Chapter 606: Driven by Interests

At this time last year, the market value of the Hongkong Land Group was only about HK$4.8 billion. Then, because Hongkong Land Group sold some of its holdings in The Wharf and the equity of some other companies, it should have been reasonable to assume that the assets had shrunk and the market value should have fallen.

However, one reason is that after a year, the Hong Kong stock market has risen a lot compared to a year ago. The market has risen, and as the leading stock in the Hong Kong real estate industry, it is only natural that Hongkong Land's market value has soared.

Of course, another reason is that after the Jardine Matheson consortium fell apart, various big shots set their sights on Hongkong Land, and the competition for shares caused Hongkong Land's share price to rise sharply.

These two important reasons offset the impact of the partial asset shrinkage of the Hongkong Land Group and the impact of various big shots deliberately holding back the Hongkong Land Group's poor performance.

Think about Hutchison Whampoa, which has not yet emerged from the quagmire. Compared to a year ago, its market value has only increased by a few hundred million, while Hongkong Land Group's has increased by more than ten billion, which is already very good.

That said, even if a 20% premium is given to the Hongkong Land Group, it is still a very good deal. George Berkeley has read the detailed information given by the boss Xia Yu and knows that Hongkong Land Group is a company with actual assets greater than market value, even if a 20% premium is given.

Now the initial offer of 10% is just to leave more room for negotiation.

Hearing George Berkeley's conditions, Burton Keswick did not hesitate to shake his head and refuse: 'Mr. George, your price is too low, I firmly disagree.'

'No, no, no, Mr. Burton, you should know very well that the share price of Hongkong Land is overvalued...'

'Mr. George, the share price of Hongkong Land is not overvalued at all. Do you believe that if I release the news that I am selling my shares, there will be plenty of people who will buy them at a 40% premium?'

'Mr. Burton, you are the only one who believes that. I have read the financial report of Hongkong Land last year. The group's net profit was only 310 million Hong Kong dollars. Many of its subsidiaries are in the red, resulting in a net profit attributable to shareholders of only 180 million Hong Kong dollars. In the first quarter of this year, revenue fell 30% year-on-year. According to the current trend, the group's net profit this year will only be less.'

'The current price-earnings ratio of Hongkong Land is as high as 19 times, far exceeding the current price-earnings ratio of less than 10 times for Hong Kong-listed companies in general. Under these circumstances, do you think that the market value of Hongkong Land is not inflated? I am offering a 10% premium, so you will definitely make a huge profit.'

'I disagree with you, Mr. George. The value of a company cannot be judged by its price-earnings ratio alone, but also by its future prospects...'

...

One wants to sell, the other wants to buy, so although they argue with each other, they never leave. After a heated argument, George Berkeley insists on a maximum premium of 15%, while Burton Keswick insists on a minimum premium of 32%. The negotiations are at an impasse, and neither is willing to back down.

However, it can be seen from the increases and decreases in the two sides' conditions that George Berkeley had the upper hand in the negotiations.

The negotiations could only be suspended, and the two men left. After calming down for a day, they negotiated again the next day.

On the third day, an agreement was finally reached, and Bright Fund purchased 10.5% of the shares of the Hongkong Land Group held by Burton Keswick at a price of HK$742 million, with a 20% premium.

'Happy cooperation!'

In the Bright Fund's meeting room, George Berkeley and Burton Keswick stood up to shake hands in celebration after signing the agreement.

Since the share certificate of Hongkong Land is not here in Hong Kong, only a preliminary agreement is signed, which also has a certain legal effect.

Arrangements would be made later to settle the money and goods.

Just as Burton Keswick was about to leave, George Berkeley called out to him again: 'Mr. Burton, please wait a moment, I still have a business deal I want to discuss with you, which is very beneficial to you.'

Burton Keswick paused, turned around and asked doubtfully, 'What other business?'

'Yes, it can bring you great benefits. Let's sit down and talk.'

'Okay.'

