Rebirth in Hong Kong: From Dessert Shop to Industrial Empire.

Chapter 250 Integrating 4K (Seeking monthly votes, recommendations, and subscriptions!)

Inside the chairman's office of HSBC.

Shen Bi gently pushed a document across the coffee table.

"Mr. Chen, this is the final deal."

HSBC's 22.4% stake in Hutchison Whampoa's ordinary shares was valued at HK$640 million.

Given the large amount involved, we have followed market practice and offered an installment payment option.

Chen Bingwen picked up the document and quickly scanned the key clauses.

The total price is HK$640 million, discounted to half the market price, with a down payment of 20%, which is HK$128 million.

The remaining amount will be paid off in four installments, with annual interest calculated at the most favorable rate.

More importantly, Sir Michael Sandberg added, "HSBC can provide financing support for the down payment if Mr. Chan needs it."

Chen Bingwen understood perfectly.

These conditions are almost a carbon copy of Shen Qiang's support for Li Jiacheng in his previous life, or even more lenient.

HSBC is determined to sell off Hutchison Whampoa, a "burden," and hopes the buyer can take over smoothly without creating any financial obstacles.

The so-called financing support means that he may actually be able to "get something for nothing" and acquire this crucial equity stake without immediately using a large amount of his own cash.

It seems that the strength previously demonstrated, the deal with China Resources, and especially the title of "director of Guoxin" did indeed play a key role.

Shen Bi was doing a favor and also ensuring the deal would go perfectly.

Chen Bingwen quickly calculated in his mind that even though interest would need to be paid, the leverage ratio of this deal was extremely high, making it a worthwhile investment.

"A very fair proposal." Chen Bingwen put down the documents and smiled. "Thank you, Chairman Shen Bi and HSBC, for your trust and support."

Let's proceed with this plan. Sugar Heart Capital can handle the down payment themselves, and the remaining installments will be paid according to the agreement.

He decided not to use HSBC's down payment loan, firstly to demonstrate his own financial strength and avoid over-reliance.

Secondly, it reduces potential future complications.

In any case, the Qingzhou Yingni Cement business has just been sold, and the first installment of more than 300 million Hong Kong dollars has already been received, which is more than enough to pay the down payment of 1.28 million.

Shen Bi nodded approvingly, quite satisfied with Chen Bingwen's decisiveness and financial resources.

"Very good. HSBC will arrange the signing and share transfer procedures as soon as possible."

I wish Mr. Chen all the best in taking the helm of Hehuang, and that he can restore this long-established trading company to its former glory.

"I will do my best." Chen Bingwen stood up, smiled, and shook hands with Shen Bi.

After the acquisition agreement was officially signed, Chen Bingwen immediately launched the next step of the plan.

As a result of a previous share swap agreement with Hutchison Whampoa Chairman John Woo, the 6% stake in Hutchison Whampoa held by Woo has been transferred to Qingzhou Yingni.

Sugar Capital's stake in Hutchison Whampoa has reached an astonishing 39.8%, combining its 23% stake from HSBC, its original 10.8%, and the 6% it acquired from the disposal of Wyman Whampoa shares.

Although it has not yet exceeded the 50% absolute control threshold, it is already the single largest shareholder, far exceeding any other shareholder, and its control of the board of directors is a foregone conclusion.

Therefore, when Chen Bingwen first entered the Hutchison Whampoa headquarters building as the largest single shareholder, he did not encounter any of the expected resistance or chaos.

Wyman Wright personally led a group of senior executives to greet him at the entrance of Hutchison House.

At this moment, Wei Li's expression was somewhat complicated, showing both relief and a hint of disappointment.

"Mr. Chen, welcome. All board members are now present."

Wei Li adopted a very humble attitude.

Chen Bingwen shook hands with him and said, "Mr. Wei Li, I promised you and the existing management team that you would stay on for at least three years, if you wish."

Hutchison Whampoa needs your experience.

