Chapter 280: A Good Deal

The beginning of mid-May.

On Monday morning, Liu Zhicheng's office welcomed a guest, He Tian, ​​the chairman of the board of directors of Miramar Hotel, whom he had met before.

Liu Zhicheng drank tea with the 80-year-old He Tian and said slowly, "Mr. He, you never come to see me for no reason!"

He Tian put down his teacup and said with a smile: "Then Mr. Liu, guess what I have to say. What is it?"

He knew Liu Zhicheng's abilities, and everyone in Hong Kong knew that he had an accurate grasp of the general situation.

Liu Zhicheng thought for a moment, then asked tentatively: "What about the Miramar Hotel?"

Although the Miramar Hotel was the property of Yang Zhiyun's family, after Yang Zhiyun's death, Ho Tim became the chairman of the board of directors.

However, Ho Tim, Ho Shanheng and others only hold a small amount of shares, and the Yang Zhiyun family should be around 34%.

He Tian said in amazement: "Mr. Liu is indeed the fastest rising rich man. His ability to observe people and their expressions is extraordinary!"

Liu Zhicheng quickly humbled himself and said, "If this is really about Miramar Group, as far as I know, the major shareholder, the Yang family, holds about 34% of the shares. I'm afraid I can't be the bad guy and seize other people's property!"

Since the 1990s, the Huangpu Group has not made any malicious acquisitions. After all, Liu Zhicheng also needs fame.

In the beginning, growth is needed, so it is inevitable to achieve rapid development and growth through acquisitions.

Today, Liu Zhicheng is the "Chinese President" of Hong Kong, and there is no need for him to maliciously acquire the Miramar Hotel.

He Tian was a little surprised, but soon felt relieved, as it was indeed a long time since others had made a malicious takeover.

"Although I came to you to represent the opinions of several small shareholders, the Yang family is not united in their voice.
Except for the eldest brother Yang Bingzheng who wanted to stay at Miramar Hotel, the other brothers all advocated selling their shares and immigrating to the United States.

Yang Zhiyun had five sons: Yang Bingzheng, Yang Bingxian, Yang Bingjian, Yang Binggang and Yang Bingliang.

After Yang Zhiyun's death, the eldest son managed the Miramar Hotel, while the other four brothers developed their own businesses.

Through the Yang Zhiyun family and the Guo Desheng family, Liu Zhicheng understood that he must not let his brothers participate in the management of the company together, otherwise sooner or later someone would take advantage of them.

Of course, this is also because Yang Zhiyun’s family is not rich enough, so his descendants hope to sell their property to obtain a better life.

As for the internal strife in Guo Desheng's family, he did not give up the family business.

Liu Zhicheng pondered for a moment and said, "If that's the case, I'll consider it! In short, if I really want to buy it, I will definitely do it with the greatest goodwill!"

He Tian heard this and said, "Then we will wait for good news from Liu Sheng!"

Liu Zhicheng smiled and nodded, then chatted for a while before seeing He Tian off.

After He Tian left, Liu Zhicheng fell into deep thought. He had never thought about acquiring Miramar Hotel. But now, he was thinking seriously.

Miramar Hotel is one of the three blue chip stocks in Hong Kong and has a very rich property portfolio.

The properties under his name are mainly the Miramar Hotel on Nathan Road for operation and Miramar Plaza on Kimberley Road for rent collection.

These are two prime plots of land, the former covering 3.6 square feet and the latter covering 8.6 square feet; it can be said that the total floor area is approximately million square feet.

In addition, it has the joint operation and management rights of Nanhai Hotel in Shekou, and businesses under the names of Knutsford Terrace and Cuihengtun Restaurant in Hong Kong.

The rental properties on Nathan Road in Tsim Sha Tsui alone are likely to be worth HK$150 billion (under ideal circumstances) in more than a year.

Today, the share price of Miramar Hotel is 12.5 yuan per share (5 million shares) and the warrant is 6 yuan per share (1.2 million shares).

If the acquisition is made with good intentions and at a premium of more than 30%, the temptation is still very great (it is usually at this level).

However, Liu Zhiben himself had no social relationship with Yang Bingzheng, while Yang Zhiyun's family had a very good relationship with Li Ka-shing and Cheng Yu-tong.

If Yang Zhiyun asked them for help, Liu Zhicheng's acquisition would fail. He would not be unhappy about such a thing.

Moreover, even if Yang Zhiyun resisted, Liu Zhicheng would not make a malicious acquisition because he cared about his reputation in Hong Kong.

