In the conference room of the hotel, the directors and senior executives looked at Lin Zuhui with somewhat different eyes. As the initiator of this meeting, Lin Zuhui enjoyed everyone's admiration.
It turned out that in September, at the suggestion of Lin Zuhui, the hotel issued 10% of new shares and obtained a cash flow of 750 million from the rights issue.
Today, this money is equivalent to a ‘sharp weapon’ for the development of big hotels.
Through this incident, Lin Zuhui has established great prestige in the hotel;
If the chairman of the board of directors is re-elected, Lam Cho-fai may not lose to Michael Kadoorie.
At this time, Michael Kadoorie could only helplessly watch Lin Zuhui's influence on the board of directors increase. Only now did he realize what his father said: "Lin Zuhui is a tiger and a wolf. If he joins the board of directors of a big hotel, he will have absolute influence on the Kadoorie family."
great influence'.
Michael Kadoorie even heard some rumors circulating in Hong Kong: Before the stock market crash, Lin Zuhui sold all the securities and futures contracts he had invested in, and obtained a large amount of cash flow. Not only did he repay his personal debts, but there was also a surplus; and Lin Zuhui
Its listed companies have successfully reduced their debts before the stock market crash, and have become high-quality companies in the eyes of bankers.
This is definitely not a good thing for the Kadoorie family, because it means that Lin Zuhui has the strength to privatize the hotel, and the Kadoorie family will have no choice but to be out. Even before this board meeting, Lin Zuhui revealed intentionally or unintentionally that he would not hesitate to privatize the hotel.
the meaning of.
Michael Kadoorie briefly spoke a few words and then turned the topic to Lin Zuhui.
"Vice Chairman Lin, I leave the board meeting to you!"
Lin Zuhui nodded. He had been holding back in the hotel since the shareholders' meeting, and now it was time for him to take power.
He doesn't want to be a decoration on the board of directors of a big hotel.
“The purpose of convening everyone this time is to formulate the hotel development strategy for the next year!”
Michael Kadoorie's eyes suddenly jumped up and he secretly said something bad!
One kind of director and senior management were a little surprised, and some of them even looked at Michael Kadoorie.
Lin Zuhui said directly: "I have three development strategies. I will share them today and everyone can discuss them freely!"
"The first one is to redeem the equity of the Peninsula Hotel in Manila. I have said this before, and I will say it again today. The reason is very simple. The turmoil in the Philippine regime is an opportunity. At this time, the 50% equity of the Peninsula Hotel in Manila is
We only need less than HK$50 million to redeem it. Once the situation in the Philippines stabilizes, we can recover the cost in just one to two years."
Lin Zuhui knew that the political situation in the Philippines stabilized from 1989 to 1991. Although the economy did not develop at a high speed, it was stable and moderate. By 1992, the Philippine economy began to recover.
Before the stock market crash, Lin Zuhui had raised this opinion, but although the board of directors had the intention, it had not taken concrete action, which aroused Lin Zuhui's dissatisfaction.
A director immediately said: "I agree with Vice Chairman Lin's strategy. As the economic center and largest port of the Philippines, once the political environment stabilizes, the Peninsula Manila Hotel can bring huge profits. And today's environment can
Let us buy back all the shares at the minimum cost, which is a very cost-effective investment."
It’s not like Michael Kadoorie didn’t understand this truth. He just deliberately planned to finish it later in order to reduce Lin Zuhui’s influence.
Many directors have echoed this strategy!
Lin Zuhui said: "Then let's start the voting. After it is passed, we will take action immediately!"
Soon, this article was unanimously approved. Lin Zuhui took the opportunity to name a senior executive and asked him to take full responsibility for this matter and implement an accountability system.
Lin Zuhui continued: "Second strategy, the impact of this global stock market crash is profound, especially on the U.S. economy. We also have to prepare to redeem the equity of the Peninsula Hotel in Los Angeles and the Peninsula Hotel in New York. .”
These two Peninsula hotels are joint ventures with American companies!
In the previous life, plus the Peninsula Hotel in Bangkok, the Kadoorie family spent nearly US$1 billion to redeem the remaining equity in these three hotels in 1994.
Everyone looked at each other in shock because this plan was too big. Even with the market conditions after the stock market crash, it would probably cost more than 2 billion Hong Kong dollars, and the Peninsula Hotel only had 1.1 billion Hong Kong dollars in its account.
