Chapter 551【Hutchison Foreign Company Acquisition Battle 1】

In early March 1974, the Hong Kong media suddenly reported: Hutchison International (Hutchison International)'s overseas investments, including the United Kingdom, Australia, Southeast Asia and other places, have suffered losses to varying degrees, especially their business in Indonesia. After the oil crisis, more than 100 million Hong Kong dollars in bad debts occurred.

  As soon as the news spread through the media, investors sold a lot of Hutchison International's stocks;

  At its peak in March 1972, Hutchison International had a market value of HK$7.25 billion and a stock price of HK$44 per share;

  Today, Hutchison International’s stock price is only 4 Hong Kong dollars, which is less than one-tenth of its peak;

  Hutchison International has fallen into a serious financial crisis, and rumors about the company’s bankruptcy are flying everywhere.

  Changshi Building.

  Wu Guangyao took the specific information of Hutchison Business and looked at it seriously;

  The more I look at it, the more I feel that Qi Dezun is an individual talent. If it weren’t for the stock market crash and the oil crisis, Hutchison International was afraid that it would surpass Yihe, it would only be a matter of time;

  But it is precisely because of Qi Dezun that Hutchison International has fallen into the current predicament;

  This is the so-called pray for virtue, and pray for virtue if you fail!

  At this time, Hutchison International has a total of 7 listed companies, 285 subsidiaries and associated companies, which can be described as huge;

  The seven listed companies are: Hutchison International, Hebao, Watsons, Hutchison Real Estate, Metro City Real Estate, Junyi Warehouse, and Harbour Engineering.

  In 1954, Qi Dezun became the chairman of the board of directors of Hutchison Holdings. At that time, Hutchison Holdings was just a small foreign company, and Wheelock and Wheelock belonged to a joint venture;

  In 1963, Claudio acquired a controlling stake in a listed company under Wheelock Group—Wanguo Enterprise;

  Afterwards, Claudio acquired all the shares of the unlisted Hutchison Bank through IWC, and changed the name of IWC to ‘Hutchison International’;

  Since then, it is equivalent to giving Hutchison Foreign Bank a shell of a listed company, saying that ‘Hutchison International’ is also a ‘Hutchison Foreign Company’.

  Since the mid-1960s, Hutchison International has entered a new era of rapid expansion;

  Ci De Zun took advantage of some investors' optimism about foreign bank stocks and launched a series of acquisition activities through the issuance of new shares.

  In 1966, Hutchison International successively acquired Watsons, Dehuibao International, and Taihe International, three long-established import and export companies;

  These three firms and Hutchison International form the core of the Hutchison Group’s expansion of import and export trade and wholesale and retail.

  Since then, Hutchison International has stood out from many foreign companies, but Hutchison International has not stopped its expansion;

  In 1969, Hutchison International acquired a 30% stake in the famous Huangpu Dockyard through the issuance of preferred shares to raise 72 million Hong Kong dollars, and obtained control of the Whampoa Dockyard;

  This is a very important milestone in the history of Hutchison’s international development. It laid a solid foundation for the development of Hutchison Whampoa.

  After Hutchison International acquired Whampoa Dockyard, it immediately reorganized the company’s business and started diversified development:

  First, the Whampoa Dockyard built a container terminal in Hung Hom to start the development of the container transportation industry;

  Secondly, Huangpu Dockyard cooperated with Huazi Real Estate Company to establish Metropolis Real Estate Company, which intends to develop the remaining land of Huangpu Dockyard;

  Finally, in 1970, Hutchison International acquired Kwan Yick Co., Ltd., a large warehouse group on Hong Kong Island, through the Whampoa Dockyard.

  Whampoa Dockyard and Kwan Yick Cang, the two companies in Kowloon and the island, both have a large amount of cheap land, making Hutchison International one of the largest landlords in Hong Kong in one fell swoop, ranked only under the Wu family.

