"Even if HSBC gives us enough funds, will we be able to surpass Chen Zhiwen? Now in Hong Kong, no one knows how much funds he has?" Bao Fuda said with a frown. Chen Zhiwen's companies are all unlisted companies. Outsiders don't know anything at all, but they can roughly know from the scale. The benefits must be good. In addition, Chen Zhiwen's overseas banking relationships, no one knows how much funds can be mobilized. .
"I thought so before, but Chen Zhiwen's main business is probably overseas and his industrial companies. The funds in Hong Kong are always limited. Otherwise, why didn't he acquire Hong Kong Electric last year? Hong Kong Electric, when the oil crisis first broke out, the stock price was much lower than it is now. If Chen Zhiwen had always had ideas about Hong Kong Electric, he should have taken action at that time." Niubijian analyzed.
"What you mean is that he doesn't have a lot of funds that he can use for this acquisition, but no matter what, it doesn't mean that when he acquires Hong Kong Electric and there are problems, he can't mobilize funds from overseas." Bao Fuda said with a frown.
"So we still need to make a quick decision. In addition to HSBC, we also need to convince the management of HK Electric. If they agree to directly increase their shares in us, then we will quickly become the major shareholder of HK Electric, then we will have a certain chance. Especially now that the triggering tender offer has been changed to 35%, it is several times more difficult for Chen Zhiwen to reproduce Hutchison and Wharf again," Newbijian said.
"That's okay. You can indeed try it. The value of Hong Kong Electric is still higher than that of Wharf. If we get Hong Kong Electric, the scale of Jardine will be even higher." Bao Fuda nodded and said.
"It is estimated that Shen Bi or Sandus five years ago would never have dreamed that one day, they would hope that I, Yihe, would become stronger." Niubijian sighed.
"Nowadays, Chinese companies are getting stronger and stronger, and British-owned companies like us can no longer afford internal friction." Bao Fuda said.
"Okay, let's go make an appointment with Shen Bi first. Stagger the time a little. Make an appointment with Shen Bi one hour later and then make an appointment with Hong Kong Electric's chief executive Connor. This way we can make it happen at once. I don't know what Chen Zhiwen's plan is now. We must hurry up. The battle must be decided quickly," Niubijian said.
"Okay, leave this matter to me." Bao Fuda said.
The Cultural Oriental Hotel is one of the most luxurious hotels in Hong Kong, no less than the Hilton Hotel owned by Hutchison Whampoa. It is completely owned by the Jardine Matheson Group, and both the management and properties belong to Jardine Matheson.
In the presidential suite, four British ghosts gathered together, namely Newbijian and Bao Fuda from Jardine and Shen Bi and Dees from HSBC.
"Shen Bi, we invited you here this time. You should know why, right?" Niubijian said with a smile while drinking coffee.
"Is it because Chen Zhiwen wants to acquire Hong Kong Electric?" Shen Bi nodded lightly and said calmly. At this time, Jardine suddenly made an appointment with himself, and anyone with any brain would know why. Otherwise, ordinary matters can be discussed until Jardine or HSBC convenes the board of directors. Although Jardine and HSBC have been fighting secretly before, they have been fighting openly. The relationship is still very good, both parties are board members of the other party. However, with the rise of Chinese capital in Hong Kong, the two sides have basically had no secret disputes recently.
"Shen Bi, I won't say anything else. With Chen Zhiwen's current situation, if he is allowed to acquire HK Electric again, his influence in Hong Kong will exceed that of HSBC and Jardine Matheson. We are all British. , even after staying in Hong Kong for so many years, the distinction between British capital and Chinese capital cannot be changed. No matter what happened in the past, we must not let Chen Zhiwen succeed now, otherwise, no one knows who he will attack next, nor I wonder if other Chinese will follow," Newbijian said.
"I agree with what you said, but how to stop Chen Zhiwen? We HSBC can't come forward. This time, are you Yihe prepared to end up again? Do you also want to acquire Hong Kong Electric?" Shen Bi's eyes were distant, and he said Yihe at once and purpose.
"Based on Chen Zhiwen's previous acquisitions, he should already have a large share of HK Electric shares in his hands. If it is left to develop, even if the Hong Kong government sets a 35% takeover offer triggering rule, it will be impossible to stop Chen Zhiwen , you know this better than me." Newbijian said.
