Chapter 134 134 [Best Real Estate Century City]
October 19, Monday
Zhaoan Real Estate Company and Hongpu Real Estate Company jointly held a press conference to announce that the two companies will In the future, we will work hand in hand to cooperate on multiple large projects.
Such ambiguous news caused little increase in the stock prices of the two companies, basically maintaining their original stock prices.
Hongpu Real Estate Company Conference Room
Luo Qihong's original office here has changed its owner and became Li Yude's office. Lin Luoqi serves as the chairman of the board of directors of Hongpu Real Estate Company, and Li Yude is naturally the vice chairman and general manager.
"Best Real Estate Co., Ltd. was established in 1967. It each owns two floors of shopping malls in Kam On Building, 176 Queen's Road Central, and Zengxin Building, 19 Peel Street, with a total area of 32,000 400 square feet"
"The office holding area in Central is 52,000 square feet"
"It holds 41 residential units in Repulse Bay, Causeway Bay and North Point, including 29 luxury homes."
“There are 2 development sites in Tsuen Wan West and 1 development site in Tuen Mun District. The area is up to 135,000 square feet.”
Wood Feng, the senior executive of Hongpu Real Estate Company, was reading the report with a very serious look.
Luo Qihong is not interested in the properties of Best Real Estate Company, but he is somewhat concerned about its land development capabilities. After all, this is something Zhaoan Real Estate Company does not have.
Luo Qihong closed the document and said calmly, "The assets of Best Real Estate Company are good, but the debt ratio is equally astonishing, as high as 77%. The rent of its properties can only cover the interest on its liabilities. Multiple developments The land has been stopped, and there is only a thin line between it and being on the verge of bankruptcy. "
Best Real Estate Company was originally a company with very good qualifications, and it survived the great crisis of 1973. Unfortunately, it began to expand aggressively in 1979, almost in 1979. At the peak of the prefecture and city, more than 60% of the property land was acquired.
Nowadays, the situation in prefectures and cities is unclear, and the growth rate of prefectures and cities is very sluggish, so a relatively big crisis has emerged.
The founder is 62 years old, and the heirs are unable to reverse the profit and loss, so they can only think of stopping the loss in time and getting out smoothly.
Wood Feng stopped talking and looked at the three bosses with some embarrassment.
"There is indeed such a big problem, but the advantages of Best Real Estate Company are also obvious. It is cheap enough, and we can use a small amount of funds to control a listed company with a market value of 100 million yuan." Li Yude refuted gently, "And Best Real Estate Company's land development capabilities can very well make up for Hongpu Real Estate Company's shortcomings."
"What's your opinion, Luo Qi?" Luo Qihong turned around and asked.
“I agree with Uncle Li’s opinion. Best Real Estate Company is very suitable for us. Those well-run companies charge too high prices, or they need competition. The final cost is too high, and it is difficult for Hongpu Real Estate to afford it. ." Lin Luoqi said worriedly.
"Okay, then we have made a preliminary decision to acquire Best Real Estate Company." Luo Qihong glanced down and said, "Then how do you want to distribute the equity and management rights?"
Li Yude and Lin Luoqi looked at each other, obviously two people People have already discussed it.
Li Yude responded, "Hongpu Real Estate must hold at least 40% of the shares and become the major shareholder. Zhao'an Real Estate Company holds 25% of the shares, and Luo Qi will run Best Real Estate Company. How about it?"
"I have no objection to the management rights, but I hope to hold 30% of the shares. After Best Real Estate is on track, Zhao'an Real Estate will take the initiative to reduce its shareholding." Luo Qihong does not have much interest in Best Real Estate.
However, he noticed one thing. After Best Real Estate Company got on the right track, it should be separated and Lin Luoqi would be the boss. Otherwise, Hongpu Real Estate Company would not let Li Yude run it so smoothly.
This plan should have been detailed before the acquisition of Hongpu Real Estate Company, but it is just being announced now.
"Okay, but if Zhaoan Real Estate takes the initiative to reduce its stake, we must be given priority." Lin Luoqi glanced at Li Yude and said.
“This is natural.” Luo Qihong smiled slightly. "Director Wu, please tell us the details of Best Real Estate's asking price." Li Yude glanced at Wu Feng and said.
Wood Feng serves as the board director and deputy general manager of Hongpu Real Estate Company and is responsible for this acquisition. He is also a talent poached by Li Yude from other places.
"Everyone knows the details of Best Real Estate Company. Its major shareholder holds 42% of the shares. The market value of Best Real Estate Company is 117 million yuan, and the major shareholder wants to sell it at the market price, which is 49.14 million yuan. "Yuan" Wood Feng said is very complicated.
“How many competitors are there in the acquisition of Best Real Estate Company? What is the strength of the opponents?” Luo Qihong asked.
“Currently there are only two competitors, Century City Co., Ltd. and Xinchang Real Estate Co., Ltd. Among them, Century City Company has the highest bid, bidding 80% of the market price.” Wood Feng said, “The strength of Century City Company Slightly stronger than our company, Xinchang Real Estate Company is weaker.”
Century City? !
Isn’t this a century city that will be acquired by Luo Xurui of the Luo Yingshi family in 1985?
I actually met him here.
Luo Qihong secretly thought that to be favored by Luo Xurui, there must be something special about him.
“Xinchang Real Estate Company has made great achievements in land development, but it is quite weak in terms of properties. It should want to absorb all the properties of Best Real Estate Company to strengthen its strength in this area, and Century City should be interested in it. The entire BEST Real Estate Company has a relatively balanced strength in property and land development." Wood Feng gave a brief overview.
“My opinion is to give 5% more, up to 90% of the market price.” Luo Qihong said solemnly, “After taking over Best Real Estate, we will definitely issue new shares and inject capital into Best Real Estate. This is not a small sum. The amount, and the current Best Real Estate Company is no longer worth the market price."
Li Yude nodded and said, "If you don't agree with the market price of 90%, I suggest acquiring 30% of the equity at the market price and then issuing it through the board of directors. Give us two companies special shares, so that we can increase our control by injecting capital.”
"Okay, then I will do it according to your suggestion, Uncle Li." Luo Qihong immediately agreed.
“I agree too.” Lin Luoqi quickly brushed his presence, this is his company.
After leaving Hongpu Real Estate Company, Luo Qihong and Lin Luoqi chose a teahouse and wanted to chat alone.
"Have you discussed today's affairs with Uncle Li?" Luo Qihong took a sip of tea and asked jokingly with a smile.
Lin Luoqi did not hide anything, saying, "There have indeed been discussions in this regard, otherwise I would not have given up Hongpu Real Estate Company."
"As expected, I'm also wondering why you gave up Hongpu Real Estate. What? Is it because you don't have enough funds?" Luo Qihong asked casually.
"Yes! I have sold off all 17% of Yiren Real Estate Company's shares, and only raised less than 70 million in funds. This is far from enough." Lin Luoqi said regretfully.
"How do you plan to divide Best Real Estate Company?" Luo Qihong naturally asked about the future.
“Let’s split the land development half, and give me all the property.” Lin Luoqi said lightly.
“This is indeed a win-win solution.” Luo Qihong nodded and smiled.
"This is not a win-win situation, this is a no-win solution." Lin Luoqi said with a wry smile.
Luo Qihong thought for a while, then asked, "What about your family? Are you not planning to go back?"
When talking about this, Lin Luoqi became more and more depressed. "You are right, it is right to start a new one by yourself, but my share is indispensable."
(End of this chapter)