A director said: "It is still unclear how serious the impact of this global stock market crash will be on the U.S. economy!"
Lin Zuhui said with a smile: "There are already signs of how big the impact will be. But I think regardless of whether there is any impact, we should actively acquire the equity of these two hotels, because we now have funds to drive, and the remaining funds We can also use bank borrowing! As long as we redeem the remaining shares, our annual profits will be greatly increased. If we don’t take the opportunity to redeem it this time, we will spend several times the price in the future.”
As a subordinate of Lin Zuhui and a director of the hotel, Lu Donglai immediately added: "It is a very good innate condition for us to complete the rights issue before the stock market crash!"
A kind of director nodded one after another. They completed the rights issue before the stock market crash and obtained 750 million in cash, making the hotel very competitive. The market value of the hotel has only dropped by 30% (currently 6 billion market value), and it is also considered the most popular hotel in Hong Kong. The popularity of blue chip stocks is second only to HSBC, Land, Wharf, and Hutchison Whampoa.
At this time, Michael Kadoorie said: "If it can really be negotiated next year, I am afraid that these two investments will burden the hotel with debts of 1 billion to 1.5 billion. The hotel has always been operating steadily, but is it too big a step? , we can choose to buy back equity one by one!"
Inadvertently, Michael Kadoorie gained everyone's recognition. Of course, he also wanted to take advantage of this rights issue to raise funds to buy back the shares of a hotel. After all, with such a large amount of cash, he had to find a way out.
Lin Zuhui had already prepared, how could he let Michael disrupt his own prestige?
"There is no need to worry about debt. The third development strategy I mentioned can solve this problem!"
Mi Gao was shocked. Could this person be able to conjure money out of thin air?
You know, the current stock market is a bad market, and it is impossible for anyone to respond to the rights issue!
Lin Zuhui did not keep everyone waiting and said: "As for the company's excessive debt, I think we can spin off the real estate business of the Grand Hotel and list it on the market after the stock market recovers next year, and use part of the cash to repay debts or develop the company. !”
The so-called spin-off listing is equivalent to a big hotel (listed company) packaging its real estate business and selling part of its equity to the public in accordance with the listing regulations. The parent company can withdraw a sum of cash for development and have one more listed company. Subsidiaries.
In the previous life, the Kadoorie family said they would not spin off the hotel, but in 1988, they also split and reorganized the real estate business.
Everyone's eyes lit up, this method is really good!
Even Michael believes that he plans to separate the hotel business and real estate business next year.
"Then let's vote!" Michael Kadoorie said directly. After speaking, he was the first to raise his hand to express his support.
Passed unanimously!
All three suggestions put forward by Lin Zuhui today were approved.
After the meeting, Lin Zuhui came to Mi Gao's office.
After sitting down, Michael Kadoorie said: "Lin Sheng, I want to ask a question, have you ever thought of fully acquiring a hotel?"
Lin Zuhui nodded and said: "I really want to! And there is no pressure on my funds!"
Mi Gao was shocked. He believed what Lin Zuhui said was true!
At this time, the hotel's net assets are more than 7 billion (asset appreciation, plus rights issues to raise funds, profits, etc.), and its market value is 6 billion. If it is a full acquisition, Lin Zuhui will need almost 5 billion (a premium will be paid)
.
"Then why don't you initiate a comprehensive acquisition?" Michael Kadoorie said, suppressing the restlessness in his heart.
"It's very simple. I'm not good at running big hotels, and I also need the Kadoorie family as a brand." Lin Zuhui said calmly.
After all, the Grand Hotel is deeply imprinted by the Kadoorie family, and the old aristocracy does not deserve its fame in vain.
Michael Kadoorie asked again: "Would you be nervous if we increased our stake?"
Lin Zuhui smiled so arrogantly!
"No, I support you in increasing your shareholding!"
Michael Kadoorie suddenly showed a wry smile and said: "I think you are thinking that our family will not have the funds to increase its holdings for a while, and then when our shareholding exceeds yours, we will launch a comprehensive acquisition at all costs."
Lin Zuhui was noncommittal!
The Kadoorie family does not have the strength to increase its holdings to 34% in the past year, otherwise it would not have been attacked by Luo Xurui twice in the previous life. As for the Kadoorie family who dares to launch a comprehensive acquisition, Lin Zuhui will also accompany it.
At that time, it will be a loss for both parties.
