"How long will it take for HSBC to come up with this money?" Chen Zhiwen asked again.
"Sheng Chen, what you need to acquire Disney is US dollars, so is our loan calculated in US dollars?" Shen Bi asked.
Chen Zhiwen shook his head and said: "I do need U.S. dollars to acquire Disney, but for this loan, my collateral is Hong Kong property, and it is also a transaction conducted in Hong Kong, so I will only accept Hong Kong dollar loans. When the Hong Kong dollars are available, I will Go to the Foreign Exchange Administration to exchange U.S. dollars, or you can go through HSBC.
This is mainly because it will be more convenient for me to repay the loan in Hong Kong dollars in the future. "
In a few months, the Hong Kong dollar will face an unprecedented crisis, and the exchange rate will plummet. At this time, he would be a fool if he borrowed US dollars. In fact, he chose to borrow from HSBC to reduce his own costs. After receiving the loan of 5 billion Hong Kong dollars, convert it into U.S. dollars, and then exchange it back when the Hong Kong dollar exchange rate drops to a low, making a net profit of 2 billion Hong Kong dollars. In this way, you will make 2 billion Hong Kong dollars (future exchange rate) for nothing. The cost of acquiring Disney can also be reduced by US$250 million.
The reason why he chose HSBC is actually because in Hong Kong, only HSBC has the ability to provide such a large amount of funds. Standard Chartered may not be able to. Besides, Standard Chartered has a good relationship with him, so there is no need for him to cheat his allies.
"That's okay, after all, it's a transaction in Hong Kong." Shen Bi nodded and said.
In fact, he has roughly guessed that Chen Zhiwen is probably not very optimistic about the exchange rate of the Hong Kong dollar, but that doesn't matter. The fundamentals of the Hong Kong economy are still there, and the exchange rate will not fall much if it falls. Moreover, HSBC's deposits are in Hong Kong dollars, and the loans are also in Hong Kong dollars. , this transaction will not have the risk of foreign exchange fluctuations. At most, the drop in the Hong Kong dollar exchange rate will lead to a proportional drop in profits.
Being able to participate in this transaction will be of great benefit to HSBC. It not only alleviates the current situation where HSBC has no loans, but can also use this opportunity to promote HSBC's reputation in the international financial market. How can I say this? The acquisition of Disney for the first time is also a very large cross-border merger and acquisition event, which is of great significance to HSBC's internationalization.
"What about interest?" Chen Zhiwen asked again.
"Don't worry, Mr. Chen. In terms of interest, we at HSBC will definitely give you the most favorable interest rate. How about the current 90% rate?" Shen Bi asked. Although banks basically negotiate terms for cooperation with enterprises, high-quality customers and mortgages Sufficient, that is the favorite of all banks, especially Chen Zhiwen. Not only is his assets sufficient, but it is estimated that with Midea's profitability, his repayment ability is even easier.
"Okay, then I will arrange for Hutchison Whampoa and Wharf to send some property information to HSBC headquarters. We will evaluate the price together and then negotiate the loan. This matter will be completed as soon as possible. I need to go to the United States soon. When can Disney I’m not sure about the acquisition or transaction funds,” Chen Zhiwen said again.
The purpose this time is to cash out a large amount of Hong Kong dollars before the Hong Kong dollar crisis occurs. The collateral will naturally be more convenient. All he needs to do is to borrow more Hong Kong dollars as soon as possible, and then use it when the Hong Kong dollar crisis occurs. Just convert US dollars into Hong Kong dollars.
In this process, the more U.S. dollars there are, the better it will be for Hong Kong's economy, which was about to collapse at the time, and at the same time, it will make a profit for itself, achieving multiple things with one stone.
"Okay, no problem." Shen Bi nodded. HSBC naturally wanted a risk-free loan. Even though he had some conflicts with Chen Zhiwen, everything was not a problem in the face of business interests.
Soon, Hutchison Whampoa and Wharf, which had been prepared for a long time, went to the headquarters of HSBC Bank with some of their property information. Faced with high-quality assets with little or no mortgage, even in the current real estate crisis, it is very difficult. Excellent bank loan collateral, the bank had too much money to lend out, and the collateral was of high quality, the two parties quickly got on the right track.
Chen Zhiwen had already foreseen this. Under normal logic, this cooperation could not fail. Shen Bi would not be willing to give up the money, but he did not know about the subsequent Hong Kong dollar crisis. By that time, Chen Zhiwen would be completely advantaged. .
After the only thing that needed to be done in Hong Kong was completed, Chen Zhiwen set off for the United States. Such a large-scale acquisition must require his boss to personally take charge. It does not mean that he has to stay in the United States before the acquisition, but some important matters. Decisions, requests and meetings with some people need to be made in person, and you can return to Hong Kong at other times.
