Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 197 Executive Director (Seeking monthly votes, recommendations, and additional subscriptions!)
Two flowers bloom, one branch each.

While Simbir was comforting Swire and Jardine Matheson, Li Ka-shing and his wife Chong Yuet-ming were seeking solutions.

Another identical anonymous letter was delivered in the same clandestine manner to the desk of Hutchison Whampoa Chairman John W. Wellsley.

Wei Li picked up the unsigned letter, quickly scanned its contents, and his face instantly turned ashen, his fingers turning slightly white from the pressure.

The words “HSBC’s Sir Michael Sandberg secretly contacted buyers to sell shares” pierced his nerves like needles.

He slammed the letter onto the desk with a loud thud.

The loud noise startled the secretary in the outer room, who cautiously peeked in and saw Wei Li pacing back and forth in the office like an enraged lion.

"Who does he think he is?!" Wei Li growled in a low voice, his voice filled with extreme anger.

This feeling of being kept in the dark, as if he could be replaced at any time, deeply hurt his dignity as a professional manager and touched his core interests.

It's true that HSBC supported his position as chairman of the board, but that doesn't mean he's willing to be a puppet who can be sacrificed at any time!
If HSBC truly considered him one of their own, how could they have planned to sell such a massive number of shares, enough to change the company's control, without even giving him a heads-up?

This is nothing short of betrayal!
After the anger subsided, a strong sense of crisis quickly welled up in my heart.

If HSBC were to actually sell its shares, especially to an ambitious and hands-on buyer like Lee Ka-shing of Cheung Kong Holdings, would he, as chairman elected by the former major shareholder, still be able to hold his position?

The new major shareholder will inevitably purge the management team and install his own people.

He, Wei Li, is likely to be the first to be targeted.

At that time, he will not only lose his prestigious position as Chairman Huang, but also the huge salary, social status, and future influence in British business circles that are tied to him.

This must not be allowed to happen!

He forced himself to calm down, sat back down in his chair, and glanced at the anonymous letter again.

The authenticity of the letter cannot be verified at the moment, but there's no smoke without fire.

Wellesley was almost certain that the contents of the letter were not unfounded.

HSBC may indeed be secretly planning to sell its shares, and it is very likely that it already has a potential buyer.

So, what should we do now?
Should we go directly to confront Shen Bi?

No, that would be too passive.

Shen Bi could have easily denied it outright and then used some high-sounding words to evade the issue.

Having no evidence of his own would only alert HSBC and make them more wary of him.

They must find a way to save themselves and increase their leverage so that HSBC or any potential buyer cannot easily take them down.

His gaze fell again on another document on the table—a copy of the announcement made a few days earlier by Sugar Heart Capital that it held a 10.8% stake in Hutchison Whampoa.

A thought suddenly flashed through Wei Li's mind.

If HSBC can contact buyers privately, why can't it contact another important shareholder privately?

Sugar Heart Capital holds 10.8% of the shares, making it a significant shareholder in name and in fact.

According to the company's articles of association, he/she is fully qualified to join the board of directors.

If Sugarheart Capital can be brought onto the board of directors and formed an alliance, then a force capable of checking and balancing HSBC can be created within the board.

Any major decision, especially those involving changes in shareholding or adjustments to the company's strategy, must be approved by the board of directors.

At that time, it will not be so easy for HSBC to complete the share transfer quietly.

And he, Wei Li, can also use this alliance to consolidate his position and even negotiate with potential new buyers, such as keeping his position.

Thinking of this, Wei Li immediately pressed the internal call button and instructed his secretary: "Contact Mr. Chen Bingwen of Sugar Heart Capital for me immediately."

On my personal behalf, I would like to invite him to meet me in my office tomorrow morning.

Be sincere. Say you want to discuss with him how Sugar Capital, as a major shareholder, can better participate in corporate governance.

“Yes, Mr. Wellesley,” the secretary replied immediately.

Wei Li put down the phone and took a deep breath.

