Chapter 104 104 [Focus on Private Debt]
Lin Luoqi frowned and questioned, "Will the three parties secretly purchase the shares of the electric lighting company cause a bad market reaction?"
Luo Qihong He raised his lips and smiled and said, "The electric lighting company's market is very large, and there will be no obvious bidding for acquisitions in a short period of time. Moreover, in the eyes of the Land Company, we are just a small player."
"But when it comes to our acquisition, It’s almost the best. It would be best if we could arouse an obvious reaction from the market. It would be even better if we could contact Taipan Connor of the Electric Lighting Company.”
Haofeng Real Estate Company’s scale and strength naturally make it impossible to acquire Xiangjiang Electric Lighting Company. Yes, all that can be done is to make a fortune, or it may be that the company and the family make money together.
On the surface, Xiangjiang Electric Lighting Company is a public specialized enterprise, with relatively dispersed equity. There is no major family shareholder like Jardine Matheson Company. The company's top management basically controls the board of directors, so the Electric Lighting Company actually belongs to the Connor family, but only because of its strength. Not that powerful.
The Xiangjiang Electric Lighting Company was successfully acquired. Of course, the biggest loser was Connor, who controlled the board of directors. Therefore, Connor will definitely try his best to resist the acquisition by Land Company.
Lin Luoqi nodded, "Okay, we will contact you at any time."
After that, Luo Qihong called Zhang Taotao and asked him to use 6 million as the principal and ten times the leverage, that is, 6 Ten million yuan was spent to buy shares of Xiangjiang Electric Lighting Company.
The news that Paramount Company wanted to acquire Lien Shing Building in Central spread like wildfire, and the propagandist was naturally the owner Yan Zhijie. Suddenly, the price of the office space in Lien Shing Building rose a lot, and the price of the first-floor property The price has risen from $12 million to $13 million, and the owners are still waiting and unwilling to sell.
Luo Qihong suspected that Yan Zhijie was "eating from both sides" and united with the owners, hoping to take advantage of the opportunity to ask for exorbitant prices in order to make a fortune from Paramount Company.
"Luo Sheng, the property price of Liancheng Building has risen very fast. It has increased by 1 million per floor in just a few days. If we wait a few more days, it will not only increase to 1 million, but also to 500,000." There is definitely one. With a 10% premium, 15 million per floor is more appropriate." Jiang Jinjian, an owner of Liancheng Building, said with a smile on his face.
Yan Zhijie sat aside and said nothing, while other owners took the opportunity to echo.
“I’m not greedy either, just the same price as Jiang Sheng.”
“It’s the same here.”
Luo Qihong pursed his lips and smiled and said, "Okay, but I need to go back to discuss it."
Yan Zhijie said at this time, "Luo Sheng, it's better to give an accurate word now, otherwise the price may be higher in two days." "It's too high."
Luo Qihong thought for a while and said, "Yan Sheng's words are very reasonable, but Paramount Company is not mine. Some major matters still have to go through the board of directors, and I told you Yan Sheng at the beginning. Previously, the price per level was 12 million, but now it has become 15 million per level, which is an increase of 3 million per level.”
“Everyone here holds Liancheng in total. The six-story building requires nearly 18 million yuan more capital, which is a lot of money.”
“Luo Sheng, I’m afraid it won’t be 1,500 yuan per floor next time. The price is one million, maybe 17 million, or even 18 million," Jiang Jinjian persuaded with a smile. In his opinion, Luo Qihong is too young and may not be very determined.
Luo Qihong nodded pretending to be silent, "Then I will give you the news as soon as possible."
In fact, Luo Qihong was so happy that he had already obtained the money through other channels at a price of 12 million. After purchasing the other two floors of Lien Shing Building, Paramount Company now owns the fifth floor of Lien Shing Building.
Based on today's value calculation, Paramount Company can earn at least 15 million, and this profit has reached Luo Qihong's expected standard.
