Chapter 694 [The Battle of Xiangjiang Telecom is over]
The fight between Singapore Telecommunications and New Era Group for "Hong Kong Telecom" is not destined to be a "fight between dragons and tigers." In a short period of time, New Era Group obtained US$10 billion from Hua Xia Bank, HSBC, Barclays, and National Bank of Paris.
of loans.
The collateral for this loan is the 54% acquired shares of Hong Kong Telecom. Of course, this fund also has a condition, that is, it can only be used to acquire Hong Kong Telecom.
On January 21, New Era Group proposed a very tempting plan: for every two shares of Hong Kong Telecom, you can exchange for one New Era Group stock and pay out 10 billion US dollars in cash; according to this plan, Hong Kong Telecom
The acquisition market value is HK$250 billion.
This plan was very in line with the requirements of Taitung Cable and Telegraph Company, which was eager to sell Hong Kong Telecom to obtain cash, so it increased the acquisition price by HK$30 billion.
At this point, Lin Zuhui, Yuan Tianfan and others were already feeling confident of victory and were waiting for the good news from the Dadong Telegraph Bureau.
Because Lin Zuhui believes that Singapore Telecom cannot afford this price, and even no consortium in the world can afford this price.
And Lam Cho-fai must acquire Hong Kong Telecom, even if the price is high, because he is the boss of Hong Kong, where foreign consortiums, and even local consortiums, are allowed to challenge his authority.
Fight for honor!
Singapore Telecommunications Headquarters.
Li Xianyang ushered in a ray of light when he was in despair.
"Mr. Murdoch, you are very welcome!"
It turned out that it was media tycoon Rupert Murdoch who came to us and asked for cooperation.
"Haha, Mr. Li, I'm glad to see you again!"
The two sat down on the sofa in Li Xianyang's office. Li Xianyang already felt in his heart that Murdoch's visit at this time must be for Hong Kong Telecom.
Sure enough, Murdoch quickly said: "Mr. Li, as far as I know, New Era Group has quoted a sky-high price to Dadong Cable and Telegraph Company. How does Singapore Telecom respond to this?"
Li Xianyang said frankly: "We are helpless because we can't afford the price!"
The Dadong Telegraph Office has already given a hint as to what price it will be, but it has not specified it in detail.
Murdoch said seriously: "I am also very interested in participating in this acquisition. If Singtel is willing, I can provide US$1 billion in cash to purchase new shares issued by Singtel."
***’s eyes lit up, because not only did Singtel receive US$1 billion (expected to issue 4% of new shares), but more importantly, Murdoch, a media tycoon, joined Singtel, which also made Singtel’s stocks more valuable.
, more 'imaginative'.
"Okay, we are willing to reach an alliance, and we are very grateful to Mr. Murdoch for his help!"
"Haha, I would love to see Singtel beat New Era Group."
Murdoch smiled very sinisterly, because he had a "feud" with Lin Zuhui.
At that time, Lin Zuhui "introduced him into the game" of Asia Satellite TV Group (Star Media) and teamed up with the Li family in Hong Kong to sell him 50% of the shares at a high price. The high price was fine, but the important thing was that he later found out that he was being used. ATV Group used him
With their connections and experience, they opened up satellite TV channels in many Asian countries, and then vigorously developed "Hong Kong Streaming Culture". Although the two companies each held 50% of the equity, Murdoch gradually discovered that ATV Group had a say in Star Media.
too big.
The two forces later had constant friction, but ATV Group relied on its "license holder" to firmly suppress News Corporation. Therefore, Murdoch had the idea of cashing out.
I originally hoped that Western culture would be promoted in Asia, but in the end I found that the development of "Hong Kong culture" in Asia was achieved.
Therefore, the 'feud' between the two parties was thus forged.
Over the weekend, news continued to spread back to Hong Kong, making Hong Kong people worried.
In order to improve its cash acquisition capabilities, Singtel secured a capital injection from media king Rupert Murdoch's News Group. News Group invested US$1 billion in cash at 4% of Singtel's equity. The two parties cooperated to develop Internet, TV and mobile phone businesses in Singapore. The acquisition war
Become more international.
With this bargaining chip worth US$1 billion and the backing of a stronger business after the capital injection, Singtel President Li Xianyang flew to London and personally submitted a new acquisition plan to Dadong's board of directors in an effort to turn the tide.
The specific plan is unknown, but the variables have become larger. The increase in cash ratio, coupled with Singtel's stable business, and News Corporation's investment in the company, will be very attractive to Dadong, which has always been conservative in style.
At the same time, the press release issued by News Corporation made no secret of assisting Singtel in bidding for Hong Kong Telecom's equity. Its high-profile actions show its determination to prevent New Era Group from winning the championship.
