"Yes, the acquisition of large companies, whether in Hong Kong or internationally, is based on opportunities. It is too difficult to forcefully acquire them at the wrong time." Chen Zhiwen nodded and said.
Looking at the entire history of Hong Kong, although there have been more than a dozen large or medium-sized acquisitions in the 1970s and 1980s, basically all of them were a major shareholder who sold his shares to the acquirer, thus giving the acquirer an opportunity. , take action against this company.
For example, in later generations, Pao Yugang acquired Wheelock because two shareholders of Wheelock sold their stocks to Nanyang tycoon Qiu Teckbat and Pao Yugang respectively. Then the two people started fighting among themselves, and Pao Yugang finally won. .
And without the transfer of major shareholders, it would be very difficult to slowly acquire enough stocks from scratch, because acquisitions in the stock market can easily cause the stock price to rise sharply like Li Jiacheng, causing capital from all parties to intervene, and ultimately Having to retreat, only those like Chen Zhiwen who know the future situation dare to make slow and long-term plans.
In fact, even if HSBC did not intervene, Li Jiacheng would not have been able to acquire Wharf amid all kinds of hot money speculation.
Even Chen Zhiwen later relied on acquiring 10% of the shares from Li Jiacheng to own 40% of the shares, which was very close to absolute control, so he dared to fight for it. However, this was also a last resort, and the priority was the shareholders' meeting. 's vote.
Even small companies like China and Brazil were acquired by shareholders in the 1980s. Only the stock market sniper Liu, who preferred sniping, liked to take action in the stock market, but Liu's essence was to eventually force him to attack. Some listed companies repurchase stocks rather than really want to acquire them. Therefore, the purpose is different and the operating methods are naturally different.
"Yes, there is no chance, so when I knew that Jardine was planning to sell the Wharf stocks in my hand, I was tempted, but Chen Sheng can rest assured that I will not interfere with the operation of Wharf, and my shares are also beneficial to Chen Sheng. There is no threat." Bao Yugang said with a smile. This is indeed true. He bought Wharf stocks just for investment. Although he also wanted to acquire a company with industry, he had no target to do so at the moment, so he could only buy some shares of a large company first.
"I'm not worried about that, and if Mr. Bao wants to be the director, it's no problem. The board of directors can give you a position. You can also provide your own opinions on the board of directors in the future. I also welcome it." Chen Zhiwen said with a smile. , no matter what, Bao Yugang and his son-in-law Wu Guangzheng are very capable.
For companies like Wharf, Chen Zhiwen is interested in Harbor City and its core properties or land. As for how to operate it in the future, he is too lazy to personally guide it in one direction and leave the rest to his subordinates. If there is a Bao family There are always some benefits to joining. At the end of the day, if Wharf wants to do other big projects, it can also use the Bao family's funds to do it together, considering the risks or lack of funds.
"Okay, then I will accept this position, but I am going to send one of my sons-in-law to be a director of Wharf. Is Mr. Chen okay with that?" Bao Yugang asked.
"It doesn't matter." Chen Zhiwen nodded and said.
"Chen Sheng is so open-minded, so I won't have any pressure." Bao Yugang laughed. He was worried that Chen Zhiwen wouldn't like him becoming a shareholder of Wharf, but now it seems that he is worrying too much.
"It's nothing. In Hong Kong, cooperation is also the norm." Chen Zhiwen said with a smile: "On the contrary, Mr. Bao also got the Prince's Building and the Duke of Windsor Building, which makes me envious."
"Yihe is willing to sell the Central Building, which is beyond my expectation. They must be very short of money." Pao Yugang said with a smile: "But doesn't Mr. Chen also own three buildings in Central, plus this hotel? The fourth building is much better than me."
"The location is still unmatched. If I had known that Yihe was going to sell the building, I might have made a move." Chen Zhiwen said with some pity. What he said was true.
He knew before that Jardine was planning to sell the remaining Wharf stocks in his hands, but he didn't know that Jardine was also planning to sell two buildings. Otherwise, he would have sent someone shamelessly to contact Jardine. Of course, with such a big contradiction, Jardine It's hard to say whether to sell it to him or not.
