MC Bookstore Chapter 35 A dog's face flips faster than a book
Chapter 35 A dog's face flips faster than a book
HSBC Bank was bustling with activity.
When the two parties were about to swap shares, the manager of Huoduoli, a foreigner named Gard, turned green with rage.
Based on the current share price of HK$242 per share, the 2.5% commission for 9.24 shares would be HK$55.9.
Since neither party used cash for the transaction, how the commission is calculated?
A large group of people are busy running around, but after more than three months they haven't earned a single penny and have to buy their own meals? Isn't that inappropriate?
In today's securities industry, it's common to hold positions in two companies simultaneously!
Buyer 2.5%, seller 2.5%, taking a cut from both, the foreigner Gard immediately refused to settle the deal unless the employer, Chan Kwun-kong, made up the HK$55.9 commission.
Chen Guanjiang also refused to make the deal. He had given all the newspaper's cash to his family, and he couldn't afford to pay the 2.5% commission, let alone the 0.69% in taxes.
You want money from me?
Why are you asking me for money when I haven't even sold the stocks?
Should we switch to Landmark?
What price do you want in exchange for milk from Landmark?
The committee also strongly disagrees!
Whether or not shares are exchanged, they don't care, but who's going to ask for the 0.02% compensation levy? And who's going to help pay the 0.6% stock stamp duty to the Hong Kong government?
The exchanges won't stand for it either!
You only earn 0.02% settlement fee and 0.05% CSRC transaction fee. You won't even give me that little bit of hard-earned money? What the hell are you talking about?
The transaction, valued at HK$2236 million, is stuck on a total of HK$71.3 in tax expenses, with no idea who should pay the 3.19% tax.
Logically speaking, the seller, Chen Guanjiang, should be the one to pay, but the problem is that exchanging shares for shares is not in line with common sense.
If Hongkong Land engages in an unreasonable share swap, then let Hongkong Land pay for it.
Seeing the fire spreading to him, Jardine Fleming Bank's general manager, a foreigner named Carl, remained unmoved. He had only received a notification about the share swap, but had not been told that he would have to pay various fees totaling HK$71.3.
Besides, he can't make the decision himself!
This is a whopping HK$71.3 to exchange 0.924% of the milk powder. Wouldn't exchanging the entire Dairy Farm company cost HK$7720 million?
The five parties argued endlessly about who should pay the fee, and in desperation, Carl called Henry Keswick.
Upon hearing this, Henry Keswick was completely stunned.
Chen Guanjiang used milk to exchange for shares in Land Acquisition, resulting in an expenditure of 3.19%!
If the Hongkong Land shares are sold again, it will cost an additional 3.19%.
The normal price for milk is HK$242 per share, and the total sales tax is HK$9.44.
The exchange rate is HK$242 for two shares of Hongkong Land stock, plus various taxes and fees, totaling HK$9.06.
Without exchanging shares, you'd incur a tax of HK$9.44. But if you exchange shares and then sell, you'd incur two tax deductions, totaling HK$18.5. Only a fool would bother exchanging shares and then selling!
and many more…
Chen Guanjiang switched his dairy shares to sell Hongkong Land shares, but due to the need to pay an additional 3.19% in various fees, the matter is at a standstill and the dispute remains unresolved.
So…
Other shareholders or retail investors who exchange their shares for Hongkong Land shares will also face the issue of an additional 3.19% tax. The more they exchange, the more they will lose.
and so…
There have been very few stock exchanges in the past four days. Is it possible that not all investors believe this wolf in sheep's clothing, but simply don't want to pay the 3.19% fees again?
In other words, if Hongkong Land had voluntarily borne the 3.19% of various expenses, wouldn't the shareholders and investors of Milk Company have already switched shares without any hesitation? In fact, this has little to do with this stupid dog?
Thinking about this, Henry Keswick trembled with rage.
Looking at the "Stock Swap Agreement" and "Stock Pledge Agreement" in his hand, this silly dog might not bring much meat, but it has already snatched away two meat bones.
"Replace it for him immediately, we'll cover the cost."
