On Thursday morning, Lin Zuhui came to the headquarters of Cathay City Hotel Management Company.
As the flagship hotel management company of New Era Group, Cathay City does not place its headquarters in the ‘Huazhi Center’, but uses its own office properties in Wan Chai.
Cathay City has only a few dozen management and staff members, and currently one-third of the management is foreigners. Even the president has become a British expatriate, Colbert; the original Cathay City general manager Lu Donglai has been transferred to New Era
Being a senior member of the group is considered a high promotion.
Lin Zuhui came to his office, picked up the newspaper on his desk and read it. Regardless of whether he came to the company or not, his subordinates would prepare newspapers for every day.
When I picked up my own professional financial newspaper "Economic Daily", there was breaking news on the front page: Yu Pinhai, the director of the listed company Zhicai Consulting Management Company, had repeatedly committed theft, counterfeiting of checks, and illegal activities while studying in Canada.
He was sentenced to two years in prison minus one day for seven charges including using other people's credit cards and concealing firearms.
nice!
The reporter of the Economic Daily finally obtained the evidence in Canada and reported the news. As you can imagine, this news will cause a sensation in Hong Kong.
Although Yu Pinhai has not acquired Ming Pao Group at this time, he is still the chairman of the board of directors of a listed company. Before Zhicai Consulting Management Company goes public, Yu Pinhai needs to truthfully fill in the true history. Obviously, he will be in trouble.
.
The reason why Lin Zuhui wanted to destroy Yu Pinhai in advance even though he had a good relationship with Jin Daxia was because Yu Pinhai looked like Jin Daxia's dead eldest son. This was an innate advantage.
He does not allow things to go unexpectedly, so he can only make things happen in advance.
After a while, Cathay City's President Corbett and Vice President Li Mingtao came to Lin Zuhui's office. Cathay City uses Huayang's high-level mixed management. As for the integration issue, Lin Zuhui is not worried because Cathay City Hotel
We will be developing overseas soon and there is no time for intrigues.
What's more, Cathay City may be privatized by New Era Group in May (it's not certain that the privatization will be successful), giving the group a greater say.
"sit!"
While Lin Zuhui arranged for the two of them to sit down, he took out a stack of information from his briefcase. This information was given to Lin Zuhui by Cathay City's management two days ago and was about the Manila Hilton Hotel.
Manila is the capital of the Philippines, and the Manila Hilton Hotel covers a very large area. If the political situation is stable and the economy is prosperous, the hotel will be very profitable.
However, since February 1986, the Philippine people have successfully overthrown the poisoners and established a new government. However, in addition to shouldering the huge foreign debt left by the previous government, the politics are extremely unstable. In the mid-to-late 1980s, six incidents occurred
Attempted mutiny. In addition to political and economic problems, the country also suffered many natural disasters, the Luzon earthquake, the eruption of the Pinatubo volcano, the Visayas tsunami, etc., and the energy crisis lasted for several years, causing the Philippine economy to effectively stop functioning.
The political situation is extremely unstable and the economy is extremely depressed, causing foreign capital to flee the Philippines. Amidst this wave of foreign capital withdrawal, the Hilton Group cannot hold on.
At the beginning of the year, Lin Zuhui learned from a director of the Grand Hotel Group that Philes, the major shareholder of Acesite, the parent company of Hilton Hotels in the Philippines, wanted to sell Hilton Hotels and evacuate the Philippines.
Lin Zuhui immediately made a decision to pick up the leak and arranged for Colbert and Li Mingtao to inspect and contact him.
Because he knows that as long as he persists for one to three years, the current investment may be fully repaid in just one to two years, and the rest is his own profit. He remembers that in the early 1990s, the Philippine government implemented economic reforms
, and then the economy began to explode.
"Now, Cathay City needs to make plans immediately to take over the Manila Hilton Hotel through the stock market (acesite is a listed company in the Philippines)!"
Colbert immediately said: "However, the company only has US$5 million in cash on its books. According to our analysis, it will take about US$15 million to succeed this time!"
