Hong Kong Telephone Company and Cable & Wireless (Hong Kong) Limited are Hong Kong-listed companies whose share prices plummeted on "Black Monday".
Galaxy Financial Corporation had previously bought shares in these two companies at low prices, and its holdings were not insignificant.
However, to achieve the acquisition goal, it is necessary to negotiate directly with the major shareholder; otherwise, the chances are slim.
After investigating the detailed information, Zhou Anping took the lead in sending people to contact Hong Kong Telephone Company to discuss the acquisition.
As for the Eastern Telegraph Office, it will require some time to conquer.
This company is a long-established telecommunications company with over a hundred years of history. During World War I, it became the imperial communications hub of Britain; during World War II, it was responsible for battlefield communications and disrupting enemy communications.
However, the telecommunications industry was not yet booming at that time, so the Cable & Wireless was not as wealthy as the Wujiang Group.
...
“Mr. Zhou, we at Hong Kong Telephone Company are well aware of the immense influence Wujiang Group wields in Hong Kong. I believe that your company’s acquisition of Hong Kong Telephone Company is the best option!”
At this moment, Warren Tony, the general manager of Hong Kong Telephone Company, said to Zhou Anping with a big smile.
Upon hearing this, Zhou Anping smiled faintly. Although that's what the other party said, it was mainly because Wujiang Group was rich.
The main way that Cable & Wireless acquired Hong Kong Telephone Company was through a merger of the two companies. In fact, Cable & Wireless had very little cash available.
After the merger, since the acquisition was made by Cable & Wireless, the senior executives of the former Hong Kong Telephone Company will see their positions decline.
After all, the position of general manager cannot be held by two people.
Therefore, Warren Tony and other executives of Hong Kong Telephone Company strongly urged Wujiang Group to acquire Hong Kong Telephone Company.
Wujiang Group can't possibly fire these senior executives.
Money, status, influence—in any aspect, selling oneself to Wujiang is the most suitable option.
“Mr. Tony, I think so too. I hope you can make this happen. After Wujiang Group acquires Hong Kong Telephone Company, it will not harm your interests, but it may not harm the Eastern Telegraph Company.” Zhou Anping stated very frankly.
Warren Tony nodded slightly, especially since his position as general manager was definitely in jeopardy.
"Mr. Zhou, rest assured, I will definitely make this happen," Warren Tony said solemnly. He paused, then asked, "May I ask, in what manner does Wujiang Group intend to acquire Hong Kong Telephone Company?"
Zhou Anping replied, "The entity acquiring Hong Kong Telephone Company is Wujiang Communications Technology Company, a subsidiary of Wujiang Group. Galaxy Bank will provide it with a loan of HK$14 billion, which is HK$2 billion higher than the market value of Hong Kong Telephone Company!"
"If that's the case, then my chances of persuading the company's shareholders to accept these conditions are quite high!"
Warren Tony naturally took this very seriously, as it concerned his own future. "However, it would be best to acquire it through a combination of capital and shares, which would only make things easier. Many shareholders probably still want to get on the fast track of Wujiang!"
Upon hearing this, Zhou Anping thought about it and felt that there shouldn't be any problem.
Wujiang Group only needs to maintain control of Hong Kong Telephone Company.
"How about this, Wujiang Communications Technology Co., Ltd. will invest HK$7 billion to acquire 51% of the shares of Hong Kong Telephone Company, leaving 49% of the shares for the major shareholders and shareholders."
“Great!” Warren Tony nodded. With such favorable terms, it was unlikely that the shareholders of Hong Kong Telephone Company would disagree.
Warren Tony returned to the company and shared the information he had learned from Zhou Anping with the company's executives and shareholders.
After discussing it, many people thought the terms were good.
The Telegraph Company was stingy, offered low prices, and even wanted to directly merge with Hong Kong Telephone Company, which naturally displeased the shareholders and management of Hong Kong Telephone Company.
“Warren Tony, we are reasonably satisfied with Wujiang Group’s terms. However, it would be even better if the acquisition price could be higher!” said a shareholder named Marvin Keppel with a smile. “If Wujiang Group does not agree, we can bring in the Cable & Wireless to compete. As the saying goes, ‘when the snipe and the clam fight, the fisherman benefits!’”
Upon hearing this, the others nodded in agreement.
As the saying goes: "A man's greed is like a snake trying to swallow an elephant."
Warren Tony frowned slightly, feeling that this was not a good idea. "I don't think it's appropriate. We invited Wujiang Group in the first place, and they offered HK$7 billion for only 51% of the shares, which is already very generous. If we push our luck, we might mess things up!"
Marvin Kepper said with a smile, "Warren Tony, you can't say that. Since Wujiang Group wants to acquire Hong Kong Telephone Company, then they should give us a premium. The offer they gave is less than a 20% premium, which I think is unreasonable. It should be at least a 50% premium!"
Others chimed in, saying, "50% might be a bit too much; 30% to 40% would be more reasonable..."
"Yes, we will only agree to Wujiang's acquisition if the price is at least 30% higher!"
Seeing the major shareholders discussing, Warren Tony couldn't help but speak up: "Cable Telegraph will never offer a 30% premium, not even 20%. Unless you are willing to accept the merger of Cable Telegraph (Hong Kong) Limited and acquire shares in the new company... But how many of you here would agree to this option?"
As soon as he finished speaking, everyone fell silent.
Marvin Kepper pursed his lips and muttered under his breath, "Wujiang Group is so rich, what's wrong with us asking for more money? It's a rare opportunity, shouldn't we take advantage of it and make a killing?"
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