In Hong Kong, we build a global business empire

Chapter 114 Make things big!
After obtaining the solution from Halil Centurion, the five Qingzhou Yingni shareholders hurriedly left and went to the home of one of the shareholders to continue discussions.

"I think a joint report is not enough. It is better to make a big fuss and let the whole of Hong Kong know about it. The Hong Kong Political and Legal Affairs Office will naturally pay attention to it!"

"Henry, this is a good suggestion. I happen to know a reporter from the Oriental Daily. I will contact him later."

"I also know a reporter from the Hong Kong Securities Journal. Count me in."

"The editor-in-chief of the South China Morning Post is my friend, and I am responsible for contacting them."

"We are British, the CSRC will definitely be biased towards us, we are right in this matter!"

"Okay, let's write a joint complaint letter and have everyone sign it. I'll be responsible for handing it over to the Hong Kong Securities Regulatory Commission!"

……

On the same day, a jointly submitted letter was placed on the desk of Mr. Mark, Commissioner of the Hong Kong Securities and Futures Commission and Chairman of the Takeovers and Mergers Committee.

After reading the letter, although he did not take it very seriously, he still sent people to investigate the cause and effect. After all, it was the appeal of British citizens.

This matter is actually not difficult to investigate. There is public information. Lin Haoran once told the media that they hold more than 50% of the shares.

Therefore, the Hong Kong Securities Regulatory Office held a meeting regarding the Lin family's holding of more than 50% of the shares of Qingzhou Yingni Company.

After the meeting, the Hong Kong Securities Regulatory Office unanimously agreed that since the Lin family controlled 50% of the shares of Qingzhou Yingni Company, they had triggered the obligation of a full acquisition and should make a full acquisition of Qingzhou Yingni Company.

In addition, the Lin family did not consult the committee before acquiring Qingzhou Yingni, and arbitrarily increased the shares it controlled to more than 50%, which violated the spirit of "fairness to all shareholders" in the Takeover and Merger Code. The family should have made an acquisition offer to all shareholders of Qingzhou Yingni based on the highest share price of Qingzhou Yingni in the past six months.

It is obvious that this resolution favors British shareholders.

The next day, Burton, the general manager of Qingzhou Yingni Company, received a letter from the Hong Kong Securities Regulatory Office.

At the same time, some newspapers in Hong Kong also secretly received information from these shareholders of Qingzhou Yingni.

As a result, media outlets including Oriental Daily and Hong Kong Securities News gathered outside the Hong Kong Securities Regulatory Office to wait for interviews.

When faced with the interview from the reporter, Mais didn't understand what was going on at first. But after knowing their purpose, he accepted the interview.

"We have already completed our investigation into the matter of Qingzhou Yingni Company and have held an internal meeting. Since you want to interview me about this matter, I will now speak to you publicly on behalf of the Securities Regulatory Office.

According to the investigation, Mr. Lin Haoran and his family currently hold more than 50% of the shares. After our meeting and discussion, we have sent a letter to Qingzhou Yingni Company, and at the same time suggested that Mr. Lin Haoran and his family should propose a purchase to the major shareholders of Qingzhou Yingni Company according to the highest share price of Qingzhou Yingni Company in the past six months!" Mai Si talked in front of the reporter.

Suddenly, the reporters became excited. Such news would definitely attract the attention and heated discussions of the citizens.

So, after interviewing Max, the reporters went to Qingzhou Yingni Company to interview the company's chairman, Mr. Lin Haoran.

However, to their disappointment, Lin Haoran was not in the company at all. In desperation, they could only interview Burton, the general manager of Qingzhou Yingni.

At this time, Burton had already read the letter from the Hong Kong Securities Regulatory Office and had told his boss Lin Haoran about the matter.

When facing the interviews from reporters, Burton just said, "We have just received the letter from the Hong Kong Securities Regulatory Office and have not had time to deal with it yet. We will make an announcement to the public later."

This kind of matter is naturally decided by the chairman Lin Haoran, and he, as the general manager, is not qualified to respond privately.

Causeway Bay, office of the chairman of Wanan Group.

After receiving Burton's call, Lin Haoran did not rush to Qingzhou Yingni Company, but asked Burton to forward a copy of the letter to him via fax machine.

"Daddy, how do we deal with this situation?" Lin Haoran asked as he handed the document to Lin Wanan.

He also didn't expect that the British board members of Qingzhou Yingni would do such a thing.

There is nothing wrong with privatizing Qingzhou Yingni Company, as he already has this plan.

The problem is that the Hong Kong Securities Regulatory Office asked him to acquire all shareholders, large and small, at the highest transaction price of Qingzhou Yingni Company in the past six months, and he would definitely not accept it.

When he became the chairman of Qingzhou Cement Company, the share price of Qingzhou Cement Company once rose to HK$6 per share, but now the share price has fallen to more than HK$3.

He definitely wouldn't be willing to accept such a huge price difference.

Although they now actually control 68.4% of Qingzhou Yingni's shares, only 31.6% of the shares are in the hands of others. However, the difference between the purchase price of more than three yuan and six yuan is not small.

