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Chapter 191192 [Mobilization of the whole department]

In the afternoon, Lin Zuhui came to Cathay City's office again.

Cathay City is a subsidiary of New Era Real Estate and the flagship hotel management company of New Era Real Estate.

At this time, there are four listed companies in the New Era Real Estate Group. New Era Real Estate controls Chinese Real Estate and Cathay City, both holding 49% of the shares; Chinese Real Estate controls China Entertainment, also holding 49% of the shares.

The stock price of Cathay City has been rising rapidly, and its market value has exceeded 500 million yuan. This is before the results of asset restructuring have been announced. For outside investors, they only know two things:

First, New Era Real Estate’s investment in Cathay Real Estate will definitely lead to a successful asset reorganization. This is due to its pursuit of Lin Zuhui;

Second, Cathay Real Estate's purchase of Hong Kee Building shows that the company has great potential and can also purchase office buildings in Central.

With these two pieces of useful information alone, Cathay City's market value soared from 130 million to 500 million.

Of course, in the past two months, the general environment of the Xiangjiang securities market has been good and the growth rate has been gratifying. This is an external factor.

Lin Zuhui called General Manager Lu Donglai and arranged: "Next week, Cathay City will raise funds for a rights issue, offering 3 shares for every 5 shares!"

Lu Donglai was surprised when he heard that the rights issue ratio was very high!

"Then should we release some news on the progress of asset restructuring to boost investors' confidence?"

After hearing this suggestion, Lin Zuhui took it seriously and said: "Well, release the revaluation asset report to the market and inform Cathay City of its intention to enter the hotel field."

Lu Donglai nodded, and then said: "The amount of this rights issue is huge, where is the funding from New Era Real Estate?"

Lin Zuhui said with a smile: "It's enough, isn't it 150 million! By the way, Cathay City's first rights issue, you invite Liang Botao as a consultant, this will go more smoothly!"

As far as the current situation is concerned, that is, New Era Real Estate does not need external consultants to raise funds through rights issues, and Liang Zhenxun is competent enough.

However, Yang Zhenxun is a busy man, so it would be better to hire an external consultant.

"Okay, I'll make arrangements!"

Cathay City has raised RMB 300 million this time. Lin Zuhui plans to go to She Tun Xiang and use the principle of "leveraged buyout" to acquire a high-quality hotel listed company.

For him, he is not afraid of Cathay City's high debt. He can make some money by speculating on futures contracts next year;

Then they sold some stocks of listed hotel companies before the '87 stock market crash', and then bought them back after the stock market crash.

In this way, there will be hundreds of millions of non-recurring profits, so why worry about the debt not being reduced!

Moreover, if one or two rights issues were raised before the stock market crash, the money would be there.

Rights issues do not require the payment of interest, and only require a small amount of dividends to be paid to shareholders, or even scrip dividends, which is quite cost-effective.

However, in this way, the burden of the group is concentrated on New Era Real Estate. As the parent company of Cathay City and Chinese Real Estate, it holds 49% of the shares, which is equivalent to raising funds through rights issues of two of its companies.

Real estate companies require half of the rights issue to ensure that the shareholding is not diluted.

This is also the reason why Lin Zuhui does not directly control several companies. He personally cannot afford rights issues in these companies.

.....

Back to New Era Real Estate.

Lin Zuhui called Liang Zhenxun and informed him about Cathay City's rights issue to raise funds.

Liang Zhenxun thought for a while and said: "New Era Real Estate still has 80 million in cash flow on its books, but we can borrow 150 million in rights issues. At present, our debt has been reduced to 1.35 billion, and the company's net assets have reached as high as

3.8 billion, we can definitely borrow another loan of 200 million."

He is not afraid of too much debt now. In the words of his boss, the debt ratio is something to consider next year, and he will only focus on development this year.

Lin Zuhui said: "The industrial plants invested in have been sold since mid-November; as for blue-chip stocks, the Hang Seng Index will be closed when it reaches 2,400 points, which should be the same as the end of November and the beginning of December."

