"Privatization?" Richard was shocked.
"Yes, everything is privatized. Although I now have absolute controlling rights, other investors still need to spend money to raise funds. Hutchison's current situation really requires them to spend tens or even hundreds of millions more. They are definitely not willing to raise funds. This will only affect the normal business of Hutchison. Besides, if we do not privatize, we will sell a large number of Hutchison's assets in the future. There will definitely be a lot of opposition, in case we really reach 33.4% of the equity. If we oppose it, we will be trapped." Chen Zhiwen explained.
The bottom line for one-vote veto power is 33.4%, which is 1/3 of the equity. When 1/3 of the equity is concentrated, it can block the company's major decisions. Although it is difficult for individual citizens to gather together, it is possible. Sexually, after all, I will need to perform large-scale surgery on the entire Hutchison in the future, which will easily arouse the opposition of many people who don't understand. If it is really used by someone with ulterior motives, it will still be very troublesome.
The same is true for raising funds. Hutchison needs 200 million. After controlling 49.9% of the stock, based on the equity ratio, he will contribute almost 100 million, and other shareholders will contribute another 100 million. Not to mention that Hutchison is currently in an environment of distrust. , even if a normal company wants shareholders to contribute so much money, it is estimated that it will take three to five months to raise 80% of the shares. Therefore, most companies will only raise funds through share expansion.
But with the current situation in Hutchison, it is estimated that no one wants to expand its shares. In particular, investors do not believe that Chen Zhiwen, a Chinese, can save Hutchison. If he increases his shares, his shareholding will soon exceed 50%. This triggers a general takeover bid.
What's more important is that in the future, Hong Kong's stock market and real estate will rise sharply. This dividend will increase Hutchison's property by billions in the future. Now it only costs a few hundred million to swallow it up, especially the 2 million square feet in Hung Hom. The land is a piece of fat sheep.
"If there is no problem with Chen Sheng's funds, this will naturally be better." Richard had nothing to say. Anyway, the other party controlled 49.9% and 100%, which were the same.
"Okay, let's do that." Chen Zhiwen nodded and said, "If there is anything important, you can inform me directly."
"OK, Zhou Sheng, then I'll leave first." After Richard finished speaking, he left politely.
Zhou Jiayang on the side said: "Sheng Chen, privatizing Hutchison, we don't have so much funds now?"
Chen Zhiwen said: "Don't worry, privatization is not like going to the supermarket to buy things, and I don't want to trigger a takeover offer. This thing requires too much capital, and I need another round."
"Not triggering a takeover offer? Isn't that unlikely?" Zhou Jiayang asked.
"Land's acquisition of Milk, do you think they triggered the acquisition invitation?" Chen Zhiwen said with a smile.
"This..., no." Zhou Jiayang said after recalling for a moment.
At that time, Land was exchanging its own shares for the shares of the Milk Company held by Dairy shareholders. No matter how it was exchanged, the transaction was a few to a few, but there was still no dollar of cash. After Land acquired 80% of the shares of the Milk Company, the Hong Kong Takeover Committee They were all dumbfounded, so they could only hold their noses and recognize it.
Of course, it could also be that they are all in the same boat and just don’t care on purpose.
"But we can't use this trick!" Zhou Jiayang asked.
"Yes, and we can't use it even if we have the ability. Hong Kong investors will not be fooled a second time." Chen Zhiwen said. Land previously exchanged shares for shares. As a result, his shares had a lock-up period. As a result, the July 3 stock market crash later , the stock price collapsed, and investors suffered heavy losses.
"Then what should we do?" Zhou Jiayang asked.
"Hutchison's current stock has basically fallen to 5% of its peak. Under normal circumstances, this kind of stock can be forcibly delisted, right?" Chen Zhiwen said.
"Delisting?" Zhou Jiayang immediately said as if he was enlightened: "What Chen Sheng means is to delist first and then fully privatize?"
In Hutchison's case, it should have been forcibly delisted a long time ago. However, Hutchison's scale is too large and the Hong Kong government does not dare to do so and can only keep delaying it.
"Yes, as long as you delist first, you can bypass all restrictions." Chen Zhiwen said.