There are no fathers and sons in the business world, and naturally there are no good friends!
In his previous life, after Superman Lee proposed to acquire the Miramar Hotel, Li Ka-shing still chose to join. That was because Yang Bingzheng took the initiative to find Li Ka-shing and had a righteous cause.

Li Ka-shing naturally joined the competition out of consideration for his good friend Yeung Chi-wan and the considerable assets of the Miramar Hotel.

Liu Zhicheng began to analyze his own advantages:

Firstly, if the purchase price is HK$17, it is equivalent to a % premium, which can be regarded as full of goodwill.

There would be almost no rivals at this price, and the current funds of Li Zhaoji and others were not enough to join the bidding. And given Li Chaoren's character, he would not offer this price.

Secondly, since Yang Bingzheng still wants to protect the ancestral business, let him continue to manage it. There is no need to drive others away.

He is the general manager and I am the chairman of the board of directors, so they can cooperate and discuss matters.

Liu Zhicheng acquired the Miramar Hotel with the aim of entering the mid-range hotel market (three or four stars) on the mainland (with a quick payback period, say five to six years), as well as the high-quality properties of the Miramar Hotel and Miramar Plaza in Tsim Sha Tsui.

Yang Zhiyun will not live long, so as soon as he dies, I will let my own people take over the position of general manager.

Thinking of this, he decided to give it a try! But he didn't have to buy it. The price of 17 Hong Kong dollars was the highest. After all, this price was about the price in a year.

…………

With the rolling in of profits, Huangpu Group’s cash flow is unmatched.

Liu Zhicheng called Hao Qingwen and said, "I plan to acquire the Miramar Hotel. I will need about 30 billion Hong Kong dollars. Please prepare it!"

A hint of joy appeared on Hao Qingwen's face. The Miramar Hotel is a high-quality asset!

"Okay, I'll get ready right away!"

It was "suddenly" announced in the market that Whampoa Group was interested in acquiring Miramar Hotel, attracting much attention.

The media even revealed that it was the director of the Miramar Hotel who invited Liu Zhicheng to acquire the Miramar Hotel.

The Miramar Hotel can be said to be the ancestral property of the Yang family, but its founders were a group of foreign priests.

In the early 20s, there was a small church hotel in Tsim Sha Tsui, Kowloon, which specifically accommodated clergy from mainland churches who were expelled.

In 1957, Yang Zhiyun, a businessman from Zhongshan, purchased this small hotel by chance.

After several expansions, by the 70s, Miramar had become a first-class hotel with more than a thousand rooms.

In the early 80s, Carrian and Hong Kong Land jointly acquired one wing of Miramar (8.6 square feet) for HK$28 billion, which caused a sensation in Hong Kong.

Later, Carrian went bankrupt and Hong Kong Holdings was heavily in debt, resulting in the failure of the transaction. The two parties went to court, which once again shocked the whole of Hong Kong.

In 1985, Yang Zhiyun passed away and his son inherited his father's business, and Miramar continued to thrive.

By 1989, Hong Kong's tourism industry was in an unprecedented depression, and the occupancy rate had not yet exceeded 1991% until 50.

The Yang brothers were criticized by many shareholders, and the group’s veteran Ho Tim was appointed chairman of Miramar Group.

In March 1992, Hong Kong's tourism industry began to flourish. However, the conflicts among the major shareholders did not disappear.

Moreover, the Yang brothers were not as united as one. The eldest brother Yang Bingzheng was determined not to give up the ancestral business, while his younger brother Yang Liang advocated going to the United States for development.

This is a godsend opportunity for foreign powers to "invade".

The strongest external force is Hong Kong's richest man Liu Zhicheng. With the financial resources of the Whampoa Group, it is like catching a turtle in a jar to acquire Miramar.

A financial commentator said: "In Hong Kong, no one can compete with him!"

In the market, everyone is saying: "Miramar is doomed."

The Whampoa Group acted quickly. Because they were worried that Yang Bingzheng would go to Li Ka-shing for help, Hao Qingwen quickly called Yang Bingzheng and Mrs. Yang (Yang Zhiyun's wife) on behalf of the Whampoa Group.

During the phone call, Hao Qingwen stated three acquisition conditions:
First, the common stock is priced at HK$17 per share (8.5% premium), and the share warrant is priced at HK$34.5. It is not a full acquisition, and the target is %.

Second, after the acquisition, Yang Bingzheng was still recognized as the general manager and was responsible for managing the business of Miramar Hotel.

Third, the Miramar Hotel will not be dismantled. Instead, the Whampoa Group will support the development of the Miramar Hotel in the Mainland and establish a large hotel brand.