  In 1973, Whampoa Dockyard merged the docking (shipbuilding) and ship repairing businesses with Taikoo Dockyard to form United Dockyard Co., Ltd., and invested in the construction of a new dock in Tsing Yi Island;

  Whampoa Dock to strengthen the development of real estate and container transportation industry. Whampoa Dock and Kwan Yicang form Hong Kong International Container Terminals Co., Ltd., which won the Kwai Chung Container Terminal No. 7;

  In addition to the partial equity of Kwai Chung Container No. 6, International Containers became the second largest container terminal operating group in Hong Kong, second only to the 4 Kwai Chung Container Terminals of Global Terminals (acquired the Kwai Chung Container No. 5 owned by a Japanese company).

  In 1970, Hutchison International established Hebao Co., Ltd. and Hutchison Real Estate Co., Ltd. and listed them, which further strengthened the momentum of the Hutchison Group.

  Hebao Co., Ltd., whose main subsidiaries are Dehuibao Foreign Co., Ltd. and Taihe Foreign Co., Ltd., whose business mainly includes: import and export trade, commerce, machinery, automobile sales, construction material supply and so on.

   Putting down the information in his hand, Wu Guangyao fell into thinking;

  Although the family office and all of your subordinates, advise yourself not to think too much, and directly intervene in the acquisition;

  But Wu Guangyao has his own ideas, that is, he does not want to hostile acquisition, let alone make people feel that he intends to target British capital;

  What's more, Qi Dezun is still Wu Guangyao's friend.

  So, it’s best to be able to acquire amicably. If you can’t acquire amicably, put it aside temporarily;

  When Hutchison Group can’t stick to it, Hutchison Foreign Company must belong to Wu Guangyao;

  Even HSBC can't compete with Wu Guangyao.

  But before that, it is necessary to put eye drops on HSBC!

  Hutchison Foreign Company.

  Qidezun was anxious to pace back and forth in the office, thinking about countermeasures.

  Originally, although the share prices of the listed companies under the Hutchison Group have greatly depreciated, the group did not reflect this situation in the accounts;

  Instead, the Hutchison Group intends to sell part of the land, the proceeds from the land sale, and the funds raised by the listing of Metro Real Estate, will be used to maintain the net profit of Hutchison International and for the purpose of dividends;

  Although this strategy is risky, as long as the stock market rebounds, the difficulties of Hutchison Holdings will naturally be passed.

   But now, the situation of Hutchison Holdings has been dug out by the media on Hong Kong Island, and the situation has been exposed all at once;

  Then Hutchison International is very passive!

  The first thing Qi Dezun thought of was to ask HSBC for help. As for Everbright Bank, Qi Dezun had no daring to think about it;

  Because Hutchison Banking has already owed a full 800 million Hong Kong dollars to Everbright Bank, accounting for two-thirds of the entire Hutchison Bank’s debt;

  Everbright Bank is undoubtedly the largest creditor of Hutchison Bank, of which 400 million Hong Kong dollars also used 15% of Hutchison International’s share pledge;

  Cooperate with Hong Kong Island’s sudden exposure of Hutchison Bank’s investment situation, and the entire Hong Kong Island media are stubbornly disfavored by Hutchison Bank;

  Qidezun also understood in his heart that if Wu Guangyao had no idea about Hutchison at this time, he would be too naive!

  If HSBC Foreign Bank can borrow another 200 million Hong Kong dollars so that Hutchison Bank can support it for a period of time, Wu Guangyao may not be able to make a clear bid.

  Acquisitions are generally divided into bona fide acquisitions and hostile acquisitions, and Wu Guangyao has always been good face;

   Therefore, Qi Dezun believes that as long as the company has the help to overcome the difficulties, Wu Guangyao will have no chance.

  Before Clague had approached HSBC, Global Group held a shareholder meeting.

  At the meeting, Wu Guangyao's complexion was not ‘good’ and he didn’t say a word;

  Instead, He Yuanzhang was filled with outrage, took out a pile of documents, and handed them to Sanders and Shen Bi of HSBC.

  Sundus and Shen Bi are in their hearts at this moment. Is Global Group trying to kick HSBC away?

