Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 228 Contingency Plan (Seeking monthly votes, recommendations, and subscriptions!)
Maris moved quickly.

With Chen Bingwen's request to speed things up, his negotiations with the beverage factory in Illinois were no longer as confrontational and meticulous as they had been initially.

He grasped the other party's eagerness to make a move, and after holding firm on several key terms, he made appropriate concessions on the price.

Soon, the two parties reached an acquisition agreement, with the final acquisition price being $165 million.

This price was slightly higher than MacLehose's initial estimate, but it saved valuable negotiation time and aligned with Chen Bingwen's "time-first" strategic intent.

Once the agreement was signed, McLeish immediately led a hastily assembled team, with the assistance of local lawyers and accountants, to efficiently handle the legal handover and procedural changes.

Meanwhile, the technical team dispatched by Chen Bingwen from Hong Kong Island, led by Zhong Qiang, arrived in the United States almost simultaneously.

Zhong Qiang is a long-time employee of Chenji Foods and the deputy manager of the production department. He has been working with Chen Bingwen since the factory was built in Changsha Bay and knows the production line and the process parameters of "Pulse" very well.

As soon as he got off the plane, without even adjusting to the time difference, he led his team straight to the factory workshop.

He knew that the boss's eagerness to transfer him from the mainland to North America meant that the market supply here might be facing a bottleneck, or that there might be a major move coming soon, and production capacity had to be increased immediately.

The factory in front of us wasn't large, but the equipment was well-maintained. The workers looked at the new Chinese-looking management with curiosity and a little unease.

Zhong Qiang quickly communicated with the local production manager who had stayed on, using his broken English and a lot of gestures.

The core of the transformation work is to introduce Chenji's standardized production process and the specific process parameters of "Pulse" beverage, especially the new formula "Pulse Thunder".

The main tasks included adjusting the filling line speed and temperature control, thoroughly cleaning and disinfecting the existing pipeline system, and installing the core ingredient premixing device that was urgently airlifted from Hong Kong Island.

Because the factory had a good foundation and most of the workers were willing to cooperate, the renovation progressed more smoothly than expected.

Zhong Qiang even took some time to make minor optimizations to the production line to improve efficiency.

He would give a brief summary of the progress each day and report it to Hong Kong Island via international long-distance calls.

Chen Bingwen expressed satisfaction with the progress and instructed him to do his utmost to ensure the priority commissioning of the "Pulse Thunder" mass production line.

While the acquisition in North America was proceeding smoothly, Gu Yongxian also accelerated his actions in Hong Kong.

Following Chen Bingwen's instructions, he began to secretly contact Sir Morris, the former Director of the Information Services of the Hong Kong government and now a public relations consultant for a British-owned conglomerate.

Sir Maurice Morris has only recently retired, but his influence remains, and he is still active in Hong Kong's high society clubs and charity galas.

Gu Yongxian meticulously arranged a "chance encounter" at the "Hong Kong Club" through a Chinese lawyer who was well-acquainted with British capital circles and kept a tight rein on the matter.

He connected with Sir Maurice, the former Director of the Information Services of the Hong Kong government and now a public relations consultant for a British conglomerate.

During the conversation, Gu Yongxian did not reveal his full intentions directly, but vaguely mentioned that a well-connected conglomerate was interested in the media industry and was looking for a highly respected independent director who was familiar with the Hong Kong government's operations and public relations.

Sir Morris showed a clear interest in contributing his remaining years to challenging and forward-looking endeavors, inadvertently revealing that motivating compensation commensurate with his experience and network is an important criterion for measuring the value of opportunities.

Gu Yongxian knew perfectly well that these old-fashioned British people had been living on Hong Kong Island for many years and had long been accustomed to its prosperity and convenience. Even after retirement, they still wanted to maintain a decent life and social influence, which required economic support.

Morris's reluctance to leave Hong Kong Island stems from the potential benefits he can gain from the wealth and remaining influence there.
He remained outwardly calm, and after confirming that Morris's basic intentions were feasible, he did not rush to reveal his hand. Instead, he politely expressed his hope to arrange a more formal visit in the near future to explore the possibility of cooperation in depth.

The initial contact successfully established a channel for subsequent communication.

On the other hand, Gu Yongxian also began to express a tentative acquisition intention to the parent company of RTV through a secret third-party agency registered overseas, intending to test the waters and see the other party's reaction and expected price.

All of these actions were carried out underwater and did not attract much attention from the outside world for the time being.

Chen Bingwen knew that these things couldn't be rushed, especially since they involved sensitive media licenses; he had to proceed cautiously step by step.

During this period, Chen Bingwen visited Yingni in Qingzhou more often.

After acquiring control, this long-established cement plant has become an important part of his capital empire.

Huo Jianning demonstrated remarkable efficiency and decisiveness in the financial restructuring, quickly clarifying years of murky accounts and standardizing related-party transactions.

A more rigorous and transparent financial process and auditing system were established, which effectively controlled the company's management expenses and significantly improved cash flow.

