I Want To Be a Rich Man on Hong Kong Island

Chapter 468 [Landland Drinking Milk 四]

From November 16th to November 20th, during the five trading days, the stocks of Milk Company and Hongkong Land Company rose sharply;

The small market has heated up the market again, and other stocks have risen to a certain extent, and the Hang Seng Index is approaching 260 points;

On the first trading day of the week, the trading volume of the Hong Kong Island stock market reached a record 320 million Hong Kong dollars.

However, Milk Company and Hongkong Land Company did not make any big moves during these five trading days, and seemed to be accumulating energy for the upcoming battle;

Wu Guangyao, apart from listening to the staff sent to Bidta Street to report on the situation every day, worked as usual and didn't take it seriously.

This kind of acquisition battle is generally divided into a warm-up period, a high-level period, and finally a final decision;

Obviously, everyone is still warming up at this time!

Saturday, November 21.

On the day when Hong Kong Land sent acquisition documents to Milk shareholders, Milk Company began to fight back;

Milk Company published advertisements in major newspapers, unequivocally rejecting Hongkong Land's acquisition plan, and appealed to shareholders not to accept Hongkong Land's acquisition proposal.

The milk company also responded to the rejection for two reasons:

"First, the Milk Company is a large company with 2,000 workers. It has long pursued sustainable and stable development; there are not many established companies on Hong Kong Island, but most of them went bankrupt after the failure of diversification. Shareholders have suffered heavy losses due to the blind expansion of the company's management. Dairy farms, ice factories, and milk factories operated by the milk company have no challengers on Hong Kong Island, and they are well-run and can bring sustainable benefits to shareholders."

"Secondly, Hongkong Land's acquisition of Milk Company is self-evident; but everyone knows that Hongkong Land is conservative in real estate management and has been caught up by latecomers; therefore, Hongkong Land may not be able to successfully develop Milk Company's The land, and the stockholders will lose their own interests at that time."

Deep Water Bay, Golf Course.

After reading the newspaper, Wu Guangyao couldn't help cursing: "More than stable, not enough offensive, it's a failure!"

At this moment, Wu Guangyao is in the restaurant box of the golf course with a group of consultants and executives;

Everyone had a Cantonese breakfast, and later in the evening, everyone would play a wave of friendly golf.

Shi Jun echoed, "The real estate on Hong Kong Island is booming. Now that the milk company has not mentioned the development of the remaining real estate, how many shareholders can buy it?"

Liu Yu also said: "According to our investigation, the dairy company's idle land has not been fully utilized, and some land has only been sold at a low price; shareholders have already complained about this practice!"

It can be said that the loss of the milk company in the previous life was not wronged at all, and it was even completely lost.

Because Hongkong Land directly obtained 80% of the milk public shares.

Why did Landmark in the previous life win with such a bold advantage?

Wu Guangyao also summed it up and warned himself.

First of all, when Hongkong Land purchased Milk Company (1972), real estate boomed and blue-chip stocks were popular, and Hongkong Land was a star stock among blue-chip stocks; in contrast, Milk Company, which was conservatively operated, naturally became a sharp contrast;

Secondly, Hong Kong Land belongs to the Jardine family. Jardine was the largest company on Hong Kong Island at that time, and its reputation was resounding. In Hong Kong, food, clothing, housing and transportation are all related to Jardine;

In the end, it is naturally related to Henry Keswick's brilliant acquisition art. This station in the previous life is known as a classic.

Wu Guangyao nodded and said, "In any case, Hongkong Land's acquisition of the milk company will not succeed immediately. We still have to hold our breath. To tell you the truth, after this battle, I will initiate the acquisition of Wharf to deter British capital."

Except for Liu Yu, everyone was shocked. After a long time, the boss didn't enter the arena for a long time. It turned out that there was another purpose!

In this way, it can be understood why the boss took the risk of waiting for Landmark and Milk to enter a fierce battle before intervening;

Because the boss needs a name, and this name is the one that Hongkong Land opened the Pandora's box of the acquisition battle.

Seeing everyone's expressions, Wu Guangyao said with a smile: "There is no need to be nervous. What we lack is not strength, but a reputation! Although there will be resistance in the subsequent acquisition battle, it will not change the overall situation!"

Everyone heard the words and thought about it. The boss is about to jump out of Hong Kong Island. This battle is just a battle for Hong Kong Island.

People are in high spirits on happy occasions, and everyone's golf skills are outstanding in the morning, but it is obvious that Wu Guangyao's skills are 'higher'.

