Hong Kong variety show: I can boost loyalty, the most generous boss.

Chapter 102, Section 101: The Acquisition of Hong Kong Electric Shocks Hong Kong!
Giant Group.

Huo Baoning is giving a report to Yang Jun about the progress of the television project.

"Boss, our R&D department has successfully developed a television set. It mainly draws on Trinitron's technology to develop our first color television set."

Trinitron technology was developed by Sony in 1968. At that time, Sony invested 6 million US dollars in research and development to develop the amazing Trinitron display technology and launch the Sony KV-1310 TV.

The KV-1310 was the first CRT television to use a single-gun, three-beam tube, representing a significant leap forward in picture quality for CRT display technology. The Trinitron picture tube not only offered greater brightness and color clarity than conventional color televisions, but its technology was also world-leading.

After hearing the report, Yang Jun was overjoyed. He thought he had obtained the technology for black and white televisions from Soni, but he didn't expect that he had made a fortune with the technology of Trinitron!

At present, televisions in Hong Kong and the mainland are all black and white televisions. Yang Jun directly took the lead and had the technology for high-definition color televisions, which is another huge fortune!

“Well done. Immediately notify Jimmy in the mainland and have them expand the factory and set up a television production line so that the first batch of production can begin within a month.”

Making money was all Yang Jun could think about; being the richest man in Hong Kong was just a myth!
In reality, Yang Jun only benefited from the stock market. Although his net worth is very high, in terms of actual wealth, he cannot compare to Li Ka-shing, the "cash king".

Because the property market was very sluggish in 1983, Li Ka-shing and the other three major real estate families hoarded a large amount of land and properties, and their wealth was underestimated.

The market capitalization of real estate companies is generally low, mainly due to the impact of the overall economic environment! Negotiations between the Hong Kong government and the mainland have reached a stalemate, and there are many rumors causing widespread anxiety.

Yang Jun's Feida Technology is a technology-driven manufacturing company. It has a good performance as a listed company in Hong Kong, which is why it has become one of the top ten companies with the largest market value in Hong Kong.

Huo Baoning asked Yang Jun:

"Boss, I suggest we spin off the TV business from Feida Technology into an independent subsidiary, and then go public through a reverse merger to raise more funds!"

Feida Technology has many shareholders. Yang Jun currently holds 65% of the shares, and Li Ka-shing holds 15%. The TV business must be spun off, otherwise Li Ka-shing would benefit.

"Yes, the television business can be spun off into a separate company called Giant Television. We'll prepare for an IPO and financing after we acquire the shell company."

Yang Jun made a decisive decision: to spin off the television business into an independent subsidiary of Giant Group, and then raise funds through an IPO once the business achieved certain performance, thereby expanding production lines and continuing to capture the market.

"Old Huo, have Jardine Matheson and Swire Group made any new moves lately?"

Of the four major trading companies, only two remain: Jardine Matheson and Swire. These two companies are the most powerful, far surpassing Hutchison Whampoa and Wheelock, which were acquired!
Huo Baoning was also a returnee from overseas, had good English skills, and was quite knowledgeable about the four major foreign trading companies!
"Yes! Jardine Matheson is not optimistic about Hong Kong's future. Yesterday, it officially announced that it would relocate its headquarters to Bermuda and shift its business focus overseas."

"Yesterday the stock market plummeted, with the Hang Seng Index dropping by more than 200 points, and our Feida Technology stock price also fell by 20%."

The Jardine Matheson Group controls more than 20 large companies in Hong Kong, including Hongkong Land, Hongkong Telephone, and Hong Kong Electric, all of which are constituent stocks of the stock market.

Affected by the stock market, Yang Jun's net worth has been surpassed by shipping magnate Bao and Li Ka-shing, dropping him to third in Hong Kong.

Yang Jun frowned, deeply dissatisfied with Jardine Matheson's relocation of its headquarters to Bermuda, which would be a huge blow to Hong Kong's economy and stock market.

"These foreigners made their money in Hong Kong, then ran off with it."

"Leaving us Chinese businessmen to clean up this mess?"

Seeing Yang Jun's expression, Huo Baoning, who had originally wanted to persuade Giant Group to also relocate its registration to Bermuda, also kept quiet about it.

"Old Huo, we will not leave Hong Kong, nor will we relocate our registration to Bermuda or the Cayman Islands!"

"I heard that Jardine Matheson is interested in selling its 35% stake in Hong Kong Electric? Is that true?"

Yang Jun recalled something: Jardine Matheson's subsidiary, Hongkong Land, was heavily indebted and planned to sell Hong Kong Electric, which it had acquired a few years earlier.

Upon hearing this, Huo Baoning became interested. He had long had his eye on the lucrative Hong Kong electric lights market, and immediately said:
"Boss, a 35% stake in Hong Kong Electric is worth at least HK$3 billion. Currently, Hong Kong Electric is worth around HK$10 billion and has excellent assets. Even if Jardine Matheson is short of money, it won't sell it off cheaply!"

"This means that there are very few people in Hong Kong who have the ability to acquire Hong Kong Electric, only a handful of people such as Li Ka-shing, Bao Shuping, and Cheng Yu-tung."