Liang Zhenxun was shocked when he heard this. Why is this boss so confident about the trend of the stock market?

"At present, our blue chip stocks have made a profit of 160 million. If we follow the boss's analysis, there is no problem in making a profit of 200 million. A single investment in blue chips alone can bring back 300 million (margin of 20%, 100 million). If we add the industrial

The factory’s repatriated funds are 250 million, and the company will make a profit of 550 million from these two investments by the end of the year.”

Looking at Liang Zhenxun's confident expression, Lin Zuhui struck: "At the end of the year and early next year, Chinese Real Estate is expected to raise 1 billion in rights issues. According to the shareholding ratio, New Era Real Estate will ask for 500 million in rights issues! Cathay City will also have to raise funds through a rights issue.

, Generally speaking, New Era Real Estate needs a total rights issue of 800 million before the beginning of next year!"

When Liang Zhenxun heard this, he was not surprised. There were many listed companies on the market that raised funds through rights issues, and his own boss was not a traditional operator, so he would not miss it.

"New Era Real Estate can also raise funds through rights issues, it depends on what you want, boss!" Liang Zhenxun said cautiously.

If your boss doesn't have enough money, wouldn't it dilute his shares?

Lin Zuhui nodded and said: "New Era Real Estate should also raise funds early next year. Based on the market value of 4 billion, it should be no problem to raise 400 million from the rights issue. All the proceeds will be used to purchase land and old buildings!"

Both Cathay City and Chinese Land are divided into two rights issues - the end of this year and the beginning of next year. This way, the time is completely sufficient.

Liang Zhenxun was shocked. He thought that the funds raised from the rights issue of New Era Real Estate were used for the rights issue of the subsidiary. Unexpectedly, the boss made a big move and went to buy land again.

But he also understood that the withdrawal of industrial plants and blue-chip stocks was 550 million, and now he borrowed another 200 million in debt, plus the 80 million on the account, which is exactly 800 million!

Moreover, the company has been selling properties, and the funds are being withdrawn quickly!

The boss's abacus was very precise and his timing was accurate. Liang Zhenxun admired him deeply.

Finally, Lin Zuhui thought for a moment and then said: "The borrowing of 200 million, plus the cash of 80 million, means that after we raise funds through the rights issue, we still have 130 million in cash flow to drive. In this way, you spend 100 million to buy futures contracts,

Closing the deal this week!”

Look, the boss is too shrewd in his calculations and is unwilling to let funds idle at all, Liang Zhenxun thought to himself.

"Okay, I'll do it right away!"

Lin Zuhui nodded and said: "I will handle the loan matter and it must be completed this week!"

He is not worried that banks will not lend money. The New Era Real Estate Department is a hot commodity for bankers. Regardless of the high debt, those bankers are willing to lend heavily just because of Lin Zuhui's face.

This is when one's ability and credibility are recognized!

This time New Era Real Estate invested in futures contracts again, and Lin Zuhui also formulated the strategy based on the actual situation. Currently, the daily trading volume of futures contracts has once again increased, with 15,000 contracts traded every day, and the margin is more than 300 million.

If the market is large enough, investment can be increased. This is Lin Zuhui's strategy.

Of course, if you buy a contract now, you will probably earn a little over 10,000 per contract when it is settled at the end of December; and now the margin for a contract is already 23,000, which is equivalent to more than 40% of the profit in more than two months.

profit.

Still very cost-effective!

...

Lin Zuhui finally came to Chinese Real Estate. At this time, it was like the final mobilization stage of a battle. Lin Zuhui wanted his companies to start a new round of development at the end of the year, so he had to ensure that each company had enough bullets.

The development of Chinese Real Estate will be a leap-forward development, with its strength skyrocketing several times. In addition to the backing of New Era Real Estate (funding through rights issues), it will also gain huge profits from its own investments.

First of all, with an original capital of 200 million and five times leverage, a total of 1 billion worth of blue chip stocks were invested. It is expected to make a profit of 400 million yuan and withdraw 600 million yuan by the end of the year;

Secondly, for 7,500 December futures contracts, the buying point is only 2,000 points, and it is expected to be 2,500 points by the end of the year. Each contract has a net profit of 25,000, which is a net profit of 180 million, and the capital withdrawn is 330 million.

