February 15, 1998, a very good day, the first day after the romantic Valentine's Day in the West.
The Hong Kong Stock Exchange opened, and a shocking news came out.
HSBC issued a trading suspension announcement;
The largest shareholder, Royal Fund, paid a premium of 35% and issued an acquisition invitation to all HSBC shareholders. The equity registration dates were February 15, 16, and 17, a total of three days.
During these three days, HSBC was temporarily suspended from trading.
Announcement,
The largest shareholder, Royal Family Fund, claims to already hold 36.2% of the shares. If this acquisition reaches the 51% absolute control line, it will officially start the delisting and privatization process of HSBC Bank and carry out comprehensive privatization.
This official statement caused an uproar throughout the Stock Exchange, and everyone was shocked and had different opinions.
"Is there anything wrong? HSBC is so big that it can be delisted."
"The leader of large-cap blue-chip stocks with more than 100 billion yuan will delist if he says it will be delisted. The God of Wealth is so courageous. He really has gold and silver in his family!"
"More than just gold and silver, the King of Fortune acquired Hynix in South Korea last month. He also spent tens of billions of Hong Kong dollars on it. It is said that the market value of his Atlantic Business Machines Company is in the trillions. Some authoritative financial experts have analyzed that it may start a private company."
Chemicalization process, how much do you think it will cost?”
"Wow...I can't figure it out."
"The four richest families in Hong Kong can only follow behind and eat their shit! Even the hair on their legs is thicker than their waists."
"The richest man in the world? The richest tycoon in the world. His subordinates are all the world's business elites. My eldest cousin works under him."
The fat trader's words attracted everyone's attention, and everyone gathered around and said with interest;
"Hey, brother Ah Shui, please introduce it to us!"
"I also want to work under a big boss. There is no one in the world with thicker legs than the God of Wealth. I have been working in a securities firm for 17 years and I also graduated from a prestigious school."
Ah Shui saw a sentence that caused a stir among everyone. Their eyes showed endless longing. They knew that the matter was serious and it would be bad if they didn't tell the truth; "Everyone, my eldest cousin is not working in Hong Kong.
Can't be contacted now."
"What are you bragging about?"
"Really, my eldest cousin works as a middle-level manager at Yangtze River Technology Group in Atlantic Science and Technology Park in Shenzhen. The salary is quite good. He brought my eldest cousin's whole family to Shenzhen and even asked me to go through the border gate to play.
"
"cut……"
"The God of Wealth King has more than one million employees, and there are not only 30,000 but also 20,000 people in middle management. Who knows what kind of god your eldest cousin is? There is no end to this bullshit."
"Bujie... made me excited for a while. I originally thought it was a hidden sweeping monk, a big guy, but I didn't expect it to be a passerby, an extra with no lines. He's quite bad."
A group of traders booed and left in all directions with arrogant expressions.
Shocking news came from the Hong Kong Stock Exchange and quickly spread among Hong Kong's wealthy circles. Many top tycoons could no longer sit still. They contacted each other frequently in private and wondered what their plans were.
If the Royal Family Fund succeeds in this acquisition and reaches the 51% absolute control line, it will be equivalent to a slap in the face.
I have offended the royal family fund before, what are the consequences?
Judging from the Royal Family Fund's entry into the market at the end of 1997, Wang Yaocheng is definitely not a broad-minded person. His target is vaguely targeting the three richest families in Hong Kong. He has purchased stocks of each other's flagship companies, which has threatened the family's controlling rights.
In particular, the Wu family, the son-in-law of the shipping king, suffered from a comprehensive attack on its eight listed companies and was devastated.
Since Wang Yaocheng landed on Hong Kong Island, he has been merciless to his opponents, sweeping them away like the autumn wind sweeping away fallen leaves.
Except for Miramar Hotel shares, the others are not fully controlled yet.
Judging from this point alone, it seems that there is still a little bit of enthusiasm left, and things have not been completely completed.
There is not much time left for the three wealthy families in Xiangjiang. They must make decisions as soon as possible. Under this thunderous offensive, the offensive and defensive alliance of the wealthy circles in Xiangjiang is facing a breakdown.
Whether it is war or peace, a decision must be made as soon as possible.
Originally, the HSBC stock held in the hand as a bargaining chip had completely lost its aura. It no longer became a key part of this world-famous acquisition and no longer had the ability to bargain.
Is there still value in carrying it hard?
While being shocked by the rich financial resources of the Royal Family Fund, Hong Kong's wealthy circles must seriously consider whether the other party will target them and whether they can bear it.
If you don't drink a toast or drink as a fine, the consequences will not be good.
They are all veterans who have been in the business world for a long time. When disaster strikes, it is the intention of the question to fly separately. Don't place your hopes on colleagues in the business world to survive to the end. It is really harder than a man giving birth to a child.
Subsequently, the London Stock Exchange, which opened more than ten hours later, simultaneously issued a trading suspension announcement for HSBC, causing another uproar.
February 16
The Hong Kong Stock Exchange issued another announcement from HSBC;
After equity registration confirmation, the largest shareholder Royal Fund’s holdings of HSBC shares increased to 41.72%.
