Chapter 1049: Chapter 1049: The Song family officially joins
Song Bo took a deep breath, suppressed the regret and helplessness in his heart, and said slowly, 'Mr. Xia, I have prepared 550 million yuan in funds.'
Xia Yu smiled faintly and said, 'Mr. Song, it seems that the funds you have prepared are not enough!'
Song Bo shook his head with a wry smile and sighed, 'Mr Xia, our Song family is far less powerful than you. We have been able to come up with so much cash because it is the best we can do. We can buy as much equity as possible.'
In fact, the Song family's strength is not considered weak in Xiangjiang, but it is not enough for him to swallow Swire Industrial Group and Swire Commerce Group entirely.
The combined value of these two companies is close to 3 billion Hong Kong dollars under normal circumstances.
Not to mention that when the two companies were previously fighting over the shares, the value of Swire Industrial Group and Swire Commerce Group skyrocketed, with the market value of the listed Swire Industrial Group more than quadrupling.
As a result, he acquired very few shares, but had to pay a price of HK$1 billion.
The value of the shares of other companies that were exchanged at parity was also very high, and there were not many shares left in other companies that Xia Yu did not need, and he did not get much cash out of them either.
Last time, in addition to using nearly HK$750 million in shares for the exchange, he also spent more than HK$250 million in cash.
Then when he bought it himself, he also spent more than 400 million Hong Kong dollars.
It is already the limit for him to be able to raise so much money now.
Seeing Song Bo's expectant and apprehensive gaze, Xia Yu gave a slight smile, and had no intention of making him wait any longer.
'Wait for me for a moment,'
he said, got up and went to his desk, pulled open the drawer and took out a thick stack of documents, and then returned to the tea table and placed the stack of documents in front of Song Bo.
'Mr Song, please take a look. This contains a list of the equity stakes acquired by our company, along with all the corresponding contracts. You can see that I haven't cheated you on the price.'
Upon hearing Xia Yu's words, Song Bo hurriedly smiled and said, 'Mr Xia is joking. How could you possibly cheat me?'
While saying this, Song Bo quickly picked up the top list and started browsing through it. He scanned the details of the equity acquisition and focused on the two lines of summary data.
Swire Pacific Industries Group's total equity was 51.38%, and the total acquisition cost was 594 million Hong Kong dollars.
Swire Pacific Trading Group's total equity was 74.9%, and the total acquisition cost was 636 million Hong Kong dollars.
When Song Bo saw these two figures, his heart sank and a bitter feeling welled up in him.
The combined value of these two equity stakes was over 1.2 billion Hong Kong dollars, and he had only managed to raise 550 million Hong Kong dollars, so it seemed that he could not even buy half of them.
If he came up with more than 1.2 billion in capital right now and bought all of these shares, Swire Pacific Limited and Swire & Maclaine Limited would become wholly owned by the Song family.
But... sigh...
Who can blame them for not being strong? They have borrowed as much as they can, and now there is no way they can borrow any more...
Sung Bo shook his head slightly to dispel his disappointment, put the list down, and picked up some acquisition contracts to read.
These shares mainly came from HSBC, because these assets were mortgaged to HSBC by the Swire Group and the Shi Yahuai family, and then successfully bought by Jiuding Securities.
The base value of the purchased shares is based on the current valuation, but there is still an average premium of more than 30%.
After reading a few contracts, he found that the acquisition amounts on them matched the details on the statistical list, so he didn't bother looking any further.
After rearranging the documents, Song Bo took a deep breath and said to Xia Yu, 'Mr Xia, I've already looked at them, and they're all fine.'
Xia Yu smiled slightly and asked, 'So how much of each of these equity stakes do you want?'
This was the most critical part, and only by making the right choice could one maximise one's benefits.
Song Bo frowned slightly, lost in thought, as he quickly calculated in his mind.
550 million Hong Kong dollars is not enough to take over the equity of just one company, and if he does that, he will have to give up the other company, which is not in line with his previous thinking.
The best way is to take absolute control of one company and relative control of the other, so that he can control both companies.
Should he take absolute control of Swire Pacific Industries or Swire Pacific Trading?