"Then what do you want to do?" Shen Bi nodded and said. The 35% acquisition offer triggering rule is much more protective of the acquired company than before. If this rule had already existed when Chen Zhiwen acquired Wharf, Then it will be difficult to succeed.
But Hong Kong Electric is quite special. It does not have a major shareholder controlling family. Like HSBC, it is a universal shareholding model. Under normal circumstances, their management is very happy because without the existence of major shareholders, they are the company. owner, but if it encounters a hostile takeover from the outside world, it will suddenly be in dire straits. HSBC is Hong Kong's "quasi central bank" and has legal protection. Outsiders are not allowed to acquire more than 1% of the shares, but Hong Kong Electric and some other similar companies can No.
"I want to arrange for Hongkong Land to acquire HK Electric, but instead of competing with Chen Zhiwen in the stock market, HK Electric's board of directors will directly increase shares of Hongkong Land. Hong Kong Land will obtain more than 33.4% of the shares. As long as we raise the stock price a little higher, Coupled with the restrictions on the acquisition offer, it is impossible for Chen Zhiwen to succeed in the acquisition, which is completely different from the Wharf back then." Newbijian said with a smile.
Once you become the major shareholder of Hong Kong Electric, you don't need to do anything else. Just wait for Chen Zhiwen's failure, because once the other party acquires 35%, it must fully acquire it. As long as you raise the price on a certain day in advance, then Chen Zhiwen must Acquire the entire Hong Kong Electric at this price.
The price is so high that it is unimaginable. It may really require an investment of close to tens of billions of Hong Kong dollars. Niubi firmly believes that as long as Chen Zhiwen is not mentally retarded, it is impossible to do such a thing. Hong Kong Electric is not worth the money at all, and even if Chen Zhiwen is really By doing this, he can also make a fortune from it, conservatively more than a billion Hong Kong dollars, and it will also greatly consume the funds in Chen Zhiwen's hands. In this way, his own Jardine and Land companies will be much safer.
"You have a good idea." Shen Bi chuckled and said. Before Hong Kong Electric was acquired by Chen Zhiwen, the management still had absolute control. In theory, it could conduct a private increase in shares of a certain company.
In fact, acquisitions and counter-takeovers of other companies are the same. When the acquiree has no funds, it needs to find a "white warrior". The white warrior can obtain enough stocks through stock market acquisitions or private equity increases, leaving the acquirer without funds. After trying to acquire more shares, you can only give up.
"But this is the only way. Otherwise, we will have to sit back and watch Hong Kong Electric be acquired, and then Chen Zhiwen will control the entire power market on Hong Kong Island." Newbijian said.
"This is indeed the only way, but it doesn't seem like HSBC needs to be involved, right?" Shen Bi said with a smile.
Newbijian said: "Shen Bi, as I just said, let's be honest and honest. There is no need to talk about him like this. This will only waste our time. I have made an appointment with Connor to come here in half an hour. He's here.
I invite you to come because, firstly, although Land Land can also come up with this fund, it will definitely affect many normal projects, so we need a huge loan. As for the mortgage, we can naturally use the Hong Kong Electric shares that we are about to acquire. For HSBC, this business will not make a loss, but it can also make a lot of money.
Second, my family may not be able to convince Connor. If he does not agree to introduce Land to the board of directors of HK Electric through a share increase, then I, Jardine, will not agree to go against Chen Zhiwen in the stock market. "
"Okay, since I'm being honest, let me say one thing. Your method may indeed be the only way to prevent Chen Zhiwen from acquiring Hong Kong Electric, but Jardine is not the only one who can do this, right?" Shen Bi said lightly.
"Theoretically, this is indeed the case, but now besides me, Yihe, who in the whole of Hong Kong is willing to offend Chen Zhiwen? Wheelock himself wants to sell himself, and the Swire Group has always adhered to the principle of not offending others. Who is there?" Niubijian said confidently: "And time waits for no one. None of us know Chen Zhiwen's current situation. If he succeeds soon, then it will be too late even if you find someone."
"If I, HSBC, really want to find it, I can definitely find it quickly." Shen Bi said with a smile.
"But looking for some small roles is still very risky." Newbijian said: "How about I make it clear what conditions HSBC needs to help me."