Finally, Lin Zuhui also plans to cash out his 18% stake in Hong Kong and Macau Development; the current market value of Hong Kong and Macau Development is 270 million, and it looks like he can make a profit of 50 million by cashing out.

Lin Zuhui made 1 billion for this company in one year!

In addition to these assets, Chinese Real Estate has property assets of 950 million, securities investments of 350 million (including China Entertainment Shares), and liabilities of 450 million.

The current market value of Chinese Real Estate is 1.5 billion, which is not high, but is greatly underestimated; after all, with the golden name of Lin Zuhui, the general market value will increase by 30%.

The reason for the low market value is that the outside world does not know much about Chinese Land’s blue-chip investment and futures contract investment.

Calling General Manager Gao Yi, Lin Zuhui said: "Let's put some smoke out of our company's investment profits and try to increase the market value! Also, I plan to package and sell the 18% shares of Hong Kong and Macao Development.

Go and inquire about any fund companies or investment companies that are interested in selling it at a premium of 10% or 20%."

Everyone knows that the development of Hong Kong and Macau is a potential stock. Jai Alai Stadium will be the third largest casino of Macao Entertainment, and the annual rent can increase several times. In addition, it is the major shareholder of Macau King, so it will definitely have huge development potential.

"The boss plans to raise funds through rights issues?" Gao Yi asked. This is almost his boss's signature routine. He releases good news before raising funds through rights issues, and then takes advantage of the booming stock market to raise funds quickly, quickly and accurately.

Use a huge amount of capital to purchase high-quality assets.

"Yes, but the rights issue will only be raised around the end of the year, but we can continue to release the good news first; in this way, if the Hang Seng Index rises to more than 2,400 points by the end of the year, our market value may be as high as 2 billion."

"Okay, I will take care of the arrangements!"

After Gao Yi left, Lin Zuhui finally felt relieved. He had made complete arrangements for the current financial arrangement.

By the end of the year and early next year, Chinese Real Estate expects its cash flow to reach more than 2 billion, plus half of the loan, it will be more than 4 billion available.

This amount of money is also a crucial investment for the four major families including Li Chaoren, an investment that shocked the whole of Hong Kong.

At this time, the first round of consultations had already begun regarding the acquisition of the development rights of the Twin Towers on the Admiralty MTR station. This round of consultations was just that Huang Tingfang proposed that the 'new' consortium was interested in purchasing the Twin Towers.

However, because this investment has four partners, Sino Real Estate, Everbright Real Estate, Nanyang Consortium, and Australian Capital Consortium, Huang Tingfang said that he must communicate with everyone first.

The problem is not big. As long as Sino Real Estate agrees to sell, the other three consortiums will definitely not want to leave it alone to collect rents. This kind of investment portfolio will basically be sold.

The only thing that Lin Zuhui is looking forward to is whether it is possible for Chinese Real Estate to buy it for 1.8 billion, which is 100 million cheaper than the Benda Center in history. However, he does not have high hopes. Anyway, it is acceptable for less than 1.9 billion.

.......

.......

On Wednesday, Cathay Real Estate announced the progress of its asset reorganization: its total assets are 950 million, debt is 450 million, and net assets are 500 million. At the same time, Cathay Real Estate announced that it will enter the hotel field.

In less than two months, Cathay Real Estate's net assets soared to nearly three times, which immediately delighted investors, and the stock naturally began to soar, with an increase of up to 10% that day.

The next day, there were many media reports. Among them, Standard Chartered (Asia) spoke highly of the management of New Era Real Estate (one of the shareholders of Cathay Pacific). Investors even believed that Lin Zuhui had the Midas touch and the ability to rejuvenate.

Lin Zuhui brought Liang Zhenxun and Lu Donglai, two executives from the New Era Real Estate Department, to the Furama Hotel, No. 1 Connaught Road Central, Central, Hong Kong Island.