There are definitely no more than five people in Hong Kong who can come up with HK$30 billion, and even fewer if it's in cash!

"Mr. Li from CK Asset Holdings has spoken with the Keswick family of Hongkong Land, but they couldn't agree on a price!"

"Mr. Li from Cheung Kong Holdings doesn't seem very interested in Hong Kong Electric, and negotiations have reached a stalemate!"

Oh! Yang Jun was secretly pleased. He knew that Li Ka-shing was playing hard to get and that his lack of interest in Hong Kong Electric was just an act, all in order to acquire Hong Kong Electric at a low price.

Yang Jun smiled, intending to intercept Li Jiacheng and secure the Hong Kong Electric Lights deal ahead of schedule.

How much cash do we have available right now?

Huo Baoning is in charge of the company's finances and is very sensitive to numbers, so he quickly uttered the answer.

"Our group has a total of HK$25 billion in cash. We need to keep some money as reserves, so we can only use HK$20 billion!"

Not enough! Yang Jun frowned. Li Ka-shing could easily come up with 29 billion, so he definitely had more cash than him.

Yang Jun then realized that there are many hidden billionaires in the world, and that his own amount of money was not enough to make him the richest man in Hong Kong. He still had a lot more money to earn!
Issuing new shares again? No way! Feida Group has just gone public and is currently experiencing a stock market downturn. Issuing new shares would cause the stock price to continue to fall.

"Continue negotiating with HSBC to secure a loan of 10 billion yuan, using Feida Technology's shares as collateral."

Yang Jun decided to take out a loan of 10 billion yuan. Feida Technology's debt ratio is not high at present. Compared with other real estate companies, it is a high-quality enterprise with very low debt.

Listed companies can get loans very easily, which is why all entrepreneurs want to go public; the stock market and banks are like ATMs.

"Furthermore, I intend to speak with Simon of the Keswick family on my behalf!"

"Okay, boss~"

Huo Baoning was very efficient. The next morning, he went to the bank and secured a loan of HK$10 billion. When HSBC's Sir Michael Sandberg heard that it was Feida Technology that was requesting a loan of HK$10 billion, he immediately approved the loan and disbursed it that same day.

That evening, Yang Jun invited Keswick Simon to the Peninsula Hotel. Simon arrived late and was quite rude upon entering, saying to Yang Jun:

"Mr. Yang, I only have ten minutes, so I hope you can get to the point quickly."

These foreigners are extremely arrogant. They think they are superior in Hong Kong and have always considered Chinese people to be second-class citizens.

"Mr. Simon, I'm here to save your company!"

"I heard you're interested in selling your shares in Hong Kong Electric, and I'm planning to buy them from you!"

Yang Jun spoke neither humbly nor arrogantly, which surprised Ximen slightly before he realized what was going on.

"Oh, you're here to buy shares in Hong Kong Electric? I think we can talk more about this."

Although Simon had been arrogant just moments before, upon hearing that Yang Jun was interested in the stocks he held, he immediately changed his attitude and asked with a fawning smile, "How many billions are you willing to pay to buy my shares?"

"28 billion!"

Yang Jun offered 28 billion in cash, discounted slightly from the market value. Simon immediately frowned and retorted:

"Impossible! The stocks I hold are worth at least 32 billion, 28 billion is out of the question!"

Simon was very angry and made a move to leave.

Yang Jun, however, remained as steady as a mountain, crossed his legs, and asked:
"Mr. Simon, I was referring to 28 billion in cash. Your company is currently facing a severe cash shortage, isn't that right?"

What? 28 billion in cash?
Simon stopped in his tracks, unable to move. His Jardine Matheson's subsidiary, Landmark, was heavily indebted, and if he didn't find a way to get some cash, the company would become insolvent.

Simon turned around and confirmed with Yang Jun again:

"Can your Giant Group come up with 28 billion in cash? Can you transfer it to us all at once?"

Yang Jun shrugged. This damned foreigner has finally taken the bait. He must secure Hong Kong Electric Lights tonight, otherwise, once Li Ka-shing realizes what's happening and both sides start competing, Jardine Matheson can take the opportunity to raise the price!

Yang Jun shrugged and said with a smile:

"Of course, you know our group has the most cash flow. Feida Technology is one of the top ten companies with the highest market value!"

Simon nodded, sat down again, and began to bargain with Yang Jun.

“HK$28 billion is too low. Hong Kong Electric’s market value is undervalued, and you should acquire it at a premium, not at a discount, Mr. Yang!”

Yang Jun, looking completely unconcerned, said to Ximen:
"Mr. Simon, you need to understand the situation. Right now, I'm the only one who can come up with the cash to buy your company. Mr. Li from Cheung Kong Holdings has no intention of acquiring it with cash."

Li Ka-shing has recently been playing a game of feigned indifference, and his apparent desire to acquire other companies is not high!

Simon was intimidated. When he thought about Li Jiacheng's recent behavior, he realized that he was not very sincere, so he gritted his teeth and agreed.

"Okay, I'll sign the contract tonight!"

