Chapter 857 Negotiations on Shares (Two in One)

Peninsula Hotel.

Shen Zou, Shi Yadi Shihuai Ya, Henry Kasik, and Michael Kadoorie gathered together again for tea.

Shen Chow said to the three of them: "Someone from Malayan Finance, the parent organization of Yuming Finance, is here. Everyone must know about this."

"It's such a big deal, it's hard not to know about it," Michael Kadoorie said.

Siadi Shuaiya and Henry Kesak nodded in agreement. They were not blind. Whether it was Malayan Finance reporting the crime or protesting through the media, they all saw it.

Shen Zong said: "Just in the morning, Sir Mai invited me to have a chat with the Hong Kong government. He mentioned the international impact of this matter and told us to deal with it well."

"Handling it?"

Henry Kaiser couldn't help but frown: "How to handle this matter well? It's a loan of 3 billion Hong Kong dollars. Speaking of which, Chen Songqing is also capable. He actually allowed Jiali Group to get a loan of 3 billion Hong Kong dollars from Yuming Finance. If he had known it earlier, It was so easy, I even asked Jardine Matheson to take out a loan. "I thought that if Jardine Matheson had an extra HK$3 billion in funds, it would have been able to increase its stake in Hutchison Whampoa, and Hutchison Whampoa would not have been acquired by Lin Baicheng. went.

Shi Yadi Shihuaiya continued: "I also admire Chen Songqing now. He has such great ability and courage. The market value of Jia Ning Group is less than 3 billion Hong Kong dollars, but he has loaned so much money. He is They deceived people like us." If they had known the true situation of Jianing Group, they would not have dared to invest in Jianing Group to death.

"Let's talk about how to deal with this matter."

Shen Porridge didn't want to mention Chen Songqing too much. After all, he had a big problem with Chen Songqing. He interrupted and said: "As you said, that is a loan of 3 billion Hong Kong dollars. If it is all counted to Jiale Real Estate, then Our reorganization would be meaningless.”

"It definitely cannot be counted as Jiale Real Estate."

Henry Caesar immediately said: "After Jiale Real Estate has been reorganized, our losses are still huge, and we don't know how many years it will take to recover the capital. If we are burdened with another 3 billion Hong Kong dollars in loans, then Jiale Real Estate will be ruined." , the interest alone is not enough every year.”

Yuming Finance's HKD 3 billion loan, plus HSBC's HKD 750 million, total HKD 3.75 billion. Even if the annual interest is only 8%, it will still cost HKD 300 million.

With the scale of Jiale Real Estate, it is not easy to make a profit of 300 million Hong Kong dollars every year, let alone spend so much money to repay loan interest every year. And if a company can't even repay the loan interest every year, what future does it have? Bankruptcy is inevitable sooner or later.

If Jiale Real Estate goes bankrupt, the shares in their hands will become worthless, and it will be meaningless for them to reorganize Jiale Real Estate and become independent.

"But the problem now is that we can't do whatever we want."

Shen Cong sighed: "Although Sir Mike did not say it directly, he hinted to me that once this matter is not handled well, the Hong Kong government will re-examine the listing of Jiale Real Estate. The listing of Jiale Real Estate is originally We used our connections to force the listing. Once the Hong Kong government takes it seriously, Jiale Real Estate will definitely not be able to go public. Then we really don’t know how long it will take to get back to our original plans.”

The stock market is an amplifier. Even if the reorganized Jiale Real Estate's annual profit is only 20 to 30 million Hong Kong dollars, under their hype, the market value can become 7.8 billion Hong Kong dollars or even higher.

But if the company cannot be listed, with a market value of 20 to 30 million Hong Kong dollars per year, it may take ten years for the company to grow to an asset size of 7.8 billion Hong Kong dollars, which will be too long.

"Even if it doesn't go public, it's still better than accepting the HK$3 billion in debt from Yu Ming Financial."

The company is not listed, but the problem is that it is slow to repay the capital. At least it still has some assets. However, if it takes over 3 billion Hong Kong dollars in debt, Jiale Real Estate will go bankrupt in a few years, and then even listing will be meaningless.

No one is a fool. Jiale Real Estate is carrying a loan of 3.75 billion Hong Kong dollars. The company is listed under such circumstances. Only fools buy the company's shares. It is entirely possible that it will become a penny stock with less than one Hong Kong dollar. Even if they want to run away Can't run away either.

