Chapter 96: Acquisition Storm

What is the most popular in the world in 1996? "Atlanta Olympics"! This century-old Olympic celebration was won by Americans from the Greeks. However, this Olympics gave people the impression that it was linked to election bribery, organizational chaos, serious commercialization, terrorist attacks, etc., and it can be regarded as an untrue Olympic Games. However, Chinese people are only interested in the events in which their country won gold medals. This time, China successfully retained the title of fourth place in gold medals, which basically completed the task. These are all discussed on the streets and alleys in July and August.

These have nothing to do with Yang Xing for the time being, and he did not relive the meaning of some of the famous competitions. However, in the summer of this year, what topics in Hong Kong could overshadow the glorious Olympics were undoubtedly a series of acquisitions initiated by Yang Xing, so that in the summer of 1996, Yang Xing was fortunate to win the title of "Crazy Yang" in the Hong Kong financial industry.

After reaching the negotiations with Baifuqin, Yang Xing immediately squeezed out the potential of all its employees and went all out to cooperate with the various listing arrangements proposed by Baifuqin. At the end of June, Xingmei Fashion took the lead and issued a purchase request to famous domestic daily chemical companies such as Beijing Sanlu Factory, Shancheng Toothpaste Factory, Oni Daily Chemical Factory, attempting to include all brands such as "Dabao" brand, which is the largest cosmetics sales in the country and the top three "cold sour spirit" toothpaste, "Oni Beer Shampoo, Oni Polygonum multiflorum Shampoo" shampoo and other brands. In mid-July, it proposed to acquire Tianjin's "Yumeijing" children's cosmetics, Guangdong Zhongshan Kaida Aerosol Manufacturer, etc. For a time, the national daily chemical industry was terrified of Xingmei Fashion, and debates were everywhere.

Pan Renjie, the State Councilor who was then deputy head of the State-owned Enterprise Reform Group of the State Council, made a final decision: "In the field of fiercely competitive consumption, state-owned enterprises must have an exit mechanism. Why not give powerful national enterprises a path to development and growth? They should be allowed to stand on the same starting line as large foreign multinational enterprises."

Xingmei Fashion, which has been approved by the central government, is even more crazy about "encirclement and suppressing" the daily chemical industries in the Pearl River Delta and the Yangtze River Delta. As of December 1996, according to incomplete statistics, Xingmei Fashion has acquired 123 daily chemical companies of all sizes in one year, distributed in Tianjin, Guangzhou, Shancheng, Jiudu, Shanghai and other places. Its brands have reached more than 300, becoming the top three in the national daily chemical industry. Its popularity has attracted another well-known foreign-funded enterprise, Zhongce Group, to be attracted by it. However, compared with Zhongce, most of the acquired large brands are township enterprises, and many of them are still on the verge of bankruptcy, so the debate caused is naturally not as big as Zhongce.

In July, Baifuqin transferred most of its shares in Guangshengxing to Xingmei Fashion. After fifty years of leaving its main cosmetics business, Guangshengxing became a pure cosmetics company again. Guangshengxing's other real estate leasing business was left to Baifuqin Group. After two months of asset restructuring, the stock renamed Xingmei Fashion (Hong Kong) Guangshengxing Co., Ltd. was resumed in the Hong Kong stock market. Stimulated by the great news that Xingmei Fashion has captured the country, the stock rose by 5% on the day of the resumption of trading, and then rose steadily, and the stock of Xingmei Fashion Products Company in the domestic Shanghai stock market rose sharply, making it one of the most eye-catching stocks in the stock market surge in 1996.

Next, Yang Xing and Bai Fuqin personally visited Chen Xin, who is known as the "shell king" in Hong Kong. Chen Xincheng had a good relationship with Li Ka-shing in his early years. Through this relationship, he became a "shell king" with fourteen listed companies in Hong Kong. There is an interesting phenomenon in the stock markets around the world. There are many companies that have been listed for a long time, but their business has entered a period of decline, and their stock prices have fallen to no profit, but they cannot meet the delisting requirements. They can no longer meet the financing needs, but the "shell" of listed companies in them is an excellent resource in the hearts of those who are interested.

Chen Xin will take advantage of this to control many "shell" companies with only a few cents of stock to be sold. In his history of success, he used many "shell" companies to help Li Ka-shing conduct a number of trading activities. If these activities are operated by Li Ka-shing through its large companies, it will either be too difficult or attract too much controversy among investors. Therefore, Yang Xing wants to shorten the time to bypass the cumbersome procedures of the Hong Kong Securities Regulatory Commission and adopt the strategy of backdoor listing. Chen Xin will be the best partner.

The first thing to take backdoor is Xinghua Real Estate, which has the best profitability. After acquiring Lidaxing and Huada Real Estate, in early July, the long-delayed agreement to transfer the first company of Zhongyuan Provincial Construction Company to Xinghua Real Estate Company was finally signed. Xinghua Real Estate, which has held real estate and built two pillars, can rank among the top five real estate developers in the country. The Jiudu Pedestrian Street it developed has completed most of the project, and a new shopping center and a pedestrian shopping street spanning several blocks have taken shape. At the Peony Flower Festival in April this year, the number of tourists received by this unfinished Jiudu New Attraction has exceeded one million.

The eleven office buildings scheduled to be completed next year have basically been sold. In addition to the four major state-owned banks and telecommunications and postal departments, Zhongxing Group's Zhong District Headquarters, Huaxia Construction, Sinopec and other units have divided the remaining office buildings. The underground air defense facilities of the pedestrian street have also been converted into an underground shopping mall of 30,000 square meters and are scheduled to open at the end of next year. According to sales data, Jiudu Qunxingfang Pedestrian Street, with a total investment of 300 million yuan, will bring Xinghua Real Estate Company a profit of 400 million yuan.

