Chapter 116 116 [Unequal Agreement]
Office of Zhaoan Real Estate Company
An Leyuan Building truly belongs to Zhaoan Real Estate Company, but only 40% of the payment was paid, and the remaining 60% was paid. Cheng (a total of 126 million yuan) took out a loan from the bank with an annual interest rate of 10% and a monthly interest payment of 1.05 million yuan.
The current rent of On Le Yuen Building is NT$12 per square foot, and the vacancy rate is as low as 0.5%. The current monthly rental income is NT$1.33 million, which can still pay the monthly interest.
The market value of Siu On Real Estate Company is about 120 million yuan. Its assets only include two commercial buildings worth 278 million yuan. The company has liabilities of 171 million yuan. Net assets are 107 million yuan, which is not much different from the market value.
The current important task of Siu On Real Estate Company is to make money and reduce the debt ratio. The current debt ratio is 61.5%. According to Luo Qihong's plan, the 45 million pledged loan of Ludao Building in Wan Chai must be resolved first, so that the debt ratio can be reduced. 45%.
However, apart from the investment in the stock market, Zhaoan Real Estate Company only has 1 million yuan in cash on its account, which can only maintain the company's daily turnover.
It is obviously impossible to get some cash flow from next month's rent, because most of it has been taken away from the loan interest payment.
So, Luo Qihong can only find ways to make more profits for Zhaoan Real Estate Company from the stock market.
Why didn’t Zhaoan Real Estate launch a fund-raising rights issue plan?
The reason is that the debt amount of Zhaoan Real Estate Company is too large and the market value is too low. Even if it raises funds for a rights issue, it will not receive much funds. In addition, it has a low reputation, so the fund-raising rights issue may not be successful.
Moreover, as the major shareholder, Luo Qihong needs half of the rights issue. At this time, he has other plans for the 100 million yuan in hand.
A private room at the Mandarin Oriental Hotel in Central
Sitting next to Luo Qihong is an old man with a few age spots on his face, not many wrinkles, and his skin is still rosy. His face is square and not ugly. He was a handsome guy when he was young.
The old man is Li Fushu of the Li Guanchun family who serves as chairman of the Bank of East Asia, director of Chinese Real Estate Company and China Entertainment Real Estate Company, and director of Towngas Company.
This is a guest that Luo Qihong only saw after many appointments.
Li Fushu is a big shot in Xiangjiang and has a good reputation, so it is not easy for Luo Qihong to make an appointment with this person.
"Li Sheng, I know your time is precious, so I will explain my purpose directly." Luo Qihong personally poured a cup of tea for Li Fushu and said with a smile, "I want to acquire the shares held by the Chinese Real Estate Company at a high price." 10 million shares of China Gas Company, I wonder if Chinese Real Estate Company is willing to part with it?"
"I have already heard about Luo Sheng's purpose," Li Fushu said with a smile on his face. , "Luo Sheng, please tell me a price first, see if we need to continue talking?"
"How about a 30% premium?" Luo Qihong had thought carefully about this opening premium.
Li Fushu took a sip of tea and said, "30% is too low. Why don't I come up with a plan and see if Luo Sheng can accept it?" Among the stocks, An Leuan Building was purchased at the original price, and China Coal Company’s shares were purchased at a premium of 50%. "
Luo Qihong’s face darkened. China Gas Company is important, and An Leuan Building is equally important, and Chinese Real Estate Company only holds China Gas. It's only 5% of the equity. If it were more, he would definitely agree to this plan.
"Does Mr. Li have any other plans? There are many commercial buildings similar to the Onyuan Building in Central, and Chinese Real Estate Company can acquire them directly." Luo Qihong said.
