Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 199 The Funding Chain (Seeking monthly votes, recommendations, and subscriptions!)

"it is good."

Chen Bingwen nodded.

Then he looked at Vincent Fang: "Director Fang, you and Attorney Gu should carefully study the documents and materials of Hutchison Whampoa that I brought back today. In the name of the directors of Hutchison Whampoa, visit each shareholder holding more than 0.2% of the shares."

We need to understand their demands on Hutchison Whampoa, strive to utilize our seats on the board, become their advocates, and obtain authorization to act in concert.

Even further, they could buy out the shares they hold.

With the detailed information provided by Wei Li, Chen Bingwen's first thought was to acquire the Hutchison Whampoa shares held by the minority shareholders.

After all, although Hutchison Whampoa's business situation had improved, it was still too early for it to truly achieve profitability.

In this situation, acquiring shares held by minority shareholders at a premium is actually not very difficult.

“Mr. Chen, during the time of Qi Dezun, Hutchison Whampoa acquired two or three hundred companies. The shares were relatively dispersed, with many small shareholders.”

Fang Wenshan chimed in, "Acquiring shares little by little from these scattered small shareholders is like ants moving house; it's not only time-consuming and labor-intensive, but also very costly in terms of capital."

Moreover, once news of our large-scale acquisition spree spreads, it could easily drive up the stock price, thus increasing our acquisition costs.

After listening, Chen Bingwen explained, "I know that it's costly and takes a long time."

But look over there, how much undeveloped land is left on Hong Kong Island?

He glanced at Vincent Fang and Gu Yongxian and said, "Hutchison Whampoa holds a large amount of high-quality land resources, such as warehouses in Hung Hom, docks in North Point, and old warehouses on Hong Kong Island. These lands are now seen as a burden and inefficient assets."

But what about five years from now, or ten years from now?

He paused for a moment, then continued, "Once the real estate market truly takes off, the value of these lands will multiply."

Every penny invested now will turn into several times, or even dozens of times, the return later.

We're not buying Hutchison Whampoa now, we're buying Hutchison Whampoa in the future.

Chen Bingwen had made his point so clear that Fang Wenshan naturally had nothing more to say.

He immediately nodded in agreement, "I understand, Mr. Chen. I will do as you say as soon as possible."

"Go."

Chen Bingwen waved his hand, "Be patient. Don't offer too high a premium; referencing Hutchison Whampoa's current share price, it shouldn't exceed 5%."

"It's okay if we can't buy it; we can get authorization from a person acting in concert."

The Chairman's Office of HSBC.

As Sir Michael Sandberg looked at the report on the table regarding the addition of new directors to the Hutchison Whampoa board and the adoption of the "preemptive right" clause, his face was so gloomy it could drip water.

He picked up the internal phone and connected with his secretary: "Connect me to Mr. Li from Cheung Kong Holdings."

As soon as the call connected, Shen Bi said, "Mr. Li, you know about the matter with the Huang Board of Directors, right?"

Li Jiacheng said, "I just received the news."

Sir, Wiley, you've moved too fast."

"Quickly?" Shen Bi sneered. "He's looking for a helper."

This Chen Bingwen is no simpleton; he quietly secured 10.8%, and now he's entangled with Wei Li.

"What do we do now? What about the right of first refusal clause..."

"The terms are indeed troublesome, but they're not a dead end."

Sir Michael Sandberg interrupted him, “The final decision on HSBC’s sale of its own assets rests with the HSBC board of directors.”

Wei's attempt to use the terms of Hutchison Whampoa's board of directors to restrict HSBC may not be entirely legally feasible.

But in terms of public opinion and procedures, we will be in a very passive position.

That deal

“The deal will proceed,” Shen Bi said without hesitation, “but the plan needs to be adjusted.”

The original plan was to transfer the shares all at once, but now it seems that this will be more difficult.

A phased transfer could be considered, or other methods could be used to circumvent the direct triggering clause.

"In stages?" Li Ka-shing's heart sank.

Phased approaches mean increased uncertainty and potentially higher costs.

"This is just a preliminary idea." Shen Bi didn't say much. "You should take care of your own affairs first, especially Qingzhou Yingni and Tianshuiwei, and make sure there are no more troubles."

"Wong, wait for my news."

After hanging up the phone, Shen Bi rubbed his temples.

He hadn't expected Wiley's reaction to be so intense and decisive, finding an entry point and allies so quickly.

Thinking of this, he called his secretary and instructed, "Help me arrange for Sir Jacques Scherdl of Swire and Sir John Newbury of Jardine Matheson to play golf."

The "right of first refusal" clause approved by the Hutchison Whampoa board has temporarily suspended any potential equity transactions by HSBC.

But beneath the surface, the undercurrents were surging even more violently.

All sides are gathering strength, waiting to deliver the decisive blow.

On the other side of the earth.

The promotional campaign for Pulse energy drinks, energy gum, and energy bars has been running for a week.

North America, Times Square, New York.

As night fell, Prince, with his slightly alluring and unruly face, held a can of "Pulse" energy drink and looked provocatively at the bustling crowd below.

Neon lights flashed, and the advertising slogan was concise and powerful: "Release your pulse."

At the same time, in a detached house near UCLA in Westwood, Los Angeles, a typical American college party was taking place. The music was deafening, and beer cans were scattered all over the floor.

Several students from the school team, who had just finished playing in the intramural league, crowded in front of the refrigerator in the kitchen.