The Furama Hotel was officially opened in 1973. It was a prominent hotel. It is worth mentioning that the top floor of the hotel has the first revolving restaurant in Hong Kong.

The disc embedded on the top of the tower is a revolving restaurant, where Ba Jin also once dined while enjoying the view.

The owner of this hotel is the Fu Laorong family, Macau's "second generation gambling king". The Furama Hotel consists of two pieces of land. One of the pieces of land was auctioned by the Fu family for 3.6 million in 1952; the other piece of land, Praya, was owned by the old Taikoo Trading Company.

The headquarters has been located on the seaside since 1897. In order to put the two pieces of land together, Fu Yinzhao bought the headquarters from Swire in 1954.

A total of 12 million in cash was spent on the two pieces of land. At that time, the average land price per square foot was around HK$500, which meant that the land covered an area of ​​25,000 square feet.

Despite the fact that the land is only 25,000 square feet, Lam Cho-fai seems to remember a piece of information from his previous life. In May next year, the Hong Kong government will auction a "Land King" in Central - the former site of the fire station, which is located near the Furama Hotel and covers an area of ​​only 2.26 square feet.

, the starting price was 480 million, and it was bought by Hang Seng Bank at a sky-high price of 840 million, and later built the headquarters of Hang Seng Bank.

In other words, the land of Furama Hotel is now worth more than 500 million!

Furama Hotel was listed in 1985. Its current market value is only 800 million, and its net assets are around 1 billion to 1.2 billion.

Lin Zuhui and his two subordinates gathered around the hotel and said, "Let's go up and have dinner!"

Liang Zhenxun and Lu Donglai felt a little uneasy. Could it be that the boss wanted to acquire the Furama Hotel? This was a real snake-tonned elephant!

Currently, the Fu Laorong family is taken over by his son Fu Yinzhao, and the Fu Laorong family holds 75% of the shares of Furama Hotel (25% of the shares need to be sold to the public for listing), so it is naturally impossible to acquire it from the stock market!

Therefore, if you want to get the Furama Hotel, you can only open a gap from the Fu Laorong family and directly buy their shares.

In this way, if Fu Yinzhao sees that Lin Zuhui is interested in buying it, he can pay a premium of more than 50%, or even more than 70%. After all, other people's market value is already lower than the net assets, and most families are reluctant to sell this kind of property unless you give

Too many.

The three of them came to the hotel's revolving restaurant, with a panoramic view of Victoria Harbor and Tsim Sha Tsui. This hotel building can be said to be a coastal building, because the building across the street is a very short municipal building - the Hong Kong City Hall.

Lin Zuhui's mind was not on eating. Looking at the scenery of Victoria Harbor, he felt heroic in his heart. He should own such a hotel to be worthy of his title of 'Fashionable Tycoon'.

Speaking of which, Lin Zuhui knows the history of the famous five-star hotels in Xiangjiang for half a century!

The Peninsula Hotel, the ‘Lady of the Far East’ established in 1928

The ‘beauty at first sight’ Mandarin Oriental Hotel established in 1963

Hilton Hotel in Central established in 1963

The Hyatt Regency Hong Kong on Nathan Road was established in 1964

Furama Hotel established in 1974

These five hotels should be the five-star hotels in Xiangjiang before the 1980s, and all of them are famous.

As the time entered the 1980s, Chinese-funded forces were on the rise, and a number of Chinese-funded five-star hotels were established:

The Shinsegae Regent Hotel opened in 1983

Shangri-La Hotel Tsim Sha Tsui East opened in 1981

There are only seven five-star hotels in total, and well-known hotels such as the Marco Polo Prince Hotel in Harbor City and the Miramar Hotel in Tsim Sha Tsui are only four-star hotels.

Lin Zuhui also knew that from the late 1980s to the early 1990s, five five-star hotels sprung up on the island:

Among them, there are two convention and exhibition centers in Wan Chai, including the friendly Renaissance Harbor View and the luxurious Grand Hyatt Hong Kong;

Admiralty Swire releases luxury hotels at a rate of one every two years - JW Marriott (1989), Island Shangri-La Hong Kong (1991), Conrad (1993).