"Since Luo Sheng is not willing, let me come up with another plan." Li Fushu said, "Chinese Real Estate Company is willing to acquire Paramount Restaurant Company at market price, but Luo Sheng needs to make more money for Paramount Restaurant Company." Acquired a commercial building in Central and controlled the debt of Paramount Restaurant Company within NT$60 million. ”
Luo Qihong frowned. This was the first time in his life that he had encountered such a replacement requirement. Acquiring a central commercial building was not a problem. The key was how to repay the debt for the commercial building.
It seems that it can be repaid through rights issue, but in fact it is not easy, because Paramount Company has just completed the rights issue.
“Is there a time limit?” Luo Qihong thought that if he refused again, he would lose the 5% stake in Towngas Company. "The deal was completed before 1982." Li Fushu said with a smile.
“Can the Central Commercial Building be replaced by a Wan Chai Commercial Building?” Luo Qihong still wanted to give it a try.
Li Fushu shook his head, "No, and except for the two small commercial buildings in Kowloon that he acquired not long ago, Luo Sheng is not allowed to touch any other assets of the Paramount Restaurant Company. He must ensure that these assets are all within the Paramount Restaurant Company during the transaction. "Lemen Restaurant Company"
Luo Qihong thought for a long time before looking up at Li Fushu and said, "Okay, I agreed, but Chinese Real Estate Company will immediately sell 10 million shares of China Gas Company. Sell it to me.”
“Yes, but we have to sign an agreement. If Luo Sheng cannot complete the contract within the specified time, Chinese Real Estate Company will not only take back 10 million shares of China Gas Company, And the cash that Luo Sheng has paid will not be refunded." Li Fushu smiled sinisterly.
What a harsh requirement this is! This is a naked unequal treaty!
"Okay! When will we sign the contract?" Luo Qihong wanted to give it a try. Of course, he was confident that he would complete the agreement.
"In two days, Luo Sheng will try his best to prepare the funds for 10 million shares of Towngas Company."
"Li Sheng, can I pay your company 100 million yuan first, and the rest will be paid in Will the payment be completed within a week?" Luo Qihong said expressionlessly.
Li Fushu thought for a while and said, "There should be no problem. If Luo Sheng needs a pledge loan, Bank of East Asia can provide it for you, which will save you a lot of trouble."
"Okay, then we will have a happy cooperation!" Luo Qihong stretched out his hand towards Li Fushu.
“Happy cooperation!” Li Fushu reached out and shook it.
Today, the share price of Towngas Company is 10.8 yuan, with a market value of 2.16 billion yuan. It would cost 162 million yuan to acquire the 10 million shares of Towngas Company held by Chinese Land.
Luo Qihong only has 102 million yuan of it, which means he needs a loan of 60 million yuan, which is exactly 60% of the value of these stocks.
After leaving the Oriental Mandarin Hotel, Luo Qihong calculated carefully and suddenly took a breath of cold air.
If calculated based on a 50% premium, he would need 1.1 billion yuan in cash to control Towngas, which is almost the market value of a medium-sized real estate company.
The total private assets of Paramount Company, Zhaoan Real Estate Company and Luo Qihong are not 1.1 billion yuan, which is only 60 or 70% of that.
Fortunately, Luo Qihong did not agree with Li Fushu to set the market value of Paramount Company, otherwise he would suffer a big loss.
At this point, Luo Qihong can only make a desperate move and focus all his energy on the profit of Paramount Company.
The next morning, Luo Qihong changed from his normal appearance and appeared in the office of Paramount Company, carefully sorting out the current situation of Paramount Company.
Paramount Company owns many properties, but Luo Qihong only has two newly acquired small commercial buildings in Kowloon city, Southeast Tenement House and Lifa Building.
Paramount Company has a debt of 69.5 million yuan, with a debt ratio of 15.1%, but the funds on its account are pitifully small.
If there is not enough capital, how can Luo Qihong fulfill Li Fushu's requirements, so Luo Qihong has the idea of selling Lifa Building. Although he will not make much profit from the sale of Lifa Building, Luo Qihong can raise some funds.
(End of this chapter)