He Yuanzhang said: “As an important shareholder of the Global Group, HSBC should have safeguarded the interests of the Global Group. However, in recent years, HSBC has lent a lot to the shipowners on Hong Kong Island and supported a large shipowner, which has caused the Global Group. An immeasurable loss. As the directors of the Global Group, do you not understand business rules at all?"

  Sundus is okay. Anyway, he is about to retire. Although he still occupies the position of chairman of HSBC, the rights of HSBC have begun to gradually transfer to Shen Bi;

  Shen Bi's face couldn't hold back. He thought that he would be able to call the wind and rain on Hong Kong Island after sitting in the HSBC taipan position, but he did not expect to be scolded today!

  Shen Bi said in a deep voice: “Although HSBC is an important shareholder of Global Group, HSBC is also a commercial bank and loans are our main business.”

Gao Ke quickly retorted: “Although loans are HSBC’s main business, as an important shareholder of a company, the primary responsibility is to ensure that the company’s rights and interests are not infringed. HSBC, as an important shareholder of Global Group, knows the overall layout of Global Group. , I also got some business information from the Global Group; it can be said that HSBC has made large loans to shipping companies over the years, which has harmed the fundamental interests of Global Shipping. As a result, Global Shipping has more and more competitors, which has caused Global Shipping to have to Reduce ships to protect against risks. May I ask the two directors of the Global Group, does HSBC earn dividends from the Global Group while supporting its competitors in the Global Group?"

  Sangdashi and Shen Bi are in a terrible mood at this time, and they are also extremely complicated;

  If Global Group and HSBC have a fallout, even Global Group will take HSBC to court;

  So, can HSBC's shares of Global Group be kept?

  In fact, Wu Guangyao wanted to beat HSBC a lot, especially after Shen Bi came to power;

  For a long time, Global Shipping has brought a lot of dividends to HSBC, and HSBC should not lend to those shipowners in any way;

  Although they did not sign a written contract when buying shares;

  But as a minority shareholder, it harms the interests of the company, then the major shareholder can file a lawsuit or negotiate a settlement to repurchase the minority shareholder’s shares.

  Since 1966, Global Shipping has not built any new ships;

  In 1967, the world's shipping business exploded, and HSBC couldn't bear it, so it arbitrarily borrowed money from other shipowners on Hong Kong Island.

  Wu Guangyao knew the situation at the time, but he did not interfere strongly;

  Because Global Shipping has mastered the initiative, even Japan’s shipbuilding industry has been filled with Global Shipping’s orders and can no longer receive business; not to mention HSBC does not lend, and there are other preferential loans, so why do you directly be a villain.

   But now!

  Wu Guangyao intends to liquidate it!

  Aren’t you Shen Bi very good?

  I have to see for myself, how do you take the move!

  Wu Guangyao played a double-deck strategy, that is, hitting Shen Bi, but also made HSBC not dare to sing against Wu Guangyao on Hutchison Bank.

  You must know that, although the shipping business of Global Group has declined at this time, it is still the world's shipping giant;

  More importantly, Global Group’s container terminals and aviation industries have begun to exert strength.

  So, HSBC is absolutely reluctant to part with the shares of Global Group!

  Sang Dashi glanced at Wu Guangyao, and wanted to find out from Wu Guangyao’s face;

  Is the Universal Group intending to drive HSBC, or is the Universal Group just trying to give its successor, Shen Bi, a disarm?

  The result disappointed Sundarsh. Sundarsh, who has always said that he knows Wu Guangyao very well, still does not know what Wu Guangyao meant at this shareholder meeting today?

   "Mr. Wu, this is the end of the matter. We should still settle the matter through peaceful negotiation, don't you think?" Sundars said.

  At this time, Shen Bi is still stunned, and Sundashi can only seek peace between the two sides by himself!