After Luo Qihong left the banquet, Yan Zhijie and others began to chat casually. "Yan Sheng, this Luo Sheng doesn't seem to be that easy to deal with. He's not worried about us raising the price again." Jiang Jinjian looked embarrassed. He was a little worried that Liancheng Building Property Management wouldn't be able to take the opportunity to make more money.
Yan Zhijie chuckled and said, "If Jiang Sheng is afraid, I can buy the Liancheng Building property from you for 13 million per floor. I don't mind the money."
Jiang Jinjian sneered, "Yan Sheng is still alive. You are really good at planning. We take 300,000 commissions from each floor. I think you will also take commissions for connecting Luo Qihong, right?"
Yan Zhijie frowned and said in a deep voice, "That's my business. , Jiang Sheng has made millions of profits, can’t I even have a sip of soup?”
So, there was a noise in the box, and Yan Zhijie and others naturally left unhappy.
Of course things cannot be concealed. Soon the price of Liancheng Building was published in newsprint and increased from 11 million to 15 million. It took less than a month to see from the outside world. Come on, it's really shocking.
Luo Qihong felt that the time had come, so he began to look for a buyer for the 5-story Lien Shing Building property owned by Paramount Company.
What he didn't expect was that there was actually a foreign devil who was willing to bid 16 million per floor to take over the 5-story property from Paramount Company.
Of course Luo Qihong quickly agreed to sign the contract. The foreigners invested 40 million yuan, and the remaining 40 million yuan was borrowed from the bank. Paramount Company received 80 million yuan in funds, with a profit of 20 million yuan, and a return rate of 33%.
Then Luo Qihong personally held a press conference for Paramount Company to announce the sale of the 5th floor property of Lien Shing Building
During the period, a reporter asked Luo Qihong whether he had been hyping Lien Shing Building from the beginning. The plan of the tenement unit was not a genuine intention to acquire the entire Luen Shing Building.
Luo Qihong guessed such questions and answered the reporter's questions confidently, saying that if the owner's request was complied with, Paramount Company would have to pay at least 48 million more to acquire the entire Lien Shing Building, which is a Sheung Wan building. For the price of the commercial building, Paramount Company really didn’t have the funds, so it could only give up in tears.
Of course the reporters were not willing to let Luo Qihong off so easily, and believed that Luo Qihong was just getting rid of his title as a speculator.
As soon as this kind of news came out, the original owners of Liancheng Building, especially Jiang Jinjian and Yan Zhijie, regretted it very much. If they had not been greedy, they would have made millions in profits by now.
These owners have not given up, and are desperately looking for buyers while the popularity is still there. However, experienced real estate developers are not willing to accept building properties with inflated prices. Therefore, the properties in Liancheng Building are valuable but not city.
There are also owners who resent Luo Qihong and Paramount Company, why they left after making a lot of money and did not continue to stick to it.
The news that Paramount Company had made a profit of 20 million yuan spread quickly, the stock price rose slightly, and the market value actually exceeded 400 million yuan.
This makes Luo Qihong quite happy. If Paramount Company is sold at this market value, he can get nearly 200 million yuan in funds.
So, Luo Qihong offset the 6 million that Paramount Company owed him personally against a small part of the rights issue, so that he still owed Paramount Company 43 million.
Of the 81 million yuan on Paramount Company’s account, Luo Qihong exchanged 80 million of it for loans. As a result, Paramount Company’s debt reached 46.5 million yuan, and the debt ratio dropped. to about 12%.
Such a debt ratio is already very low. Luo Qihong wanted to take the opportunity to promote it again. Unfortunately, the stock price of Paramount Company did not increase much, and the market value still remained at around 400 million yuan.
After careful consideration, Luo Qihong decided to focus on making money for himself, repay the 43 million yuan he owed to Paramount Company as soon as possible, and let Paramount Company acquire another building, preferably a commercial building in Wan Chai.
(End of this chapter)