Chapter 1018: Chapter 1018: You want to use ten billion in assets as collateral?
"Norman, let's go to my office and talk,'
Shen Bi immediately proposed to Norman Shiyahuai, sensing that the atmosphere was a bit awkward and that it was not a good idea to stay here.
Norman Shi Yuhuai immediately nodded in agreement with Shen Bi's words, 'Okay, I'll do as you say.'
Shen Bi then dismissed the other subordinates involved in the negotiations and took Norman Shi Yuhuai to his office, with Norman Shi Yuhuai's bodyguard and assistant waiting at the door.
Seeing that there was no one else present, Norman Shiawei immediately said, 'Michael, this time you must not sell my company's shares to Jiuding Securities!'
To add to his persuasiveness, he forcibly explained, 'As Jiuding Bank becomes stronger and stronger, it has already become in serious competition with HSBC, and Standard Chartered Bank also favors the Jiuding consortium. Throughout Xiangjiang, our Swire Group has the largest amount of business with HSBC.'
'Think about the past Hutchison Whampoa and Jardine Matheson, which were both super-large clients of HSBC. However, after being swallowed up by the Chinese-funded consortium led by the Jiuding consortium, their business with HSBC has basically come to an end. The reason it hasn't ended is not because they don't want it to, but because the contract period has not expired. It is only a matter of time before it ends. Even though I am an outsider, I know that HSBC's business volume has been greatly affected.'
'If my Swire Group is taken over by the Jiuding consortium this time, the losses for HSBC will be irreversible and difficult to bear.'
Although he knew that Norman Shiawei was telling the truth, Shen Bi was not stupid and would not let HSBC suffer huge losses as a result.
It's just a game, and everyone knows the basics of the workplace.
Shen Biao said with a look of deep understanding: 'Norman, what you said is the truth. I know all about it, and you and I are old friends, which is why I interrupted the bidding between you two just now. If it were anyone else, they would be happy for you to continue bidding, the higher the price the better!'
Norman Shiaohuai said 'thank you' with a grateful look on his face.
Shen Bi sighed and continued, 'But as you know, I have the final say at Hongkong and Shanghai Banking Corporation, but I have a parent company above me. We can consider the far-reaching consequences. It is hard to say whether the parent company will only have the pound in mind.'
'You have already bid up to 200% premium. There is more than just me here. The news can't be kept secret anymore. It may reach London tomorrow.'
'My room for manoeuvre has become smaller, and this is even after I interrupted your bidding in time. Even if I wanted to look after you, I couldn't do much, otherwise the parent company would definitely intervene.'
Norman Shiawei was unable to tell whether Shen Bi was telling the truth or not for a moment, but at this time he didn't have time to find out either, because he suddenly woke up and realised that there was one more important piece of information that he needed to confirm with Shen Bi first.
The Cathay Pacific Airways and Hong Kong Aircraft Engineering Company were taken over by the Jiuding consortium last time, and although there was a connection with the Song family, HSBC was also responsible. If it wasn't for the parent company of HSBC forcibly taking the shares last time, perhaps he would still be fighting the Jiuding consortium in the aviation sector!
He hurriedly asked, 'Michael, you still have the shares of my other companies, don't tell me your parent company has transferred the shares again.'
After saying this, Norman Shiaohuai nervously looked at Shen Bi.
Shen Bi gave a reassuring smile and shook his head: 'Norman, you can rest assured this time, the parent company has not interfered again, and the shares are still with me.'
Norman Shiaohuai let out a sharp breath of relief: "What a relief.'
'Michael, since the shares are here, then you must sell them to me!" He solemnly asked Shen Bi.
Shen Bi looked embarrassed and explained, 'Norman, as you have just been watching, I have already promised Yuan Tianfan of Jiuding Securities that I will definitely notify them once I have made up my mind.'
'If I sell the shares directly to you, I will go back on my word and offend Jiuding Securities, which will change the nature of the matter.'
'You should know that HSBC and Jiuding Securities have always had a cooperative relationship. Differ Securities is a company we jointly own, and it is now developing very well in the securities field.'
Norman Shia was getting anxious, seriously suspecting that Shen Biao was just trying to get a higher price.