To sum up, if Lin Zuhui wants to own a five-star hotel, he must start with the soft persimmons.

After a simple meal, Lin Zuhui gave an order to his subordinate Lu Donglai, asking him to help him make an appointment with Fu Yinzhao.

Sure enough, Liang Zhenxun and Lu Donglai said in their hearts that the boss really wanted to swallow the elephant.

"Boss, the price may be 1 billion, Cathay City may be struggling!" Liang Zhenxun said tentatively.

Lin Zuhui said nonchalantly: "If Fu Yinzhao really wants to sell us, then we will naturally use a lot of bank loans! As for the debt issue, in addition to raising funds through rights issues, I will try my best to help Cathay City seek financial profits. You

No need to worry!”

Liang Zhenxun and Lu Donglai immediately gained confidence. They believed in their boss's financial ability, because until now, Lin Zuhui's investments in securities and foreign exchange had never failed.

For Lin Zuhui, the stock market is his cash machine!

Even if Cathay City does not make a profit on futures contracts before the stock market crash next year, Cathay City can also reduce its holdings in Furama Hotel before the stock market crash and then take it back after the stock market crash, which can make hundreds of millions of profits; at the same time,

You can also use offshore companies to make a little profit from short selling, but you don’t need to make too much. A few hundred million less won’t have much impact.

In short, as long as a bank dares to borrow money, it can swallow up the whale.

What's more, even if there is no other profit, Cathay City can basically obtain sufficient ammunition by selling Hongji Building and raising funds twice through rights issues.

After all, Cathay City has the entire New Era Real Estate Department as its backing, so there will never be any problems.

...

In the conference room of the Furama Hotel, Lin Zuhui led people to meet the very low-key Fu Yinzhao, the second generation of the Fu Laorong family, a wealthy Hong Kong man.

There are many such low-key wealthy families in Xiangjiang. Their family history of making fortunes is all about making money from eccentric sources. In particular, there are some descendants of Wan Qing and Republican bureaucrats, warlords, drug traffickers, and private lords who are even more reluctant to reveal their wealth.

Lin Zuhui came to visit at this juncture, and the timing was just right. Since the beginning of this year (1986), there has been a wave of immigration in Hong Kong, and many wealthy people are preparing to immigrate.

Among them, there is the Chen Jun family of the "crocodile shirt" brand that Lin Zuhui always remembers. In his previous life, in September 1987, the crocodile shirt, which was as famous as "Bauhinia", was sold to the Lin Baixin family of Lai Sun Group.

What is the symbol of Hong Kong?

Except for Bauhinia, I'm afraid everyone will point to the leather shoes on his feet, the leather goods and clothes on his body and proudly tell you: crocodile shirt.

After some introductions, several people sat down in the conference room!

Fu Yinzhao is an old man who is almost sixty years old. He has always kept a low profile, and his photos have almost never appeared in the Hong Kong media. This time, Lin Zuhui had already made his intention clear before meeting with him, so everyone discussed it in the conference room.

Fu Yinzhao was the first to say: "I have heard about Lin Sheng's achievements at such a young age, and when I saw him today, he was really extraordinary!"

He was not flattering, but sincere. As soon as he saw Lin Zuhui, he could tell that although he was young, his momentum was not weak at all, and his face was full of confidence.

Lin Zuhui said with a smile: "Thank you, Mr. Fu! I took the liberty of disturbing you this time. I believe you also know the reason. So I want to ask what you mean?"

First it’s a question of whether to sell or not, and then there’s the question of price!

Fu Yinzhao said without hesitation: "Fulama Hotel is the ancestral property of our Fu family. The family has no intention of selling it. I'm afraid Lin Sheng will be disappointed!"

No, why did you agree to meet? Is it just to see how handsome you look?

Of course Lin Zuhui didn't believe it and said with a smile: "We are very sincere! Furama Hotel chose to go public after more than ten years of operation. It must be valuable. We are willing to acquire the shares from your family at a large premium!"

