Hong Kong variety show: Building a century-old family, starting with Hung Hing

Chapter 359 Participating in the Bidding

Jiang Tiansheng's private investment also profited handsomely from the acquisition of the electric light company, recouping HK$1.675 million, a return of over 1400%.

He transferred HK$1.5 million to his private bank account and used the remaining funds to subscribe for new shares of Hysan Development.

After dealing with all that, Jiang Tiansheng contacted Liang Botao, "Botao, can you help me pay back the HK$4300 million I owe Paramount Company and give that money to Zheng Fan to complete the acquisition of Lifa Building?"

“Okay, Mr. Jiang, I’ll handle it right away,” Liang Botao replied.

Thus, the Paramount Company acquired two new commercial buildings in Kowloon City.

Jiang Tiansheng figured he should use this incident to boost the stock price of Paramount.

He brought in the company's publicity team, saying, "Our company has recently acquired two shopping malls, which is a great opportunity to boost the company's stock price."

You should carefully plan your promotional strategy, highlighting the advantages and value of these two shopping malls.

The head of the publicity team nodded, "Mr. Jiang, we'll get started right away."

As for the Paramount Company's plan to acquire the Wan Chai Commercial Building, Chiang Tin-sing decided to put it on hold for the time being.

"We'll focus on dealing with the two newly acquired commercial buildings for now. After we sell them, we'll consider acquiring the Wan Chai Commercial Building."

Zhao An Real Estate Company successfully acquired the Anleyuan Building in Central, but the payment method was somewhat complicated.

40% of the funds are from our own capital, and the remaining 60%, or HK$1.26 million, will be financed through bank loans.

The loan has an annual interest rate of 10%, and the monthly interest payment alone is HK$105 million.

Fortunately, the rental income from the Anleyuan Building is quite good, generating HK$133 million per month, which is just enough to cover the interest.

Looking at the situation of Zhaoan Real Estate Company itself, its market value is approximately HK$1.2 million.

In terms of assets, there are two commercial buildings, with a combined value of HK$2.78 million.

However, it also has a significant amount of debt, amounting to HK$1.71 million, which brings its net assets to HK$1.07 million, resulting in a debt ratio of 61.5%.

Jiang Tiansheng was thinking about how to lower his debt ratio. He planned to first repay the HK$4500 million mortgage loan on the Deer Island Building in Wan Chai, which would reduce his debt ratio to [a lower percentage].

45%.

However, the company had very little cash on hand, only HK$100 million, and there was no surplus from rental income. There was no hope of increasing funds with this, so Jiang Tiansheng could only pin his hopes on stock market investments.

On this day, Jiang Tiansheng met with Li Fushu, chairman of the Bank of East Asia.

He had an idea: to buy 1000 million shares of Hong Kong and China Gas Company stock held by Chinese Estates Holdings. Upon hearing this, Li Fushu proposed two options.

"President Jiang, what do you think of the first option: exchanging Anleyuan Building for stocks?" Li Fushu said.

Jiang Tiansheng thought for a moment, then shook his head and said, "Chairman Li, I think the shares of China Gas Company are more valuable, and exchanging them for the Anleyuan Building is not a good deal."

Li Fushu continued, "Okay, what about Option Two? Chinese Estates Company will acquire Paramount Restaurant Company at market price."

However, there are two conditions: first, you must acquire another commercial building in Central; second, you must keep the Paramount Company's debt below HK$6000 million.

After weighing the options in his mind, Jiang Tiansheng finally said, "Chairman Li, I accept the second proposal."

However, completing the transaction before 82 is a bit of a tight timeframe.

Li Fushu's attitude was firm: "President Jiang, these are the conditions, and the timeframe cannot be changed. Moreover, other assets of Paramount Company cannot be used during the transaction."

Jiang Tiansheng gritted his teeth and agreed: "Alright, Chairman Li, we'll do as you say. I plan to sign the contract in two days, pay HK$1 million upfront, and the remainder within a week."