"Let's work together to get Hutchison Whampoa out of this predicament." Wei Li breathed a slight sigh of relief: "Thank you for your trust, Mr. Chen. We will definitely cooperate fully."

On the day he took control of Hutchison Whampoa, Chen Bingwen convened the first high-level meeting at Hutchison Whampoa headquarters.

Inside the meeting room, the British and Chinese executives from Huang Yuanyou had different expressions: some were curious, some scrutinizing, and some couldn't hide their worries.

Despite becoming the sole controlling shareholder, Chen Bingwen did not drastically reshuffle Hutchison Whampoa's management.

Instead, it briefly affirmed the management's efforts to maintain the situation during the difficult period in the past, and then directly announced several preliminary decisions: "First, all current vice presidents and above-level executives of the group will remain in their positions with their salaries and benefits unchanged, and adjustments will be made after a detailed evaluation."

"Secondly, the positions of CFO and HR Director will be filled by separate appointments from Sugarheart Capital."

Before the new CFO takes office, financial work will be handled by Huo Jianning, and all large expenditures will require my written approval.

"Third, all core businesses under the group, including Junyi Warehouse, Hebao Real Estate, Huangpu Shipyard, and Hong Kong International Cargo Terminals, must submit their latest operational and financial statements to me within one week."

"Fourth, regarding my representative, Mr. Huo Jianning of Sugar Heart Capital, he will join the board of directors as an executive director, responsible for assisting me in coordinating the group's strategic transformation."

These directives were clear and unambiguous, maintaining stability while firmly grasping financial and personnel power, especially financial approval power, which was tantamount to strangling Hutchison Whampoa's lifeline.

At the same time, he brought in Huo Jianning, a trusted lieutenant, into the decision-making level to ensure the smooth flow of instructions.

The executives present were all shrewd and immediately realized that although the new boss was young, he was cunning and not easily fooled.

After the meeting, Chen Bingwen kept Wei Li behind alone.

"Mr. Wei Li, I know that you and some of the management may be worried about the future direction."

I can tell you clearly that I will not carry out a blind purge; I value competence and results.

Hutchison Whampoa's problem lies in its bloated organizational structure and the fact that some of its business directions have deviated from its core focus.

What we need is weight loss and focus.

Chen Bingwen looked at Wei Li and said.

After a moment's thought, Wei Li asked, "Mr. Chen, what is your specific plan?"

"First, we will gradually shut down or merge non-core and loss-making businesses."

Secondly, for high-quality assets, such as ports and terminals, we should increase investment and even consider spinning them off for future listing to unlock their value.

We will discuss the specific plan together after Huo Jianning is familiar with the situation.

Chen Bingwen paused for a moment, then said, "In addition, I will recall Michael McLeish soon. He will join Hutchison Whampoa and be responsible for international business and capital operations."

I hope you can support his work.

When Wei Li heard the name Mai Lisi, his eyes flickered.

He had heard about McLeish's seniority at Hawthorne & Paragon before, and it seemed that the new boss was going to build his own core team.

He nodded: "I understand. I will cooperate fully."

Stabilizing Wei Li means stabilizing the situation during the transition period with Hutchison Whampoa.

Chen Bingwen thought that with Huo Jianning overseeing finance and strategy, and with McLeish leveraging international capital and business restructuring, this structure should be able to quickly open up new opportunities.

The successful acquisition is only the first step; the real challenge lies in how to integrate Hutchison Whampoa, this behemoth, and revitalize it.

The day after officially taking control of Hutchison Whampoa, Chen Bingwen summoned MacLehose, who had just been urgently recalled from Europe, to a temporary office next to the chairman's office.

Although he was travel-worn, he was in high spirits and showed no signs of fatigue from the journey.

He took the coffee handed to him by his secretary, Ali, and congratulated him, saying, "Mr. Chen, congratulations on winning over Hutchison Whampoa."

But frankly, the integration that follows will be ten times more difficult than the acquisition itself.

