Hong Kong shipping king Pao Yugang acquired Wharf, a British-funded consortium. The price per share soared from 23 Hong Kong dollars to 78 Hong Kong dollars, reaching a high of 105 Hong Kong dollars, and finally included Wharf.
Large-scale mergers and acquisitions in the world all have premiums of varying degrees. Classic large-scale mergers and acquisitions such as HSBC are special cases under special circumstances at a special time. They achieve perfect victory at the minimum cost and cannot be copied at all.
one;
The biggest competitors in the merger and acquisition of HSBC are the second largest shareholder BlackRock Group and the third largest shareholder Cleveland Consortium, which are also the biggest obstacles.
It is a pity that these two companies have been crippled in previous merger and acquisition wars, almost losing half of their lives.
At first, it could only let the Royal Fund sweep away huge profits, but this time it came back with a vengeance. BlackRock Group was already completely covered by the financial crisis and had no power to resist. It surrendered obediently.
The assets of the Cleveland Consortium have been depreciated by more than one billion U.S. dollars. They are no longer as brave as they used to be and are now scared.
Without these white knights driving up prices, the second round of anti-merger wars would naturally not be fought, and those who were prepared to make false claims and fish in troubled waters would also stop making noise.
This shows how powerful it is to take a peek at the cards. This cross-border merger and acquisition alone saved tens of billions of dollars.
Second;
Amid the raging financial turmoil in Southeast Asia, the Hong Kong Stock Exchange and the London Stock Exchange are in dismal condition. The originally stubborn HSBC stock chips have been loosened, and there is a desire to take advantage of the situation.
With the cooperation of the world economic situation, it is time for things to fall into place.
Second;
The merger and acquisition strategy is particularly exciting and can be described as a classic.
Especially the Royal Family Fund announcement;
After reaching the 51% absolute shareholding line, launching the formal privatization process is simply an extraordinary move, establishing the entire perfect ending process in one fell swoop.
This move disrupted the confidence of small and medium-sized shareholders, including large shareholders, in holding shares, and they fled their funds one after another to withdraw cash flow.
Generally speaking, a 35% premium cannot impress long-term holders at all, because that is not what they value at all.
The problem is;
Royal Family Fund has not promised to pay regular dividends after privatization. It does not rule out the exchange of interests between affiliated companies, or the interception of profits. It violates credit policies and loans to companies under the consortium, resulting in huge bad debt provisions for banks...
There are so many unpredictable risks that no one dares to gamble without a large amount of money!
Even if Wang Yaocheng comes out and says;
"It doesn't matter...my character is guaranteed! Don't worry, everyone!"
With tens of billions of large capital investments, no one really dares to bet on this. It is wisest to cash out and take the loss.
If it had not launched the killer move of privatization, HSBC optimistically estimates that it would not have collected more than 55% of the chips, and any more would be limited.
because
Most long-term holders place their hope in Royal Family Fund, a powerful controlling shareholder and excellent management capabilities, which can bring a completely different new look to HSBC.
All large, medium and small shareholders are supervisors, closely watching the business operations, and it is not easy to do anything useful.
Relying on the powerful royal family consortium, HSBC's future business prospects are bright.
Hong Kong's top tycoons, the BlackRock Group and the Cleveland Consortium, as well as large and small financial funds and pension funds will not sell out their HSBC shares.
Now, don't say anything, it's all tears!
The news of the merger reached the New York Stock Exchange, and BlackRock Group's stock plunged another 31.6%, which frightened shareholders big and small.
Why?
BlackRock Group's original huge loss of US dollars on its books has been confirmed and turned into an actual deficit. The total amount is as high as more than 2 billion US dollars. It will create an ugly black hole of losses in BlackRock Group's 1998 annual report. There was still a little hope.
Dissipate completely.
The market's reaction to this was to vote with its feet, trampling BlackRock's stock hard under its feet.
two days later
Mr. Toler, the former chairman of BlackRock Group, resigned. Senior partner Lawrence was elected as the new chairman. Mr. Nowell served as president and helped his predecessor clean up the mess. It was also a piece of cake.
1998, February 28.
At the HSBC board meeting held in advance, Wang Yaocheng, the world's richest man, was elected chairman of the board of directors without any surprise, and Mr. Mo Yuxuan was elected chief executive director and president, responsible for the overall operations of HSBC.
Shi Xueyi was elected chairman of the supervisory board. As the most loyal brother, it is appropriate to be placed in this position.
Du Bo and senior bankers Qi Yaonian, Miao Sicheng and Shao Weixin were elected as executive directors, holding 13 of the 14 seats on the board of directors.
The three executive directors, Qi Yaonian, Miao Sicheng and Shaw Wilson, are all veterans of HSBC, with more than 20 to 30 years of experience in the industry. Since joining the company, they have been working hard at HSBC for decades.
From employees at the bottom to the top, after the Royal Family Fund took over and became the largest shareholder, these people wisely joined the company. They had cooperated many times in large-scale credit before and could be regarded as their own.
The last board seat belongs to Mr. Fan Sining, a senior partner at Morgan Stanley. He holds 3.24% of HSBC's shares and is the second largest shareholder.
Wang Yaocheng smiled and said, "Mr. Fan Sining, you hide it well enough."