Wu Guangyao stretched out his pretence and said, "Actually, I should have reminded you! It was also my fault that I missed Jingzhou carelessly; I only saw the global shipping killing all sides, and did not worry that the backyard (Hong Kong Island) would catch fire. Nowadays. On Hong Kong Island, Bao Yugang, Zhao Congyan, Dong Yunhao, the Madden family, the Schyoke family, etc., have a large number of ships; compared with them, Global Shipping has no advantage in price, but the cost is higher than them (high labor wages) ), so much so that businesses are now turning back."

  Sang Dashi and Shen Bi heard it, and suddenly felt that there was some truth;

  Global shipping’s seafarers’ welfare is more than 20% higher than other shipowners’ seafarers, and operating costs have increased significantly;

  In addition, Bao Yugang adopts long-term lease, Dong Yunhao has Taiwan Island as the backing, and Wheelock and Taikoo are British-owned;

  If global shipping is not a high-quality seafarer, it has occupied a high point (to seize the market) at the beginning, it may not have achieved such results in recent years.

  Shen Bi was immediately embarrassed. Various reasons showed that the shareholder of HSBC seemed to have done something sorry for Universal Group;

  If the Universal Group really wants to make trouble, it will definitely win the sympathy of many people;

  Even if HSBC can continue to hold the shares of Global Group, then Global Group can also arrange HSBC outside of Global Group's management; at that time, HSBC may not even be able to enter the Global Building.

  Similarly, HSBC may not be able to supervise how much the Global Group earns and how much dividends it pays!

  Shen Bi replied softly: "This is the end of the matter. I think both of us have made mistakes. If Global Group asks us to refuse to lend to other shipowners, HSBC will definitely comply."

  Shen Bi’s attitude, Wu Guangyao’s face was full of incredible and anger, but in the end he chose not to comment.

  Finally, He Yuanzhang came forward and announced the dissolution of the meeting!

  Sang Dashi and Shen Bi left the Global Building in a panic mood;

  Both know that HSBC must not lose the shares of Global Group, but they cannot afford to be held accountable today;

  If HSBC really assumes this responsibility, will Global Group take the opportunity to let HSBC surrender its shares?

  So, even Sundars thinks that HSBC can only play with the mud!

  After the two left, Wu Guangyao’s face instantly turned into a smiling face, completely different from the black face in front of him;

 It is a pity that He Yuanzhang, Gao Ke, and Wu Xianshuo can't help but think that the boss/father will not be an actor!

  He Yuanzhang smiled and said, “The boss’s trick is a trick with one stone and three birds!”

  Wu Guangyao smiled and asked, “I think it’s two birds with one stone, but you said three birds with one stone. What is the more bird?"

He Yuanzhang said: "The first, naturally, is to teach Shen Bi a good lesson, so that he will be less concerned about the management of the Global Group in the future! The second is naturally beneficial to the boss's recent acquisition, so that HSBC dare not be here. The above stuck our necks. Thirdly, the last time Global Shipping leased vessels to the'Glory Family Office' on a large scale, it affected some operations. HSBC Bank has been quite complaining recently, and I believe there will be no more complaints."

  Wu Guangyao nodded, He Yuanzhang’s analysis is very reasonable!

   "You haven't said a little!"

  "Boss, please advise!"

  "Global Shipping has decided to reduce its ships significantly. In the future, HSBC will have to carry more than half of this pot!"

   "Haha, what the boss said! As long as we spread a little bit of public opinion, the Hong Kong Island business community will know that HSBC's behavior is unethical; then, the reduction in global shipping business is afraid to blame them."

  Wu Guangyao’s behavior today is exactly the same as that of Macau’s He Hongsheng cleaning up Ye Han;

In order to remove Ye Han from the Macau Entertainment Company, He Hongsheng first turned a blind eye to Ye Han’s dog racing outside, and finally used Ye Han as a shareholder of Macau Entertainment, but used Macau Entertainment to engage in another gambling business outside, infringing on the company’s interests. Because of this, Ye Han can't step into the casino directly;

  Finally, He Hongsheng directly asked Ye Han to sell the shares to Zheng Yutong;

  At this point, He Hongsheng has completely mastered Australian Entertainment!

  (End of this chapter)