Let’s talk louder first. If Fu Yinzhao answers the call, it means that his family also intends to sell. If he doesn’t answer the call, it means that others really don’t want to sell.

In fact, the reason why Furama Hotels chose to go public was to pay off debts. During the Sino-British negotiations, many hotels incurred large losses. For example, Roche's Regal Hotel once lost hundreds of millions, and then had to cut off its strength and sell it to his son.

Luo Xurui.

Fu Yinzhao pretended to think deeply and said: "What is the premium?"

Lin Zuhui held out five fingers and said: "With today's market price, the price is 50% higher!"

How shrewd Fu Yinzhao is, otherwise he would not have sold his shares to Lin Jianyue at the price of Furama with a market value of only 3.1 billion during the '1998 Asian Financial Crisis' in his previous life at a price of 6.9 billion.

"Haha, the market value of Furama Hotel is obviously much lower than the net asset value. This is obviously not clear to Lin Sheng. The premium of 50% may not reach the net asset value, but this is the ancestral business of our family, plus the economy of Hong Kong

It is prosperous, but this price is not attractive. Of course, members of our family may not agree to sell the Furama Hotel."

After being rejected, Lin Zuhui was not annoyed and said with a smile: "It seems that I am not sincere enough. How about this, Fu Sheng mentions it to the family members, and I will go back and reorganize the quotation. Let's talk about it next time?"

Regardless of whether Mr. Fu intends to sell it or not, we can still have tea together!"

Lin Zuhui's implication was that he could also raise the price, which made Fu Yinzhao look forward to it!

The Furama Hotel has been going downhill in recent years, and its scenery is no longer as prominent as it once was. After all, the decoration is too old and can no longer be compared with new five-star hotels. In addition, it suffered a lot of losses in the past few years, so Fu decided to consider listing it.

.

"Okay, I look forward to meeting you next time!"

Walking out of the Furama Hotel, Lin Zuhui said to Lu Donglai beside him: "In the long run, the income of office buildings in Central is higher than that of hotels, so I am interested in this piece of land; as for the hotel, it may have been operated for ten or twenty years.

Just demolish this building and rebuild it as an office building!”

Lu Donglai reminded: "Boss, that Mr. Fu may not agree easily, or he may want to kill us!"

Lin Zuhui smiled and said with a smile: "What is the value of a piece of land from 1982 to 1984 now?"

Lu Donglai immediately understood what Lin Zuhui meant. His boss was looking at long-term interests. Land in Central was always precious, but now it was difficult to obtain high-quality land and buildings in Central.

"Indeed, maybe after two years, our premium will have risen back."

Nowadays, a super building in Central is worth more than 1 billion, the next one is worth more than 500 million, and a small building is worth 200 to 300 million.

The key is that you have to buy it at a premium. Unless someone else is eager to immigrate through capital, it is possible to pick it up and make a profit, such as the Hongji Building purchased by Cathay City.

To be honest, Lin Zuhui's bottom line for purchasing the Furama Hotel this time was that it was a 10% premium, which means the market value is calculated as 1.6 billion. If Fu sells 70% of its shares, Cathay City will need 1 billion in funds to acquire it.

Of course, Lin Zuhui has to strive for 80% of the premium. After all, the stock market has not yet reached the crazy level before the August 7th stock market crash.

.......

The last week of October.

As expected by Lin Zuhui, the Hang Seng Index opened above 2,300 points, and the stock market was booming.

Wanhui Media raised 130 million yuan, and Cathay City raised 320 million yuan, both of which were higher than planned.

The real advantage of the stock market boom is not the high amount of funds raised, but the fact that the funds raised are very smooth, and the new shares issued are basically sold out.

.....

Friday, October 31st.

Lin Zuhui led the team to the conference room of the Furama Hotel. This time they came to audit the financial affairs. If nothing unexpected happened, the two parties would sign a transaction contract in almost ten hours.

Sitting in the conference room of the Furama Hotel, Lin Zuhui watched the three teams of auditors, financers, and lawyers looking through the company information provided by Furama. Everyone was so busy that he flew out of the office in a mood.