It is said that the reason why Murdoch intervened was because he found out that buying satellite TV was actually "buying expensive goods" and he has been suppressed by the ATV Group, so he has always been resentful. This time he finally found a good opportunity to join Lin Zuhui's army.
.
On the other hand, Singtel spread a smokescreen and said that it was preparing to file a lawsuit in the Hong Kong court, accusing HSBC Holdings, one of the banking groups, that when serving as a consultant to the independent directors of Hong Kong Telecom, it had contacted Singtel to seek confidential information about its merger with Hong Kong Telecom, but then
It lent money to New Era Group, which it said violated conflict-of-interest clauses.
When listed companies are involved in major acquisitions and mergers, they usually hire financial consultants. In this acquisition battle, Singapore Telecom and New Era Group, as well as Hong Kong Telecom's parent company Taitung Cable and Telegraph Bureau, all hired financial consultants, and Hong Kong Telecom hired additional financial consultants.
financial consultant.
According to the provisions of Hong Kong's Code of Acquisitions and Mergers: Since acquisitions or mergers involve the interests of shareholders, the board of directors has the right to hire independent financial advisors for the benefit of small shareholders. In actual circumstances, the main responsibility of financial advisors is to provide services to clients and other parties.
Bargain and strive for maximum benefits. HSBC’s role in the battle for Hong Kong Telecom is to analyze the acquisition proposals of Singapore Telecom and New Era Group for Hong Kong Telecom’s independent directors.
The purpose of Singtel's move is very clear, which is to disrupt New Era Group's loan plan and catch it off guard.
New Era Group and Singapore Telecom are in an inseparable fight. In order to crush the rumors, the Hong Kong government and even the central government have stated their attitude that they will not intervene. After all, Hong Kong's telecom market has been opened up. The Hong Kong government has repeatedly stated that mergers and acquisitions are purely a commercial issue.
As the Hong Kong government pursues a "positive non-intervention policy", what it has to do is to protect the interests of all Hong Kong citizens. Hong Kong Chief Secretary for Administration Fong Anson said that the government has no opinion on which company will acquire Hong Kong Telecom. It is concerned about
The purpose is to maintain fair competition within the entire scope of telecommunications services and ensure that relevant licensees can meet the licensing conditions. The merger does not involve any political factors.
Faced with Singapore Telecom's provocation, New Era Group cannot remain indifferent.
On January 26, New Era Group announced that it made a profit of HK$46 billion in overseas securities last year. After cashing out, it still holds high-quality securities worth approximately HK$70 billion overseas.
This news seemed to have no impact on this acquisition, but it dealt a fatal blow to Singtel.
New Era Group spread a message through the media: Once New Era Group resumes trading, the stock price will skyrocket again, and the stocks held by Dadong Telegraph Bureau will also gain more value when cashed out in the future.
This is equivalent to a disguised increase in the purchase price.
On the same day, people in the halls of major securities companies in Hong Kong were asking when New Era Group and Hong Kong Telecom would resume trading. They were simply buying and making money.
"New Era Group really can't spend all its cash. It was 80 billion last year and more than 100 billion this year. If this kind of stock doesn't rise to a market value of 1 trillion, it won't be able to afford its rich assets."
"Yes, the company led by Lin Zuhui is developing at the top speed in the world. If you follow him, you will make stable money."
The news reached London, and Yuri convened an emergency board meeting.
"At present, the quotations from both parties have been released. Let's discuss the ownership of Hong Kong Telecom!"
All the directors were already laughing and talking, feeling very relaxed.
Director A said: "It's a simple choice! New Era Group offers a higher price and pays more in cash. Naturally, we choose New Era Group."
Director B nodded and said: "The price offered by New Era Group is already 10 billion higher, and now whether it is the cash payment amount or the long-term value of the other party's stock, New Era Group wins."
Director C couldn't wait to say: "Yes, we are investing 10 billion US dollars in the Internet industry. After a while, we will be able to cash out another 10 billion US dollars in New Era Group stocks. What a wonderful thing!"
"Ha ha"
Yuri also said very happily: "What a wonderful deal. We have brought huge profits to the shareholders of Dadong Telegraph Bureau. Okay, now everyone officially comes to vote."
On January 28, the "Hong Kong Telecommunications Acquisition War" that lasted for nearly a month finally came to an end. Dadong Cable and Telegraph Bureau announced that it would reach a formal agreement with New Era Group.
For a time, Hong Kong people burst into joy.
Hong Kong Telecom Building.
On behalf of New Era Group, Lin Zuhui signed a formal transaction contract with Yuri, chairman of the board of directors of Dadong Telegraph Bureau.
After signing his name, Lin Zuhui said with a smile: "Thank you to Tai Tung Cable and Telegraph Bureau for its many years of contribution to Hong Kong's telecommunications industry. I hope we will have more cooperation in the future."
