Chapter 338: A joke to attract attention!
Tuesday, May 1980, 5, no taboos!
"Boss, give me a copy of Ming Pao"

"Is there any big news?"

"I heard that Pao's company successfully acquired Wharf Holdings and Jardine Matheson has given up."

In front of the newsstand, several men who were preparing to buy newspapers were chatting while choosing today's newspapers.

The news of Pao's successful acquisition of Wharf Holdings was announced via TVB yesterday.

Hong Kong Island is not very large, and Jardine Matheson and Wharf Holdings are both very famous in Hong Kong Island. Such news spread quickly through word of mouth.

"I'm holding it, is that wrong?"

"Someone actually bought enough land?"

At this time, the person who first got the newspaper and was reading it suddenly shouted, attracting the attention of people around.

"Collect enough land? Is that true?"

"Who is so bold as to buy enough land?"

"No need to gather around to read. This is the headline of today's newspaper. Everyone can buy a copy and read it at will. It contains the inside story."

The newspaper vendor at the newsstand said calmly at this time.

Of course, this is because he saw it as soon as he got the newspaper today, and the shock has passed.

"Give me one!"

"I also want!"

After hearing what the newspaper seller said, a few people who were not in a hurry immediately paid for a newspaper.

As expected, there was one piece of information on the headlines of all major newspapers.

[A warning to all shareholders in Hong Kong Island: our company intends to acquire the shares of Hong Kong Land Development at a price of HK$15]

This is almost the headline news in all major newspapers.

"There are actually companies that dare to grab the land. Are they following the trend after seeing Bao Sheng's success?"

"Red man, do you understand finance? The other party is serious. They are collecting HKD plus USD bonds. It is equivalent to the other party collecting USD directly."

"Using U.S. dollars to buy land is obviously a sign of a dragon crossing the river."

Readers who have some knowledge of finance immediately explain the situation to the people around them.

Obviously, local companies will collect payments in Hong Kong dollars and rarely in US dollars, because US dollars have to be exchanged at large banks, and it is not certain how much can be exchanged.

This shows that the other party came prepared.

It's obvious that this has been planned for a long time!

This announcement of acquiring shares in Hong Kong Holdings shocked not only ordinary people in Hong Kong Island, but also many wealthy people in Hong Kong Island.

"Acquiring Hong Kong Holdings? Is there really someone so bold, and choosing to do so after the Wharf Warehouse ...

In the office of Cheung Kong Holdings, Li Jiacheng finished reading the newspaper, shook his head, smiled and talked to himself.

He has been coveting the property for many years, but he has not dared to take action until now. The reason is that he does not have the financial ability to do so.

He would only dare to do so if he could have the strong support of HSBC like Pao Yu-kong, giving him 20 to 30 billion Hong Kong dollars in one go.

But now.
"It's too reckless. This will only alert Jardine Matheson. Having just lost Wharf Holdings, it's impossible for Jardine Matheson to give up Hong Kong Holdings."

After shaking his head and making a brief comment, Li Jiacheng threw the newspaper aside.

This news is more like a joke.

In fact, the attitude of most of the wealthy people in Hong Kong is no different from that of Li Ka-shing.

Although Li Changhe's advertisements were everywhere, the company Oriental International registered for him by Jim's team had no reputation at all in Hong Kong Island.

This is obviously a joke from a new company.

However, the other party's use of bonds to represent US dollars is quite novel.

The stock market in Hong Kong Island must be acquired using Hong Kong dollars or stocks and bonds, but no other currencies are allowed.

This company uses the US dollar bond model, allowing large stock transfers to be directly exchanged for US dollar bonds, which are then exchanged for US dollars at Manhattan Bank.

This move took advantage of a loophole in the Hong Kong trading market and acquired shares of Hutchison Whampoa in disguised form using US dollars.

This also opened the eyes of many wealthy people in Hong Kong.

At the same time, in the office of Jardine Matheson's headquarters, Newby, who had just arrived at the office after a good night's rest, was hurriedly handed a newspaper by his subordinates.

"Boss, there is a company today that has started collecting enough shares of Hong Kong Land."

"Acquiring a land?"

New Bijian, who had just arrived at the office, was a little confused. It was early in the morning. Did he hear it right?

I just reached an agreement with Pao Yuk-kong on the transaction of Wharf Holdings Limited shares yesterday. Pao Yuk-kong took over 500 million shares of Wharf Holdings Limited shares held by Jardine Matheson, and Jardine Matheson received HK$5 million.

Then there are 500 million shares, which the other party will slowly take over in installments within half a year.

In other words, Jardine Matheson sold 1000 million shares of Wharf Holdings to Pao Yu-kong, who bought them at HK$100 per share, for a total price of HK$ billion.

However, only 5 million was credited to the account immediately, and Bao Yugang had to pay the remaining 5 million in installments within half a year.

Neither Jardine Matheson nor HSBC had any objection to this. Although HSBC provided Yu-Kong Pao with HK$15 billion in support, it did not mean that the money was given to Yu-Kong Pao, but that its subsidiaries helped him to spend the cash.

In the early stage of the acquisition, Bao Yugang had spent more than 800 million in cash. The credit line that HSBC gave to Bao Yugang only had more than 600 million in cash. Even if Bao Yugang's own funds were added, it would be difficult for him to take out another 1 billion in one go.

Therefore, HSBC also supports the method of a down payment of 500 million and installment payments of 500 million.

