Return to 1958 and build a century-old giant

Chapter 806 Acquisition Successful
Laurence naturally knew that the Chinese man before him was wealthier than himself, but under the pressure of his family's crisis, he had no choice but to say, "Mr. Yang, are you really prepared to completely take everything from my Kadoorie family?"

"It's not about everything. I will guarantee you the funds you deserve. This value is definitely above the market value before our acquisition. From a financial perspective, you won't lose out either," Yang Wendong said with a faint smile.

Roland said, "I don't care how much money I can make; the family business is indispensable."

"If you can't reduce your shareholding, why didn't you control it properly after the listing? You kept expanding your share capital and raising funds to fleece shareholders. Didn't you ever think about what would happen today?" Yang Wendong asked rhetorically.

You can't teach someone by someone else, but you can teach someone by something once;
After Wharf Holdings was acquired, some British media commentators advised British companies in Hong Kong to manage their risks, but almost no one listened. They all thought they wouldn't be the unlucky ones, or that the Hong Kong government wouldn't allow Chinese to excessively encroach on British interests.
The result was that the mainland befriended the West and its influence expanded, while the British Empire suffered economic decline and simply did not have enough influence to control Hong Kong anymore.

In order to maintain stability, the Hong Kong British government could only implement the principle of equality between Chinese and British, and at most protect British capital with seemingly "fair" policies on minor matters. However, such support was often insufficient.
Roland frowned and said, "Is there really no room for negotiation?"

Yang Wendong replied, "Yes, but for you, this is also an opportunity to unload your assets and leave Hong Kong. We all know the outcome of MacLehose's trip north in March, and I also know that many British companies are preparing to transfer their funds out. Isn't this a great opportunity for your Kadoorie family?"

In March, Governor MacLehose visited Yenching to discuss matters concerning Hong Kong.
The result was the shattering of the British Empire's dream, which affected British capital in Hong Kong. Out of fear, many people began to transfer their assets, including some Chinese families.
However, most ordinary people in Hong Kong are unaware of this matter, so the Hong Kong stock market and land market remain unaffected and continue to rise. This makes many big capitalists reluctant to leave, after all, capital is willing to take risks even on the guillotine for enough profit, let alone something like this.

“My Kadoorie family also has a positive outlook on Hong Kong,” said Lawrence.

"That's none of my business. You can continue to use the funds I gave you to invest in Hong Kong," Yang Wendong said indifferently.
Historically, the Kadoorie family did seem to have resided in Hong Kong for a long time, but that had nothing to do with him.

After a moment of silence, Roland said, "Okay, I can sell you 15% of the shares in the Grand Hotel Group, but the transaction needs to be completed immediately."

"That won't work. We need to wait for the funding. Half a month should be enough, but that's already quite fast," Yang Wendong said, shaking his head.

He naturally knew that Rowland wanted to use his own money to acquire shares of CLP Power in order to counter Bao Yugang;
Although giving money is convenient for me now, it will inevitably cause trouble for Bao Yugang.
In business cooperation, interests should be the priority, but you can't betray your partners. If you do that, you'll likely become the target of criticism in Hong Kong's business community.

This wasn't really a strategic acquisition; they just had their eye on the Peninsula Hotel, a property under the Grand Hotels & Resorts group, which was a property of decent value.

With a livid face, Roland asked, "Mr. Yang, you know my purpose. No matter what, I must protect China Power. Otherwise, I would not have given up the Grand Hotel Group so easily."

"Whatever, I'm not in a hurry," Yang Wendong said indifferently.
"Alright, then I'll take my leave." Roland knew that these two acquisitions targeting his family must have been negotiated between Yang Wendong and Bao Yugang.
The next day, Bao Yugang came to the Kang Le Building: "Haha, thank you, Mr. Yang, for not reaching an agreement with Roland. I will definitely repay you for any losses you incurred because of this matter after I successfully acquire CLP Power."

"There's no point in talking about money. Let's wait for the opportunity to cooperate in the future and make money together," Yang Wendong said, waving his hand.

Bao Yugang nodded and said, "That's right. Neither I nor CLP Power have any teams that develop real estate. In the future, we can cooperate to develop many of CLP Power's land plots and make money together."

