Chapter 838 Baijia Supermarket
It is equivalent to controlling the entire port transportation industry in Hong Kong.
This temptation is still very big for him.
Li Jiacheng smiled and shook his head.
“If Xu Sheng is interested in the two port groups, Hutchison and Xiangjiang International Container Terminal are willing to give up 20% of the equity, and we are willing to give up 10% of the equity in COSCO International Container Terminal.”
"This old fox." Xu Liang sneered.
After relinquishing this equity, the operating rights of the two port companies are still firmly in the hands of Hutchison Ports, which cannot threaten the control of the Li family.
If he, surnamed Xu, is not sensible, the Lao Li family can dilute his equity and drive him out at any time through targeted financing and other methods.
Duan is a good idea.
If the two companies are developing rapidly and have unlimited potential, Xu Liang doesn't mind pinching his nose and eating it.
However, Xiangjiang Port was destined to decline.
The reason is simple.
The reason why Hong Kong Port developed rapidly and quickly became a world-class port.
In addition to its superior geographical environment, it is also the largest entrepot trade port in China.
Most of the various commodities exported from mainland China are re-exported in Xiangjiang and shipped to all parts of the world.
However, as China joins the WTO, a series of major ports such as Modu, Daocheng, and Pengcheng have developed.
This re-export trade is getting more and more popular.
This is only one of the reasons.
The most important thing is that these athlete's foot are too damn expensive.
For a 20-foot standard container shipped to the United States, the terminal handling fee in Xiangjiang is US$2,140.
But Pengcheng next door only costs $1,100.
Modu is cheaper, only $515.
So which fool insists on spending more money to come to Xiangjiang?
So in terms of pure investment, Xiangjiang Port is completely a loss-making business.
“I appreciate Mr. Li’s kindness, but I’m not interested if it’s just a small amount of shares.”
Li Jiacheng frowned slightly.
After confirming that Xu Liang is not talking nonsense.
“Xu Sheng is not interested in the port?”
“It’s not that I’m not interested, but I don’t have a port business.
The purchase is just a pure investment, but the port industry The return on investment is too low in my opinion and completely unnecessary
If Mr. Li is willing, I hope to buy PARKnSHOP supermarkets owned by Hutchison Watsons. ”
ParknShop Supermarket is a large-scale retail brand owned by Hutchison Whampoa. It has more than 280 branches in Greater China, including more than 50 hypermarkets with a business area of more than 10,000 square meters.
< br>Occupying 40% of the retail share in Xiangjiang
Standing side by side with Wellcome, a subsidiary of Jardine Matheson.
If it can be annexed, the number of Kelong Supermarket stores will exceed 1,000, spanning the mainland and China. Southeast Asia's international retail giant
Of course, acquisition is not the purpose. His fundamental purpose is to make Kelong Supermarket listed in Xiangjiang through the acquisition of ParknShop.
It is already May 2005. If it is not launched this year, we will have to wait until next year.
It was listed in 2006, and after removing the half-year blockade period, there were only a few months left for him to cash out in 2007.
Once the subprime mortgage crisis breaks out, although it will not affect China in a short period of time, it will become extremely difficult to go public if the general environment is not good.
After the subprime mortgage crisis, there will be a European debt crisis. It will take 10 years for the global economy to regain its vitality.
The listing road show and lock-in period will take one year.
If everything goes well, Kelong will be listed in 2012.
But at this point in time, the profits of the retail industry will become increasingly weak under the impact of e-commerce.
Without enough profits, the price-to-earnings ratio will be ugly, and the market value will naturally not be too high, which will directly affect his interests.
So, Kelong’s listing window is this year.
"Xu Sheng's appetite is as good as ever."
Li Jiacheng's face looked a little ugly.
Last year, in order to get the share of the Pacific Fund, he was often sucked by Xu Liang. He came again this year, and he was certainly not in a good mood.
“It’s not that I have a good appetite, but that the business I am involved in is too small and boring.
If it is too big, Mr. Li may not be willing to sell it. Parknshop Supermarket is just right.”< br>
Li Jiacheng looked thoughtful. For him, there is nothing that cannot be sold, only whether it is worth it.
And in terms of the retail industry alone, Watsons is the core industry of Hutchison Whampoa.
“If I am willing to sell, what conditions will Mr. Xu be prepared to pay?”
“2 billion US dollars to acquire PARKnSHOP, and I will give Mr. Li another US$500 million for Pacific Phase II. The investment limit of hedge funds.”
“The amount of US$500 million is fine, but the US$2 billion acquisition of Parknshop is too small.”
In 2004, PARKnSHOP achieved total revenue of HK$26.4 billion.
Gross profit is 35% and net profit is about 12%.
Converting this, PARKnSHOP's net profit is approximately US$410 million.
This is just a basic calculation.
ParknShop still has liabilities of more than 6 billion Hong Kong dollars.
It has to repay nearly US$200 million every year with principal and interest.
That is to say, the real money earned every year is only about 200 million US dollars.
According to the general price-earnings ratio of about 10 times in the retail industry, although Xu Liang's acquisition is fair, it does not come at a premium.
"How much does Mr. Li want?"
"4 billion U.S. dollars." Li Jiacheng said directly.
Xu Liang twitched the corner of his mouth. He knew that acquiring PARKnSHOP would definitely involve some friction, but this old Hong Kong athlete was too cruel.
