On November 28, Peregrine Investment Group announced that it would lay off 275 people globally, accounting for 15% of its total employees.
At the same time, it was announced that in order to cope with the adverse impact of the Asian financial crisis on Peregrine, starting from December 1, the company's management will cut their salaries by 50% and ordinary employees will cut their salaries by 30%.
According to preliminary calculations by the Finance Department of Peregrine Investment Group, after the implementation of layoffs and salary cuts, the company will reduce its annual labor cost expenditure by nearly HK$342 million.
Affected by the news of Peregrine's massive layoffs and salary cuts, the Hang Seng Index opened at .2 points, opened 142 points lower, dropped to a low of .8 points, and closed at .9 points, down 56.2 points or 0.53% throughout the day.
Peregrine's share price was hit by selling to 6.98 yuan. In the afternoon, funds obviously entered the market to protect the market, closing at 7.35 Hong Kong dollars, down 1.75%.
"Chairman Du, do we invite Sun Jian to inject capital?" After the market closed, William Du and Liang Zhongtao breathed a sigh of relief. The company spent 26 million Hong Kong dollars to protect the market today, and the final result was achieved!
Both are worried that once the stock price falls below HK$6, Swiss Zurich Group and First National Bank of Chicago promised last month to inject US$200 million and US$25 million respectively to purchase redeemable preferred shares at a stock price of HK$8. Might be ruined.
"Mr. Liang, our personal relationship with Sun Jian is average. In addition, htic and htic Securities are still our main competitors. Sun Jian may not be willing to rescue him. Even if he is willing, how many shares can we give to meet the other party's requirements?" Under the auspices of William Du, Peregrine has sold US$1.5 billion in assets at low prices, and another US$600 million in assets is under negotiation. US$2.1 billion has been able to pay the due loans and notes payable, plus the Swiss Ten thousand U.S. dollars of funds from Zurich Group and the First National Bank of Chicago have arrived. As long as the associated banks continue to lend, the company can maintain normal operations.
"Chairman Du, don't be afraid of ten thousand, just be afraid of the worst. If the company's stock price is lower than 6 Hong Kong dollars, the Swiss Zurich Group and the First National Bank of Chicago suddenly cancel the capital injection agreement? What will we do then? We can only watch Peregrine helplessly Being liquidated?" Seeing that William Du did not pay special attention to the capital injection from the richest Chinese man, he was worried that Sun Jian would take the opportunity to ask for a price and take over the company. He suddenly had a bad feeling in his heart and spoke rudely.
If William Du had followed his own advice and reduced the investment scale of fixed-rate bond companies, how could Peregrine be in the current situation?
As a result, his friend Li Jiachengdu was unwilling to help! Liang Zhongtao understood that Peregrine was a stage for Du William to display his lofty ambitions, and he did not want to be taken over by outsiders. Du William, who was born into wealth, talent, and arrogance, also looked down on Sun Jian, a mainland boy from the bottom of his heart.
"Mr. Liang's concerns are very likely to occur. We must also be prepared to use the US$225 million in convertible preferred shares promised by the Zurich Group of Switzerland and the First National Bank of Chicago as a negotiating condition for inviting Sun Jian to inject capital. However, Sun Jian must make a written commitment not to interfere with Peregrine’s daily business activities after taking over Peregrine as the largest single shareholder.” The US$200 million capital injection agreement signed by Peregrine and the Swiss Zurich Group stipulates that after the agreement is reached, , Peregrine will issue 10,000 convertible preferred shares, accounting for 24.1% of Peregrine’s expanded share capital. Switzerland’s Zurich Group will become the largest single shareholder of Peregrine, promising not to interfere with the company’s daily operating activities and strengthening both parties. The cooperative relationship achieves double success with one stone.
Du William knows best that once it is announced that the Indonesian Rubber Company's US$260 million loan will not be repaid by the deadline on January 2 next year, Peregrine's stock price will definitely fall below HK$6.
"Chairman Du, will the shrewd Sun Jian agree to purchase Peregrine's convertible preferred shares at a premium of HK$8?" The capital injection agreement signed by the Swiss Zurich Group at that time stated that the price of the convertible preferred shares was HK$8, a premium of 17.6 to the closing price of the day. %.
"Mr. Liang, please go to Jiangcheng and start capital injection negotiations with Sun Jian based on today's closing price of HK$7.35!" In February 1989, when Sun Jian registered htic in Xiangjiang, Du William really looked down upon him. , but now no matter how hard we try, we can't catch up, and we are still worried about the other party taking over.
-----December 1, Monday.
"Welcome Mr. Liang to visit and give us guidance!"
"Mr. Sun, you are so polite!" Last Friday, Sun Jian received a call from Liang Zhongtao and knew the other party's purpose. He made an appointment to meet at the headquarters of Taobao Holdings Company at 9:00 this morning. When he heard about the arrival of Liang Zhongtao and his assistant and bodyguard, Take Li Tao and Liu Yue downstairs to greet them.
Li Tao and Liu Yue met Liang Zhongtao and Du William two or three times and got to know each other. They also knew the purpose of Liang Zhongtao's visit and exchanged pleasantries.
On September 12, Zhang Zhiqiang took action again and kidnapped Guo Bingxiang, the second richest man in Hong Kong, and extorted HK$600 million. The Guo family paid a ransom of HK$300 million and released him. The Guo family did not call the police!
Zhang Zhiqiang escaped the punishment of the law for the third time. He lived in a big villa, went to Macau to gamble, and was free and content. He said that he would kidnap the richest people in Hong Kong!
The rich man was scared of being kidnapped and now he always brings bodyguards with him when he goes out! Sun Jian also knew that he and his family were also kidnapped by Zhang Zhiqiang. He always brought four bodyguards with him when doing business in Xiangjiang. He could rush back to Pengcheng on the same day and usually did not spend the night in Xiangjiang.
Liang Zhongtao, who is in his 40s, is called
The "Father of Red Chip Stocks" has helped many mainland central enterprises to go public and raise funds in Hong Kong, and has established good personal relationships with mainland officials and enterprises.
Sun Jian met Liang Zhongtao and Du William four or five times, but did not have a close friendship. In his previous life, he had read several articles on the Internet analyzing the bankruptcy of Peregrine, and knew about their deeds and some rumors unknown to contemporary people. He was reborn. At that time, Peregrine had not yet been established. After htic and htic securities companies were established successively, I often went to Hong Kong and watched Peregrine grow from small to large under the leadership of the two. In 1995, it surpassed Sun Hung Kai Securities and grew into a local securities company in Hong Kong. The leader.
Wang Linbo and Huang Hongqing admired Liang Zhongtao and Du William very much, and they targeted Peregrine.
"Mr. Sun, due to the competitive depreciation of currencies in Southeast Asian countries, the price of Peregrine Investment Group's bonds has fallen sharply, and the company's assets have been reduced. After discussing with Chairman Du, I decided to follow Peregrine Investment Group's closing price of HK$7.35 on Friday. , the company issued convertible preferred shares, accounting for 28.05% of the total share capital after the issuance, and asked Mr. Sun to inject US$225 million in cash to become the single largest shareholder of Peregrine Investment Group, but asked Mr. Sun to make a written commitment not to interfere with Peregrine The daily business activities of the investment group." Everyone came to the conference room, and both parties took their seats. A staff member handed over tea, and the staff from both parties withdrew, leaving Sun Jian and Liang Zhongtao behind.
Liang Zhongtao took out the capital injection agreement he had already prepared from his briefcase, handed it to Sun Jian, and began to explain.