"Okay, I choose to cooperate. I believe we will be the best partners!"
Michael Kadoorie took the initiative to extend his right hand and truly accepted Lin Zuhui to join the Grand Hotel.
He thought that no matter how long the battle line stretched, he would never be this young man's opponent, because he was too powerful!
Chen Songqing was also very good back then, but he couldn't escape the big slump!
This person is even better than Chen Qingsong, and the key is to predict the big plunge!
Lin Zuhui naturally accepted Mi Gao's friendship. He is a businessman and cares about profits;
Moreover, big hotels can not only bring him benefits, but also connections and honors.
After sitting down again, Michael Kadoorie said: "But I disagree with you on one point, that is, we cannot franchise the Peninsula Hotel, because this will lower its grade!"
Lin Zuhui immediately said: "Peninsula Hotel can only be high-end and self-operated, but I hope that if my family or Cathay City needs to invest in a hotel, the Peninsula Hotel brand can cooperate and authorize it!"
Michael nodded and said: "Then the Peninsula Hotel brand needs to be involved in the entire process from design to management to join the Peninsula Hotel camp."
"no problem!"
In his previous life, there were less than 10 Peninsula Hotels in the world, and Lin Zuhui had to change this number no matter what.
Moreover, when Cathay City becomes a large hotel management group in the future, Peninsula Hotel will be just a member of it.
........
The next day.
Lin Zuhui convened the senior executives of Chinese Real Estate for a meeting. All the senior executives were given a copy of the information of the listed company "Fuli International Real Estate Investment Company".
This company mainly engages in real estate investment in the United States, but its performance has been stagnant in recent years. Therefore, Fuli International's stock price was not high before the stock market crash. After the stock market crash, its market value evaporated by 40%, and is currently only 520 million.
Lin Zuhui said: "Now that the Hong Kong government is encouraging corporate acquisitions and mergers to save the market, we should not secretly shoot. We are immediately preparing to acquire Fuli International at a premium of 20% to 25%, and still maintain Fuli International's listed status.
From now on, this company will serve as our new era real estate department - a listed company (Sun Company) that invests in the U.S. real estate industry."
Because Fuli International's highest market value before the stock market crash still did not exceed its net assets, there is no need to wait until the end of April next year. The most important thing is that Fuli International will not be privatized by New Era Real Estate.
Liang Zhenxun added: "Fuli International's shares are dispersed, and the current chairman of the board of directors, Wang Bingyi, only holds 10% of the shareholders. We are polite first, then aggressive, and then acquire it at a premium. I believe there will be no problem."
At this time, as a small shareholder of Fuli International, if someone acquires the company at a premium, I would simply welcome it with both hands.
And Chinese Real Estate is not a comprehensive acquisition, so it only needs to increase its shareholding to 34% to announce that it will take over the board of directors of Fuli International (unlike big hotels, Fuli International does not have a strong family management, and Chinese Real Estate can easily pass the board of directors and
resolution of the general meeting of shareholders).
Lin Zuhui said: "Okay, it's up to you to send the acquisition plan to the board of directors of Fuli International first."
"Okay, boss!"
Liang Zhenxun serves as a director of three listed companies and is specifically responsible for the securities business of the group.
Lin Zuhui then said to Gao Yi: "Expand the company's senior staff and talent pool. If the company wants to develop, it cannot lack talents to join us."
Gao Yi said quickly: "Okay! I will do it as soon as possible!"
The purpose of acquiring this company is definitely to lay out the real estate industry in the United States, especially the commercial office center in Los Angeles. In addition, its own net asset value is very good, and it is completely worth investing.
Lin Zuhui’s real idea is that Fuli International is a Hong Kong listed company that has been operating in the U.S. real estate industry for many years. After winning the deal, it can rely on its experience and channels in overseas real estate development to cooperate with the Lin family to invest overseas.
It can also be understood as the beginning of a signal that Lin Zuyao will expand his business overseas and have a global presence.
As for why it was purchased by Chinese Real Estate, there are two reasons:
First, as the parent company, New Era Real Estate’s business is still the development of real estate projects in Xiangjiang.
Second, by treating Fuli International as a subsidiary company and raising funds from rights issues in the future, Chinese property owners who can earn generous rents will be able to purchase rights issues.
The consequence is that Lin Zuhui personally only enjoys about one-eighth of Fuli International's profits (after the increase in shareholding), which is equivalent to only holding about 12% of the shares.