A few years ago, when Li Chaoren purchased Hong Kong Electric from Land, it was said that he personally led a team of people and spent only 12 hours reviewing Hong Kong Electric's financial reports, and then concluded a 2.9 billion deal.

Now, can I be considered as comparable to Li Chaoren?

For this purchase of the Furama Hotel, Cathay City paid an 80% premium to acquire 70% of the Fu Laorong family's equity. Based on yesterday's closing market value of 850 million, Cathay City needs to pay the Fu Laorong family 1.07 billion.

After all, it was a transaction worth over 1 billion, not to mention that I was still so young!

This transaction does not need to be paid in one lump sum, but is divided into three payments in three months, with the first payment being 300 million yuan. This gives Cathay City enough time to prepare the remaining 800 million in cash.

Time passed little by little, and around four o'clock in the afternoon, the answer initially appeared.

The Furama Hotel's finances don't have much of a problem. The hotel's assets are 1.2 billion, debts are 80 million, and net assets are 1.12 billion. In the hotel's financial reporting year from 1985 to 1986, its profit was 28.6 million yuan.

Lin Zuhui naturally did not care about low profits. What he valued was the value of the Furama Hotel itself, and he planned to privatize it after the 1987 stock market crash.

Since there is no big problem, both parties decided to sign the contract!

In the signing room, both parties sat on separate sides, and the lawyer was finally checking the contract.

Fu Yinzhao smiled and joked: "Lin Sheng, the contract stipulates that if Cathay City fails to pay the balance within three months, the reservation fee and the Furama Hotel will belong to us!"

Lin Zuhui said confidently: "Of course it is, this is the price of breach of contract. Hong Kong is a legal society!"

"Haha, Lin Sheng is very confident. It seems that the bank has already established a good relationship!"

Lin Zuhui shook his head and said calmly: "I haven't negotiated with a bank yet!"

Fu Yinzhao was stunned, and after a long time he said kindly: "As far as I know, apart from raising more than 300 million through rights issues, Cathay City's financial situation is not very strong!" Not to mention, he is actually a big debtor.

"Don't worry, Mr. Fu, the bank will sell me face!"

He is indeed young and is so aggressive in everything he does, Fu Yinzhao thought at this moment.

In fact, although Lin Zuhui did not negotiate with the bank first, even if there were no banks, Cathay City would not be in disaster. It has both a parent company and brother companies, and it can make up for it by trading properties such as Hongji Building to them.

!

What's more, if the situation is really desperate, Lin Zuhui can still sell blue chip stocks to remedy the situation!

Of course, the banker would not refuse Lin Zuhui's loan request, this was what he was thinking.

After a while, after the lawyers of both parties confirmed that there were no problems, the two parties began to sign the contract.

At this moment, Lin Zuhui actually felt a little excited. This was a high-quality asset!

It seemed that he paid an 80% premium, but he knew that 11 years later, Fu Yinzhao actually sold his shares to the prodigal Lin Jianyue at a market value of 6.9 billion, which almost caused the Lai Sun Group to collapse during the 1998 Asian financial crisis.

In fact, Lin Zuhui has already planned to help Lai Sun Group digest three businesses, crocodile shirts, Asia Television, and Furama Hotel, just in time to save Lai Sun Group.

He is not afraid of losing money. There is endless money in the stock market anyway.

After the contract was signed, both parties carefully kept it, and Cathay Pacific City presented a check of 300 million.

But it's the weekend soon, so Fu Yinzhao can only redeem it on Monday.

After the contract was signed, representatives from Cathay City and Fu held a small press conference in the hotel to officially announce the conclusion of the deal.

...

The next day, everyone who is accustomed to reading newspapers discovered a big news: Cathay City purchased 70% of the Furama Hotel owned by the Fu family for a sky-high price of 1.07 billion.

Citizens familiar with Cathay City were immediately shocked. This company must have just completed its asset restructuring, and the money came from there to purchase such a large asset.

"The debt ratio is too high! If I had known better, I wouldn't have bought Cathay City's stocks! This should be bad news!"

"The snake swallows the whale! Lin Zuhui made a bad move this time."

