Chapter 704: Taking over the equity at a discount

Shen Bi pretended to think for a moment and said solemnly:

'Logically speaking, such a large equity stake, worth more than 2 billion yuan, even I as the chairman of the board of directors cannot make a decision with just a word, and it needs to be bid for externally.'

'Since we are partners, I also bear the responsibility of selling it directly to you. If I ask for too much, it would show a lack of sincerity. I don't want a premium either, so I'll calculate the price according to the current market value.'

'However, I have two preconditions.

"The first condition is that Hutchison Whampoa's original business affairs with HSBC cannot be invalidated, and in the future, Hutchison Whampoa's business affairs will also be conducted through HSBC.'

'The second condition is that I hope Mr Xia can provide a personal guarantee for HSBC and communicate with the mainland on its behalf to ensure a smooth transition and normal operations for HSBC in the future.'

Hearing this, Xia Yu's face turned ugly and he choked, 'Mr Shen, these conditions you have proposed are not like those of a partner. I don't feel any sincerity. What I'm giving is far from what HSBC is getting, and that's not fair!'

Shen Bi also knew that the demands he had made were excessive, but Xia Yu was the best person for him to make demands on, and when he had the chance, of course he would not let it go.

After all, there is always bargaining in business, and if he didn't raise the price high, there would be less room for Xia Yu to bargain.

Therefore, Shen Bo said solemnly, 'Mr. Xia, I think the price I've offered is very reasonable. If I put it up for public bidding, I believe there will be many people willing to take over the shares of Hutchison Whampoa. Not to mention, people like Li Jiasheng, Li Zhaoji, and Guo Desheng will definitely be interested.'

'And as soon as the news is announced, the market value of Hutchison Whampoa will also rise. Therefore, I have already caused HSBC to suffer huge economic losses by agreeing to privately not to bid for the transfer of the shares to you, and I also have to bear certain risks.'

Xia Yu disagreed and denied, 'Mr. Shen, we are both sensible people, so there is no need to mention these flawed reasons. I am the only person in the entire Hong Kong who can successfully take over this stake, and I already hold a portion of it. These people you mentioned may not dare to take the risk of taking over!'

'Anyway, the stake I hold is only worth more than one billion, and I can afford to lose it completely. At worst, it will drag on until Hutchison Whampoa goes bankrupt, and I believe I will always get my share when the assets are liquidated!'

'But if I do that, I will have to wait a little longer, but HSBC will suffer huge losses, both now and in the future!'

'Since you found me to be your guarantor, you must have thought it through carefully. Perhaps Bao Sheng can do the same, but I don't think he will agree to your request.'

Xia Yu's sharp words left Shen Bi speechless.

Seeing that the time was right, Xia Yu softened his tone and said, 'Mr. Shen, why don't you hear my request?'

'The current business between HSBC and Hutchison Whampoa is actually a burden for HSBC. Hutchison Whampoa is in deep trouble and is losing money every year, and HSBC's loans to it have actually become non-performing loans.'

'If I can successfully take over Hutchison Whampoa, I can also prevent HSBC from incurring losses. But if you force Hutchison Whampoa to only do business with HSBC, that is absolutely impossible. I can only promise you that I will not terminate the previous cooperation before its expiration, and we will rely on our own abilities afterwards. If HSBC cannot offer more favourable terms than other banks, I will not let myself lose, right?'

'As for your second point, in fact, my relationship with the mainland is just so-so, but I also understand your concern about the future of HSBC. I can do my best to help you, and I believe that if we have a close relationship and I am powerful enough, I believe they will definitely give me face.'

'You should know that anything involving politics involves great risk.'

'I have paid such a high price, so it would be very ungrateful of you to ask for a discount. Don't say anything about the price going up if the news gets out. If HSBC puts up 5% of its shares for sale on the market, Hutchison Whampoa's stock price is guaranteed to plummet.'

'So I think a 60% discount on Hutchison Whampoa's price is most appropriate!'

After a long argument, Xia Yu finally showed his fangs.

In a previous life, Shen Bi had dared to privately discount the price by five times, selling 22% of the equity to Li Jiacheng and allowing Li Jiacheng to pay on credit. He had only spent a few hundred million to get the equity.

Knowing Shen Bi's concerns and plans, Xia Yu could not possibly not take the opportunity to bargain.

Even if he could not enjoy the same treatment as Li Jiacheng due to different circumstances, it would be good to get a bargain.

Sure enough, Sam But hesitated.

It was precisely because he had considered the future of HSBC that he had made such a request.

Now Xia Yu knew his concerns and plans, and took the opportunity to ask for a price, asking him to use his current money to help the future of HSBC.

Is a small amount of money now better than a large amount of money in the future?

After considering this, Sam But finally gritted his teeth and made up his mind.

But if you can fight for it, you should do your best.

He straightened up and said to Xia Yu, 'Mr Xia, a 60% discount is too low. I won't be able to explain this to my superiors, and I might not be able to keep my position as chairman of the board. I can only agree to a 95% discount.'

Xia Yu immediately shook his head and said, 'Mr Shen, you don't need to lie to me. Everyone in Hong Kong knows that no one but you can take the position of chairman of the board of HSBC. 95% is too high, but I won't make things difficult for you. I'll compromise and go for a 65% discount.'

'No, no, no...'

...

After a heated bargaining session, the final price was set at a discount of 80%.

Xia Yu invested 1.745 billion and took over the 31.75% stake held by HSBC.

In addition, there were future political guarantees and cooperation.

Having HSBC as an ally was also a big profit for Xia Yu.

The two parties had a good relationship before, but they became estranged again due to the emergence of Jiuding Bank.

However, it is fortunate that the banking market in Hong Kong is so large, with as many as hundreds of branches of local and foreign banks. HSBC and Jiuding Bank are not absolute competitors, and some competition is acceptable. It is possible that they will stimulate each other to grow better.

Now that the deal has been settled, the next step is simple.

After signing the contract, Xia Yu first called Liu Tianci and asked him to transfer the money immediately.

Ten minutes later, a huge sum of 1.745 billion was transferred to the HSBC account.

After confirming the transaction, Shen Bo smiled and shook hands with Xia Yu, saying with emotion, 'Mr Xia is indeed very powerful. You have come up with 1.7 billion in such a short time. You are the only one in Hong Kong who can do this!'

Xia Yu politely laughed and said, 'Mr Shen, you are wrong. Isn't there another person in this room?'

Shen Bi was taken aback, and then burst out laughing: 'Mr Xia is too kind to me. Apart from the money you just transferred, there is less than 500 million in the HSBC account right now. If you give me two days, I might be able to raise more.'

Xia Yu also knew that this involved HSBC's commercial secrets, and Shen Bi was definitely not telling the truth, so he stopped dwelling on this unsolvable topic.

'Mr Shen, I have some things to do, so I'll be going now.'

'Please keep our cooperation confidential for a few days.'

Xia Yu solemnly requested.

Since he had already sold Hutchison Whampoa, he didn't care about further hurting Kit Tsun. Shen Bi nodded with a smile, 'No problem, you can rest assured on our side!'

'Thank you, Mr. Shen!'

'Goodbye!'

'I'll see you out!'