In the Bright Fund conference room, the two men sat down again. Burton Keswick did not say a word, but made a gesture of invitation, indicating that George Berkeley should speak.

'I heard that other members of your family also plan to sell their shares, is that right?'

George Berkeley's words caused Burton Keswick's face to freeze, and his thoughts raced. After hesitating for a few seconds, he said vaguely, 'I'm not sure about that, but it's probably possible.'

George Berkeley laughed and said, 'Mr. Burton, you don't need to be on your guard. I said it would bring you huge benefits. We want to buy more shares of the Land Group at a 20% premium. As for how much you get for your shares, that's your business. If you can buy 10% of the shares at par, you can make more than 100 million yuan by selling them on.'

More than 100 million yuan!

Burton Keswick's breathing became laboured, then rapid, and his heart suddenly felt chaotic.

Looking at George Berkeley's smile, Burton Keswick pursed his lips, no longer bothering to put on airs, and asked bluntly, 'Mr. George, are you sure? You want all the shares?'

George Berkeley nodded without hesitation and said, 'Of course, as long as you can acquire it. If you don't have enough money, we can sign an agreement to help you advance the money and directly transfer the intermediate profits to you.'

This time, it directly solved the last financial problem of Burton Keswick's acquisition of equity.

Borden Keswick's heart grew even hotter. He knew that the family members Riclaud Keswick and Rodney Keswick had been advocating a return to the UK even before him, and that the two of them, who together owned 21.2% of the shares in the Land Group, were absolutely willing to sell.

If he could buy the shares from the two of them at a fair price and resell them to Guangming Fund, he would be able to make a profit of 250 million Hong Kong dollars.

Even if he couldn't buy it at a bargain price, if he bought it at a 10% premium, he could still make a profit of over 100 million Hong Kong dollars, which was still a huge profit.

It really was an opportunity that could bring him huge benefits!

It would be very difficult for an outsider to acquire the family's stake in the Land Group, but he had a huge advantage: he was confident that if he asked, he could definitely take over the stake at a lower price.

There was a lot of room for manoeuvre, and the profit was extremely considerable. In an instant, Burton Keswick decided in his heart that he must seize this opportunity!

'Mr George, I think I can try this matter you mentioned. May I ask if there are any other restrictions?'

Burton Keswick asked.

'The only restriction is that the sooner the better. If it drags on too long, we'll have to contact them ourselves,'

George Berkeley said calmly.

Burton Keswick's heart tightened, and he immediately said, 'Don't worry, I'll act as soon as I get back and try to help your company acquire it as quickly as possible.'

'Okay, then I'll trouble you!'

'By the way, Mr. Burton, you want to buy the ancestral home of Viscount Boot, I think we should be able to help you,'

George Berkeley said hurriedly after agreeing on one thing.

Burton Keswick thought for a moment and said, 'Absolutely, Viscount Boot offered 40 million pounds, as long as your company can help me buy it for 35 million pounds.'

Thirty-five million was his psychological price, and he knew that it was unrealistic for him to cut the price by 5 million pounds. If Bright Fund could do it, then he would be relieved.

As for how much Bright Fund paid for it, he didn't care. In his opinion, with the miserly attitude of the Butts, Bright Fund would not make much money.

Since Bright Foundation had given him such an opportunity to get rich, he would also repay the favour and deepen the relationship between the two sides.

After all, Bright Foundation was backed by a large British family and consortium, and it would always be beneficial to gain their friendship.

If George Berkeley knew what Burton Keswick was thinking, he would have died laughing.

It can only be said that George Berkeley successfully misled Burton Keswick, allowing him to fill in the blanks himself and guess the wrong background of Bright Foundation.

Afterwards, the two men discussed some details, and it wasn't until midday that George Berkeley took the time to treat Burton Casserly to lunch.

After returning home, Burton Casserly immediately bought a ticket back to Hong Kong.

With such great benefits in front of him, he couldn't wait!