Chapter 509: Starting the Acquisition

This acquisition is being carried out by Xuanwu Investment Bank.

Just after raising its paddle, Xuanwu Investment Bank already owned 36% of Whampoa Dockyard's shares.

Then, with a 50% premium, it proceeded with the acquisition.

Now the whole world is having a hard time due to the oil crisis; Gangdao sees countless companies go bankrupt, and the stock market is extremely sluggish.

Seeing Whampoa Dockyard's shares jump by half, who wouldn't be moved?

Not to mention ordinary people, even those big clients are short of cash and desperately need money.

Let alone that no one wants to compete with Yang Qing.

This 36% stake tells everyone that he can easily obtain controlling interest.

If you dare to mess around, he dares, after gaining control, to leave you with total losses.

Right now, Yang Qing is also the largest shareholder; if a shareholders' meeting is called, he is likely to replace Harmony Record and become the controller of Whampoa Dockyard.

Yang Qing finds it easy to manipulate those speculators.

Cao Chaoren wasn't so clueless; he directly sold the roughly 1% of shares he had collected to Yang Qing.

It's not that he didn't want to buy more; he simply had placed his big bet on Harmony International.

Who would have thought Yang Qing would directly target Whampoa Dockyard?

Now Mai Lihao and Shen Bi are dumbfounded; they may ignore Qi Dezun, but they certainly don't want Harmony Record, such a large foreign firm, to be swallowed by Yang Qing.

When Qi Dezun went to see them, they were already waiting for him.

Upon seeing Qi Dezun, Shen Bi opened his mouth and said.

"Director Qi, Whampoa Dockyard must not fall into Yang Qing's hands."

Mai Lihao also spoke solemnly.

"Harmony Record, a foreign firm, must not be controlled by Chinese merchants; this is the bottom line of Hong Fu."

Qi Dezun cursed inwardly, "Damn it, if it weren't for you, I wouldn't have ended up like this."

"What means do you have? Will you issue a governor's order, or will HSBC fully support me?"

Mai Lihao looked at Qi Dezun like he was an idiot, "You think now is the time? Gangdao not only faces an economic crisis, but also a surging public opinion."

You want him to issue a governor's order now, for a Yang Qing?

Moreover, he is Gangdao's richest man, Yang Qing.

Are you out of your mind? It's only been 1967, and still without sufficient financial support.

If Yang Qing fully supports it, the Governor's Office could possibly be burned down by an angry crowd tomorrow.

"Impossible, this is a business matter; it can only be resolved by business means."

Qi Dezun then looked toward Shen Bi.

Shen Bi also shook his head.

"Harmony Record is now nearly insolvent; HSBC cannot extend large-scale loans to you."

"Moreover, Harmony Record already has substantial debt with HSBC."

"Unless you pledge Harmony Record's shares as collateral."

"We can also give you one hundred million."

Qi Dezun silently cursed again, "Damn it, I have so many shares, and you only give me one hundred million?"

Great Song Bank would give me two hundred million, alright.

Hearing Shen Bi's words, Qi Dezun, who originally hated Great Song Bank and Yang Qing intensely, suddenly didn't hate them as much.

Initially, he had borrowed everywhere, but no one would lend, and people were urging him to repay.

It was Great Song Bank that lent to him.

Speaking of business, Yang Qing isn't being excessive either.

Because Harmony Record must obtain this money.

Without this money, Harmony Record will inevitably collapse within the next two years.

If he doesn't borrow from Great Song Bank, he will go elsewhere.

Because the only asset he can use for financing is Harmony Record's shares.

Even borrowing from HSBC would not change the current situation.

Yet the money is short by one hundred million.

Qi Dezun smiled.

"Sorry, Manager Shen."

"The shares I hold have already been pledged to Great Song Bank for a loan."

What?

Shen Bi was greatly startled.

This is too dangerous.

How can we still play this?

How can we still save it?

"Hurry and go redeem the shares."

Shen Bi really became anxious.

Harmony Record falling into Yang Qing's hands is far more serious than Whampoa Dockyard falling into his hands.

Because Harmony Record is the borrowing entity.

After Yang Qing takes over Whampoa Dockyard, leaving a mess, if he doesn't want it, HSBC could lose seven or eight hundred million, ending up with a pile of junk?

Qi Dezun began counting on his fingers to settle the accounts.

"I borrowed a total of 200 million from Da Song Bank for 30% of the shares, borrowing for three years in total. The annual interest rate is 10%, i. e., one tenth. The first year it was 220 million, the second year 242 million, the third year 266.2 million."

"In other words, I need to come up with 266.2 million to redeem the shares."

"May I ask if HSBC will put up this money?"

He then looked at Mai Lihao.

"Or will Hong Fu put up the money?"

Mai Lihao has made so many promises, all of which need money; he has already fulfilled his promises by selling land, so where is the money?

Shen Bi gritted his teeth.

"Put this 30% of shares up as collateral to HSBC, and I will cover the interest of 66.2 million."

Qi Dezun was shocked by Shen Bi's shamelessness.

"Are you trying to buy my 30% stake with 66.2 million?"

"Am I the fool, or are you?"

"I don't want a perfectly good 200 million, I want your 60 million?"

"This money goes back to Da Song Bank; what can I use to resist Yang Qing's takeover of Whampoa Dockyard?"

Harmony Record holds 22% of Whampoa Dockyard's shares and needs to acquire at least 28%.

Based on Whampoa Dockyard's current market value of 700 million, acquiring 28% would require at least 300 million.

(With a premium acquisition, 28% of 700 million is 196 million; with a 50% premium, it's around 300 million.)

In other words, HSBC must provide at least 100 million in financing to Harmony Record.

And it's an unsecured 100 million.

This leaves Harmony Record completely insolvent.

What the hell are we playing at?

Meanwhile, Yang Qing already has 36% and is rapidly increasing over time.

For them to catch up to Yang Qing, they might even need a 100% premium acquisition.

In other words, the current funds are insufficient; we also need HSBC to provide money to fill the gap.

We still dare not say victory is certain.

Mai Lihao then said.

"No, Yang Qing now holds 36%, indicating that the floating shares in Gangdao are almost exhausted."

"Most of the remainder is not in Gangdao."

"We still have a chance."

"Because most of the remaining shares are in the hands of our Yinglian people."

"Qi Dezun, while you're here in Gangdao competing with Yang Qing for shares with a premium, just go ahead and grab them with a 100% premium."

"Then you send people back to Yinglian to borrow their shares."

"After Yang Qing's acquisition fails, you can remove him by any means, and Hong Fu here can provide some assistance."

"As for Harmony Record International's shares, first put them in Da Song Bank."

"I expect that in three years, Gangdao's economy can recover; at the very least I will try to restore real estate."

"That way, all the problems can be solved."

Qi Dezun also had a window opened by Mai Lihao's words.

"Exactly, Gangdao simply doesn't have that many floating shares."

"However, his money is for operating Harmony Record; it can't all be wasted here."

"That is one option, but this money is for operating Harmony Record; now using it for the acquisition battle, what will Harmony Record's subsequent plans be?"

"I need HSBC to lend me another 200 million."