"This is indeed a loophole." Zhou Jiayang nodded and said that money can be made in the stock market. Throughout the history of Hong Kong, many companies have been listed on the market at a squeeze, and some have been forcibly delisted. However, it is estimated that those who delisted voluntarily No, the stock exchange's regulations on this area are not perfect.
"When delisting, we are not obligated to acquire investors' stocks. After delisting, I can inject capital alone. There are no restrictions from the securities exchange, and many things will be much more convenient." Chen Zhiwen said.
"This operation can indeed circumvent the acquisition offer, but it may bring us a lot of criticism. Moreover, the stock exchange may not allow us to list again in the future. Isn't Mr. Chen prepared to relist Hutchison in the future?" Zhou Jia Yang asked.
"The next listing will be a long time ago, and it will be a future issue. We will talk about it later. Moreover, the Hong Kong government may have changed by then. The problems left now may not have any impact in the future. Even if If you can't go public in Hong Kong, you can go to the United States, Canada, and the United Kingdom." Chen Zhiwen said nonchalantly.
Hutchison's future is of great significance to Chen Zhiwen's plan, so it must be privatized now when the stock price is at its lowest. If that doesn't work, wait another six months for the stock price to be low for a long time before launching a takeover offer, but that will cost more. High price.
And unlike later Hutchison, it was difficult for him to get strong support from HSBC, and he could only rely on himself in many cases. In this case, privatization was a necessary choice, otherwise the company needed funds and those shareholders would quarrel. What should I do if I make a fuss and refuse to pay? It's just a waste of energy and time, and since you can't increase your own shares, you can't lend yourself money to Hutchison, right?
"The only problem is that delisting requires the approval of 66.7% of shareholders. Mr. Chen, you don't have enough shares. We can take advantage of the low stock price and acquire 49.99%, but no more." Zhou Jiayang said.
Chen Zhiwen said: "This is not a problem. Let the company registered overseas acquire some stocks, and then find a few people to serve as representatives to attend the shareholders' meeting. Also, you have contacted many shareholders before. They should all be willing to sell their stocks, right?"
Zhou Jiayang nodded and said: "Yes, during the last period of the acquisition of Hutchison shares, I took the initiative to contact some shareholders, and many of them were willing to sell their shares. However, the stock price was a bit high during that time, and the acquisition did not meet the requirements at that time. After the share, it’s over.”
"Then they should be desperate now." Chen Zhiwen said with a smile. The Hong Kong media is still very unfriendly to the Chinese, especially those British-owned newspapers. They have been unfavorable about Hutchison, which has led to the recent decline in Hutchison stock. share.
"Yes, they are still contacting me recently and want to sell stocks to us." Zhou Jiayang said.
"Then tell them that I can buy their shares at a price 50% higher than the market price, but they must cooperate with us in delisting Hutchison at the shareholders' meeting. We will trade after delisting. They are all smart People should know how to choose." Chen Zhiwen said.
Delisting is what Chen Zhiwen prepared for the privatization of Hutchison. As long as 66.7% of the votes are approved, even if outsiders know that it is a conspiracy, there will be nothing they can do. After delisting, it will be easy to carry out full privatization without being restricted by the stock exchange.
Of course, the main reason is that Hutchison's current business is so bad that shareholders have long distrusted Hutchison. Especially when a Chinese, Chen Zhiwen, acquired Hutchison, which caused panic among shareholders. If it hadn't been caused by the previous acquisition The stock price was too high in those few days, and Chen Zhiwen would be more willing to directly launch a takeover bid to privatize the entire Hutchison.
Moreover, this situation will basically not happen in the future, because even if a company with normal business is delisted, many shareholders will not necessarily withdraw. Only the current Hutchison has too much debt, and normal shareholders will be afraid of it. Completely bankrupt, the final investment became nothing.
"I know what to do. As long as the privatization of Hutchison is successful after delisting and we solve Hutchison's debt problem in the future, we will become one of the most powerful groups in Hong Kong." Zhou Jiayang said with a smile.