Milk resisted, Landing stormed.

Landmark responded quickly and dismantled the offer;

At 11 o'clock in the morning of the same day, Jardine Fu and Heshun, the financial companies of Hongkong Land, held a press conference in the board room of Hongkong Land in Gloucester Row; To transfer ownership and accept the takeover battle, you must go to the 'Central Registration Office' on Pedder Street to complete the registration procedures on December 10.

Hong Kong Land, Henry Keswick is holding a meeting.

"Now, we already own 16% of Dairy Milk Company's shares. According to Hong Kong Island Securities Law, we can justifiably become the directors of Dairy Milk Company." Jacques Fu's financial advisor said.

Henry Keswick shook his head and said: "No, this time we buy the Milk Company, it must be a 'good faith' acquisition; now going to the Milk Company to get a board seat will obviously completely anger Zhou Xinian, and he will not have the right to speak Therefore, we want to make shareholders and citizens feel that we are a 'savior' role through advertising exhibitions."

It has to be said that Henry Keswick's acquisition was quite artistic, and he wanted to gain the support of shareholders and citizens through advertisements;

In the end, Zhou Xinian not only lost the milk company, but also had to bear the reputation of poor management.

Sunday, November 22.

The milk company fought back again, holding a press conference at 7 p.m. that night.

In addition to Zhou Xinian, chairman of Dairy Milk Company, executive director Ke Lun, and director Qi Dezun, the chairman of Wheelock, Madden, was specially invited to attend.

Judging from this lineup, Zhou Xinian has an idea of ​​"learning from the barbarians to control the barbarians' skills";

However, what he didn't know was that Qi Dezun and Ma Deng, these two foreigners would not help Zhou Xinian too much, and completely offend Yihe;

After all, if the claim that the British hit the British was spread back to London, the impact would be too great for the two families to bear.

That night, Li Zhu, the chief director of Luo Fuqi, the financial company of Milk Company, raised three reasons for opposing the acquisition on behalf of Milk Company:

"First, based on the calculation in 1970, the dividend per share of Milk was 2.5 Hong Kong dollars, and the dividend of the two shares of Hongkong Land was only 2 Hong Kong dollars. The disparity is very large; if Milk Company accepts the acquisition, it will damage the interests of shareholders."

"Secondly, based on the calculation in 1970, the profit per share of Dairy Milk was 3 Hong Kong dollars, and the total of the two shares of Hongkong Land was only 2.2 Hong Kong dollars; Luo Fuqi has handled many share swap agreements around the world, and he can only refuse this kind of acquisition that harms the interests of shareholders."

"Third, the milk company has an outstanding reputation, strong strength, and stable development, which can guarantee the interests of shareholders."

Li Zhu finally said confidently: "Hongkong Land will not succeed!"

Chairman of Wheelock Madden and Hutchison Co., Ltd. did not speak, but the reporters could tell that they were on the side of the milk company.

Monday, November 23.

Citizens were taken aback by the milk company advertisement in the newspaper: the board of directors of the milk company announced that the shares would be divided into five shares, and then one bonus share would be given for every new share; at the same time, the milk company announced the expected dividend per share will increase by 67%.

With such an operation by the milk company, one milk share in the hands of citizens will become ten milk shares;

Coupled with the promise of an increase in annual dividends in 1970, it did have a counterproductive effect!

Just like a thermometer falling into a brazier, as soon as the Hong Kong Island stock market opened, milk stocks were like a thermometer in a brazier, skyrocketing, and land stocks once again "dragged the cow's tail to the sky";

As of the close, the milk stock was worth 186 Hong Kong dollars per share, and the company’s earnings per share were only 3 Hong Kong dollars per share, with a price-earnings ratio of 62 times;

Hongkong Land was also fired to 116 Hong Kong dollars per share, and the price-earnings ratio was as high as 105 times.

The two companies have such a high price-earnings ratio that there is no report in the market, and no one raises it;

Shareholders are only looking up at the splendor of the mirage, but they don't know that the mirage is just a shadow;

For those senior investors, what they look forward to is madness, and what they fear is calmness;

There are not many people who gain from it, and there are countless losers in the future.

Wu Guangyao watched with cold eyes. It can be said that although Hong Kong Island's stock market is inflated, it will not collapse;

Moreover, the acquisition of companies such as Wharf, Tramway, Qingzhou Yingni, etc. will definitely make the stock market red and purple!

As for when it will fall, I may not even be sure of myself.

Because, history has been changed!