This is a risky move.

He didn't know much about Chen Bingwen, only that this young man had risen to prominence at an astonishing speed, was bold in his approach, and had a clear purpose.

But right now, he has no better option.

Rather than waiting to be killed, it's better to take the initiative, introduce a variable, and muddy the waters.

Muddy waters are the best places to fish.

The next morning, Chen Bingwen appeared on time at the Hutchison Whampoa Chairman's Office.

He was somewhat surprised by Wei Li's sudden invitation, but after a moment's thought, he roughly guessed the reason.

The anonymous letter seems to have had its effect.

"Mr. Chen, welcome, welcome! Thank you for taking the time out of your busy schedule to come." Wei Li stood up warmly to greet him, his face full of smiles.

"Chairman Wei Li, you're too kind. How could I refuse your personal invitation?" Chen Bingwen smiled and shook hands with him, and the two sat down in the reception area.

After exchanging a few pleasantries, Wei Li got to the point about inviting Chen Bingwen to meet: "Mr. Chen, Sugar Heart Capital holds 10.8% of Hutchison Whampoa's shares and has become an important shareholder of the company."

According to the company's articles of association and corporate governance principles, the board of directors should have a representative voice for Sugarheart Capital.

He paused briefly, observed Chen Bingwen's reaction, and continued, "I invited you here today on behalf of the Hutchison Whampoa Board of Directors to sincerely invite Sugar Heart Capital to appoint a representative to join the Board of Directors as an executive director."

What is Mr. Chen's opinion?

Chen Bingwen's heart stirred.

Wei Li's actions were faster and more direct than he had anticipated.

This was clearly a desperate move driven by the anonymous letter, an attempt to win him over to counter HSBC's potential "betrayal." For Chen Bingwen, deeper involvement in Hutchison Whampoa's affairs was precisely one of his desired objectives.

At this moment, Wei Li proactively offered his opportunity.

This saved him a lot of trouble.

He showed just the right amount of surprise and said, "Chairman Wei Li, thank you for the board of directors and for your trust."

Sugar Capital has always been optimistic about Hutchison Whampoa's long-term development potential, and we are very willing to actively participate in the company's governance and contribute to Hutchison Whampoa's future development.

"Excellent!" Wei Li's smile widened. "Then, regarding the board members..."

“I will personally assume the position of executive director,” Chen Bingwen said without hesitation.

Wei Li's smile faltered slightly, and a hint of surprise flashed in his eyes, but he quickly recovered: "Chen Sheng wants to take the position personally?"

This is truly an honor for our board of directors!
With Mr. Chen's abilities and vision, he will undoubtedly bring entirely new development ideas to Hutchison Whampoa!

He originally thought Chen Bingwen would send his subordinates to take the position, but he didn't expect that this young leader would personally take charge.

This demonstrates Sugar Capital's extreme emphasis on this collaboration, and also signifies that this young man is ambitious and far from content to be merely a quiet financial investor.

Wei Li nodded, then changed the subject, his tone becoming more candid, "Mr. Chen, since we're about to become colleagues on the board, I think we can have a frank discussion."

"Chairman Wei Li, please speak."

"As chairman of the board, my responsibility is to ensure the company's stable operation and protect the interests of all shareholders."

Wei Li lowered his voice and said solemnly, "This means that any changes that may have a significant impact on the company's control and future development, especially major changes at the equity level, must be discussed and approved by the board of directors to ensure that the process is open, fair, and just, and in the interests of all shareholders, rather than a private arrangement by certain shareholders."

Chen Bingwen understood the implied meaning from the music and immediately realized Wei Li's purpose.

He was secretly overjoyed, but he solemnly stated, "Chairman Wei Li, on this point, we are completely in agreement."

As a long-term investor, Sugarheart Capital firmly supports the board of directors in exercising its powers in accordance with the law, and in safeguarding the independence of corporate governance and the legitimate rights and interests of all shareholders.