"It's certainly not okay to accept the debt outright."

Shen Cong said his thoughts: "This is what I think. Let's discuss it with people from Malayan Finance to see if we can give up some shares and let them accept the facts. We should still put the debt on Jianing Group and let them accept the fact. Jiale Real Estate is going to go public lightly and I think that as long as Malayan Finance does not want to lose everything, then they can only agree to our conditions.”

"Then how many shares should be given up? How much should each of us give out?"

Henry Caesar asked aloud, this is related to the interests of each of the four companies, and he knows that no one is willing to voluntarily give up their shares.

Shen Cong said: "We can slowly discuss the specific number of shares to be given up, but we can decide who will give up first. I think it should be divided equally among the four companies, so that it is fair to everyone."

"That's not fair."

Michael Kadoorie immediately retorted: "HSBC holds the largest share of Jiale Real Estate. If everyone shares it equally, then HSBC will benefit."

After hearing this, Shen Zhou said: "But by the same token, HSBC is the strongest, and it also contributed the most to the restructuring of Jiale Real Estate."

"Just follow what the big class said, let's share it equally."

Shi Yadi Shi Huaiya supported Shen Zhou this time. Although Swire Group held fewer shares than HSBC, it was not too much less. Even if HSBC gave more, Swire Group would not get much. There was no need to be unhappy with Shen Zhou because of this. After all, the two sides would continue to cooperate in the future, so they should look at the long-term.

"Since Chairman Shi Huaiya agrees to share equally, then share equally."

Henry Kassack looked at Shi Yadi Shi Huaiya with some surprise, but he did not object, after all, the interests were not great.

"Okay, then I agree too."

Seeing that both of them agreed, three to one, Michael Kadoorie had no choice but to compromise.

"Then, should the 20% shares of those retail investors and small shareholders also be shared equally?"

"What do you think?"

Shen Zhou asked the three people for their opinions.

Shi Yadi Shi Huaiya thought for a while and said, "Anyway, they are not satisfied with the current share ratio, and it is not a big difference, so just share it together."

"Too many lice don't itch."

Henry Kassack echoed.

After hearing what the two said, Shen Zhou immediately said: "Then all shareholders should share equally and give up some of their shares to Malayan Financial."

Shi Yadi Shi Huaiya said: "Then let's discuss how many shares to give up."

Shen Zhou said: "First of all, the shares we have to give up must not be less than 10%. If it is less than this number, I think there is no need to talk about it. Malayan Financial will definitely not agree."

"That's for sure."

Henry Kassack nodded in agreement. If he put himself in their shoes, he would not agree either.

Shi Yadi Shi Huaiya said: "We must set an upper limit, which cannot be higher than a certain proportion. If we give up too many shares, our losses will be too great. The restructuring is completely doing good for Malayan Financial."

"Chairman Shi Huaiya is right." Michael Kadoorie nodded in agreement.

Shen Zhou said: "Not counting the 20% of the shares held by small shareholders and retail investors, of the remaining 80% of the shares, HSBC holds 35% of the shares, and each of you holds 15%. Therefore, the shares that Malaya Financial can get must not exceed the shares held by HSBC. Counting the shares to be deducted for amortization, Malaya Financial can only get 25% of the shares at most, no more."

"Is 25% of the shares a bit too much?"

Henry Kassack calculated in his mind: "In this way, we only have 11.25% of the shares left, which is less than half of Malaya Financial."

"I think it's too much, let's give up 20% at most."

Shi Yadi Shi Huaiya said, if it weren't for the fact that Yu Ming Finance, a subsidiary of Malaya Financial, lent 3 billion Hong Kong dollars to the Jianing Group, this number was too large, and it would be impossible to impress the other party without giving up a little more shares. He didn't even want to give 20%, after all, it was cutting their flesh.

"20%."

Michael Kadoorie followed up, of course he hoped to give up as few shares as possible.

"Then let's set it at 20% for now."

Shen Zhou said to the three people: "I will talk to the people of Malaya Financial tomorrow, hoping to reach an agreement with them and let Jiale Real Estate go public as soon as possible. As long as Jiale Real Estate is not listed, our restructuring will be meaningless, and the shares we hold will not be worth much. You three should understand that the listing of Jiale Real Estate is the most important, and sometimes you have to give up some interests."

