Return to 1958 and build a century-old giant

Chapter 929 Plotting to Acquire Land (1)

Orient Overseas' investment is not very large, and it is not a high-yield economic investment, but an investment in the future.

Not every investment needs a high return;

Money, if you have too much, is just a number. If you don't have enough connections, it's like a three-year-old child holding gold. Therefore, some political investment is inevitable.

Behind every conglomerate there must be a national-level force; otherwise, it would be nothing more than a rootless drifter.
Of course, the Dong family can't be considered a super political family, but they will at least have some influence in the future. This investment itself won't lose money, and it will also bring some goodwill, so it's a worthwhile investment.
However, history has changed so much, and the future may be different as well;
Yang Wendong now needs to deal with many things in the same way as a normal capitalist, rather than relying entirely on his foresight. As his global influence continues to expand, the changes in the future may become increasingly significant.

Time flew by and it was May;
Hong Kong's economic crisis has lasted for a year and a half, but there is still no sign of improvement.

Although the Sino-British negotiations seem to have reached some compromises in the general direction, there are still many disputes over the details. Most importantly, as long as a formal contract has not been signed, things could change at any time.

This is also what many people are worried about. Although it is not enough to make people abandon Hong Kong and flee, they dare not continue to invest in Hong Kong. This puts Hong Kong's economy under tremendous development pressure.
However, there is also good news: Chinese-owned companies such as Hang Lung, Great Eagle, and Sun Hung Kai, which were once in crisis, have been helped by capital injections from the Cheung Hing Group and additional loans from Hang Seng Bank, thus completely recovering. There are even rumors that Orient Overseas Container Line (OOCL), a shipping company, may also be invested in by the Cheung Hing Group.
This gave many Hong Kong people some confidence. At least Yang Wendong, the head of Hong Kong's top conglomerate, is very optimistic about Hong Kong's future. He is even preparing to invest in several large-scale projects in mainland China.

In addition, among British-owned groups, Wheelock Group and Hongkong Land distributed dividends to their shareholders a few days apart.

Upon learning this, Yang Wendong exclaimed in surprise, "Has Niu Bijian gone mad? With such a heavy debt burden at the company, he's actually still distributing dividends to shareholders?"

Although Hongkong Land's early acquisition of Hong Electric resulted in a huge increase in its historical expenditure, Yang Wendong deliberately laid some bait to lure Hongkong Land in the past two years, which has led to its current debt of HK$180 billion.
Even the companies under Changxing Group can barely withstand this level of debt, and it needs to be treated with caution.

Fang Xianming laughed and said, "This is normal. Giving dividends to shareholders is also to stabilize morale. This has been the norm in the Hong Kong stock market in the past."
If dividends suddenly stop, it will cause panic among shareholders and lead to a drop in valuation, which will inevitably cause insufficient collateral on the bank's side.

Some companies even deliberately issue more dividends in an attempt to boost their stock price and thus secure support from banks. For example, the Jialing Group issued dividends early last year, even though their cash flow was already on the verge of collapse at that time.

"This is like drinking poison to quench thirst," Yang Wendong nodded.

Many ordinary people assume that big business owners or government officials must be very smart, but often there are also a lot of fools in this group.

Of course, most of them are probably still of normal intelligence, but they have become too arrogant or too prone to gambling, going all in on anything.

Fang Xianming said: "I estimate that Niu Bijian and others are waiting for the Sino-British negotiations to end. Once they end, Hong Kong's economy will inevitably begin to improve, and their current problems will gradually be alleviated."
Furthermore, I heard that representatives from the Keswick family also came, intending to hold a shareholders' meeting to remove Niu Bijian and the current management team. So, even though they know the cash flow is tight, they're still issuing dividends, probably to appease shareholders.

"Internal strife, that's how dynasties fall," Yang Wendong said, shaking his head.

For thousands of years, history has been repeating itself, and the last Han Chinese dynasty, the Ming, was no exception. Even at the brink of life and death, the dynasty was engaged in fierce internal strife, ultimately leading to its downfall.
Fang Xianming said, "Their infighting has given us an opportunity."

"That's a bit difficult, isn't it? The Keswick family may dislike Niu Bijian, but it's unlikely they'd sell the land to us, is it?" Yang Wendong countered. "What do you plan to do?"

Fang Xianming said, "I plan to contact Simon Keswick first to see if we can have a talk."