Chen Bingwen was very satisfied with this and was planning to launch the next financing plan once Qingzhou Yingni's stock price stabilized for a while longer.

That afternoon, Chen Bingwen listened to Huo Jianning's report in the chairman's office in Yingni, Qingzhou, and affirmed his work.

"Well done, the accounts are much clearer now."

Next, in coordination with MacLehose, we'll prepare the project financing documents; the development of the Hung Hom land needs to be put on the agenda.

“Understood, Mr. Chen. I’ve already started preparing the relevant financial forecasts and asset valuation data,” Huo Jianning replied calmly. Chen Bingwen pondered for a moment, then changed the subject, asking, “How’s the other matter progressing?”

Huo Jianning immediately understood, knowing that his boss was asking about the secret acquisition of Cheung Kong Holdings shares.

He leaned forward and reported in a low voice: "It's been going on, buying in small batches and multiple times through different brokerage accounts, trying not to attract market attention."

Currently, the cumulative shareholding is approximately 2.8%, costing nearly HK$38 million.

"The share price of Cheung Kong Holdings has been relatively stable recently. The Li Ka-shing family's control is very secure; they probably haven't noticed our moves yet."

"2.8%?" Chen Bingwen pondered for a moment and said, "This shareholding ratio is not enough to pose a substantial threat to Li Jiacheng for the time being; it is more like a financial investment."

However, if they continue to buy in the secondary market, the amount of capital required will increase.

Moreover, there are only so many chips circulating in the market, and it's hard to buy too many without attracting attention.

Li Jiacheng has been immersed in the capital market for many years, and his sense of smell is even more acute than a fox's. Once he detects something, you'll be in a very passive position.

"Yes, Mr. Chen, that's what I'm worried about too."

Huo Jianning nodded, "If they discover that funds are secretly accumulating chips, it might alert them."

The other party is likely to take countermeasures, such as buying back shares on the market to drive up the stock price, greatly increasing our acquisition costs, or even using related accounts to buy back shares to test our intentions.

“Therefore, a relentless buying spree is not a long-term solution.” After thinking for a while, Chen Bingwen instructed, “Continue to buy, but slow down the pace and spread it out more.”

In addition, you need to broaden your thinking and not just focus on the secondary market.

Try to find opportunities outside the market, pay attention to institutional investors or early small shareholders with large shareholdings, and see if anyone is willing to sell their shares through block trades or negotiated transfers.

Even if the price is slightly higher than the market price, as long as it's within a reasonable range, its concealment and efficiency far surpass that of piecemeal transactions in the secondary market.

"I see.

I will immediately begin investigating Cheung Kong's major shareholders and probe their willingness to sell through reliable channels.

Huo Jianning quickly jotted down the key points. "Also, Mr. Chen, do we need to prepare a contingency plan?"
What if, I mean, what if, Li Jiacheng really realizes our intentions and reacts strongly? How should we respond?
Should they reveal their identities and make a public acquisition, or lie low for now?

"A contingency plan is essential." Chen Bingwen nodded firmly. "If it is discovered, there are only a few possibilities."

First, they might quickly buy back shares on the market, driving up the stock price and increasing our costs—this is the most direct approach.

Secondly, they might use related accounts or friendly individuals to buy back shares against us, competing for our shares, or even testing our intentions and bottom line.

Third, and most ruthless, is to take the opportunity to issue new shares, significantly diluting our shareholding ratio.

However, this tactic would be a Pyrrhic victory, diluting their own equity stake. They wouldn't use it lightly unless absolutely necessary, especially when their own funds are limited.

He paused, a sharp glint in his eyes: "What we need to do is remain patient and discreet, delaying the time it takes to be discovered as much as possible."

When the day comes that the truth can no longer be hidden, we'll see who has the stronger financial resources and the more determined their resolve.

At that point, it might not be as simple as a covert acquisition.

Huo Jianning nodded solemnly, deeply feeling the weight of the responsibility on his shoulders.

After Huo Jianning left the office, Chen Bingwen leaned back in his chair and rubbed his temples.

The acquisition of Cheung Kong Holdings is a double-edged sword. If used well, it can restrain Li Ka-shing; if used poorly, it could ignite a war prematurely and disrupt his overall plans.

Therefore, every step needs to be taken with caution.

Back at the Wai Yip Building, Chen Bingwen happened to run into Ling Peiyi, who had returned from the mainland to report on her work.

"Mr. Chen, back in mainland China, bottled sugar water has officially entered the first batch of designated foreign-related venues for trial sales."

This is a preliminary sales data and situation briefing.

Chen Bingwen picked up the report and quickly skimmed through it.

Data shows that the first batch of 30,000 bottles of sweet soup has been distributed to major Friendship Stores in Beijing, Shanghai, and Guangzhou, as well as the internal shops of three foreign-related hotels.

Because it could only be purchased with foreign exchange certificates, sales were not high at first, but customer feedback was good, especially from foreign guests, who were very receptive to Chen Ji's bottled sugar water drinks with their exquisite packaging and sweet taste.

(End of this chapter)