Now that the price had been set, Simon was also anxious. He had received incorrect information: Yang Jun was the only person in all of Hong Kong who could afford to buy the property with cash.

Yang Jun couldn't be happier to sign the contract now, as this would allow him to acquire one of the top ten British-owned companies, Xiangjiang Electric!
"Boss, the contract has been fully signed. It will take effect immediately once the money is received."

Liang Yongqi was very efficient. He led a team of accountants and lawyers and quickly processed the share transfer contract documents.

Liang Yongqi's eyes were filled with longing, and his admiration for Yang Jun intensified!

Hong Kong Electric was a long-established British-owned enterprise with a market value of over 10 billion Hong Kong dollars. It was a veritable behemoth in Hong Kong, but unexpectedly it was acquired by Yang Jun, a Chinese man.

The acquisition of Hong Kong Electric by Giant Group is of great significance. Hong Kong Electric provides efficient and reliable power supply to more than 500,000 users on Hong Kong Island and Lamma Island, and is the second largest power group in Hong Kong.

The power industry is a cash cow. Hong Kong's industrial economy has been developing, and the power industry will become a sure-fire way to make money.

By taking control of Hong Kong Electric from the foreigners, Yang Jun gained control of Hong Kong's most important public works project, which greatly enhanced his influence.

After seeing off Simon from Jardine Matheson, Liang Yongqi immediately sat on Yang Jun's lap, his face full of fighting spirit.

"Congratulations, boss! You've secured control of Hong Kong Electric!"

Haha! You've worked hard tonight~ But you'll have to work even harder later!

Liang Yongqi's body went limp, and she said in a sweet, coquettish voice:
"Boss, all the hard work was worth it, I really enjoyed it!"

Yang Jun laughed heartily. Liang Yongqi had trained him enough; he could even spout lewd remarks now.

The following day, Giant Group held a press conference to officially announce that it had acquired a 35% stake in Hong Kong Electric, marking the successful acquisition of Hong Kong Electric!
In fact, acquiring a listed company does not require a 51% controlling stake, because listed companies have dispersed shareholdings, and the major shareholders usually only own 5-20% of the shares.

If you own more than 35% of the shares, you have the right to veto the board of directors according to the Company Law, and you are the actual controller on the board!

The news caused a sensation throughout Hong Kong. Another Chinese man had acquired a large British company, becoming the third Chinese man to do so.

What time is it now? It's 83, a year of sluggish Hong Kong property and stock markets, a time of anxiety before dawn. Yang Jun's acquisition gave Hong Kong's economy a dose of calm.

Countless reporters flocked to interview this rising star in Hong Kong's business world, and Giant Group became a star enterprise in Hong Kong!
The Hong Kong media were in an uproar, writing and publishing articles overnight. This was a major event in Hong Kong, as it meant that Chinese people would control the electricity supply on Hong Kong Island from now on, instead of letting foreigners control it.

Shocking! Giant Group acquires British-owned Hong Kong Electric, Yang Jun becomes a source of pride for the Chinese community!

Chinese-owned enterprises decisively defeat British trading companies; a new force of the Chinese community emerges.

National hero Yang Jun regains control of the power grid, spending a whopping 28 billion yuan in cash to acquire Hong Kong Electric!

Honors came like snowflakes, and the Hong Kong stock market was also stimulated by this news, with the Hang Seng Index rising by 30 points and all listed companies in the Giant Group rising by more than 10%.

The Giant Group of listed companies refers to four companies: Feida Technology, Xiangjiang Electric, Chinese Estates Holdings, and China Entertainment Properties. Their stock prices have all risen, once again propelling Yang Jun to the throne of Hong Kong's richest man!
Cheung Kong Holdings.

"Mr. Li, something terrible has happened! Giant Group has acquired Hong Kong Electric, obtaining a 35% stake from Jardine Matheson."

Ma Shih-ming, president of Cheung Kong Holdings, rushed over to report, looking extremely flustered.

He knew that Hong Kong Electric was a company that Li Ka-shing had his eye on, and he had been preparing for this for two years in order to take it over.

Victory was in sight, but it slipped away just as quickly?
Li Ka-shing was almost furious enough to vomit blood, but the outcome was already decided. Giant Group had obtained a veto right on the board of directors, and other companies had no chance.

"The younger generation is truly formidable! I never expected the Giant Group to be able to come up with 28 billion yuan in cash. We were careless!"

Li Ka-shing felt regretful, realizing that his carelessness had cost him HK Electric, and now he had lost a cash cow.

Ma Shiming was deeply worried and said to Li Jiacheng:
“Mr. Li, we plan to develop housing estates on the former sites of the Cha Kwo Ling Power Station and Ap Lei Chau Power Station, both owned by Hong Kong Electric Holdings Limited. However, the development rights for Cha Kwo Ling and Ap Lei Chau are currently held by the Giant Group.”

"Many of our plans have to be scrapped and started over, Mr. Li. We've suffered heavy losses!"

Li Jiacheng adjusted his glasses and calmly said:

“We can develop these projects together with the Giant Group. These two projects require an investment of over 10 billion yuan, which is too much for us to handle on our own!”

(End of this chapter)