It’s a principle of infinite amplification!
.......
That night, Lin Zuhui received an invitation, a very big invitation.
When he arrived at the private room of the Regent Hotel, the biggest gangsters in Hong Kong stood up to welcome his arrival.
"Uncle Tong, fourth uncle, Li Sheng, Guo Sheng"
Lin Zuhui greeted the heads of the four major families one by one.
"Zu Hui"
"Linsheng"
Everyone responded one after another.
It turned out that this meeting was for several big guys to discuss bailing out the market, so they roped in Lin Zuhui.
Is Lin Zuhui qualified enough?
Of course it is enough. Among the Chinese real estate tycoons outside this box, except for the chartering king who is currently ill, no one in Xiangjiang surpasses Lin Zuhui. And the chartering king is still from Ningbo and does not belong to the Cantonese gang.
Among the top ten chaebols ranked in 1987, Lin Zuhui squeezed out the Chen Zengxi family (Chen Zengxi died in 1986) and the Shaw family to become the ninth-ranked chaebol (including three British-owned chaebols).
After everyone sat down, Lee Shau Kee said with a smile: "There are rumors outside that before the stock market crash, you Lin Zuhui sold all blue chip stocks and futures contracts and made billions!"
Everyone looked sideways, very curious about this question.
Lin Zuhui said with a smile: "Isn't it the fourth uncle? Your Lin Gaoyan is a securities expert!"
Lee Shau Kee responded: "He did remind me and I followed his analysis."
Lin Zuhui then said: "Although I have made billions, I have just paid off my debt."
The four major families believed his answer very much!
They would never have imagined that Lin Zuhui made 6 billion (only for blue chip stocks and buying futures contracts, not counting global short selling futures and foreign exchange)
Zheng Yutong said: "That's pretty awesome! All the thunder buried in you, even in the real estate department of the new era, has been removed by you!"
Several New Era Real Estate companies are listed companies, and the company's debts and capital flows are relatively transparent. They had already made public announcements on shareholding reductions and debt reductions before the stock market crash.
Therefore, after the stock market crash, none of the banks came to collect debts.
While eating, Li Chaoren, as the initiator, said: "The stock market is a guarantee for Hong Kong's economy. I think we, as the leaders of listed companies, have an obligation to prevent the stock market from continuing to rot like this. So we are convening this time to save the market."
"
Lin Zuhui thought to himself that these people might not think that the current 2200 points is almost the bottom, and the lowest seems to be only 1900 points. Rather than rescuing the market, it is better to say that it is buying the bottom.
Of course, no one is a fairy. Whether they are business leaders, government officials, or even ordinary investors, their bottom line may be 1,500 points. In short, the market is too panicked, and everyone actually has no bottom line.
Everyone nodded and agreed with Li Chaoren's point of view.
If the stock market continues to slump, everyone is indeed worried about the impact on Hong Kong's economy.
Li Chaoren continued: "So I suggest that everyone apply to the Acquisitions and Mergers Committee to buy back the group's shares at a price slightly higher than the market value."
At this time, according to the "acquisitions and mergers" regulations: if a major shareholder purchases more than 35% of the subsidiary company's trigger point, it must be fully acquired, and the acquisition price shall be the highest price in the past six months.
[Lin Zuhui increased his holdings of 45% of New Era Real Estate shares in the early stage because the highest price in the past six months was not attractive to retail investors. Others will not sell it to you, so there is no need to fully acquire it. 】
[And if the current holding exceeds the critical point of 35%, it will have to be acquired at the highest market value in September, which is unacceptable.]
[If you want to increase your shareholding, you only need to find the right time to increase your shareholding to 49%. It is also possible. With reference to later Shiyice's increase in Mandarin Oriental's stake to 41%, it proposed a full acquisition at a price of 4.15 yuan. As a result, shareholders
Seeing that the net asset value is only 6 yuan, naturally they are unwilling to sell it. In this way, the major shareholders naturally increase their holdings of shares.】
Everyone once again agreed with Li Chaoren's proposal, which shows his influence!
Lin Zuhui thought it was just right, so he increased his holdings of New Era Real Estate to 45% (the current market value is only 7.2 billion), and then increased New Era's shareholding in Chinese Real Estate to 49%.
Finally, everyone handed over the task of negotiating with the ‘Acquisition and Merger Committee’ to Li Chaoren and Zheng Yutong.