Yang Wendong then asked, "How many Jardine Matheson shares do we have left?"

"Currently, we hold 20.2%, and that's from acquisitions from a few shareholders. There aren't many shares left in circulation, so if I acquire more, it's highly likely we'll be discovered," Fang Xianming continued. "That's why I want to get in touch with the Keswick family, because no matter what we do next, we might be exposed."

Once the Keswick family holds a shareholders' meeting, they will find that many shareholders have already sold their shares, and they may even be suspicious now.

“Okay, then you go and make contact first.” Yang Wendong agreed: “Under Yizhi Mutual Control, it is already quite remarkable that we were able to acquire 20% of the shares. If we acquire any more shares in the future, we will have to be open about it. There is really no need to keep it a secret any longer.”
Moreover, there are indeed rumors circulating everywhere in the market about whether I will acquire Hongkong Land; it's impossible to keep it a secret."

Yang Wendong would certainly be happy to make a quiet and low-key acquisition, just as he did when he acquired Wharf Holdings in his early years.

But now that he has become a top conglomerate in Hong Kong, and Jardine Matheson is in debt crisis, any normal person would imagine this.

It's worth noting that historically, there have been instances in the Hong Kong market where Chinese conglomerates like Li Ka-shing and Lee Shau-kee attempted to jointly acquire Jardine Matheson, even when they lacked the financial strength to do so. Now that they do have that strength, it's quite normal for Hong Kong media and many shareholders to have such rumors.

“The taller the tree, the more the wind will blow against it. With your current status, you can only really look at Real Estate.” Fang Xianming laughed. “I’ll go and contact Simon Keswick now to see what their family’s attitude is.”

"Okay." Yang Wendong nodded;
Historically, although Simon Keswick had no intention of selling the land after acquiring control of the estate in 84, he was prepared to sell it in 86.
If it weren't for the global stock market crash of 87, Li Ka-shing, Pao Yu-kong, and others might have actually joined forces to acquire Hongkong Land.

This is also one of the biggest regrets in Hong Kong's business history, which means that even in the 21st century, British-owned Jardine Matheson still controls many top buildings in Central, Hong Kong, and benefits from the development of Hong Kong and the mainland over the years by occupying these spaces.

It seems that Simon Keswick may be planning to leave Hong Kong at this moment. If that's the case, then the two of them joining forces to help the Keswick family regain control of Jardine Matheson, and then paying a suitable price to acquire Hongkong Land, would be a win-win situation for both of them.
Of course, the other party may disagree, but there's no harm in trying. If all else fails, it can be a good preparation for my acquisition of Jardine Matheson in 86.
A few days later, Fang Xianming came to Yang Wendong again and said, "Mr. Yang, I have already contacted Simon Keswick. He neither rejected us nor agreed to our request. Instead, he wants to meet with you before he will discuss the specifics."

"Okay, let's make the arrangements," Yang Wendong nodded in agreement.
The next day, Yang Wendong met Simon Keswick in his office at the Kang Le Building. Yang Wendong shook hands with a smile and said, "Mr. Keswick, because of the need for confidentiality, it would be better to arrange this meeting in my office."

Generally speaking, Hong Kong's wealthy groups prefer to conduct business in hotels, with the top tycoons often meeting in the hotel's presidential suite.

While the Four Seasons Hotel was indeed his, it still had many guests and outsiders, so in terms of privacy, it couldn't compare to the Connaught Building. "It's alright, I've wanted to come to the Connaught Building for a long time," Simon Keswick said. "My uncle once told me that he was very regretful that he had lost the land for the Connaught Building."

"Henry Keswick? I haven't seen him in a long time either. I heard he's doing quite well in British politics." Yang Wendong also thought of this old rival.

Henry Keswick was the head of the Jardine Matheson Group in the late 60s and early 70s;
At that time, Yang Wendong was rising to prominence, and the two sides competed in many fields. Later, he entered politics, and with no other elites in the Keswick family, Jardine Matheson fell into Niu Bijian's hands.

It is said that Henry Keswick also tried to run for the position of Governor of Hong Kong from the British side, but he was unsuccessful. It is estimated that the British side also took into account the Jardine Matheson Group.

Simon Keswick said, "Yes, he also said that Mr. Yang is the most capable businessman he has ever met, and now, your achievements have proven his foresight."