"Only 2 billion US dollars. If Mr. Li is not willing, just pretend that I have never been here today." "That is such a pity. Xu Sheng, I am really sincere in cooperating with you."
“With the acquisition amount of US$2 billion, plus the investment amount of US$500 million, I have given enough sincerity, but Mr. Li has never been satisfied.
So there is no need to continue talking.”
Although he said this, his butt did not move.
It is normal in negotiations for everyone to speak harshly to each other.
"Mr. Xu, Hutchison Whampoa is not a company wholly owned by my Li family. If the acquisition price is too low, it will be difficult for me to explain to the board of directors."
"Then reduce investment. Well, Mr. Li’s investment amount of US$500 million will be reduced by 100 million, and my purchase price will be increased by 100 million.”
Old Li’s face darkened.
Using his own interests to subsidize other shareholders is not that noble.
But he also saw that Xu Liang would not give in anymore.
“I need to think about it.”
“OK, I’m waiting for Mr. Li’s answer.”
He stood up after saying that.
"I won't disturb Mr. Li's work and leave.
That's right."
Xu Liang stopped.
“I forgot to tell Mr. Li that the Pacific No. 2 Fund has made huge profits this year and is expected to provide customers with nearly 3 times the return. I remember that Mr. Xu invested US$200 million in the Pacific No. 2 Fund and calculated the profit It’s almost 600 million US dollars, congratulations.”
Li Jiacheng was shocked and couldn’t help but said: “Really?”
"Of course. In another half month, the fund will be unblocked, and Mr. Li can see for himself."
Paused.
"Okay, that's all I have to say. Mr. Li will give it more thought to Baijia's matter. Goodbye."
Sent Xu Liang out in person and looked at his The figure disappears around the corner.
Li Jiacheng couldn't help but sigh: "It's hard to believe that a young man of only twenty-six has such outstanding financial talent."
"So you are ready to agree to his conditions?"
Zhou Kaixuan, who had been silent next to him, spoke up.
Li Jiacheng nodded and said: "The acquisition of PARKnSHOP is dispensable to him, but we are determined to win the share of Pacific Phase II Fund.
Three times in two years Profit, let alone me, is hard for any businessman in the world to refuse."
Zhou Kaixuan nodded slightly.
It would be equally difficult for her to refuse.
“However, it doesn’t look like he is dispensable to PARKnSHOP.”
“If he really wants PARKnSHOP so much, when Hanhua raised funds last year, he There would be no need for the Chinese Bank, Yangcheng Xicheng Metropolis Plaza and Shancheng Metropolis Oriental Plaza.”
Lao Li still feels pain when thinking of these three projects.
Not to mention the Chinese Bank Building.
Every building in Central is like a golden chicken laying eggs.
Furthermore, there are only four buildings in Central including the Chinese Bank in his hands, and 20% of the interest in the Central Center was sold to Xu Liang.
After calculating this, the only Central office buildings he still has 100% control over are the Cheung Kong Group Center and Hutchison Building.
Yangcheng Xicheng Duhui Plaza covers an area of about 71,000 square meters, with a four-story building and a total construction area of about 88,000 square meters.
It is located above Huangsha Station of Yangcheng Metro Line 1 and Line 6, with convenient transportation.
Liwan District is also the core urban area of Yangcheng.
The future is bright.
This project won in 2000 is now mostly completed.
According to the plan, it will be completed in 2006, and by then it will be another golden chicken laying eggs.
Unfortunately, he was attracted by a man named Xu.
Shancheng Metropolis is better than Yangcheng Xicheng Metropolis Plaza.
The latter is just a shopping mall, while the former is a real commercial complex.
The Metropolitan Plaza is located in Jiefangbei Pedestrian Street, the most prosperous financial, commercial and service center in the mountain city, with a total investment of 2 billion Chinese dollars.
The project covers an area of 18,717 square meters, with a total area of 230,000 square meters;
It consists of a 90,000 square meter shopping mall and a 54,000 square meter Grade A office building 'Metropolitan Commercial Building', a five-star The hotel 'Harbor Plaza' consists of three parts.
After opening in 1997, it has become the fashion coordinate of mountain city consumption.
It can earn Hutchison Whampoa a net profit of more than 400 million Chinese dollars every year, and it is still rising.
It is undoubtedly Hutchison Whampoa’s core project in the mainland.
But in order to obtain the quota of the Pacific Phase I Fund, he sold these three projects to Xu Liang in 2004.
Although the three projects are valuable, they are not as good as the Pacific Hedge Fund, which can easily achieve a net return rate of 100% or even 200%.
"If we sell Parknshop, I'm afraid the board of directors will have objections."
In the past two years, Lao Li has frequently sold off Hutchison Whampoa's assets in exchange for shares of Pacific Fund, which is detrimental to the public and private, and everyone will be affected by it. Opinion.
If Lao Li hadn’t controlled the majority of Hutchison Whampoa’s shares and had accumulated power over the years, they would have started a quarrel long ago.
After pondering for a moment, Lao Li said with some reluctance: "Let's give him a share of 100 million US dollars to appease him."
After a pause.
"What I envy the most is Li Laosi. He can get the share of Pacific Fund without having to give anything."
"Why did Xu Liang give such a high treatment to the fourth uncle?"
"Maybe it's because Li Laosi helped him when he first came to Xiangjiang."
Thinking of this, he couldn't help but regret it.
(End of this chapter)