"Sheng Chen, 15% of people have signed an agreement with us. They will vote to approve our delisting request at the next shareholders' meeting. We will also acquire them at 130% of the current stock price after delisting. Shares." At 4 o'clock in the afternoon, after the shareholders' meeting ended, Zhou Jiayang came to report.
"In this case, there will be no problem. Including the stocks we acquired from other channels, it is almost 72%. The rest will be acquired slowly. Hutchison will not pay any dividends in the future, and they will slowly agree. "Chen Zhiwen nodded and said: "Be prepared to provide relevant information to the stock exchange. In addition, after delisting, my funds will also be injected into Hutchison, which can also dilute those shares that do not agree to sell stocks."
"In this case, Hutchison's current debt problem can also be solved." Zhou Jiayang nodded and said, although this kind of privatization operation is not very good, it does save a lot of money. Otherwise, even if there is no previous reason, The high stock price caused by the acquisition, privatization also requires hundreds of millions of funds, and then capital injection is required, which puts too much pressure on funds.
The only sequelae is that there is no way to fully acquire Hutchison. There will always be some people who continue to hold it, and they may not even be able to find these people.
Chen Zhiwen continued: "This way our first thing is completed, but there is still a second thing, Huangpu Company. How many shares do we hold in Hutchison?"
"It should be about 41%." Richard thought for a while and said: "Hutchison Holdings and Huangpu Holdings hold Junyicang. Both of them own a large amount of land in Hong Kong."
"I want Hutchison to also privatize Huangpu Company. How much capital will it cost?" Chen Zhiwen continued.
"This may require one or two billion in funds. Why should we do this?" Zhou Jiayang asked.
"Because I want to develop Whampoa's land in Hung Hom." Chen Zhiwen said.
"The port in Huangpu? But that land is industrial in nature. If we want to turn it into a commercial one, how many hundreds of millions of dollars will it cost?" Zhou Jiayang said with some hesitation, despite the fact that Hutchison's market value is only a few hundred million. But this is because it is heavily in debt. In fact, its total assets are worth billions. There are 26 listed companies under it alone, and 8 of them were once ranked among the top 100 in Hong Kong.
They are Hutchison Group, Hutchison Real Estate, Whampoa Group, Junyicang Group, Metropolis Real Estate, Anderson, Watsons and Harbor Engineering.
Hutchison Properties, Whampoa Group, Kwan Yik Cang, and Metropolitan Properties all own a large amount of land. Among them, the largest land holder is the Whampoa Group. Decades ago, the Whampoa Group, Jardine Matheson and Swire jointly controlled the three major ports in Hong Kong. , the areas of the three are about the same size. The port area of Huangpu is as high as 2 million square feet, which is about 200,000 square meters. However, the port is still located at the Victoria Harbor, and the surrounding businesses are also very good because of the former port effect.
But the only disadvantage is that the cost of converting industry to business is very high. Otherwise, during the Qi Dezun era, with his character, Hutchison would have developed this land long ago.
"I will figure out a way around money." Chen Zhiwen said: "And the acquisition of Whampoa is not urgent. Let me tell you first. Next, we have to deal with Hutchison's mess. You have to know my plan in advance."
"Okay, I understand, then should Junyicang also be privatized? Although the land area of Junyicang is not as large as that of Huangpu Group, its location is very good. Several of them are on Hong Kong Island, and some are still building buildings. Just because Due to funding reasons, the progress of the project has been slowed down a lot." Zhou Jiayang asked.
"No need, normal holdings will be enough. You can't buy everything and privatize it." Chen Zhiwen shook his head and said.
Jun Yicang was once a relatively famous warehouse company in Hong Kong. It owned several warehouses and docks on Hong Kong Island. After the decline of the Hong Kong shipping industry, it also began to build buildings. Under the arrangement of Qi Dezun, it was already under construction. They are Kwan Yick Building in Western District and Wo Fu Center in North Point, two fairly good-sized communities.
Of course, it is worth some money, but this kind of land can be bought even 20 years later as long as you have money, so it is not very important.