However, if the negotiation is good and fast, it will be completed quickly. After all, the steps are very simple. As long as the seller agrees, the Ministry of Commerce will be dealt with. However, many problems may be encountered in this step.
Having your own private jet makes it much more convenient to travel to anywhere, and the spacious 747 makes the journey feel like being at home, without any fatigue. At most, it will be a bit jet lag, but when you get enough rest along the way, it will actually be just fine. It takes a day or two to get used to it.
As long as there are more than ten days of such incidents on the road in a year, the plane purchased for tens of millions of dollars is a good deal. For Chen Zhiwen, who is worth tens of billions, buying time with money is definitely a good deal.
On April 5, Chen Zhiwen came to New York City, and Henry Morgan personally went to the arcade and brought people to the Hilton Hotel in New York City.
"When you proposed to acquire Disney, Hilton Hotel wanted to befriend you and entrusted me to take you here. Staying at the President Hotel is free." Henry Morgan said with a smile.
"Oh, what does Hilton Hotels have to do with Disney?" Chen Zhiwen asked curiously. He can't say that he is not interested in the hotel industry, but he can't say that he has much hobbies. It was just to let Hilton Hotel Group transfer the operating rights to Hong Kong. Sell it to him. If he is interested in international hotel chains, he may take this opportunity to attack the entire Hilton.
But obviously, a hotel chain with a very limited future is far inferior to Costco, Best Buy or Disney in the United States. Unless after many years, your own capital is so huge that you have no place to invest, then you can consider it.
"Disney is also the most well-known entertainment company in the United States. General hotel chains actually need some extra fame to promote themselves. You don't need to pay too much attention to normal behavior. It's okay if you don't want to pay attention to them. It's just a hotel. There is no need to endorse it. Their love,” Henry Morgan said as he sat down.
"Then I'll pay for it myself." Chen Zhiwen shrugged and said. He didn't want to owe others for no reason.
"Let's get down to business. Disney and the White House have verbally agreed, and we have inquired again. President Reagan doesn't have a strong sense of belonging to Disney, and some congressmen don't seem to care very much. But this is just their current statement. "The Two Sessions of the United States like to disrupt things the most. If the business acquisition letter is formally submitted by then, someone may come out to make trouble, but don't worry. As long as there are no problems with the procedures, at most you can just delay it for a while and spend more energy and funds." Henry Morgan said.
"What do the Disney board of directors and management say?" Chen Zhiwen asked. In fact, there is no need to think about it. When it comes to the end, someone from the US government will definitely jump out and cause trouble. This is not a conflict with Chen Zhiwen, but for them. own political future.
Opposing a controversial large-scale acquisition, especially if one side is Disney and the other is foreign capital, can give the person who comes forward a lot of exposure. Regardless of the outcome, he can gain fame, so that he can run for more senior positions in the future. , it’s easier.
Many American routines are like this, and acquisitions are just one of them when major business events are exploited. The most common ones are environmental protection, war, charity and other issues.
"Disney's board of directors basically agrees. Some of them have lost confidence in Disney, but it is difficult for major shareholders to cash out and leave. Your acquisition is an opportunity. However, these people have to wait and see. Maybe you are worth a lot and think too much about it." A little bit." Henry Morgan said: "As for management, many members of the Disney family disagree, and you know what they think. Once you take over Disney, they will definitely leave."
"That is necessary. At the worst, we will give them a compensation fee and all the Disney family members must leave." Chen Zhiwen nodded and said.
If it is an ordinary management, even if it is a waste, as long as it does not affect the acquisition plan, then Chen Zhiwen can stay. The worst is to spend money to support him for two years and then kick him out. But Disney's family members cannot do that. In the company, these people have too much influence and can even be said to be a certain spiritual support. If they stay in the company, they will not have absolute control.
Although Disney will definitely not get involved in the future and will still leave it to professional managers to manage, they must be obedient. They can delegate power, but they must be able to take it back. The entire Disney family does not know how deep its roots are within the company. It must not be kept, otherwise it may become too big in the future and hinder some of Chen Zhiwen's plans.
"I understand you doing this, but you need to spend more time talking with them." Henry Morgan nodded and said, "You have to know that their family is not short of money."
"If they don't want to leave, I can only take a large share of the equity first, and then deprive them of their management rights. But if this is the case, there will be some troubles in the future. It is better to negotiate as much as possible." Chen Zhiwen said with a frown. , when acquiring such a large family business, how to deal with the original family is indeed a headache, and many acquisitions also get stuck here.
"Then we can only propose that if the Disney family does not withdraw from the company, this acquisition will be abandoned. Anyway, we have not started on a large scale yet, and your loss will only be tens of millions of dollars, which is a drop in the bucket for you. ” said Henry Morgan.
(End of chapter)