Shi Yadi Shi Huaiya nodded: "Boss, we understand what you mean, you should talk to the people of Malaya Financial first."

"After the talk, no matter how the progress is, I will contact you three."

Shen Zhou said to the three people that they were grasshoppers on a rope, and he would not leave the three people alone.

The three people had no objection to this.

The next morning, Shen Zhou made an appointment with Notting of Malaya Financial.

Because the restructuring of HSBC and others damaged the interests of Yu Ming Finance, the relationship between the two sides was not good, so the two sides did not exchange politeness after meeting and went straight to the point.

Shen Zhou said: "Mr. Notting, we are now very clear that Jianing Group is burdened with a total of more than 4 billion loans, and it is absolutely impossible for it to survive, so we must find another way out."

"So you reorganized Jiale Real Estate and placed all the excellent assets of Jianing Group in Jiale Real Estate?"

Notting was sarcastic. Shen Zhou and others had a good plan. The interests of Yuming Finance and other small shareholders were directly ignored.

Shen Zhou said directly: "Mr. Notting, we are willing to transfer part of Jiale Real Estate's shares to Yuming Finance. In return, Yuming Finance's loan will be placed on Jianing Group and has nothing to do with Jiale Real Estate."

"How many shares are you willing to give?"

Notting asked, without directly refusing.

"10% shares."

Shen Zhou was happy. He did not directly refuse, which meant that there was something to talk about.

"Only 10%? It's too low. We absolutely cannot agree to it."

Noting's expression changed immediately after hearing this: "Yu Ming Finance gave Jianing Group a loan of HK$3 billion, but now it can only get 10% plus real estate shares. The value of this part of the shares is probably less than HK$100 million."

Shen Cong said: "Mr. Nordin, if you know anything about it, you should know that we originally bought 25.62% of the shares of Jiani Group from Hutchison Whampoa for HK$692 million, and we also suffered heavy losses. Now Jiani In this situation of Ning Group, everyone must be mentally prepared for losses. If Mr. Nordin still wants to get back all the loans, then I can only say that everything is possible in your dreams. "

"10% of Jiale Real Estate's shares is too low, we need 30%."

Nuo Ding also knew that Shen Zhou was right. What he had to do now was to reduce Yuming's financial losses. It was better to recover a little bit than to get nothing back at all.

Shen Porridge shook his head: "Mr. Nordin, 30% is absolutely impossible. We can make a concession and give you 15% of the shares. This is already our bottom line."

But Nuo Ding said: "Taipan, actually I can't make the decision on your proposal just now. I still need to reply to the country. The shares you gave are too few, and the country will definitely not agree. As long as you get more Shares, I can convince the country.”

"But the 15% stake we gave is already a lot."

Shen Porridge took a deep look at Nuoding, and did not increase the share ratio, but said: "In this case, Mr. Nuoding, you should first seek the opinions of Malaya. If they don't agree, then forget it. At best, Jiale Real Estate will not go public, but its restructuring will not change anything.”

Nording's expression changed when he heard this: "Taipan, if you do this, you are obviously infringing on our international funds. Aren't you worried about affecting the positioning of Xiangjiang as an international city?"

"How can we care so much now? For us, the most important thing now is to make up for the losses caused by Jiani Group."

Shen Porridge shook his head and sighed. If this matter caused a bad international impact, it would definitely not be good for them, but he was negotiating with Nordin now, and he must not have any concerns about letting Nordin see that something was wrong.

"I will have a good talk with the domestic side, and I also ask you, Senior Class, to think about it carefully and show some sincerity. This will be good for everyone."

Noting said no more and decided to ask for instructions from home first, and then come to talk to Shen Porridge and the others.

"Then I'll wait for the good news from Mr. Nordin."

Shen Chow knew that he could only talk about this for the time being. As expected, the listing of Jiale Real Estate would be postponed until an agreement was reached with Malayan Finance, or the negotiations between the two parties collapsed, and Jiale Real Estate would not be able to be listed in a short time.

Both parties left separately.

After Nordin returned, he contacted Malaya.

After Shen Chou returned, he contacted Henry Kasik and the three of them to inform them of the results of the negotiations with Nordin, and asked them to be mentally prepared to give up at least 20% of their shares. As for whether it will be more than 20%, it depends on the determination of Malayan Financial. If the other party has a tough attitude, then they can only continue to give up some benefits.

In any case, whether Jiale Real Estate can be listed is the most important.