"Sheng Chen, it has been my lifelong dream to have several buildings in Central. Unfortunately, when the shipping business was booming, Jardine wanted to exchange Connaught Building for a 200,000-ton oil tanker with me. I refused at that time. Oh, now that I think about it, I really regret it." Bao Yugang sighed.
"It's a pity." Chen Zhiwen nodded and asked, "Is Mr. Bao not optimistic about the future shipping market?"
"How do you know?" Bao Yugang said in surprise. He only told a few people he trusted most about this matter, and it was impossible for these people to tell outsiders about it.
"It's nothing, because I'm not optimistic about it either. In addition, Bao Sheng was still selling old boats some time ago, and now he has begun to invest heavily in Hong Kong properties, so I guessed it." Chen Zhiwen said with a smile. In fact, Bao's assets When I couldn't target a big company, I started investing in small properties, acquiring villas, office floor properties, etc. in various places.
"Why is Chen Sheng not optimistic about shipping?" Bao Yugang asked curiously.
"I don't understand shipping, but just compare the tonnage required for shipping and the tonnage currently under construction in shipyards around the world." Chen Zhiwen said: "Unless the global economy can grow by more than 10% every year in the future, otherwise There will definitely be a significant surplus of shipping tonnage.”
"The truth is simplicity." Pao Yugang nodded and said, "So I am preparing to enter the real estate industry in Hong Kong, but now it is too late."
"Actually, it's not that there is no goal." Chen Zhiwen suddenly said: "I know one who is very suitable for Bao Sheng."
"Which one?" Bao Yugang suddenly became energetic. He had never been able to find a suitable target. If there really was one, then he would have a direction.
"What Bao Sheng actually wants is to stabilize his wealth and leave it to future generations?" Chen Zhiwen did not answer directly.
"Yes, the shipping market is unpredictable. Especially in recent years, the oil crisis and regional wars have had a huge impact. When making money, it is natural to make huge profits, but if there is an accident, it may also lead to bankruptcy. Ships with tens of millions of tons, If you can't find customers, you will lose millions of Hong Kong dollars every day. This risk is too great. I don't want my descendants to do such a business." Pao Yugang nodded and said: "It just so happens that the shipping market may change. I also want to take this opportunity to invest in some real estate and real estate businesses in Hong Kong. Although real estate may also encounter crises, the most serious one is that the value will be cut in half. The rent will be lower, and it will not require daily expenses like a ship. A lot of money goes into maintenance, mooring.”
"There is nothing wrong with this idea, but the current Hong Kong real estate market is relatively hot. No matter how much capital you have, once you launch a takeover war for a British-owned company, the stock price will probably increase several times immediately. Just like when Li Jiacheng met The situation is the same, or if you start your own real estate company from scratch, but you have no experience and no team in this area, it will probably take a few years to succeed, but you should not forget that the real estate crisis in 1973, It may appear again at any time, so it is still difficult to do it." Chen Zhiwen shook his head and said.
"Chen Sheng doesn't have to beat around the bush anymore. Are there any conditions before he can tell me?" Bao Yugang asked anxiously.
"What I prepared for Mr. Bao is not a real estate company, but an industry that is more stable than real estate. No matter what crisis we encounter, there will be no shortage of business." Chen Zhiwen smiled, and then pointed to the table lamp next to him.
"Sheng Chen, are you talking about electricity?" Bao Yugang is a smart man, so naturally he would not think that Chen Zhiwen is talking about a desk lamp.
"Yes, it's electricity. No matter what the economic crisis or real estate crisis is, people, office buildings, and factories all need electricity. Even in the poor economic environment of 1973, the growth momentum of Hong Kong's two power plants has only become lower. , and as the number of people in Hong Kong increases, the demand for electricity will only increase." Chen Zhiwen said with a smile.
"Actually, I have also considered this aspect." Pao Yugang paused and said: "Although Hong Kong Electric has no major shareholders, its market value is very high. Unless we negotiate with their board of directors, it will be difficult to acquire it.
