Whampoa

Author: Mahjong Jun

Whampoa

Tsim Sha Tsui, Miramar Hotel.

"I have to say that Shen Bi's investment in Li Chaoren is very bold, and it will definitely reap rich rewards."

In the room, after a day's work, Zhao Wenmu slumped down on the sofa and told Zhao Jingxian about the fact that Li Chaoren would swallow Hutchison Whampoa.

However, he took these things that had not happened yet and told them to Zhao Jing as his predictions.

"Hutchison Whampoa has assets of more than 6 billion and Cheung Kong Holdings only has 700 million. Can Li Chaoren really swallow each other up?"

Zhao Jing still couldn't believe it.

Hutchison Whampoa Group, as its name suggests, actually has two major components, Hutchison Matheson and Whampoa Dockyard.

It was the largest listed company controlled by the top ten chaebols in Hong Kong at this time.

Hutchison & Co. is the second largest foreign company on Hong Kong Island, mainly engaged in Indian cotton, British cotton and woolen fabrics, mainland tea import and export trade and Hong Kong retail industry.

Huangpu Dockyard, Taikoo Dockyard and Naval Dockyard are known as the three major dockyards in Hong Kong. They have the ability to build and repair 10,000-ton ships, and operate dock warehousing industry.

After World War II, Hutchison & Co. fell into the hands of one of the four major British-owned families in Hong Kong, the Davidson family.

Qi Dezun identified the general industry trend of Hong Kong's large population but limited land, and the real estate industry was bound to flourish. He closed the wharf and dock on the east side of the Kowloon Peninsula, moved the ship repair business to Tsing Yi Island, and transferred all other warehouse wharves to Kwai Chung.

In this way, a lot of land will be freed up.

And most of them are located in prime locations.

So next, Qi Dezun overhauled civil engineering and focused on developing the real estate business.

He had a huge appetite and acquired more than 360 companies in a short period of time, a large number of which were located overseas.

People at the time commented that he had "sharp teeth" and a "voracious appetite", referring to his massive expansion and blossoming everywhere.

However, although he has a good appetite, he suffers from indigestion.

A large number of acquired companies performed poorly and required blood transfusions for a long time to survive.

Fortunately, during those years, the Hong Kong stock market was very popular, and Qi Dezun made a lot of money from the stock market, which was able to temporarily fill this huge financial burden.

But good luck always comes to an end.

The Hong Kong stock market crash in 1973 was followed by the world oil crisis, followed by a major decline in the real estate industry in Hong Kong.

A series of blows fell precisely on the heart of Hutchison Group.

Hutchison, which was already overburdened, completely collapsed.

At this moment, white knight HSBC came to the rescue.

In August 1975, HSBC injected HK$150 million to acquire 33.65% of Hutchison Bank's equity and became its largest shareholder.

At the same time, Whampoa Company was divested from Hutchison Group.

In September 1977, Hutchison merged with Whampoa again and was reorganized into "Hutchison Whampoa (Group) Co., Ltd.". However, because the group had suffered huge losses before, even with the excellent professional manager Wei Li presiding over the business, it could not be allowed to grow. Regain the glory of the past.

"HSBC has great willingness to divest Hutchison Whampoa, and I believe Shen Bi's asking price will not be too high."

Zhao Wenmu kissed Zhao Jing's forehead and then said:

"The Hong Kong Company Law stipulates that banks cannot engage in non-financial businesses. Creditor banks can temporarily take over companies that have lost their ability to repay debts."

"This is Hutchison Whampoa's current situation. Once its operations return to normal, HSBC must hand over its control."

Although Hutchison Whampoa's current profitability is average, it can be said to be operating normally.

Therefore, HSBC is willing to transfer control of Hutchison Whampoa.

"But HSBC is also unwilling to do so. Hutchison Whampoa has excellent assets but poor management. As long as it is well managed, its value will be far greater than it is now. Therefore, HSBC's intention to sell Hutchison Whampoa is not to sell shares for arbitrage, but to hand over control.

After obtaining the rights, Hutchison Whampoa will be able to operate well."

"In this way, the remaining equity in HSBC's hands can achieve maximum value."

HSBC did a good job in handing Hutchison Whampoa into the hands of Li Chaoren. Not only did HSBC get rid of this burden and avoid legal risks, it could also retain a large number of Hutchison Whampoa preferred shares after Li Chaoren "rescued" Hutchison Whampoa.

It will also bring large dividends to HSBC.

So HSBC actually has only one appeal:

The receiver can run Hutchison Whampoa very well.

There is no doubt that Li Chaoren is an excellent choice.

What's more, Rong Renyi came forward as a guarantee.

This was indeed the case. Soon after, Li Chaoren reached an agreement with HSBC.

Li Chaoren bought 90 million shares of Hutchison Whampoa at a price of more than 7 yuan per share, holding a 20% shareholding and becoming its largest shareholder.

Then he was successfully elected as the chairman of the board of directors of Hutchison Whampoa Co., Ltd., becoming the first Chinese Taipan in Hong Kong to take over a British-owned company.

Rong Renyi does not have this honor.

Because Rongren only took over Wharf, and Wharf was just an arm of Jardine Matheson.

The price of the Hutchison Whampoa shares sold to Li Chaoren by HSBC was only about half of the market price, and they agreed to a temporary payment of 20% in cash.

The remaining funds can be paid in installments.

The conditions are not unfavorable!

Of course, HSBC’s initial investment cost was only about RMB 1, and the actual profit was still very substantial.

After that, Hutchison Whampoa prospered under the management of Li Chaoren. In just a few years, Hutchison Whampoa's profits increased by more than ten times, and HSBC gained great benefits.

Li Chaoren truly became Shen Bi's Rong Renyi.

Two big bosses, Rong and Li, both entered large British-funded companies, attracting widespread attention from the international media.

The beautiful country's "Newsweek" said in a news review: "Li Chaoren became the chairman of Hutchison Whampoa. This is the first Chinese to serve as a major trading house in Hong Kong. As investors in Hong Kong said, he will not be

The only one."

The British "Times" analyzed: "This makes British-owned companies in Hong Kong feel nervous."

"Since World War II, especially in the 1960s and 1970s, the economic power of the Chinese has grown rapidly. With the powerful backing of China, these upstart Chinese businessmen have become even more powerful. Only then do they dare to openly compete with British businessmen in shopping malls to obtain the benefits that originally belonged to British businessmen.

Economic interests made the British businessmen in Xiangjiang extremely uneasy. All British businessmen lamented the changes in the world."

This article attempts to attribute the success of Chinese businessmen to the development and changes of the times, but does not reflect on why British businessmen gradually declined. It reveals the arrogance and prejudice of the "British Empire" at every turn.

However, whether they admit it or not, whether they are willing to do so or not, the trend of the times is moving forward unstoppably.

The rise of Chinese businessmen in Hong Kong is an inevitable trend.

The rapid development of the mainland has accelerated this process.

The general trend of the world, those who follow it will prosper, and those who go against it will perish.

Or it can be said that the behavior of heaven is constant, and it will not exist because of Yao, nor will it perish because of Jie.

As an ordinary person in this era, the most important thing is to adapt to the development of the times and take advantage of the trend.

Standing hand in hand in front of the huge floor-to-ceiling windows, looking at the bustling city with lights and lights outside, Zhao Jing murmured:

"It's so beautiful!"

"Yes, it's so beautiful."

Zhao Jing scratched his palm.

The wind blows slowly and the night whispers softly.

The place is bustling.
Chapter completed!