"Hey Mike, do you still have that Gatorade? You know, the blue one!"

A tall man, covered in sweat, pushed aside others and rummaged through the refrigerator.

"Gone? Damn it! Jim, drive to the nearest 7-Eleven and buy back all their Pulse! I'll pay!"

The boy called Mike was clearly the party host, and he yelled at the top of his lungs, "That stuff quenches your thirst way better than beer, and you can dance for another three hours after you finish it!"

“That’s right! And it tastes better than Gatorade!” someone nearby chimed in.

Ten minutes later, Jim rushed back to the party carrying a whole case of "Pulse" and was instantly surrounded.

The cool blue liquid quickly became a party favorite, even briefly overshadowing beer.

In a noisy bar in San Francisco, the owner, Dave, looked at the bill for the night, a smile creeping onto his face.

Customers who ordered "Pulse" mixed with vodka stayed significantly longer and ordered more drinks than those who only drank straight spirits or beer.

He walked to the bar and said to the bartender, Lisa, "Lisa, from now on, when customers order, especially those who look like they're about to pass out, proactively recommend that they try adding a bottle of Gatorade."

This stuff is really weird; it seems to make them drink more without passing out immediately.

Lisa smiled as she wiped the cup: "Understood, boss."

Several regular customers have said that drinking this makes their stomachs feel better and helps them last longer.

She pointed to a table in the corner, "Those fraternity guys at that table have already had their drinks refilled three times, all according to your method."

Dave nodded in satisfaction.

For him, more drinks and longer stays meant higher revenue.

This mysterious beverage from the East became an unexpected money-making tool for him.

This scene has become increasingly common in convenience stores, gyms, college campuses, and bars across major cities in the United States over the past week.

Coca-Cola and Pepsi's extensive sales channels across North America, along with Prince's somewhat cult-like advertising, had a decisive effect, with orders pouring into Chen's Foods' North American offices.

Ling Peiyi, who personally went to North America to oversee the promotion, called from Los Angeles, her voice filled with barely suppressed excitement:
"Chen Sheng!"
The advertising and promotional effects are excellent!

The first batch of 500,000 bottles sold out in a week!
Distributors are all urging for delivery!
Chewing gum and energy bars have extremely high repurchase rates!
Especially in bars and university areas, sales are booming!

Chen Bingwen listened to the report and was equally pleased. "Very good."

The most crucial thing now is to stabilize the supply chain and distribution channels to prevent stockouts.

Only by maintaining strong sales momentum during the initial launch phase can a brand's image be established in consumers' minds.

After all, the sales channels belong to Pepsi and Coca-Cola. If the two companies were to do something to Chen Ji that doesn't violate the agreement, such as "delaying" logistics or "adjusting" terminal displays, it would cause enough trouble.

Therefore, before the full launch began, Ling Pei-yi personally flew to Los Angeles to oversee the implementation of the open sales channel agreement by Coca-Cola and Pepsi.

In contrast to Chen Bingwen's multifaceted success and smooth sailing, the atmosphere in Li Jiacheng's office at the top floor of the Chinese Building, representing Cheung Kong Holdings, was much more somber.

The CFO of Cheung Kong Holdings held a report, his forehead slightly beaded with sweat: "Mr. Li, this is the latest financial situation."

The cash on hand that can be flexibly mobilized is only 21 million.

Several short-term loans and construction payments are due early next month, totaling approximately 45 million.

Li Jiacheng looked at the report, feeling extremely frustrated.

According to his original plan, he would reap the rewards of each project one by one, and there would be no problem with the cash flow.

As a result, in the last two months, it seems that all projects requiring large sums of money have piled up, causing problems with Cheung Kong Holdings' cash flow.

"In Tin Shui Wai, China Resources has officially sent a letter demanding payment of the first phase of investment of HK$125 million."

The deadline is the end of this month.

"Over in Qingzhou Yingni, Sugar Heart Capital is still snapping up stocks in the market, keeping the stock price high."

"To maintain our shareholding ratio and prevent it from being diluted, or even to gain a lead, we would need to invest huge sums of money every day to buy more shares, which is too costly."

Several lines, each one a money-devouring behemoth.

Cheung Kong Holdings has substantial assets, but most of them are land and projects under construction. Cash flow is its lifeline, and now that lifeline has been stretched to its limit.

The CFO asked cautiously, "Mr. Li, should we... postpone one or two projects?"

For example, Qingzhou Yingni is something Sugarheart Capital is determined to acquire. Competing head-on with them would be too costly, and even if we ultimately win, the acquisition cost would far exceed its intrinsic value, making it a losing proposition.

Li Jiacheng remained silent for a long time.

Postponed?

At this point, what's the difference between suspending the effort and giving up?

He had been eyeing that plot of land in Yingni, Qingzhou, for a long time; it had enormous potential.

But right now, he took a deep breath and made a decision: "Starting tomorrow, we will stop actively buying up goods in Yingni, Qingzhou."

We will only maintain a minimum level of support, preserve our existing equity stake, and refrain from making any further investments.

All funds will be concentrated to prioritize the Tin Shui Wai project and any potential funding needs.

His voice was calm, but his heart was bleeding as he gave the order.

This is tantamount to handing over control of Yingni in Qingzhou to Chen Bingwen.

"Yes, Mr. Li." The finance director breathed a sigh of relief and immediately made a note of it.

(End of this chapter)