The Hong Kong Stock Exchange subsequently suspended trading in China Gas Company's shares and issued a solemn statement:
The number of shares held by the public in China Gas Company has fallen below 25% of the total, and trading of its shares has been suspended. The new shares will be officially opened after listing.
As soon as the news came out, the whole of Hong Kong was in an uproar. From wealthy nobles to ordinary people, everyone turned their attention to Jardine Matheson and HSBC's Warwick Securities.
After reading the four announcements released by China Gas Company, Mo Zhexuan became increasingly wary of Li Ka-shing.
The stock was split into five shares and one bonus share was given, which increased the trading volume and liquidity of the stock while lowering the market price per share.
The plan is to raise HK$1.5 billion and add 50 million shares. This move can be said to be ruthless.
No wonder Li Ka-shing was able to compete with Li Ka-shing and even forced Jardine Matheson to retreat. He deserves to be called the Asian stock god. Isn’t this a real-life poison pill plan?
The poison pill plan is a "share dilution anti-takeover measure" invented by the famous American lawyer Martin Lipton in 1982.
Simply put, when a company encounters a hostile takeover, the original board members can maintain control of the company by issuing a large number of new shares at a low price. The fundamental purpose is to make the acquirer's stock price fall, dilute the acquirer's equity, and increase the acquisition cost.
"A listed company issuing new shares needs to meet a series of conditions, including three consecutive years of profitability and the payment of dividends to shareholders. Even if China Gas wants to issue new shares, it should have at least a one-month review period! This is clearly a bluff, an attempt to muddy the waters! They can't even get past the CSRC, let alone Jardine Matheson."
Wang Pengfei was very puzzled. This was obviously against the rules.
"Hmph!" Mo Zhexuan raised the corner of his mouth slightly, revealing a mocking expression on his face. A cold glint flashed in the corner of his eyes, and he said coldly:
"This is Li Zhaoji and Li Mingze playing a double game, trying to muddy the waters! They can't even get past the CSRC, let alone Jardine Matheson. It's just a notice."
"We can't hide for much longer. No one is stupid. First of all, if the Hong Kong Stock Exchange is serious about investigating, they will definitely find us."
“...............”
The Chairman of the Hong Kong Stock Exchange, Li Fook-shiu, is a legendary figure and can be called the godfather of the stock market. The successful listing of companies of Li Ka-shing, Li Shau-kee, Kwok Tak-seng and others is thanks to his Far East Exchange.
After the initial merger of the four associations in 1982, the Hong Kong United Exchange held its first general meeting of members. The person with the highest number of votes was Hu Hanhui, the founder of the Gold and Silver Trading Exchange, and was elected chairman of the board of directors.
However, during a routine health check last year, Hu Hanhui discovered black spots on his skull and was diagnosed with cancer.
In order to fight the disease, he went to the United States for treatment, and Li Fook-sau took over as chairman of the Hong Kong Stock Exchange.
This time, the addition of 50 million shares by China Gas Company must have been approved by Li Fuzhao.
This is certain, otherwise it would not be so smooth. The rules of the game in this world have always been made by the strong, and the only qualification of the weak is to play along.
Li Fook-sau is indeed a genius, but he is also very overbearing in his style of doing things. After becoming the chairman of the Hong Kong Stock Exchange, he has the final say.
Eventually, the bitter fruit came. On October 19, 1987, the global stock market crash, Black Monday, occurred and the Chairman of the Hong Kong Stock Exchange, Li Fook-shun, ordered the market to be suspended.
The market was suspended for only four days, but this caused short-selling institutions represented by HSBC to lose a lot of money, which naturally caused dissatisfaction.
At the end of the year, he was investigated by the Independent Commission Against Corruption and charged with "accepting shares of listed companies as compensation for facilitating listing." The verified shares were worth HK$800,000 in stolen money. With conclusive evidence, he was sentenced to four years in prison. This generation of heroes completely retired from the world.
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