"Still too young!"

Criticisms came pouring in, and no one felt that Lin Zuhui made the right move.

Even many of Lin Zuhui's partners and friends called one after another. Lin Zuhui could only comfort everyone that Cathay City would be fine soon.

In the morning, Lin Zuhui was thinking about how to deal with this public opinion crisis in his office.

Cathay City still needs a funding gap of 800 million (including taxes). If it borrows all from banks, it will obviously not solve the problem of public distrust. After all, 800 million requires 80 million in annual interest, and the Furama Hotel only makes 3,000 a year.

It's not even enough, even the interest is not enough.

Finally, he came up with a way, that is, Cathay City sold Hongji Building to Chinese Real Estate and obtained 350 million in cash. In this way, the new debt was only 450 million.

In this way, the situation can be alleviated!

When the Hang Seng Index reaches 2,400 points, Cathay City will sell its securities investments worth 200 million.

In this way, the crisis is temporarily resolved.

Thinking of this, he called over Lu Donglai, the general manager of Cathay Real Estate, and Gao Yi, the general manager of Chinese Real Estate.

After the two sat down, Lin Zuhui said: "Next week, I plan to ask Cathay City to sell the Hongji Project to Chinese Real Estate for 350 million to alleviate the fierce public opinion!"

Gao Yi reminded: "Boss, Chinese Real Estate cannot afford 350 million in cash for the time being!"

Lin Zuhui nodded and said: "Of course I know this. Let's make an announcement first and then trade in December! At the same time, I will recently loan 450 million in the name of Cathay City to pay the Fu family."

Gao Yi then said: "Okay, let's go prepare some information!"

Lu Donglai said: "Then let's simply release the transaction news tomorrow to avoid dragging down Cathay City's stock on Monday!"

Lin Zuhui thought it right and said, "Okay! You two go and do it. The contract will be officially signed next week."

The two nodded and quickly went to organize the information and hand it over.

...

The next day, Cathay City held a press conference.

Lu Donglai attended the meeting on behalf of Lin Zuhui and explained Cathay City’s intentions for this investment.

"Cathay City, as the hotel management flagship of the New Era Real Estate Group, is understandable in its acquisition of Furama Hotel. Moreover, according to our company's estimates, the land value of Furama Hotel alone may be as high as 800 million, which can bring long-term development to the company.

.It is reasonable for us to value the entire Furama Hotel at 1.6 billion, and the value of this asset will soon appreciate."

A reporter asked: "So if your company borrows heavily, the interest generated every year will be greater than the income brought by Furama. Is this investment also a long-term development?"

The implication is very simple. If you can’t earn back the interest, why should you consider long-term development?

Lu Donglai still said gracefully: "We will not borrow heavily! We are just converting the company's existing assets into hotel assets. Our Hongji Building has reached a transaction agreement with our sister company, Chinese Real Estate, and sold it to Chinese Real Estate for 350 million.

At the same time, the securities our company has invested are worth nearly 200 million, and we plan to cash them out at the right time to pay for this transaction, so the actual liability incurred this time is 250 million.

At the same time, we have read the financial report of Furama Hotel and found that with the development of Hong Kong's economy, it is expected that the net profit of Furama Hotel will increase by more than 30% in the next fiscal year, which is a profit of 40 million yuan!"

In fact, Lu Donglai had some secret thoughts.

Even if the debt increases by 250 million this time, the original debt is still 450 million, and Cathay City is also burdened with a debt of 700 million.

After a series of exchanges of assets, Cathay City's main assets only have three parts: first, high-quality properties worth 350 million; second, futures contracts with an investment of 70 million; third, 70% equity of Furama Hotel.

Lin Zuhui has also thought about this, but he has already planned to pay off his debt through futures contract investment next year, so he doesn't have to worry.

The top priority is to make an explanation to the public so that Cathay City's share price will not plummet. A slight drop will not affect it.

The listed companies owned by Lin Zuhui have never experienced such fierce public opinion. Of course, Lin Zuhui has already implemented methods to break the public opinion, so I believe the problem is not that big.


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