After weighing the pros and cons for a long time, a determined look flashed in Song Bo's eyes.
He decided to take control of the larger Swire Pacific Industries!
Swire Industrial Group owns Swire Rubber Company and Swire Machinery Manufacturing Company. According to the current economic plan of the Hong Kong government, as well as the investment and plan of the Jiuding consortium in the Yuen Long Science and Technology Industrial Park, the potential of Swire Industrial Group should be even greater!
Thinking about this, Song Bo solemnly said to Xia Yu, 'Mr. Xia, I have decided. I want 22.38% of the equity of Swire Industrial Group. After buying this, the remaining funds will be used to buy the equity of Swire Trading Group.'
He already held 44.32% of Swire Pacific's shares, and now by buying an additional 22.38%, he would be able to increase his stake to 66.7%, just above the absolute majority threshold.
Xia Yu smiled and asked, 'Are you sure?'
Song Bo nodded firmly, his tone strong and forceful as he replied, "I'm sure!'
Xia Yu nodded and laughed, "Okay, I'll have someone come over and do the calculations now, and you can also call your lawyer.'
'Okay, I'll borrow the phone.'
'Go ahead!'
Song Bo got up and went to the phone, dialed his home number, and gave a few instructions to his son, who had been waiting, before hanging up.
In a moment, an accountant came in and Xia Yu told him to start calculating according to Song Bo's choices.
A few minutes later, the result was calculated.
The acquisition price for 22.38% of Swire Pacific was 258.7 million Hong Kong dollars.
Jiuding Securities would then acquire the shares on his behalf, with a commission of 5%. Including the commission, Song Bo would need to pay HK$271.67 million.
Then there was the 31.2% stake in Swire Pacific Trading, which would cost HK$265.06 million. Including the 5% commission, Song Bo would need to pay HK$278.32 million.
Xia Yu took over the calculation results, glanced at them and then handed them to Song Bo.
Song Bo looked at the detailed calculations and found that they were indeed correct.
Then he silently added the 25.1% stake he already held in Taikoo Trading Group to the 31.2% stake, and the result was 56.3%.
He let out a sigh of relief.
Fortunately, it had passed the relative control threshold.
The pressure in his heart was relieved by more than half, and the old man's face revealed a smile.
'Mr Xia, no problem, just distribute it as such.'
'Okay!'
'Since your people haven't arrived yet, I'll draft the contract on my end.'
'Okay.'
...
For professionals, drafting a contract doesn't take much time.
Just as Xia Yu finished drafting the contract on his end, Song Bo's lawyer happened to come over and check the draft contract to see if there were any missing clauses.
After verifying that there were no errors, the contract was signed immediately.
When Song Bo saw Xia Yu sign his name and push the corresponding equity certificate in front of him, he revealed a happy smile.
'Mr Song, congratulations!'
Xia Yu stood up and extended his hand to Song Bo, smiling and congratulating him.
Song Bo shook Xia Yu's hand firmly and said sincerely, 'Mr Xia, thank you for your help. Working with you is the best decision I have ever made in my life. I believe that in the future, our cooperation will become even closer.'
Xia Yu heard the subtext in Song Bo's words, which was a pledge of loyalty to him. He was completely on his side on behalf of the Song family.
Xia Yu replied with a smile, 'I also believe that the future is still long, so let's take our time.'
'Hm!'
'Mr Xia, why don't we go for a quick lunch?'
'Maybe next time, there will be plenty of opportunities in the future, I have a lot to do for the time being.'
'That's right, next time then! Whenever you have time, I'm always available!'
After a few more pleasantries, Song Bo left in high spirits with his shareholding.
Xia Yu collected the remaining share certificates.
After selling the share certificates to Song Bo, he still had 33.3% of Swire Pacific and 43.7% of Swire Resources.
After thinking about it, he decided to temporarily place these share certificates under the Jiuding Industrial Group, and let Wei Li take care of them.
At this point, he had finally fulfilled his promise to Song Bo and also brought Song Bo into his camp.
The comprehensive strength and influence of his Jiuding Consortium had once again grown!
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