"Okay." Yang Wendong smiled.
Direct compensation with money is too low-class; who cares about tens of millions?
However, jointly developing a large amount of land in Kowloon Peninsula and New Territories would be a considerable undertaking. Based on future land prices, the net profit would be at least several hundred million, and that's the real money.

Bao Yugang added, "During this period, I have been continuously acquiring shares at high prices, and I already have 35% of the stock. Many small shareholders have also started to contact me. I estimate that in another half month, I will be able to acquire 45% or even more."

"Your methods are something we've never seen before in Hong Kong," Yang Wendong remarked.

Even his previous acquisitions of Wharf Holdings and Hutchison Whampoa were all planned in advance to ensure the acquisitions would maximize profits;
But Pao Yu-kong was completely contrary to common sense. He directly acquired stocks on the market at high prices. The total market value of CLP Power had already been raised to a huge HK$40 billion by him, but he still continued to acquire them without blinking an eye.

In 1978, HK$40 billion was an astronomical figure; even the neighboring mainland China didn't have that much foreign exchange.
Bao Yugang laughed and said, "Haha, please forgive my foolish behavior, Mr. Yang. For me, money is secondary. I am not optimistic about the future shipping market. Except for a few stable businesses, I am prepared to sell all the other ships. These funds must go somewhere."

Furthermore, HSBC is fully supporting me this time, providing me with a HK$10 billion credit line, and Hang Seng Bank also has a HK$6 million limit. No matter the cost, I will acquire CLP Power.

"Yes, I understand." Yang Wendong nodded;
The shipping industry, like the real estate market, has its peaks and troughs. However, the difference is that during the trough, real estate can still collect rent, which is only a small amount, but for shipping, there are a lot of expenses.

Port berthing fees, wharf usage fees, anchorage fees, ship maintenance costs, insurance costs, etc. More importantly, ships are mechanical products, just like cars, and they will break down if they are parked for a long time.

Therefore, due to the ship disasters of the 80s, many shipping magnates simply couldn't afford to maintain their ships and had to send many of their relatively new vessels, only a few years old, to be scrapped.
In this situation, Pao Yu-kong would inevitably have to abandon ship and land as soon as possible, even if the cost of landing was high. However, the business logic of acquiring a large amount of Hong Kong property and a stable power generation business was absolutely worthwhile, which is completely different from other acquisitions.

Bao Yugang laughed and said, "That's good. Mr. Yang, just wait for my good news. Once I succeed, your hotel group will surely succeed as well. Then we can discuss future cooperation."

Seeing that success was imminent, he was still very happy.

"Okay, no problem." Yang Wendong nodded, then casually asked, "By the way, how's the IVF thing we talked about last time?"

Bao Yugang said, "I've sent someone to England to inquire, and they said it's worth a try. I should be fine on my end, but my wife needs a thorough check-up. She's already in England, and I'll be going there once I've completed the acquisition of CLP Power."
.
"Haha, this matter is even more important than the acquisition of CLP Power, you should take it seriously," Yang Wendong laughed.

If the Bao family continues to exist in the future, then Bao Yugang's life will not have been in vain. Putting aside everything else, his various charitable investments in mainland China in the 80s are worthy of respect. Regardless of whether it was for other purposes, doing good deeds is judged by actions, not intentions. "Yes, I know. If this succeeds, I will definitely thank Mr. Yang profusely," Bao Yugang said happily.

"You're welcome. I'm just revealing some information," Yang Wendong said casually.

At the end of June, the Hang Seng Index in Hong Kong continued to rise, with CLP Power's shares seeing the most significant increase. Pao Yu-kang directly set up a table at the stock exchange, offering to buy shares at high prices from anyone who had them, using cash promissory notes from HSBC and Hang Seng Bank.

At the same time, it was also rumored that once the shipping magnate had acquired enough shares, he would not make any more acquisitions.

The shareholders also understood that once the acquisition was completed, the stock price would inevitably plummet. So, not only the shareholders, but also many other shareholders held their shares and lined up at the exchange to sell them.

The Kadoorie family also urgently contacted several major banks in Hong Kong, but their attitude had clearly changed. Knowing that Yang Wendong and Bao Yugang were working together, they dared not lend money to the Kadoorie family anymore, and at least they would control the risk and not provide a lot of funds.

Rowland then approached Jardine Matheson and Swire, two companies that were indeed powerful, but clearly did not want to get involved in this mess.
"If you don't help me today, you will inevitably become prey for Chinese capital in the future!"