Yuri said with great satisfaction: "Mr. Lin is really very refreshing in his work. I am also very eager to see the cooperation between Dadong and you."
Regarding this transaction, Lin Zuhui does not think it was expensive or a loss.
New Era Group paid a price of 10 billion US dollars and 7% of new shares, which is almost 130 billion Hong Kong dollars. But he had to spend this money, otherwise Hong Kong Telecom would be controlled by Singaporean capital.
Dadong Cable and Telegraph Bureau has indeed made a lot of money, but others have indeed made contributions to Xiangjiang Telecommunications for 100 years. Making such a small amount of money is nothing!
As for New Era Group, is it expensive?
It depends on how New Era Group operates Hong Kong Telecom and whether it will give Hong Kong Telecom "imagination".
The conference room of New Era Group.
Lam Cho-fai convened a group of senior executives to consider the prospects of Hong Kong Telecom.
After so many years in business, he has always acquired and restructured businesses in parallel.
If you acquire it at a high price and do not develop it fully, you will definitely lose money.
Hong Kong Telecom has 1 million mobile phone users and 80% of Hong Kong's fixed-line telephone network, which has a solid foundation; and Hong Kong and Singapore are competing for the information market except Japan, which is why the new era must get it today.
"Do you have any suggestions for the new management of Xiangjiang Telecom?" Lin Zuhui asked.
Since we want to use Xiangjiang Telecom to fight for the future, we naturally need a leader with a global perspective.
Yuan Tianfan immediately said: "I have a candidate for the CEO of Xiangjiang Telecom, which is the former director of the Telecommunications Authority, Ivy Lang. During his tenure, he allowed Xiangjiang Telecom to break through geographical restrictions and develop overseas. His ability is very good. If it were not for the localization of senior officials born in 1997,
He will not hold office successively."
Lin Zuhui said: "Well, invite him to be the CEO for me!"
Of course he knew these people, so he agreed immediately.
Then, Lin Zuhui said: "This time our New Era Group's acquisition of Hong Kong Telecom has also caused some gossip. Tianfan, you must merge Times Telecom and Hong Kong Telecom as soon as possible."
If it were an ordinary consortium, it would inevitably be criticized by the media and the government. After all, New Era Group holds dual "licenses", which is equivalent to a monopoly. However, Lin Zuhui's transcendent status, and this time it is a battle with Singaporean capital, so there will naturally be a lot less voice.
Therefore, as long as the two companies merge their businesses as soon as possible, nothing will be a problem by then.
"OK!"
Lam Cho-fai continued: "I originally didn't want to engage in broadband Internet services, but now that Hong Kong Telecom wants to go out of Hong Kong, it is bound to do this business."
This chapter is not finished yet, please click on the next page to continue reading the exciting content! Yuan Tianfan said: "We have great advantages in providing broad Internet services. After all, boss, you are both an Internet giant and a cable TV giant. Technology and content
, coupled with Hong Kong Telecom’s network, it’s a perfect match.”
Lin Zuhui nodded and said: "The imagination here is very huge. We will discuss it later after the integration of Times Telecom."
Singtel failed to acquire Hong Kong Telecom, and most media and scholars believed that Singtel was a failure. However, Dr. Wang Kangmao from the Department of Financial Accounting at the National University of Singapore believed that Singtel's withdrawal from the acquisition was a wise decision for the following reasons:
1. The acquisition price of US$32 billion is too high. Hong Kong Telecom’s traditional telephone business has declined in recent years, and the company’s profits have also declined. The broadband business has just started, and broadband mainly targets the Chinese mainland market. Instead of spending a huge sum of money to acquire Hong Kong Telecom, it is better to directly
Establish strategic alliances with China-related broadband business companies.
Second, in the past, Hong Kong Telecom's management was determined to cut costs and planned to reduce employees' salaries by 10%, but this resulted in a strike by all employees, and the Hong Kong government intervened to stop the salary reduction motion. In this context, after the successful acquisition of Singapore Telecom,
The management of Hong Kong Telecom will be more difficult to implement. If personnel are sent to handle or manage, local employees may object. If we rely entirely on local management, we may not be able to ensure the interests of Singtel shareholders.
Third, due to the huge amount of cash required for the acquisition, a considerable proportion needs to be exchanged for shares, but Singtel's circulating funds only account for 20%. If Dadong requires cash, Singtel will be even more unbearable.
Fourth, Hong Kong's telecommunications industry has been opened up. There are 9 telecommunications companies. Hong Kong Telecom's monopoly has been lost. Dadong only gave up after seeing this. Singapore Telecom has the strength and management experience, and there will be many opportunities to enter with lower costs and methods.
China’s telecommunications market.
Through the analysis of Dr. Wang Kangban, we can also partially understand the problems that New Era will face after acquiring Hong Kong Telecom, that is, how to develop Hong Kong Telecom to be more valuable.