After all, Bao Yugang actually bought a lot of stocks that he shouldn't have bought.

He happened to hold the stocks in installments through other companies to avoid triggering a takeover offer.

As for the remaining Wharf shares in Jardine Matheson's hands, to put it bluntly, they can hold on to them or they can slowly sell them into the market if they are willing.

Neither HSBC nor Pao Yu-kong will care.

However, for Jardine Matheson, even if these stocks slowly flow into the market, they can be exchanged for a large amount of cash. After all, after Bao Yugang took control of Wharf Holdings, Wharf Holdings' stocks would inevitably return to a reasonable price, and in this case, Jardine Matheson would not lose money.

By selling off Wharf Holdings, it seemed that Jardine Matheson had lost an arm, but the opportunity to recover HK$1 billion, plus the subsequent cash flow back using Wharf Holdings shares, greatly eased Jardine Matheson's financial situation.

This is also the reason why the Keswick family behind Jardine Matheson agreed to Newbyken's decision.

Although it is painful to lose Wharf Holdings, the returning funds can allow Jardine Matheson to take a breather and even consolidate its controlling stake in other companies, such as buying back shares in Hong Kong Holdings.

Perhaps the only drawback is that Bao Yugang only gave 5 million in cash as a down payment, and the remaining million was paid in installments.

However, the payment period is not long, only half a year, and Newbyjian thinks it is not a big problem.

Then, after he had a good talk with Bao Yugang yesterday, he finally had a good sleep. But when he came to the company today, he heard the news that someone had acquired Jardine Matheson Holdings.

"Have Bedford come to my office for a meeting right away. By the way, which company acquired the land? Is it Chinese capital again?"

Newbijian said casually.

Bedford is now the CEO of Hong Kong Land Development and is considered the boss of Hong Kong Land Development.

"Daban is not Huaren Capital, it's Dongfang International, a company I haven't heard of. It's a newly registered company."

"For specific information, our people are still investigating and have not yet found out the details of this company."

The secretary said with some embarrassment at this moment.

"Oh, look, this is the downside of losing Wharf Holdings. Everyone thought Jardine Matheson had collapsed. Any dog ​​would dare to register a company to seize Hong Kong Holdings."

“So are we going to announce the start of the buyback?”

The secretary hesitated for a moment and asked Newby.

"Don't worry, check its information first."

“If an inconspicuous company wants to acquire land, its shareholders must believe in it.”

Newbijian said nonchalantly.

On the one hand, he has money in his hands now and can start the repurchase at any time. On the other hand, Jardine Matheson’s control over Landsea is not the same as Wharf Holdings’. Jardine Matheson’s control over Landsea is sufficient.

This is also the confidence of New Bijian.

However, just as he sat down confidently and hadn't even taken a sip of water, he saw Bedford walking in hurriedly.

"Boss, something happened!"

"Are you talking about the matter of Oriental International acquiring Jardine Matheson Holdings?"

Newbijian asked Bedford with a smile.

"Yes, Daban, they are not playing around, they are well prepared."

"Just now, they have already placed their stakes in the stock exchange and now hold 11.6% of Hong Kong Land."

Bedford said in panic.

After hearing this, Niu Bijian's expression changed drastically.

"what?"

"11.6 percent, how can they have that much?"

These are more than 50 million shares of Hong Kong Holdings. Even if they are bought at a fair price, the initial investment would be close to HK$600 million. With so much money pouring into the market, how could there be no reaction?

and many more!

At this moment, Niu Bijian reacted immediately.

The other party only raised the placard today, but had not done so before, which means that the shares held by the other party do not exceed 5%.

Because only when it exceeds 5% will the exchange require a sign to be raised for clear indication.

And the recent large stock transactions, damn, Wharf?
At this moment, Newby suddenly understood that the 3 million Wharf shares exchanged for Hutchison Whampoa's shares yesterday must have been done by this company behind the scenes.

They exchanged 5 million shares from Jardine Matheson, which means % of the shares.

If the other party previously held 3% of the shares, it is not impossible that the shareholding could reach 11% after the merger.

The most important thing is that by absorbing millions of shares in a dispersed manner in the stock market, as long as the time line is extended, there will be no fluctuations.

After all, there are too many shares of Swire Properties circulating in the market, and people are trading them every day, unlike Wharf Holdings’ shares, which are traded less and less as time goes by.

And if this is really the case, Newbijian felt a chill in his heart.

The other party is not just trying to attract attention, but has been planning this for a long time. Even today, they chose to expose it, probably to take advantage of Jardine Matheson's failure in Wharf Holdings to incite investors.

"Boss, we have found some information. This company has entrusted various securities trading institutions to help collect the money. The person behind the scenes is not Chinese, but from the United States."

"They are deeply involved with Chase Manhattan Bank, and it is very likely that they came from Chase Manhattan Bank."

At this time, another assistant came to Newbijian's office with the information he had found and spoke anxiously.

After hearing this, Niu Bijian was even more shocked.

Chase Manhattan Bank?

wrong!

Banks will not take the initiative to acquire companies because this is not their business.

There can only be one reason why a bank is involved, and that is that someone has entrusted the bank.

So, there is a capital consortium from the West targeting Swire Properties?

"Call everyone to a meeting in the conference room immediately."

After Niu Bijian finished speaking, he picked up the phone on the table and dialed quickly.

At this time, he must contact London.

It is obvious that foreign capital has set its sights on the land development company.

(End of this chapter)