Once the Whampoa Group's former port land is developed as planned, the benefits will be huge enough to set a record for Hong Kong real estate.
The reason why he did not wait for development in the 1980s like Li Jiacheng did in history is that even if development in the 1980s would make more money due to higher low prices, with such money in the 1970s, there would be Greater usefulness. Therefore, he needs to privatize Hutchison and Whampoa.
"Okay." Zhou Jiayang agreed.
"In addition, the news has been released that Hutchison is preparing to sell some of its businesses under development, as well as some non-core businesses, which can also be sold. Let interested parties come and negotiate on their own." Chen Zhiwen said: "In addition to the land and properties in core locations, Projects, ports, Watsons, harbor projects, everything else can be discussed.”
"Sheng Chen, if we act too eagerly, we are likely to be jointly lowered the price, which is not a good thing for us." Richard said.
"So we just let out the news and find several companies to negotiate. We will sell to the one with the highest price. If we can only find one person willing to buy a project, then there is no point in negotiating the price anymore. We can sell it as soon as possible." Chen Zhiwen shrugged. said.
Hutchison Hutchison has many suspended projects, many of which are actually good projects. Especially the real estate recovery that started this year will directly revive these projects, but without the funds to start, all the projects can only be spread on the ground, and they are still going on. of sucking blood from Hutchison.
The most effective way is to appropriately sell some secondary projects to obtain funds and start other projects. Only after most projects are completed and profits are obtained can the next round of investment be carried out.
Qi Dezun cared too much about exclusivity and was unwilling to share with others. He was also unwilling to sell Hutchison's marginal business for the sake of face, which led to Hutchison's long-term blood loss and eventually fell into super trouble.
Of course, the plummeting real estate market may also be one of the reasons why Qi Dezun was unable to make a move, because once he made a move, it would need to be included in the financial report. If the loss data is small, it can be transferred, but if there is too much, there is no way. This is Contrary to Qi Dezun's policy of desperately maintaining the stock price at that time.
Nowadays, Hutchison does not have too many worries. Everything needs to be beneficial, which is much more convenient. The only purpose now is to quickly pull Hutchison out of the debt vortex.
"So Mr. Chen, the 200 million Hong Kong dollars you mentioned before?" Richard asked.
"After delisting, the funds will arrive." Chen Zhiwen said. Hutchison's current situation is indeed that it cannot continue to operate without money. In the past, HSBC controlled Hutchison and also provided emergency support of HK$50 million. Subsequent He was also worried about Hutchison's bad debts. Later, he found the company doctor Wei Li and finally got rid of the burden.
"That's good. If we have this amount of funds, many of our projects can be started. As for Hutchison's internal plan on how to use this funds, Mr. Chen, I have almost prepared it. I will wait until 5 days later." Board of Directors, I will introduce it in detail." Richard said.
"Okay." Chen Zhiwen nodded. In fact, this aspect is his weakness. Not only is it necessary to perform major surgery on Hutchison, it is also in line with his understanding. Simply put, the community and office building business on the land is definitely Profitable, good ports can also be profitable. Watsons and its PARKnSHOP supermarkets are considered basic people's livelihood, and it is not a problem. Seaport projects normally accept large-scale construction projects, and they are generally profitable, and there are also the most basic income. rent.
If Chen Zhiwen wanted to understand other businesses in depth, it would take him a while, so he might as well sell them. He wouldn't make much money anyway, so he could just use the money to develop a few core businesses.
"One more thing. Since Hutchison has been delisted, should there be any changes to the board of directors? Representatives from China Power and Hong Kong Telecom are still serving as directors of Hutchison." Zhou Jiayang asked.
"Let's pass it by and let them resign on their own." Chen Zhiwen said.
"Then the board of directors should be dissolved?" Richard asked. Although Qi Dezun also controlled Hutchison before, it was not absolute control in name. Therefore, there was still a board of directors, and outsiders were also invited. In name, they were all together. manage.
"There is no need to disband. A few of our internal people will step down. I will invite some well-known people from the outside to come in and serve as consultants. Sometimes, the views on some things may be different from the outside." Chen Zhiwen After thinking for a while he said.
(End of chapter)