Li Fushu nodded: "Mr. Jiang, that's very helpful. By the way, if you need a collateralized loan, our East Asia Bank can provide support."

Jiang Tiansheng thanked him, saying, "Then thank you in advance, Chairman Li. I will definitely contact you if I need anything."

Once Jiang Tiansheng leaves, this matter will be quite difficult.

Based on a 50% premium, controlling Hong Kong and China Gas Company would require HK$11 billion in cash, which is roughly equivalent to the market capitalization of a mid-sized real estate company.

However, the combined assets of Paramount, Zhao An Real Estate, and his own private assets were still less than HK$11 billion. Left with no other option, Jiang Tiansheng could only rely on Paramount's profits.

The next day, Jiang Tiansheng arrived at the Paramount Company office.

On the third day, he sat down and carefully reviewed the company's current situation. Paramount Company owned many properties, but the only ones he could currently utilize were the newly acquired Southeast Tent Building and Lifu Building.

On the fourth day, the company's liabilities reached HK$6950 million, with a debt ratio of 15.1%, and its cash on hand was very tight.

Jiang Tiansheng called over the finance manager and asked, "Could you please explain the company's current financial situation in more detail?"

The finance manager reported: "President Jiang, there isn't much cash in the account, only a few million."

The company's income mainly comes from rental income from its properties, but its expenses are also considerable. After deducting various costs, loan interest, and other miscellaneous expenses, there's not much left.

Jiang Tiansheng then asked, "What about the Southeast Tanglou and Lifang Building? How are those two properties doing?"

The finance manager replied, "The Southeast Tent Building is under renovation and is not generating revenue at the moment. The Lifang Building is in a decent state, but it's unrealistic to expect it to significantly boost the company's cash flow."

Jiang Tiansheng pondered that he needed to find a way to raise funds, and he came up with an idea: to sell the Lifu Building.

Although the profit is limited, at least we can get some money to support our subsequent operations.

After the finance manager left, they called over Zhao Kai, the property manager.

"Zhao Kai, I called you here because I have an important task for you."

The company needs working capital right now, so you need to sell the Lee Fat Building on Bute Street in Mong Kok that we just acquired.

"Remember, the price must not be lower than HK$2700 million," Jiang Tiansheng said.

Zhao Kai cautiously said, "President Jiang, this matter needs to be considered carefully."

.........

"I just acquired the Lifang Building, and I still need to conduct an on-site inspection and gauge the buyer's reaction. This isn't something that can be done in a short time."

Jiang Tiansheng slammed his hand on the table. "I don't have time to waste with you!"

The task must be completed within half a month.

If we mess this up, the property management department can be shut down. You know the company's current situation; we don't have that much free time.

Zhao Kai's heart tightened. After hesitating for a moment, he gritted his teeth and said, "President Jiang, okay, I will definitely find a way to complete the task."

Jiang Tiansheng nodded. "Okay, I'll wait for your news. Go on out."

After Zhao Kai left, Jiang Tiansheng leaned back in his chair and rubbed his temples.

At this moment, Su Qishan, the manager of the Information Integration Department, knocked on the door and came in.

"Mr. Jiang, I have important news to report to you. The Wan Chai AXA Centre Tower, jointly developed by Cheung Kong Holdings and Kwong Sang Hong, is ready for sale."

Su Qishan strode to the desk and handed over a document.

"Oh? Tell me more about it." Jiang Tiansheng took the documents and glanced at them.

"The AXA Centre is located at 151 Gloucester Road, Wan Chai. It has 25 floors and a floor area of ​​28.75 square feet. According to our assessment, its value is approximately HK$9000 million," Su Qishan explained clearly.

Jiang Tiansheng's eyes lit up. "This is a great opportunity. Such a new commercial building has huge potential for hype if managed well."