Although Shanghai Xingtiandi has a short start time and high construction requirements, the construction time is long, so the sales are not very popular, but the sales data sent back are already very impressive. According to estimates, the final profit of this project will not be less than 1.2 billion. The Beijing Rose Garden project finally came back to life. In early July, An Yili personally led a team to Hong Kong to invest. Most of the 188 villas launched in the first phase have been sold, and the funds have been recovered by 300 million yuan. Most of the debts owed by Rose Garden have been paid off. The relevant banks also agreed to continue to borrow money. According to this momentum, the sales prospects of the remaining 200 villas that are about to be completed are also very optimistic.

From 1996 to 1997, Hong Kong real estate rose rapidly. With this east wind, the stock prices of real estate developers also rose. As the most profitable real estate company in China, Chen Xin sold the most valuable "Mosheng Construction" to it. In August, Xinghua Real Estate acquired 23% of the shares of "Mosheng Construction", and then reached a share conversion agreement with several major shareholders of "Mosheng Construction", and continued to acquire two Hong Kong companies and several companies in Guangdong, Shanghai and Beijing. The business scope includes real estate, port construction, construction, etc. After four months of restructuring, it is preparing to resume trading in the New Year in 1997, and its psychological price jumped directly from "Mosheng Construction" to 17 yuan. William Deng and Xu Weili made an exception and did not list on the new stock. They just completed the roadshow and invited senior executives of Zhongxing Group to hold a celebration meeting at the Hong Kong Peninsula Hotel, wishing the smooth issuance of the new stock.

The second backdoor is the unknown Starry Sky Human Resources Consulting Company. On July 10, Jiudu City officially announced to the public that it would establish the first experimental corporate university in China - City University of China, which adopts the form of school board management that is widely implemented abroad. Former President of the Chinese University of Hong Kong, Kao Kao has agreed to take the position of president. In addition to Jiudu City, its investors also have many domestic and foreign education groups in addition to the Ministry of Education, and the largest shareholders are Xingkong Human Resources Consulting Company and the Young Education Foundation.

The first joint-stock university in China, the management of the board of directors, and the terms President Kao Kao are enough to attract the attention of Hong Kong people. The successive reports quickly made Starry Sky Human Resources a new star in the Hong Kong education industry. On August 5, Hanwitt, one of the world's four largest human resources companies, announced that it would form a joint venture with Starry Sky Human Resources to jointly propose an acquisition offer to CUC Education and Training Group, one of the largest education groups on the island. On August 7, a bank consortium led by Baifuqin provided a financing amount of US$300 million for the acquisition offer, and Chen Xin will also place a shell company called Modern Publishing under the acquisition conditions.

Under the huge temptation of high funds, CUC, an education company that mainly handles cram schools and adult vocational training in Hong Kong, and Starry Manpower, dealt with three months in the stock market. Finally, it was a game difference. Because of the lack of liquidity, it was abandoned by small shareholders. Bai Fuqin took advantage of the situation and absorbed a large number of shares of the group. CUC finally surrendered and gave up its controlling stake to Starry Manpower.

After this battle, although Starry Sky Human Resources did not make a penny profit, its stock price opened 150% higher on the day of re-listing in November, achieving a good start. The first thing Starry Sky Human Resources did after the opening was to announce an investment of 100 million yuan in education investment in China's city universities, which shocked universities across the country.

You should know that since 1990, the State Education Commission has launched the "211" project, that is, in the face of the 21st century, after 10 years or longer, it has planned to focus on building about 100 universities, so that these universities and key disciplines can become bases for cultivating high-level professional talents and solving major scientific and technological problems in national economic construction and social development. It is at the domestic first-class level in terms of education quality, scientific research and management, and has a certain international influence. Several universities and some key disciplines have reached or approached the world's advanced level. Peking University and Tsinghua University, which ranked first, have received only more than 100 million yuan this year. The investment obtained by this unknown university is just as good as them, so why is it not jealous?

At this point, Yang Xing has already successfully listed in Hong Kong. After listing, the funds these three companies have collected more than 5 billion yuan, which is much closer to the goal of raising 10 billion yuan on the Hong Kong stock market. Many of Yang Xing's subordinates have worked hard in the mainland business district for many years, and they have to admire this. The magic of capital operation is unimaginable. Although the two old foxes, William Deng and Xu Weili, are quite ambitious, their abilities are indeed beyond their reach. Even Qingqi publicly stated that if they want to list in Hong Kong, their best partner will always be Bai Fuqin.

However, now it is still far from the goal of Yang Xing’s goal of all eight other companies except Xingfu Investment Company and Xingdou Research Institute. Next, it is time to consider Xingchen Manufacturing and Nebula Electronics. But this time he is considering a partner with another person, who is a legendary figure with a fierce debate in China - Huang Xingfei, and Zhongce Group Company he founded.

After a little slight listing at Xinghua Real Estate at the end of August, he flew to Singapore with Qingqi, William Deng and Xu Weili to visit the only foreign businessman mentioned in the discussion meeting of the Standing Committee of the China Politburo, and considered acquiring his large shares of Zhongce Group. This news was commented by the Hong Kong financial community at that time as a crazy move of "not to seek skin from a tiger, but to sell all the tiger bones." So far, the nickname of "crazy Yang" spread like wildfire.
Chapter completed!