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Chapter 199: The Restless Capital Market

"No problem, I will start the plan after the meeting."

Li Chuan nodded and took a look at Huarong Energy's business structure on the display panel on the conference desktop. After thinking for a moment, he added: "After the acquisition, the shipbuilding business will be retained, energy exploration and production will be cut off, power engineering, marine engineering and engineering machinery will be cut off, and the shipbuilding business will be retained. "

"In addition, after reorganizing and integrating into our Huasheng Heavy Industry, we immediately paid all the wages owed to the workers, and paid in full at the original salary premium of 50%. We showed enough sincerity to tell the workers that they had changed their third new owner, and the hard days were over, and the future would be good days, just follow Huasheng."

After thinking about this, Rongsheng Heavy Industry had as many as 50,000 employees at its peak, and many of them were forced to lay off helplessly. They were all experienced senior workers. Huasheng Heavy Industry's demand for outstanding workers in the future will definitely be more and more, so he added:

"Then it is to initiate a recall announcement for some outstanding laid-off employees in Rongsheng's original HR file. This can also make the employees who are still working hard for Rongsheng to work. Some employees are difficult to dig in other shipyards, and the emotional card is still useful. Recall one and give a corresponding reward."

...

In the following days, Huasheng Group's key project will be the preparations for Huasheng Heavy Industry. Qiao Hongwen personally took charge of the full acquisition of Huarong Energy and personally led the acquisition team to invite Huarong Energy senior management to negotiate the acquisition matters.

Since Lichuan announced the establishment of Huasheng Heavy Industry more than a month ago, the media hastily reported it significantly for a while, and there was no specific progress afterwards, and the popularity has dropped.

With the invitation to launch a wholly-owned acquisition of Huarong Energy, I don’t know who spread the news about Huasheng Group a week later.

After almost a month of silence, the news about Huasheng Heavy Industry entered the media's vision again. As soon as the news that Huasheng was about to acquire Huarong Energy and merge it into Huasheng Heavy Industry came out, the entire capital market became restless.

Is Huasheng Group, a young and unimaginable super technology giant, finally launching its first round of mergers and acquisitions? Huasheng is very unique among the many domestic technology giants. After domestic technology giants make the plate bigger, they will make large-scale mergers and acquisitions to expand their territory.

Typical examples are the Penguin Empire in the Internet field. The fat penguin now has a market value of more than US$500 billion, but in fact, the total number of companies it invests in is even larger than itself. For example, the three emerging Internet companies of "TMD" and the two major domestic streaming media live broadcast platforms have also invested. This is also a major reason why the Penguin business empire can be pushed to a market value of US$500 billion.

However, Huasheng Group is not very good at "sociating". As a super giant, it also seems out of place. After making the plate bigger, it did not think about expanding its business territory.

Compared with hundreds of investment companies and subsidiaries of other technology giants in the world, Huasheng Group strictly speaking, only Peanut Network, Huasheng Electronics, Huasheng Pharmaceuticals, and Huasheng Heavy Industry, which has just been established, are composed of four wholly-owned subsidiaries.

Ultimately, it lies in corporate culture. The primary task of other companies, especially listed companies, is to make money for shareholders and maintain stock prices, which drives companies to expand their business and maintain profit growth.

The creed of Huasheng Enterprises does not aim at profit first, which seems to be conservative, but this does not mean that Huasheng is not making money. On the contrary, Huasheng Technology is currently the technology company with the largest cash reserves in the world. It has the largest revenue scale in the world and the highest profit in the world. Its current cash reserves have almost exceeded US$300 billion, which has long exceeded Apple's half of its position, and this gap will grow bigger and bigger as time goes by.

As the newly-ranked top 500 company in the world, it launched its first acquisition case in the sense of the first meaning. This is extraordinary. The capital market dreams of having some relationship with Huasheng. Now, such news is like a drop of blood thrown into the sea. Countless sharks who smelled blood began to act quickly.

On the day the news came out, Rongsheng Heavy Industry, which was listed on the Hong Kong stock market, ushered in a surge on the same day. You should know that there is no limit on the daily limit for Hong Kong stocks. Stimulated by the news of the acquisition invitation of Huasheng Group, the stock soared by more than 756% on the same day, with a market value of HK$4.95 billion, which seems to have just begun.

It was just revealed that Huasheng Group issued an offer to acquire Rongsheng Heavy Industry, its market value soared from HK$600 million to nearly HK$5 billion in one day. It can be seen that the capital market is really sensitive to Huasheng Group, as if it is a complete climax with just one look.

After all, the size between Huasheng and Rongsheng is not at the same level at all, and the stock price of Rongsheng Heavy Industry continued to soar on the opening the next day. Even if there is no definite official news, the fact that Huasheng Group announced the establishment of Huasheng Heavy Industry some time ago was true.

Then Rongsheng Heavy Industry revealed that the news that Huasheng Group was negotiating an acquisition invitation with Rongsheng was true, and the capital market was excited again.

In fact, it was the bank that announced the news, not Rongsheng Heavy Industry, because the bank is the largest creditor of Rongsheng Heavy Industry. This is because in order to solve the debt problem of more than 30 billion yuan, Rongsheng issued 14.1 billion shares to more than 20 creditor banks and 3 billion shares to more than 1,000 supplier creditors, totaling 17.1 billion shares to offset 17.1 billion yuan of debt.

Banks naturally became the largest shareholder of Rongsheng. Now that Huasheng Group wants to acquire Rongsheng with full capital and privatize and delist, the bank has to release the news, and then add weight to the sale at a good price.

It was originally a bad debt, but now it seems that it can make a good fortune.

This is inevitable and banks don’t care. If the deal is not negotiated, it will at most maintain the status quo. In fact, in the next week, the stock of Rongsheng Heavy Industry continued to rise sharply, from a market value of 600 million a week ago to a market value of 27.8 billion today. After capital speculated Rongsheng’s stock, the bank had already sold a large number of stocks to allow retail investors to take over. No matter whether the deal was negotiated or not, the bank would have made a lot of money.

However, if the deal is not negotiated and Rongsheng is not incorporated into Huasheng Heavy Industry, then the miserable thing is that retail investors have been trapped.

That is how high the rise is, how tragic the fall will be. I guess I have the desire to jump off the rooftop, so I need to be cautious when there is venture capital in the stock market.

The current market value of Rongsheng Heavy Industry is such a fantastic market value because it may make Huasheng Group its new owner. Without Huasheng, its market value was originally around 600 million.

As time goes by, the market value of Rongsheng Heavy Industry soared to nearly HK$40 billion in less than a month, and this inflated price made Lao Qiao very unhappy. Qiao Hongwen, who was born a businessman, could not accept it because the inflated value has far exceeded the actual value of Rongsheng Heavy Industry itself. Rongsheng's current assets are only about 30 billion, but they are still negative assets.

It was completely popular by the capital market. Huasheng is rich, but it is not a big shot.

So he planned to give up this acquisition plan, but it was not necessary to choose Rongsheng Heavy Industry. The current shipbuilding industry is not very prosperous around the world. It is in the cold winter in the industry, and Huasheng has some choices.

Good guy, I don’t know who revealed this news. Now the capital market has panic. Rongsheng Heavy Industry’s stock was still rising sharply on the opening that day. After the news came out, it suddenly plunged like a cliff.

That was so thrilling and thrilling.
Chapter completed!
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