Miramar Hotel.

Old Lady Yang summoned the five brothers Yang Bingzheng, Yang Bingliang, Yang Bingxian, Yang Bingjian and Yang Binggang to discuss the matter.

After Old Lady Yang told them about the conditions of the Huangpu Group, the four brothers Yang Bingliang, Yang Bingxian, Yang Bingjian and Yang Binggang all showed joy on their faces. The second brother Yang Bingliang said directly: "The conditions are very favorable, with a premium of more than 30%. He is worthy of being the richest Chinese man. He does things without any hesitation.

Others let you continue to be the general manager, which is full of goodwill. And Miramar Hotel will also be very beneficial to its long-term development if it joins Whampoa Group. Just look at Whampoa Hotel to know this.”

Since the mid-80s, Yang Bingliang has been managing the Yang family's real estate company in Miramar in San Francisco and New York. He is a backbone of the Yang family's relocation faction that advocates the sale of Miramar.

This man is also a romantic man. He has dated famous models Zhang Tianai, Jenny Tseng, and Sally Yeh.

Now at the age of 35, he is still unmarried. He can be said to be a real playboy, but not a philanderer, because they are all normal relationships.

The other brothers all agreed, except Yang Bingzheng who said, "I also want all my brothers to take the money and develop their own careers. I don't want the burden of our ancestral business to alienate our relationship.

But if we want to sell it, Fourth Uncle might be a better choice. After all, we are not familiar with Liu Zhicheng, so we may not be confident in cooperating with him. "

Yang Bingliang said, "It's good to cooperate with Fourth Uncle, but he may not be willing to pay such a high premium for the acquisition.

Most importantly, I am more optimistic about the future development of Miramar and the aggressive Whampoa Group. "

The other brothers only thought about selling assets and didn’t care who the target was, so they also felt that Whampoa Group was more suitable!
Only Old Lady Yang, remembering their friendship, agreed with her eldest son.

“The shares that the Yang family wants to sell should go to the highest bidder, but our situation is special.

Because my fourth brother and my late husband were good friends, and my late husband had been a director of Henderson Land Development when he was alive, with this connection, even if the purchase price was the same, I would sell it to my fourth brother without hesitation. "

“Boss, go ask your fourth uncle for his opinion. If he offers the same conditions, we will consider him.

Even if it's 16.8 Hong Kong dollars, if he's interested, consider him. However, in order to avoid offending others, you must keep the negotiation with the fourth brother confidential. "

Yang Bingzheng nodded!

When Li Chaoren heard the market rumors, he immediately became interested in the Miramar Hotel.

Because there were rumors that the Yang brothers were not in harmony, and only Yang Bingzheng disagreed to sell the Miramar Hotel, this became a "name".

In this way, even though he had no directors to actively introduce him, he could still make a fair offer and perhaps defeat Liu Zhicheng.

However, he remembered Liu Zhicheng's fame and financial resources, and quickly decided to bring in Mr. Rong of Huaxin Taifu to work together.

Soon, Master Rong was also very tempted. Although there was a suspicion of offending Liu Zhicheng, it was at least a fair bidding competition.

The important thing is that Superman Li has a good idea, which is to spin off the Miramar Hotel.

The shares of Miramar Hotel and several restaurants and Nanhai Hotel belong to Huaxin Taifu, while the 1988 square feet of land of Miramar Plaza (demolished in 8.6, construction had not yet started) and the investments in Yangcheng and Shanghai (the Miramar Hotel developed the Miramar Garden residential project in both places very early on) belong to Cheung Kong Holdings.

At once, the two hit it off and quickly took action.

Wednesday, September 5th.

Miramar Hotel announced a suspension of trading. Its current share price is HK$14 per share. Since the news that Whampoa Group was interested in acquiring it, the share price of Miramar Hotel has risen by %.

The reason for the suspension is that the acquisition proposals from Cheung Kong Holdings and Huaxin Taifu were sent to the board of directors of Miramar.

On that day, Yang Bingzheng said in front of the media:
"All directors have failed to reach a consensus with Cheung Kong and Huaxin. Miramar Properties has excellent development potential and its net asset value is HK$17 per share."

“I just received a phone call from the financial advisors of Mr. Li Chaoren and Mr. Rong last night expressing their intention, and the acquisition proposal was sent to the board of directors of Miramar at 9 am the next day.

Such a large acquisition, without giving the parties enough time to understand, and taking action suddenly, is certainly not friendly or well-intentioned. "

"The price of the acquisition proposal, 15.2 Hong Kong dollars per share, is much lower than the intended offer of Huangpu Group! The attached conditions are not satisfactory!"