Subsequently, the London Stock Exchange issued another announcement from HSBC;
After equity registration confirmation, the largest shareholder Royal Fund’s holdings of HSBC shares increased to 48.55%.
The acquisition conditions with a premium of 35% are very favorable, which is especially valuable under the current harsh market conditions. Many small investors can't help but take action, and small and medium-sized funds have also taken action to cash out.
In just one day, Royal Fund's holdings of HSBC shares jumped from 36.2% to 48.55%, an increase of 12.35%, and it was only one step away from absolute control.
This move caused Hong Kong stocks to rise across the board, marking a long-awaited upward trend.
The so-called financial crisis...is a lack of money.
The stock market, foreign exchange market and bond market were unable to maintain their original high valuations and experienced varying degrees of decline.
This big move by Royal Fund is equivalent to releasing a large amount of funds in the market, which is undoubtedly real good news.
After the original HSBC shareholders cashed in, many people would switch to investing in their favorite stocks, or buy other stocks at the bottom, and would not completely withdraw from the market, which brought additional capital supply to the market.
The specific amount of funds that can be released is not discussed for the time being. The key is to rebuild market confidence.
The Royal Fund's move at this time means that it is still optimistic about the future of Xiangjiang. This is very important and has a guiding role like a wind vane.
at the same time
The confidence of the original major shareholders of HSBC collapsed in one day, and with two days of equity registration days left, the royal family fund’s entry into HSBC was unstoppable.
Royal Fund's holdings of HSBC shares have increased to 48.55%, leaving it with only a measly 2.45% stake away from the 51% absolute holding line that initiated delisting and privatization.
to this day
No matter how stupid you are, you understand that the privatization and delisting of HSBC Bank is inevitable. If you want to liquidate the equity you hold, the two days left to register the equity are your last chance.
All equity registration points and HSBC Bank branches all over Hong Kong Island are crowded with investors, and there are even long queues. It is even more lively than the annual discount promotion season.
Massive amounts of information are continuously transmitted to the Lingxiao Pavilion on the top of Taiping Mountain, located at the combat headquarters on the second floor.
Hundreds of computers are working intensively, and the sound of keyboard typing converges into a river, creating a busy scene.
Within the headquarters
"Reporting to the commander, as of 11 a.m., the latest data reached 54.5%."
"Reporting to the commander, as of 2 p.m., the latest data reached 59.12%."
"Reporting to the commander, as of 3 p.m., the latest data reached 63.04%."
The final data was fixed at 64.41% holding, and Royal Fund won a resounding victory, completely settling the acquisition battle of HSBC.
This is not surprising;
Large equity registrations appeared from time to time in the equity registration on February 16. Each case was a large sum of more than 0.5% of the equity, and the amount ranged from hundreds of millions to billions. It was obviously not the work of small and medium shareholders.
It can be seen that all major and small market makers in the Hong Kong stock market have withdrawn, including those in the top wealthy circles, who have also begun to cash out.
For them, once HSBC completes the privatization process, it is not known whether it will be listed again, maybe five years, maybe ten years or more.
During this period, there are too many variables.
For every wealthy family, such a huge amount of money is not small money, and of course they will not bet on such a small probability.
Dividends and dividends of the privatized HSBC bank all depend on the wishes of the major shareholders. Even the company's operating data are confidential, there is no supervision at all, and it is impossible to realize them at any time. Getting out is the best and inevitable choice.
February 16
After the London Stock Exchange opened more than ten hours apart, the same scene happened again.
Many stubborn British and American pension funds took action one after another, were completely knocked out, and hurriedly cashed out. Privatization is the biggest killer move, and there is no one.
Generally speaking, institutions that are not strong in strength cannot use this trick, as it is too costly.
Finally, the three-day equity registration date ends.
As of February 17, the London Stock Exchange is closed.
The Royal Family Fund holds a total of 91.26% of HSBC's equity. Among them, the second largest shareholder BlackRock Group and the third largest shareholder Cleveland Consortium all paid their losses and sold out their huge stakes.
So, who owns the remaining 8.74% of shares?
Wang Yaocheng doesn't care about this, and he doesn't need to bother guessing. After the privatization process is started, the registration of this part of the equity will be frozen, and the truth will naturally come to light by then.
It cannot be ruled out that over the past 100 years, zombie stocks and stocks locked in safes have accumulated in history. Behind each case are interesting secrets. It would be a good movie subject if you are interested in sorting it out.
Calculated based on the closing price of HSBC Bank on August 14: 7.612 billion pounds;
The premium of 35% is 10.2762 billion pounds, and the Royal Family Fund's equity holdings increased from 36.2% to 91.26%, spending a total of 5.658 billion pounds, approximately US$8.8888 billion (HK$69.3 billion).
The acquisition of Hynix and subsequent huge capital arrangements, plus the HSBC merger, cost a total of US$15.368 billion. In addition to the previous sweeps of goods on the Hong Kong Stock Exchange, a total of US$4.72 billion was consumed. All added up.
It has exceeded 20 billion U.S. dollars, and more than half of the huge 40 billion U.S. dollars originally saved have been consumed.
Is it worth spending such a huge sum of money to pay a 35% premium?