If he later acquires the remaining shares of Ching Chau Cement at an average price of HK$4 per share, he can completely privatize Ching Chau Cement 100% by paying an additional HK$ million.

But if he acquires it at HK$6 per share, he will have to pay nearly HK$ million.

The cost here is more than 30 million Hong Kong dollars, and Lin Haoran has no intention of being a sucker.

Not to mention that he has no money now, even if he had money, Lin Haoran had no intention of doing this.

If you can buy it at a low price, why pay a high price?
"Hao'er, let me think about it first. This kind of thing has never happened in Wan'an Group, and Qingzhou Yingni is also the first British-funded enterprise acquired by Chinese capital. It can be said to be unprecedented. In addition to you, there are several other British shareholders. The people in the Hong Kong Securities Regulatory Office are all British. They must be biased towards British capital, who are also from the same hometown." Lin Wan'an looked at the words on the letter and began to think.

"Dad, I want to ask, do we have to follow the advice of the Takeovers and Mergers Committee?" Lin Haoran asked instead.

He has no money, and we can't force him to buy it. Where will the money come from?
“It’s not necessarily a compliance, because although the current acquisition guidelines state that 50% of the shares will trigger the obligation of a full acquisition, it does not specify how much the acquisition must be made. The Hong Kong Securities Regulatory Office requires you to acquire at the highest price in the previous six months, which is just biased towards foreigners.

There is no other way. After all, this place is managed by foreigners, and we cannot offend the Hong Kong Securities Regulatory Office too much, otherwise they will always find ways to deal with you, such as blocking you in some approval processes, prohibiting you from participating in land auctions, etc., which will cause a lot of trouble for your future business in Hong Kong. "Lin Wanan said helplessly.

In another world, during Bao Yugang's battle to increase his stake in Wharf Holdings, Bao Yugang was suppressed by the Hong Kong Securities Regulatory Office. When the battle for Wharf Holdings was coming to an end and Bao Yugang had successfully seized control of Wharf Holdings from Hutchison Whampoa, the Hong Kong Securities Regulatory Office wanted to force Bao Yugang to continue to propose an acquisition to other Wharf Holdings shareholders at a price of HK$105 per share.

However, Bao Yugang directly rejected the proposal of the Hong Kong Securities Regulatory Office.

Because Bao Yugang has the support of the British bank, Bank of Hong Kong, he is not afraid at all even when facing attacks from the Hong Kong Securities Regulatory Office.

Sure enough, with the support of Huifeng Bank and the consortium behind Huifeng Group, the matter came to nothing.

But Lin Haoran doesn't have Bao Yugang's background, so he definitely can't find anyone to support him now.
Of course, there is a big difference between Hutchison Whampoa and Ching Chau Cement Company. The former is a competition between two major conglomerates, while the latter is just a small shrimp, and the Hong Kong Securities Regulatory Office will not pay too much attention to it.

"So, what it means is that when handling this matter, we must give enough face to the Hong Kong Securities Regulatory Office, right?" Lin Haoran concluded.

"Yes!" Lin Wanan nodded.

In the short term, Lin Haoran has no plans to privatize Qingzhou Yingni Company. The biggest problem is that he has no money now.

If you want to have money, you have to wait for a few months.

Although the oil price is changing every day and is constantly soaring, it will take until around June next year for it to more than double.

Therefore, what he needs to do now is to study corporate management in Wan'an Group while managing Qingzhou Yingni Company.

Lack of funds is a hindrance to getting things done.

In fact, even Lin Wanan did not expect that the Hong Kong Securities Regulatory Office would pay attention to the Qingzhou Yingni matter. Otherwise, he would have stopped Lin Haoran from continuing to purchase stocks.

"Maybe I should go to the Hong Kong Securities Regulatory Office." Lin Haoran said.

Obviously, father Lin Wanan doesn't have any good solution for the time being. In this case, we can only take it one step at a time.

The government departments must not be offended. This matter should have been reported by someone. This kind of thing is easy to guess. The stock price of Qingzhou Yingni Company has fallen so sharply during this period, which has also caused damage to the interests of those shareholders.

If nothing unexpected happens, it must be the shareholders who are behind this. Otherwise, the Governor's Office would not have paid much attention to a company like Ching Chau Cement that is not considered top-tier in scale.

Those British shareholders are difficult to get along with at first glance. Although Lin Haoran has not had any contact with them during this period, it does not mean that they will not cause trouble behind the scenes.

Sure enough, it was not enough to drive away Halil Centurion, the other shareholders could not be retained either!

In this case, go to the China Securities Regulatory Commission to test the waters. As long as you meet their minimum requirements with reason and evidence, you will naturally not offend the government.

"This is the only way. They have already sent the letter and we can't just turn a blind eye to it." Lin Wanan said with a wry smile.

At this moment, the father and son were unaware that the matter had already been reported to the media. It was estimated that in another day, the whole of Hong Kong would know about it.

Therefore, Lin Haoran decided not to go to Qingzhou Yingni Company first, but to go to the Hong Kong Securities Regulatory Office to have a chat with the leaders of the China Securities Regulatory Commission.

At around five o'clock in the afternoon, Lin Haoran appeared in the office building of the Hong Kong Securities Regulatory Office.

(End of this chapter)