"Haha, thank you for the compliment." Yang Wendong smiled and said, "Let's get down to business, shall we?"

“Okay,” Simon Keswick nodded.

Yang Wendong said, “Mr. Keswick, I know that your purpose in coming back this time is to regain control of the Jardine Matheson Group. Niu Bijian and Bo Fuda have controlled Jardine Matheson for too long and seem to have forgotten that the Keswick family is the true owner of Jardine Matheson. I am also happy to help the Keswick family take back everything that should belong to you.”

Simon Keswick calmly took a sip of tea and asked, "And what's the price? Mr. Yang, you want to acquire the land, right?"

Yang Wendong admitted, "Yes, what does Mr. Keswick think?"

His intentions toward Jardine Matheson, to use a less-than-flattering term, were as clear as day, so there was no need to hide them.

"You were the one who seized Wharf Holdings back then, crippling Jardine Matheson. Now you want to take over Hongkong Land?" Simon Keswick asked. "If Jardine Matheson loses Hongkong Land, it probably won't be the same Jardine Matheson it once was, will it?"

“I did take Wharf Holdings back then, but Jardine Matheson also received corresponding economic compensation, right?” Yang Wendong shook his head and said, “It’s the same with Hongkong Land today. I didn’t take it for free, so naturally I will pay you a price that satisfies you.”
With such a large sum of money, Jardine Matheson could easily rebuild a new, large conglomerate outside of Hong Kong, even if it were based in the UK.

“Jardine Matheson’s roots are in Hong Kong,” Simon Keswick said after a moment of silence.

Yang Wendong laughed and said, "Jardine Matheson's roots used to be in Shanghai, now they're in Hong Kong, but who knows what will happen in the future."

Simon Keswick's expression changed, and he looked at Yang Wendong and asked, "If what happened to Jardine Matheson happened in Hong Kong today, Mr. Yang, aren't you afraid?"

Shanghai was once the largest city in Asia, a bustling metropolis. Jardine Matheson's roots were there, as were HSBC's. But later, they all disappeared.

Yang Wendong smiled faintly and said, "Everyone has different ideas. I naturally believe that day will never come. The question is, does Mr. Keswick believe that?"

Those who believe will believe, and those who don't will be no use no matter how much you talk to them.

The reason why so many people emigrated and transferred assets last year and this year, and even almost caused a Hong Kong dollar exchange rate crisis, is because there is a group of people who do not believe in the future of Hong Kong.

Even the major shipping magnates, except for Pao Yu-kang, insisted on investing their assets in movable "movable property" precisely because they were afraid of this.
Simon Keswick hesitated for a moment before asking, "If I take back Jardine Matheson, what price are you willing to pay to acquire Jardine Matheson?"

Yang Wendong said, "Naturally, it will be based on market value. As long as there are no problems with the accounts, I can offer a price increase of 20%. In addition, if you don't want Hong Kong dollars, I can also give you US dollars or British pounds, either is fine."

With Jardine Matheson under cross-control and the Hong Kong government's protection, the chances of success in a real takeover battle are not high, and the losses could be severe.

As for the last resort, that would be to force Jardine Matheson into bankruptcy. However, this approach is not worthwhile. If this were to be done, the banks might face bad debts, and Jardine Matheson might not be able to acquire all of Jardine Matheson's assets.

If a direct transaction can proceed smoothly, he would be happy to receive a certain increase in the amount of funds involved, as normal acquisitions would also result in price increases.

“I don’t want cash; I want some assets, like Mr. Yang’s iron ore mine in Australia,” Simon Keswick suddenly said.

"You want to get into the mining industry?" Yang Wendong asked in surprise;

Simon Keswick said, "It's not that I want to, but Jardine Matheson has been involved in the mining industry for decades. We also have diamond mines and coal mines in South Africa and Australia, but they are not as large as Christmas Creek."

“I see. However, I have already signed a contract with Rio Tinto for Christmas Creek, so there will be no transaction.” Yang Wendong shook his head and said, “Although Jardine Matheson is very valuable, it still can’t compare to such a huge iron ore mine.”

While Hongkong Land's properties in Central are indeed highly valuable, their return on investment may not be as high as its current investments in first-tier cities in mainland China, such as the Yanjing International Trade Center.

It can only be said that Yang Wendong has a certain obsession with many properties in Central, which is something every Hong Konger has.

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(End of this chapter)