As for China Power, it does have a major shareholder, but its controlling family, the Kadoorie family, is also very powerful, so I’m not sure.
Which company is Chen Sheng referring to? "
"China Electric Power." Chen Zhiwen said with a smile: "The Kadoorie family is indeed very strong. It is difficult for you to deal with it alone, but if we join forces, it will be much easier."
"Chen Sheng also has ideas about the power company?" Bao Yugang asked.
"Yes, but it is impossible for the Hong Kong government to allow one person to control the entire Hong Kong's electricity, not even the British ghost, so there are two power companies, one for each of us, how about it?" Chen Zhiwen said with a smile.
In the 1960s, the two power supply groups CLP Power and Hong Kong Electric once thought of merging to improve power generation efficiency and grid laying costs. However, they were opposed by strong locals. They were probably worried that once a monopoly really emerged, everyone might become a monopoly. Lamb to the slaughter, even a few British-owned foreign giants held objections, and all the ordinary people also disagreed, and ultimately the matter was settled.
Although there are many monopolies in Hong Kong, even two power groups also have monopolies in their respective places, but because there are two, they dare not go too far and can have a comparison.
"So Chen Sheng is interested in Hong Kong Electric Light?" Pao Yugang said with a smile.
"Yes, and we can also adopt a model similar to the current one of Wharf. For example, if I get a controlling stake in Hong Kong Electric in the future, then you can become the major shareholder of Hong Kong Electric, and vice versa. I can become a shareholder of China Electric Power Major shareholder, in this way, no matter whether Hong Kong’s future lies on Hong Kong Island or in Kowloon, we will not lose anything,” said Chen Zhiwen.
In later generations, there were four most famous infrastructure companies in Hong Kong, which were claimed by the media to make money by lying down, namely Hong Kong Electric, China Power, Towngas and Hong Kong Telecommunications.
At present, gas has not been widely popularized in Hong Kong, and telecommunications was developed earlier. It will not be too late to prepare in the 1980s, but the first two have existed in Hong Kong for nearly a hundred years.
Electricity, like water, is the most basic need for a city. Food can be diversified, but water and electricity are not. Hong Kong’s water is controlled by the Hong Kong government because of a public relations crisis. Outsiders have no chance. To intervene, besides, looking at the world, the tap water industry is not yet a hugely profitable industry.
Electricity has always been privately owned. The power supply plant for the entire Hong Kong Island is Hong Kong Electric, and the power supply plant for Kowloon Peninsula is CLP Power.
"That's fine, but Mr. Chen, I have another question. Maybe I'm a little paranoid." Pao Yugang asked: "Judging from the current development of Hong Kong's economy, although Hong Kong Island is the core, The development is almost complete, and although the economy of the Kowloon Peninsula is a bit worse, the future is absolutely unlimited. In terms of electricity consumption, industry accounts for the majority. Now Hong Kong's industries are all migrating to Kowloon. Even Chen Sheng's own There is a beautiful industrial park in Yuen Long. Logically speaking, shouldn’t Mr. Chen give priority to CLP Power?”
"Sheng Bao is right to think so, but now a lot of my investments are in Kowloon, which does not mean that they will be in the future. Hong Kong Island will also be my focus of investment in the future, so there is no problem in choosing Hong Kong Island or Kowloon." Chen Zhiwen said: "And we both implement mutual shareholding strategies, so I don't need to hesitate about which one to choose."
If Hong Kong's industry can continue, and the factories of Midea, Red Bull and other companies are expected to be in Hong Kong for a long time, then Chen Zhiwen will naturally give priority to China Power. However, once the reform in the mainland begins, it will only take a few years. A large number of people in Hong Kong will Basic processing industries will move, which is inevitable for industrial development. They will move from high-cost areas to low-cost areas, because if they don't move, they won't be able to compete with those that have moved.