Laurence roared angrily, but it didn't change anything. Everyone was only concerned with the present. There was still time in the future, and he could find a way to defend himself later. Especially the Swire Group, whose family held more than 50% of the shares and was not listed in Hong Kong. No matter how strong Chinese capital was, they couldn't do anything to them.

Finally, on July 8th, Pao Yu-Kang officially announced the acquisition of 49.9% of the shares, gaining control of CLP Power.

On July 10, Yang Wendong secretly met with Roland again and successfully spent a sum of money to acquire 15% of the other party's shares.
Thus ended the most intense takeover battle of 1978;

Yang Wendong returned home happily, and Su Yiyi and Bai Yushan came forward to take his coat and briefcase.

Su Yiyi asked, "Will the Peninsula Hotel belong to our family from now on?"

"You could say that, but it's a listed company after all, and it's different from the Four Seasons Hotel," Yang Wendong nodded.

Bai Yushan asked, "So, are you planning to privatize it?"

Yang Wendong shook his head and said, "No, for the time being, we will maintain the listing status."

"Why? Wharf Holdings was privatized, wasn't it? You said you were optimistic about Hong Kong's real estate market back then, but Wharf Holdings is just a pure real estate business," Bai Yushan asked, puzzled.

“Privatizing the Peninsula Hotel isn’t difficult. Even if it was expensive before, the price won’t be very high if we wait six months before privatizing it,” Yang Wendong explained with a smile. “But if we do that, it will easily give Hong Kong shareholders the impression that the companies I acquire will eventually be privatized.”
In this way, if I acquire another company in the future, many people will hold onto their shares, waiting for me to privatize it at a high price later. That would be counterproductive and would negatively impact my future acquisition plans.

Su Yiyi smiled and said, "Therefore, there is no need for companies with ordinary assets to be privatized. Only companies with extremely high value, such as Wharf Holdings, will undergo privatization."

Yang Wendong nodded and said, "Yes, that makes sense. But unlike Huang, it plans to invest overseas in the future, so I will keep it listed."

Going public or not going public each has its advantages. If you don't know the future, going public can actually be beneficial, as it can provide access to a large amount of capital. This is evident in the fact that most companies worldwide are publicly listed.

However, for time travelers, if they know the future trend of a certain company, there is no need to give up profits to others, unless the other party can give them special resources that they do not have, then they should consider it separately.

Yang Wendong naturally knew the future of the companies acquired through overseas acquisitions; all those involved in Hong Kong real estate had a bright future.

However, it is not necessary to privatize every company. Holding shares in a few listed companies can also bind the interests of countless other parties. This is why Hutchison Whampoa has not been privatized.

"I see." Bai Yushan understood, and then asked, "So, which other companies do we plan to acquire in the future?"

"Haha, it's hard to say now. It depends on fate. This acquisition of the hotel group was also a matter of chance." Yang Wendong smiled.
It was only because Bao Yugang wanted to abandon ship and land that he attracted CLP Power, and he also took the opportunity to acquire the Peninsula Hotel Group. The Peninsula Hotel's assets were quite good, and in the future, it could be positioned as a hotel chain group with a different positioning from Four Seasons Hotel.

Su Yiyi said, "Let's eat, we can talk later."

"Okay." Yang Wendong nodded;
The next day, Yang Wendong and Bao Yugang met again, this time specifically choosing the Peninsula Hotel;
"Bao Sheng, you were really in high spirits at the press conference," Yang Wendong said with a smile.

Now that the acquisition is successful, a press conference should naturally be held, and journalists should be invited to attend.
Changxing Financial Group acquired the Grand Hotel Group and held a press conference, but it was hosted by Fang Xianming, and Yang Wendong did not attend; he sent his subordinates instead.

CLP Power is a different story. After all, it is one of only two power generation companies in Hong Kong. Pao Yuk-kong's successful acquisition is equivalent to his successful abandonment of shipbuilding and landing. He will not only be a shipping magnate but also a power magnate.
"Haha, not bad." Bao Yugang was indeed as if he had been rejuvenated: "Yang Sheng, according to our previous agreement, once the stock price of China Power stabilizes, I will raise funds again to return 10% of the shares to you;
"This acquisition was successful thanks to you. I, Bao Yugang, owe you a favor."

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(End of this chapter)