Although neither Jardine Matheson nor HSBC wanted Chen Zhiwen to acquire HK Electric, Jardine Matheson took advantage of his plan, and he also needed HSBC's loan help and convincing of the HK Electric board of directors. Therefore, before coming, he We are prepared to be ripped off. As long as the loss of profits is not as great as that of Hong Kong Electric, we can negotiate.
"Okay, first of all, no matter how much money you need, HSBC can give it to you, but the interest rate will be 20% higher than normal." Shen Bi said.
"20%? Shen Bi, this is too high." Niubijian's expression changed. Now the interest rates of banks around the world are ridiculously high. If Hong Kong's real estate market hadn't increased even more, I'm afraid that big companies like Jardine Land would Even if the acquisition is approved by the Board of Directors of HK Electric, Land will still need to invest billions of Hong Kong dollars. If the interest rate is so high, I am afraid it will lose hundreds of millions.
"You know how much money you need, and you need a loan first and then a mortgage. Time is so urgent. If you go to any bank, the interest increase of only 20% is a discount you can't even dream of." Shen Bi is confident. Manman said, no matter what, his bank must make a profit first.
"Okay." Niubijian thought for a while and nodded in agreement. What Shen Bi said is indeed reasonable. Any bank in the world will require high interest rates for sudden loan needs. In addition, there is indeed no mortgage. Compared with the acquisition of Hong Kong Electric, The benefits are worth it.
"Another requirement is that all rights to these mortgaged Hong Kong Electric shares shall not be enforced until you repay the loan." Shen Bi said with a smile.
"Shen Bi, you have such a good plan." After hearing this, Niubijian was shocked. After working on it for a long time, Shen Bi probably figured out all his plans.
The stocks are mortgaged, but cannot be traded, and the voting rights held by shareholders are still there, but if they are given up through a contract, it will naturally have legal effects. Shen Bi's move directly restricted Jardine's complete control of Hong Kong Electric. At least it won't work until the loan is repaid, and the debt of more than one billion Hong Kong dollars, coupled with the high debt, will be very difficult to pay off, unless Land is willing to sell a few of its Central buildings.
As the shareholder of Land Group no longer has voting rights, this right naturally goes to HSBC. Although on the surface, banks do not have voting rights when they obtain stock mortgages, Shen Bi's operation is basically equivalent to obtaining voting rights. Bypassing the Hong Kong government's restrictions on HSBC, I killed two birds with one stone. After a long time, I was working for HSBC.
"My request is also fair. The conflict between you and Chen Zhiwen has huge benefits, but I don't have any. You have to give me some benefits, otherwise how will I explain to the board of directors." Shen Bixiao said.
"Okay, I promise you." Niubijian thought for a while and agreed. He will get the shares first. As long as the shares are obtained, even if he does not have voting rights in the short term, the stocks will belong to him in name. As long as the debt is paid off , then all rights will naturally return.
After all, if you want to acquire one of the top ten listed companies in Hong Kong, the price is actually not high. Otherwise, if there is no hostile takeover by Chen Zhiwen and it is acquired by Jardine Matheson, HSBC may still disagree and turn against itself. , then Jardine will pay a greater price than now. Generally speaking, if he really succeeds in buying a stake in HK Electric, he still has to thank Chen Zhiwen.
After a while, Connor, the chief executive of Hong Kong Electric, arrived.
"Connor, long time no see." Shen Bi smiled and said after seeing the visitor. They are all top British-owned listed companies in Hong Kong, and everyone knows them.
"Yes, it's been almost half a year." Connor nodded and said, "Why did you two invite me here?"
Newbijian smiled and said: "Connor, we invited you here to help you solve the problem of hostile takeover that Hong Kong Electric is facing today."
"Oh, please tell me." Connor asked. Being invited by the two heads of Hong Kong's largest British conglomerates, he knew that it must be related to the acquisition of his own Hong Kong Electric. He actually didn't believe that the big bad wolf would Offer to help, but it never hurts to come and check in.
"That's what happened." Newbijian stated his plan concisely and clearly.
"In this way, wouldn't HK Electric become a Jardine brand?" Connor neither agreed nor objected.
"If you don't become a Jardine family, you will become Chen Zhiwen's subordinate. Although Shen Bi and I have many different opinions, it is recognized that HK Electric has no choice. Even if you don't choose Jardine, you still need to choose another company. , otherwise, you will never be able to defeat Chen Zhiwen." Niubijian said.
(End of chapter)