Su Qishan looked troubled. "President Jiang, there are definitely many companies participating in the bidding. It will be quite difficult for us to win this bid."

Jiang Tiansheng dismissed it, saying, "What's there to be afraid of? Difficulty breeds competition. I've decided, we'll participate in the bidding. Go prepare the relevant documents, and I'll contact Cheung Kong Holdings."

Su Qishan nodded helplessly, "Yes, President Jiang."

Jiang Tiansheng picked up the phone and dialed Hong Xiaolian's number at Cheung Kong Holdings.

"Hello, Ms. Hong, long time no see. I'm Jiang Tiansheng from Paramount." Jiang Tiansheng adopted a warm tone.

"Hello, Mr. Jiang. What made you suddenly decide to call me?" Hong Xiaolian replied with a smile on the other end of the phone.

“I heard that the AXA Centre building that you and Kwong Sang Hong jointly built is going to be sold. I’m very interested in this building. I wonder if there’s an opportunity to cooperate?” Jiang Tiansheng said directly.

"Oh? Mr. Jiang has a keen eye. But there are quite a few companies that want to buy this building, so the competition is fierce," Hong Xiaolian said with a hint of teasing.

“Ms. Hong, let’s be frank. I know the competition is fierce, but I’m sincere. Tell me, what’s your price range?” Jiang Tiansheng cut to the chase.

“Mr. Jiang, we’ve assessed this building; it’s worth a lot. We definitely won’t consider it for less than HK$1 million,” Hong Xiaolian said without hesitation.

“HK$1 million? Ms. Hung, that’s a bit too high. I can only offer HK$9500 million at most.” Jiang Tiansheng began to bargain.

“Mr. Jiang, you’re being too aggressive with your bargaining. The location and facilities of this building are top-notch; HK$1 million is really not high,” Hong Xiaolian retorted.

After a round of intense negotiations, Jiang Tiansheng and Hong Xiaolian reached a preliminary agreement for HK$1.05 million.

“However, Mr. Jiang, the down payment needs to be raised within a week,” Hong Xiaolian said on the other end of the phone.

“A week is a bit tight, Ms. Hong. But I’ll find a way. Also, I hope to hold a joint press conference with Cheung Kong Holdings to properly publicize this acquisition,” Jiang Tiansheng proposed.

“A press conference? Sure, that would be good for both sides. So where should we hold it?” Hong Xiaolian asked.

"Let's go with the Hilton Hotel, tomorrow," Jiang Tiansheng quickly replied.

"Okay, it's settled then. See you tomorrow." Hong Xiaolian hung up the phone.

Jiang Tiansheng put down the phone, pondering how to use the press conference to enhance the value of the Anshun Center Building. Just then, his phone rang; it was Luo Qixing calling.

"Hey, Mr. Jiang, I have something to tell you. Yulang International is acquiring Shenzhen Bao Printing," Luo Qixing said on the phone.

"Oh? Shenzhen Bao Printing? What's the specific situation?" Jiang Tiansheng became interested.

"I've learned that the owner of Shenzhen Bao Printing is now facing a choice: Yulang International has proposed either injecting capital to take control, or directly buying the company for HK$50." - Luo Qixing

Detailed report.

Jiang Tiansheng thought for a moment and said, "In my opinion, the owner of Shenbao Printing will most likely choose to sell it directly for HK$50. Luo Qixing, go and contact him, and offer HK$82 to acquire Shenbao Printing..."

“HK$82? Mr. Jiang, that’s much higher than Jade Dragon International’s price. And if we lose the bid, we’ll suffer a significant loss.” Luo Qixing was somewhat worried.

“Luo Qixing, you have to look at it this way. Even if we fail in the bidding, our losses will be limited. Yulang International is our competitor anyway. If this deal goes through, it will benefit our future plans,” Jiang Tiansheng explained patiently.

“But what if Wong Yuk-long colludes with the triads and uses some underhanded tactics?” Luo Qixing raised his concerns again.