"Of course, but don't forget about Wharf. After Hutchison was acquired by us, all British capital will be very sensitive. During this period, the acquisition of Wharf has been suspended for a period of time. In addition, our funds also need to be used to solve Hutchison's problems first. The question is, let’s wait until next year to discuss the Wharf matter.” Chen Zhiwen thought for a while and said.
In fact, in the past six months, the main acquisition of Galaxy Securities was Hutchison. The acquisitions of Wharf were not many, because there was no rush at all. In the original history, Hutchison's stock price bottomed out in December 1974, and it would be in September 1975. It was taken away by HSBC, so it had to start early, and time was very tight. As for Wharf, it didn't matter even if it stopped for a year or two. It just had to wait until all the large-scale overseas investments of the Jardine Matheson Group were completely wiped out before it could start.
"Okay, I will stop all actions at Wharf now and won't buy a single stock." Zhou Jiayang said.
"During that time, you happened to be staying at Hutchison, helping me stabilize Hutchison, and then arrange for talented Chinese people to take over important positions. What I said to Richard is true, and I will use this group of ghosts in the future. , but it does not mean that they will always be in control of Hutchison. The Chinese also need real power." Chen Zhiwen said.
"Sheng Chen, although Richard seems to be very cooperative with us, I feel that he seems unwilling to promote Chinese people." Zhou Jiayang said with a frown.
"Of course, if we want to use Chinese, they will naturally feel that they are in danger. This is an instinctive reaction, but at present, Hutchison's normal operations cannot do without them, so you have to master a balance." Chen Zhiwen said with a smile: " Don’t worry about this. You should first understand the actual situation of Hutchison. Hutchison now has more than 300 branches. I have to deal with most of them. What you need to do now is to understand these with Richard. Branch, which ones need to be retained, which ones don’t need to be retained, and what is the value of the ones that don’t need to be retained? I can’t just believe what Richard says, I also need to refer to your opinions.”
"Okay, no problem." Zhou Jiayang nodded and agreed. The Huayang dispute within Hutchison is a matter for the future. The first step now is indeed to revive Hutchison and the full privatization required by the boss.
"I don't know what's going on inside?" Outside the Hutchison Building, many reporters were waiting at the door. Their faces were sweating under the blazing flames, and they kept drinking ice water to cool down.
"It would be great if I could get an exclusive interview. I wonder if Hutchison will change its name?" said a young female reporter.
"Exclusive interview? What are you dreaming about? I can't even interview the senior employees of Red Bull. They gave death orders not to be interviewed," another person said.
At this moment, there was a sound not far away. Several people looked up and followed the sound. It was the exit of the underground garage of Hutchison Building. Many reporters were surrounding a car, seeming to want to interview the people inside.
"Is Chen Zhiwen inside?" They didn't understand. There was no need to go underground when you came through the main door. There were no security guards, and it was not yet noon, so there was no reason to leave now.
"Let's go and have a look." Several people trotted over carrying interview equipment.
But when we arrived, it was obviously too late and the camera was too heavy.
"Old Qin, what's going on?" These reporters belong to different companies and are considered competitors, but they are not in a life-and-death struggle. They usually have a pretty good relationship.
"Old Zhao, you are late. I just took a wonderful picture." Lao Qin said with a smile: "Qi Dezun drove away from Hutchison."
"Did he be driven away?" Old Zhao's heart moved. Chen Zhiwen took over Hutchison. How to deal with Qi Dezun was a topic that many Hong Kong people discussed after dinner. Some places even set up score betting. Now it seems that he has been directly fired.
"I have to go back and develop the photos first. Goodbye." Lao Qin ignored the others, quickly picked up his camera and ran away.
"Brother, what should we do?" Lao Zhao's men asked.
"If you keep watching, no important photos were taken. When Chen Zhiwen leaves later, let's see if we can take a photo of him." Old Zhao paused and said, "You guys go back to the door and watch, I'll go to the phone booth Make a call."
After saying that, he ran towards the phone booth not far away. After waiting for two people, he only saw a number dialed. He said to the opponent: "Brother Tian, this is Xiao Zhao. I just got the news that Qi Dezun was directly killed by Chen Zhiwen." If they are driven away, Hutchison’s stock price will probably go to waste.”
(End of chapter)