For a time, public opinion was in an uproar.

Yang Bingzheng's move was considered an open criticism of Li Chaoren and Master Rong, and he offended two wealthy and powerful forces at the same time.

The media is even more curious about what Huangpu Group’s intended offer is.
Even after so long since the news broke, Huangpu Group has yet to formally submit an acquisition proposal, which shows that it is very confident in its offer.

This has always been in line with Liu Zhicheng's style, acquiring at a premium, but later facts proved that he had a very good vision and it only took one year to get the stock at par.

That evening, Liu Zhicheng also invited Li Ka-shing to dinner.

Because Liu Zhicheng knew that if he wanted to successfully acquire the Miramar Hotel, he must get the support of Li Ka-shing.

Li Ka-shing could have taken Miramar away without paying a super high price, leaving himself with nothing.

This is the sophistication of the world.

During the dinner, Liu Zhicheng said, "Fourth Uncle, are you interested in joining us? Let's jointly develop the old wing of Miramar Hotel (originally three old hotel buildings)!"

Li Zhaoji was stunned and immediately asked, "Do you want to spin off the Miramar Hotel?"

Liu Zhicheng shook his head and said, "Of course not! I am worried that after I acquire only 34.5% of the shares, Li Chaoren and others will want to continue to acquire the entire shares, and then the Yang family will lose their ancestral property.

So, if you are optimistic, you can acquire more than 10% of the shares, and the two of us will only serve as directors.

When Mr. He is willing to retire, I will serve as the chairman of the board of directors, and we will develop the Miramar Hotel together!"

He was also worried that Li Chaoren intended to acquire all of the shares (9% impossible), so he was not very reassured. Once the shares exceeded 35%, a full acquisition would be made.

Although the deal was a good one, Liu Zhicheng did not want to invest eight or nine billion Hong Kong dollars in cash in the Miramar Hotel.

Therefore, it would be better to invite Li Ka-shing to develop together.

Li Zhaoji thought for a while before saying, "How do you plan to develop the Miramar Hotel?"

Liu Zhicheng said: “That piece of land will naturally be used to develop Miramar Shopping Center, which can build a shopping center of more than 50 square feet;

Then an 18-story office building with 4 square feet on each floor can be built on top.

In addition to this plan, for investment in the mainland, I plan to position Miramar as a three-star or four-star hotel, and then make multiple planned investments.

The mainland is in the process of developing its economy, and three- and four-star hotels have a high occupancy rate, which can speed up the return on investment.”

Li Ka-shing nodded frequently and was very excited. Although he was not a major shareholder, Miramar's assets and prospects were still huge, and the long-term dividends would definitely be good.

"Great! I can buy public shares from the open market!"

"He Lao and his family have 5%, and Yang has 34.5%, which adds up to 39.5%. Of course, Yang Bingzheng will keep 5%, and when the market opens tomorrow, Fourth Uncle can buy more.

But you should not buy more than HK$17 per share. After all, once Li Chaoren retires, the current Miramar Hotel cannot support HK$17 per share. "

Li Zhaoji nodded and said, "That's right! As long as you reach an agreement with Yang and Brother He, we will have 40% of the shares.

I know Li Chaoren, he will not raise the price again because your price is too high. "

Liu Zhicheng smiled and said, "That's good!"

In any case, the Miramar Hotel is not an asset that Liu Zhicheng values ​​too much, so he does not want to acquire it in its entirety.

Friday, September 5st.

All 13 directors of the Miramar Hotel board accepted the acquisition proposal from the Whampoa Group and did not give Cheung Kong and Huaxin Taifook any chance at all.

For a time, Hong Kong public opinion reported the details of this acquisition battle.

But when the Huangpu Group's offer and conditions were announced, everyone realized that Li Chaoren's loss was not unfair.

The sky-high price of HK$17 per share is 36% higher than before the takeover war.

Not only that, such a high price also allowed Yang Bingzheng to continue managing the business, which shows his sincerity.

Faced with this result, Li Rong Group stopped raising the price and admitted that the acquisition had failed.

The acquisition of Miramar Hotel officially started, with an estimated cost of HK$29.5 billion and a 34.5% stake in Miramar Hotel;

Miramar Hotel has no debts, but has a cash flow of HK$5.2 million, which can be used to start the Miramar Plaza project (which has already been approved);

In addition, you can also take out loans and invest in the mainland.

This is a good deal!

(End of this chapter)