundreds of millions." Sanders said with a smile.
The next afternoon, Chen Zhiwen met Shen Bi, who was full of heroic face, in the presidential suite of Hilton Hotel.
"Mr. Shen Bi, I heard that next year you will become the chief executive of HSBC. Congratulations." Chen Zhiwen said with a smile. Although HSBC had confirmed that Shen Bi would become the next chief executive a few years ago, the emperor would not die until the prince died. It was not until recently that HSBC's current chief executive, Sanders, confirmed his retirement next year that Shen Bi took over the top position at HSBC was officially confirmed. In fact, the current Sanders has basically given up power. Currently, it is only Just a hanging position.
"The higher the position, the greater the responsibility. When you are the head coach of HSBC, you are not like Chen Sheng, who only needs to think about how to do business." Shen Bi said with a smile.
"But as long as the business is big enough, 99% of the problems will no longer be a problem." Chen Zhiwen said with a smile.
"That's true." Shen Bi nodded and said. If HSBC were several times larger, it wouldn't care about Hutchison's problems.
"I heard that Mr. Shen Bi likes all kinds of coffee very much. This is Sandos coffee that I asked the Hilton Hotel to import from Brazil. You can try it." After the waiter brought the coffee, Chen Zhiwen said.
"It tastes very good." Shen Bi took a taste and said with a smile, "It seems that Chen Sheng has controlled the entire Hilton Hotel?"
"It's not about control, it's just about getting what I should get. This hotel is still managed by Hilton." Chen Zhiwen said with a shrug.
The current Hilton management no longer dares to play tricks behind its back. After the recent recovery of the tourism industry, Hilton Hotel’s monthly dividends are as high as one million Hong Kong dollars. Chen Zhiwen does not care about anything else. After all, from a legal perspective The management rights of this Central property are still in the hands of Hilton Hotels in the United States. Although I would like to take back this property, it is obviously unlikely in the short term.
"The international hotel contract is actually not without negotiation. It just depends on whether you are willing to pay so much money." Shen Bi said.
"I know this, but I won't consider it in the short term." Chen Zhiwen said. With the money in place, even the Hilton Group can acquire it, let alone buy out one of its contracts.
"Speaking of hotels, Chen Sheng's hotel in Bali, Indonesia has not yet found a suitable buyer. Chen Sheng might as well consider continuing to operate it?" Shen Bi said suddenly.
"That's all we can do." Chen Zhiwen nodded and said, "Let's wait until the economy gets better in two years."
When he acquired Yonggao, in addition to acquiring the Hilton Hotel property, he also acquired a five-star hotel in Bali. Chen Zhiwen did not want to have a hotel thousands of miles away that was also managed by Hilton.
Originally, he wanted to sell the hotel property, but Yonggao had already pledged the hotel. After the company changed hands, he naturally took on the loan. If he wanted to sell the hotel, he would have to pay off the loan at the same time.
Although HSBC found several different potential buyers, due to the oil crisis and global inflation, the business was not very good and could not be sold at a high price. Based on their quotation, if the loan was replaced after the transaction, the loan would basically be gone. It’s better to wait another two years and see.
"Then what does Chen Sheng want to see me for today?" Shen Bi then asked.
Chen Zhiwen said: "Mr. Shen Bi, I asked you to come out for two things. The first is that I am planning to build a headquarters for my company, and I have taken a fancy to a piece of land owned by the Swire Group in Admiralty, but now we have little cash in hand. So I hope HSBC can help."
"Then if you buy the land, you will also prepare a loan to build the building?" Shen Bi said with a smile.
"Yes, I can still get a loan from HSBC if HSBC is willing," said Chen Zhiwen.
"As expected of Chen Sheng, the risk is too high. You need a loan for the land, and you still need a loan for the subsequent construction costs. You just have to prepare for nothing." Shen Bi shook his head and said.
"There is a bit of risk, but I also have collateral. This future building and the land below will be collateral." Chen Zhiwen said.
"How much funding is needed?" Shen Bi asked.
"The land plus subsequent construction funds will cost almost 200 million. I plan to build a building with more than 40 floors on this land." Chen Zhiwen said.
A 40-story building may not be considered much in future generations, but in Hong Kong today, it is considered a very tall building. Even if it is placed in Central, it is still a mid-to-high-level building.
In fact, if funds allow, he would be more willing to build a taller building, but the investment cost will become much higher for each floor of a super building. Even a loan is not in line with his current real estate strategy. Considering the land price Taking all factors into account, building a 40-50-story building with another four or five floors underground is the best choice.
"The construction cost of a 40-story building is about 100 million. Add in the land price, 200 million is about the same. HSBC can do this business, but Mr. Chen, you have to provide a personal guarantee for this transaction in the contract." Shen Bi thought for a moment and said.
"No problem." Chen Zhiwen nodded and agreed. In Hong Kong, there are very few personal guarantee company loans. This is because the companies in Hong Kong that have the ability to carry out infrastructure construction are basically listed companies or joint ventures. In this case, a fool would also I won’t vouch for my personal situation.
If there is a problem with the company's separate contract, the individual's other assets cannot be traced. If the individual signs, it will be affected. Therefore, even if it is a sole proprietorship, many bosses behind it are not willing to come forward to guarantee it. But Chen Zhiwen knows the future development trend of real estate. Basically, There is no risk.
"Okay, I agree to this. You will send the relevant information to HSBC. Once the process is completed, I will sign it." Shen Bi said, "Then what is the second thing?"
"Mr. Shen Bi should know about Hutchison." Chen Zhiwen drank coffee and said calmly: "I did it."
(End of chapter)