Henry Keswick's teeth were chattering as he continued, "Then gather all of you idiots back for a meeting!!"
We have to come up with a solution, otherwise we'll never be able to get the milk, and the more we try, the more we lose money. We might as well just sell it off.
However, the settlement cannot be entirely based on a 3.19% ratio. Most shareholders and individual investors do not hold shares through institutional investors, so they only need to pay 0.69% of the various taxes and fees on their behalf.
Moreover, if the settlement fee is 3.19%, wouldn't it require HK$7720 million to complete the share swap? We still need to hold a meeting to discuss a feasible solution.
"Okay, boss." The foreigner Karl wasn't annoyed by the scolding; instead, he seemed somewhat gloating.
As the general manager of Jardine Fleming Bank, Carl had been working in the financial field for many years. How could he not see the loopholes in the stock-for-stock swap?
Of course he could see it, and many people could see it too. The question was whether he dared to remind the boss.
The problem originated within the Jardine Matheson Group!
John Keswick, the former head of Jardine Matheson, was already 66 years old and had poor cardiovascular health. He was likely to be called by the Lord at any time and stepped down from his position ten years ago, handing it over to an outsider.
His eldest son, Henry Keswick, succeeded him as the head of Jardine Matheson in Hong Kong, while his second son, Simon Keswick, succeeded him as the head of Jardine Matheson in Australia. This move may well have been intended to test the successors.
Thus, the two heirs were naturally eager to prove themselves as the best candidates to inherit the family business and regarded each other as rivals.
Throughout history, wealthy families have often been rife with feuds!
Offering advice to Henry Keswick is tantamount to offending Simon Keswick. Another major faction, Newwich Manulife, is also eager to try. The situation is still unclear, so who dares to take sides easily?
Small companies are like a small boat, flexible and adaptable;
Large corporations are like giant ships, rigid and inflexible.
The more you do, the more mistakes you make; the less you do, the fewer mistakes you make; doing nothing, you make no mistakes. When there are too many interests involved, you must be more cautious in your actions. This saying applies not only to doing things but also to being a person.
and so!
They do whatever the boss says, acting as dutiful professional managers without needing to offer personal opinions or suggestions.
Upon seeing this, the foreigner from Walmart, Gard, quickly asked, "Mr. Chen, do you intend to sell your 36.96 shares of Hongkong Land?"
"Of course, it's our Jardine Fleming that's selling the Hongkong Land shares!" The foreigner, Carl, immediately became wary.
Although HSBC and the Jardine Matheson Group had no further banking disputes after the collapse of Jardine Matheson in 1950 and cooperated briefly, their rivalry never ceased.
HSBC was busy digesting its acquisitions, having already made its move in 1959 when it acquired another note-issuing bank in Hong Kong, Yuli Bank, in 1960 when it acquired the Bank of East England in Central, and in 1965 when it acquired Hang Seng Bank.
In 1970, the Jardine Matheson Group established Jardine Merchant Bank, and in 1971, the Swire Group established Po Yuen Investment, both of which wanted to take the opportunity to challenge HSBC's position.
The collaboration between Wharf Holdings and Jardine Fleming to acquire the dairy company was based on the shared ambition of Zhou Xinian. Even without this collaboration, the two sides remain rivals.
36.96 Hongkong Land shares, currently priced at HK$120 per share, are worth a whopping HK$4435 million, with commissions totaling HK$110.88. Of course, we must strive for them!
Chen Guanjiang coughed twice and said, "As the saying goes, one shouldn't trouble two masters with one matter. My stocks were bought with the help of Huoduoli, so let them help sell them too!"
"Don't worry, Mr. Chen, Huoduoli will do his best to serve you." The foreigner, Gard, smiled smugly.
Carl, the foreigner, was dumbfounded. The shares were exchanged with Hongkong Land, doubling the original amount, without any collateral, and the exchange was settled on the spot. They even paid for the exchange fees.
however…
The shares are in hand, the fees are settled, and even if we don't hand over the entire business to JFK, shouldn't we at least split it 50/50? This stupid dog just got the bone in its mouth and now it's turning its back on us?