We oppose any private transactions that could harm the overall interests of the company and its shareholders.

Hearing Chen Bingwen's clear and unequivocal statement, Wei Li felt a weight lifted from his heart, and his smile became much more genuine: "With Mr. Chen's words, I am relieved."

As for the procedures related to Mr. Chen's entry into the board of directors, I will have the secretariat arrange them as soon as possible.

I look forward to our future cooperation.

"It was a pleasure working with you, Chairman Wei Li." After seeing Chen Bingwen off, Wei Li's smile slowly faded.

The first move has already been made.

The next step is to use the board of directors as a platform to create enough obstacles for HSBC and potential buyers.

He picked up the internal phone and connected with the company secretary: "Notify all directors that an emergency board meeting will be held tomorrow morning."

The agenda included a discussion and vote on the proposal to appoint Mr. Chen Bingwen, a representative of Sugar Heart Capital, as an executive director. "He needs to be quick; he needs to make it a fait accompli before HSBC can react."

The Chairman's Office of HSBC.

Sir Michael Sandberg soon received news that Hutchison Whampoa's board of directors was about to hold an emergency meeting to consider Sugar Heart Capital's entry into the board.

His face instantly darkened.

“Williams.” He practically spat out the name through clenched teeth.

He immediately understood the key to it.

That anonymous letter must have reached Wei Li's hands as well.

Welly's reaction was more intense and swift than he had anticipated.

By courting Sugarheart Capital and forcibly pushing for its entry into the board of directors, they are clearly planting a spies within the board to create obstacles for future share transfers!

"Get me on the phone with Chairman Wei Li right now!" Shen Bi ordered his secretary, his voice filled with barely suppressed anger.

When the call connected, Shen Bi tried to make his voice sound calm: "Chairman Wei Li, I heard that the board of directors is going to review the proposal for Sugar Heart Capital to join the board tomorrow?"
Why wasn't this major matter discussed with HSBC, the major shareholder, beforehand?

On the other end of the phone, W.J. Smith's voice was as usual, even with a hint of businesslike surprise: "Sir Sir Michael Sandberg, adding important shareholder representatives to the board of directors is a normal corporate governance procedure and is also to better listen to the opinions of shareholders."

Sugar Heart Capital holds more than 10% of the shares, which fully meets the eligibility requirements.

I think this is just routine procedure, and it seems unnecessary to report it separately to HSBC.
After all, although HSBC is the major shareholder, Hutchison Whampoa's board of directors operates independently.

These words were perfectly watertight, yet they left Shen Bi speechless.

He suppressed his anger: "Chairman Wei Li, you should be aware of the current situation."

The background and intentions of Sugar Heart Capital are unclear. Is it too hasty to let it join the board of directors so hastily?

I think it's necessary to postpone it.

“Sir Sir Michael Sandberg,” Wylie interrupted him, his voice still calm but carrying an undeniable firmness, “the board has already issued a notice, and all directors are aware of it. Any last-minute cancellation or postponement requires a reasonable explanation; otherwise, it risks causing unnecessary speculation and damaging the board’s reputation.”

I believe that proceeding with the review as originally planned is in the best interests of the company and all shareholders.

Shen Bi's knuckles were turning white as he gripped the microphone.

He knew that Wei Li was determined to go against him.

Continuing to apply pressure will only lead to a complete breakdown in relations. Currently, HSBC still needs Chairman Wiley to maintain a semblance of stability at Hutchison Whampoa.

“Alright,” Sir Michael Sandberg finally conceded, but his voice had turned icy. “I hope your decision is right, Chairman Wayne.”

After hanging up the phone, Shen Bi felt a surge of irritation.

Welly's move disrupted his rhythm.

Once Sugar Heart Capital joins the board of directors, it will inevitably pay close attention to and even interfere with any equity change proposals, making it much more difficult to quietly transfer shares to Li Jiacheng.

He must reassess the situation and may even need to adjust the deal with Li Jiacheng.
(End of this chapter)