Mr. Fan Sining said to Wang Yaocheng;
"According to my rich investment experience, it doesn't matter which company to invest in, the key is to invest in the right person. At this point, Mr. Jobs and I have reached the same goal by different paths. He is also a very good friend of mine and we often talk about it in private gatherings.
I am very optimistic about you, the boss king, and I believe you will not disappoint me."
"I don't have the confidence to say this. Otherwise... I'll cash it in for you."
"Don't even think about it."
"This is more or less the same. Don't worry, Mr. Fan Sining. You will find that this is a very good deal. If he is not a good friend, I won't tell him, let alone play with him."
"Boss King, then I should thank you!"
"A must."
The two laughed heartily. Before Yahoo went public, they had cooperated with Mr. Fan Sining on many occasions. Such a multinational investment bank had given a lot of help to the Wang Fund's merger and acquisition plan, so it was self-evident that they had a good relationship.
Celebration cocktail party
Wang Yaocheng saw Mr. Mo Yuxuan with a springy face, his face glowed as if he were ten years younger, and he was as high-spirited as a spring breeze.
"Boss, choosing to follow you is the most correct decision in my life and the decision I am most proud of in my career."
"Brother Yuxuan, how many years have we been working together?"
"It has been seven years. Looking back, I can't believe it. A world-class consortium has gradually taken shape in our hands. It all seems like a dream."
Mr. Mo Yuxuan was very emotional today; "Thank you, boss, for giving me the opportunity to stand at the center of the world stage and realize the highest ideal of a professional person I dream of. I will definitely work diligently and never let down the trust of boss."
Wang Yaocheng nodded approvingly; "I believe you, Brother Yuxuan, past achievements have become a thing of the past. Let us start again this time and see how big the world is? How far can we go?"
"Boss, I will closely follow your guidance and accompany you to glory."
"This is our common glory and will surely remain in the annals of history."
"Yuxuan never doubted this."
Mo Yuxuan's eyes seemed to be flashing with tears of excitement, and his heart was surging at this moment.
For a professional manager, now that he has reached the pinnacle of his career and personally controls a Fortune 500 company, it is an invisible honor and the highest affirmation of his career.
Wang Yaocheng really trusts Mo Yuxuan from the bottom of his heart. Otherwise, he would not be allowed to take the helm of HSBC, the core financial institution of the Wang Group. This position is too important.
Since the reform of the consortium last year, the companies under the original Hong Kong Pacific Holdings have been upgraded one after another and have been transferred directly to Royal Family Fund, implementing flat management of the consortium.
The Pacific Appliances Department Store chain was merged into the Yellow River Technology Group, and the Green Group was upgraded. Yangtze Technology Group and Cathay Pacific were directly affiliated. Its heavyweight companies left Pacific Holdings one after another, and their rights were greatly reduced.
President Mo Yuxuan has no complaints about this.
He is still working hard to lead the supermarket chain Carrefour, Pacific Computer Company, Hong Kong and Shanghai Hotels, HAECO and Swire Holdings, three listed companies in Hong Kong, and later Miramar Hotels Co., Ltd., and do their job with all their heart.
There is never love for no reason in this world. It builds up to trust bit by bit, all thanks to Mo Yuxuan's dedicated spirit.
It demonstrates the steady and dedicated character of a highly qualified professional manager, which is very rare.
There is no need to talk about loyalty, that thing does not exist at all.
in business
The only reliable link is interest. Cutting-edge talents need a stage to display their talents. If we can provide all this, we can recruit enough outstanding talents.
President Mo Yuxuan holds a PhD in Business Administration from Stanford University, has 12 years of working experience in a top international accounting firm, is an internationally high-level actuary, and has six years of administrative management experience in Goldman Sachs.
Since joining the Wang Group, he has served as a senior manager of a multinational company for 7 years and has accumulated rich experience in corporate operation and management. He is the best candidate for the president of HSBC Bank.
The position of president of Pacific Company is held by Yu Chengde, the "failing god" of the Hong Kong Stock Exchange who has performed well.
As a leader among thousands of "sea-crossers", the first director of the Secretariat, and a close subordinate trained by Wang Yaocheng himself, Yu Chengde is fully qualified for this position, and he has proven this with his excellent work ability.
The position of Pacific Company's vice president in Hong Kong was taken over by Wilkinson, the former deputy director of the Family Trust Fund Management Department of the Royal Family Fund.
He is the deputy to Director Du Bo. He has proven his outstanding ability, trustworthy character and high level of professional ethics in the battle to land at Taikoo on Hong Kong Island and the three-year merger battle of HSBC Bank.
Wang's Consortium has gone through ups and downs over the years and has formed a stable talent training echelon.
In the new round of expansion, there is no need to worry about the lack of talents, and we have enough confidence to face everything.
at this point
Chambers, the world's best manager, has done the best job. The presidents of the dozens of companies he has merged and acquired can always find suitable positions and play their best roles.
Integrating acquired companies into the Cisco system, using patented products to enrich product lines, and accelerating the market share of network equipment, its outstanding performance has attracted a lot of attention and has become one of the few bright spots in the 98 financial industry.
Just like a cone inserted into a bag, its benefits appear on their own.