He couldn't blame him for being suspicious of Shen Biao's sinister motives. After all, every ten percent premium would add a hundred million Hong Kong dollars or two, which was no small sum!
If they really had to bid with Jiuding Securities, with the attitude just shown by Yuan Tianfan, he didn't have a shred of confidence in himself, and all he felt was endless pressure.
Therefore, no matter what, he must convince Shen Bo to completely side with him today.
'Michael, just sell me all the shares at the price I just offered, a 200% premium based on the closing price this afternoon. If you sell me the shares, I can keep Swire Pacific Group, and the relationship between HSBC and Swire Pacific Group will continue to exist and get better and better. In ten, twenty or thirty years, HSBC will be able to make huge profits.'
'If you sell the shares to Jiuding Securities, in the words of the Chinese, you will have sold the hen that lays golden eggs. Jiuding Bank will grow stronger, and losing the business of the Swire Group will cause HSBC to suffer immeasurable losses.'
Shen Bi was silent for a moment, and suddenly asked in return, 'Norman, according to the price you just quoted, a 200% premium, paid in full cash, can you do it?'
Norman Shiawei was suddenly speechless.
Seeing Norman Shiawei's expression, Shen Biao smiled knowingly. He knew that Norman Shiawei definitely couldn't come up with it. Just now, he was just bidding against Yuan Tianfan with a stiff upper lip. If he hadn't stopped him, Norman Shiawei would never have been able to step down.
Seeing Shen Bi's smile, Norman Shi Yahuai was very embarrassed, but he still had the nerve to argue, 'Michael, although I can't come up with cash, I can use my assets to take out a mortgage with HSBC and refinance.'
'In that case, the Swire Group will be completely tied to the chariot of HSBC, and our business volume will skyrocket, and HSBC will earn a considerable amount of interest from it every year.'
Shen Biao smiled indifferently, not disagreeing, but instead smiling faintly and saying, 'Norman, based on the current value of the equity that HSBC holds in the Swire group of companies, if you want to come up with the equity of other companies as collateral for a loan, you would have to pledge at least tens of billions of dollars worth of equity. Are you sure you can come up with that much?'
Norman Shiyahuai's expression suddenly froze, and after a while, his face twitched.
He had to admit that Shen Bi was absolutely right, but precisely because of that, he didn't know what to do for a moment.
A conservative estimate was that the value of the equity held by HSBC in the Swire group of companies was 1.5 billion Hong Kong dollars, so a 200% premium would be 4.5 billion Hong Kong dollars.
And it was generally impossible for ordinary people and ordinary companies to use stock as collateral for loans. Banks were not willing to lend money in this way, after all, the risk was too high.
Even if they are willing to lend, the general loan amount is only 30-40%. So to borrow HK$4.5 billion, you really need to pledge company shares worth tens of billions of dollars.
Even if he talks about a pledge rate of 50%, which is the upper limit, you still have to come up with company shares worth HK$9 billion.
If you zoom out to the entire Swire group, you can still come up with it, but it is also approaching the limit.
But this would be difficult to manage, because the assets for the loan belong to various groups and companies within the Swire group, and the money from the loan to repurchase the shares belongs to all shareholders, and it has to be distributed according to the proportion of shareholding, and it does not belong to the parent company or the Swire family fund. He is doing someone else a favour.
The only way to achieve his goal is to use the assets held by the Swire family as collateral, and the shares bought with the loan will then belong to the Swire family. This will enable the Swire family to strengthen its control over the entire Swire group.
However, the shares held by the Shih Ya-Huai Family Foundation, the assets owned by the Shih Ya-Huai Family, and those in the UK do not add up to even 10 billion Hong Kong dollars, and some of these assets have already been used as collateral.
So what he just said is basically impossible to implement.
What's more, even if he empties all his assets and takes over the shares held by HSBC, it's still not enough to keep all the companies. And since he has no more funds, he will lose anyway!
Thinking about this, he had to give up this mortgage strategy.
Shares can be used as collateral, but not in such a simple way.
The company needs to be saved, but in the current situation, the cost is too high, and his own strength is limited, so he has to make a choice. It is important to save the core.
Surviving is the most important thing!
Thinking of this, Norman Shiawei made up his mind and proposed a new plan to Shen Bi.
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