Cathay City originally had more than 300 million yuan in cash flow, but all of its debts were repaid, reducing the debt to 700 million yuan!
Lin Zuhui couldn't help laughing when he bought a five-star hotel with 110 million Hong Kong dollars, and it was a five-star hotel with a large area. Five-star hotels in Hong Kong, Los Angeles, and New York often cost 1 billion.
HKD and above!
Lin Zuhui said with a smile: "Have you heard the story of Milken on Wall Street?"
Corbett said: "I heard that he is the founder of the 'junk bond' acquisition method, and his influence is very great!"
Lin Zuhui nodded. Coincidentally, he had also studied Milken's acquisition techniques.
In the 1980s, mergers and acquisitions were blooming all over the United States, and Milken became famous on Wall Street at the right time. Because in the 1970s and 1980s, inflation and unemployment in the United States were rising, and credit was severely tightened. In an instant, many fund companies' investment portfolios were
The credit rating of the return bonds was lowered by the bond rating agency and became a 'junk bond'. At this time, Milken saw the business opportunities. He set up a trading department at Drakes Investment Company to deal with low-grade bonds.
Investment in 'junk bonds', according to previous generations, was 'buying the dip'. Later, Drakes used 'junk securities' to issue a large proportion of loans to acquire companies, that is, leveraged buyouts.
The acquisition method pioneered by Milken has influenced a lot of people, including Liu Luanxiong two years ago.
"So, I plan to make a 'high-risk financial arrangement', using Cathay City as a guarantee, but the mortgage is the Hilton Hotel, borrowing US$9 million from the bank, and transferring the debt to the Hilton Hotel. Then use the dollar-yen exchange rate
Considering the price difference, the difference between Philippine interest rates and overseas interest rates, I estimate that the actual acquisition should only cost US$12 million. In this way, our Cathay City only needs to invest US$3 million to obtain a five-star hotel.”
For high-risk financial arrangements, the interest rate will rise to 12%~14% (currently generally 8%), but if the Hilton Hotel has an annual income of 25%, Cathay City can get a differential return of about 11%; and if it can be
Hilton Hotels has been growing steadily for 3 to 5 years, and the resulting differential returns are even more impressive.
In fact, by 1989 in the previous life, the evidence in the Philippines had stabilized. From this, it can be deduced that the Manila Hilton Hotel could maintain stable profit growth in the three years from 1989 to 1991; by 1992, the Hilton Hotel ushered in a major
If it breaks out, Cathay City can recover its costs and earn a five-star hotel in one or two years (the purchase price is very cheap).
Colbert and Li Mingtao were very convinced of Lin Zuhui's strategy and nodded in agreement.
Next, Lin Zuhui began to arrange for the two people to form a working group to quickly take over the Manila Hilton Hotel.
Finally, Lin Zuhui said: "Move quickly! The Philippines is just an opening for our overseas expansion. My personal investment company has inspected good hotel projects in Canada and the United States. Cathay City will usher in explosive development by then."
Time is money. Lin Zuhui invested Hengjin's investment department in the United States to search for hotel projects and hotel management networks in the United States and Canada, which would serve as a channel for Cathay Pacific's urban expansion.
Colbert is not only a hotel management talent, but also very proficient in the international development of hotels, so he serves as the leader of the acquisition team this time; and Lin Zuhui’s personal investment company, Hengjin Investment, is the consultant for this acquisition. Assisting Cathay Pacific City in its city acquisition, which also happens to be expanding its business.
"Okay! Boss! Make sure to complete the acquisition this month. After all, we have been preparing for more than a month." Colbert said confidently.
"Report to me anytime!"
"OK!"
Lin Zuhui is naturally unwilling to go to a chaotic place like Manila, so in addition to participating in "high-risk financial" loans in Xiangjiang, he can only determine his leadership position by keeping track of project progress.
This year is a great development opportunity for New Era Group's hotel industry, but he will not let go of this God-given opportunity.