The transfer of Midea is not due to cost issues. It has its own land in Hong Kong and the profits are considerable. The impact of a little artificial growth on Midea is not big for the time being. At least there were no major problems in the 1980s, but Midea's future is to become Large manufacturing groups in the electronics industry, involving traditional home appliances and new electronic products, require massive production base areas and manpower. Hong Kong has a total population of less than 5 million and only one million workers at most. The current real estate market is booming, and construction companies are still snatching people from other industries. It’s okay now that the overseas market has not fully expanded. But in the future, it will definitely not be enough.
Of course, even if all Hong Kong industries are moved away, the power generation scale of China Electric Power will still be larger than that of Hong Kong Electric in the future. After all, China Power will cover a larger population in the future. But what Chen Zhiwen cares about is not the Hong Kong market. As long as there is a foundation, The market for outward expansion is definitely bigger.
Therefore, at least for now, the scales of Hong Kong Electric and China Electric Power are similar. As for the future, it depends on the ability to operate in the long term. Hong Kong Electric has a long history of operating on Hong Kong Island and owns a large amount of high-quality land. It was also the source of land for two of the four surrounding villages under Li Jiacheng in later generations, so Chen Zhiwen naturally chose it first.
"So that's it. It's just that these two companies are not easy to start with. What do we need to do?" Bao Yugang asked. He is a shipping king and is at the top of the world in the field of shipping. But when it comes to acquiring companies, there is no such thing. Any experience.
"If we want to acquire peacefully, not to mention CLP Power, even Hong Kong Electric is controlled by a group of ghost management. They will not agree to our acquisition, so we still have to use force. We need to be patient and acquire slowly over the long term. , when we acquire enough shares, we will make a big move." Chen Zhiwen said.
In the original history, Li Jiacheng was able to acquire HK Electric because Jardine Matheson acquired HK Electric first in 1981, and Jardine Matheson's acquisition was not a forced purchase, but a negotiated one. Otherwise, this kind of turmoil would have I'm afraid it's no worse than drinking milk at Landmark. After Jardine Matheson became the major shareholder, it would be much easier to transfer it to Li Ka-shing, otherwise Li Ka-shing would not have been able to acquire HK Electric.
"That's true. To acquire such a large company, you do need a long-term plan. But even so, when we acquire a certain amount of shares, it's still difficult to hide it. There will definitely be movement in the stock price." Bao Yugang frowned. said.
"Yes, so we need to control the stock price to a certain extent, but we cannot rely on large-scale selling, which will cause abnormalities in the total trading volume. We can appropriately affect the Hong Kong power market through various news." Chen Zhiwen said with a smile.
"What kind of news has such an impact? You can't spread rumors, right?" Bao Yugang asked puzzledly.
"Of course not, you need to wait for the opportunity." Chen Zhiwen paused and said, "Just like when I started to buy Wharf stocks, I was also waiting for the right opportunity, and slowly bought Wharf stocks, and I waited for two or three years. , and then waited until Jardine Matheson Group became weak due to losses in overseas business, and then made a killing move.
For Hong Kong Electric and China Electric Power, we can also use the same strategy, wait and wait until the opportunity arises and we will take action. If we cannot wait for the opportunity, we will not lose money by becoming the major shareholders of these two companies, and even if we don’t want to hold it by then You can make a profit by selling it, and maybe you can scare the Kadoorie family into taking it over at a high price. "
"Okay, then I'll start tomorrow." Bao Yugang nodded and agreed. He knew that Chen Zhiwen had something he didn't tell him, but the last sentence made sense. We won't talk about it until it succeeds, but he will definitely not lose. Now he is preparing to transfer a large amount of funds from the ocean to the mainland. Such a large amount of funds always needs a place to go. Even if he acquires Wharf stocks and two buildings this time, it is only a small part of his assets.
In the future, he will need to sell all kinds of boats in his hands, and he may even sell part of his business. So in the next one or two years, with so much money, he can't just buy houses one by one, right?
It's not bad to invest in the stocks of electric power companies, and once you really get the opportunity, you will make a lot of money.
PS: Please vote for me.
(End of chapter)