Chen Bingwen sat behind his large desk, gesturing for him to continue: "I called you here to hear the truth. Tell me, what's the most difficult part?"

Michael put down his coffee cup and said solemnly, "I've taken a preliminary look at the data, and the problem is more complex than we anticipated. It mainly manifests in three aspects, or rather, three obstacles."

"First, it's a people problem, or rather, a problem with the veteran officials."

He held up his first finger, "And Huang Li has been the head of several taiban, with deeply entrenched internal factions."

The original management team, led by Wylie, was accustomed to the slow-paced, process-oriented, and seniority-based operating style of British trading companies.

What we bring is a fast-paced, results-oriented, and performance-driven style.

This cultural clash can erupt at the smallest detail of every decision-making process.

He paused for a moment, then gave an example: "For instance, I heard that you require detailed reports on all core business operations to be submitted within a week."

Those below might use excuses such as data needing verification or process requiring approval to delay.

This is not deliberate defiance, but rather a result of inertia.

Breaking this momentum will require time and a firm hand.

Chen Bingwen nodded; he had already anticipated this. "And the second?"

"Secondly, there's the mess itself within the business."

With a hint of sarcasm, MacLehose held up a second finger and said, "Hutchison Whampoa has expanded too much; many of its businesses are neither profitable nor worth abandoning."

These businesses, which have consistently yielded meager profits or even incurred losses, have severely dragged down the group's performance.

However, these businesses often involve the personal interests or past relationships of certain senior executives. Moving against them would directly touch vested interest groups, creating enormous resistance.

"More importantly," he emphasized, "even the core business is riddled with problems. Take Hong Kong International Container Terminals, for example, which is known as the goose that lays golden eggs. Its equipment is aging, and its throughput efficiency has fallen behind that of newly emerging competitors."

The rigid worker compensation system and the powerful union mean that any reform could trigger labor disputes.

Upgrading equipment and improving efficiency requires huge investments, which will affect short-term profit statements and give those who question us ammunition to criticize us.

Chen Bingwen pondered for a moment and said, "I have considered this issue."

The dock is a strategic asset and must be upgraded.

Regarding funding issues, we could consider spinning off the port business for a future IPO to raise funds.

"That's a good idea, but there are obstacles to its implementation," McLeish immediately chimed in. "This brings us to the third point, which is also the most difficult: external pressure and covetousness."

He held up his third finger: "Boss, although you have acquired nearly 40% of the shares, you do not have absolute control."

There are still more than 60% of the shares held by outsiders.

Li Ka-shing's Cheung Kong Holdings remains a major shareholder. Will he be willing to watch us easily integrate Hutchison Whampoa and make it bigger and stronger?

I suspect that if any setbacks occur during the integration process, a major shareholder like Li Jiacheng could challenge us on the board, questioning our management capabilities and even proposing dissenting motions.

Looking at Chen Bingwen, Milisi said, word by word, "The integration process is like replacing the engine and hull of a giant ship that is sailing. We can't let it stop, we have to make sure it doesn't sink, and at the same time we have to guard against other ships taking the opportunity to ram it."

Any mistake in any step could trigger a chain reaction.

After listening to the analysis, Chen Bingwen found that Mai Lisi's analysis was indeed incisive, peeling back the layers of potential risks. Internal cultural inertia, vested interests, the practical difficulties in core business operations, coupled with the watchful eyes of shareholders and competitors—any one of these, if not handled properly, could turn this acquisition into a quagmire for Lu.

As McLeish said, this is much more complicated and difficult than raising huge sums of money for an acquisition.

The direction of Hutchison Whampoa is already in our hands, but how to get it off its heavy burden and sail towards a wider ocean requires extremely skillful maneuvering and unwavering determination.

"Your analysis is very thorough," Chen Bingwen said, looking at Mai Lisi. "It's precisely because it's difficult that it's worth doing."

Cultural conflicts can be resolved with clear rules and performance evaluations.

Vested interests should be resolved through auditing and gradual divestiture.

When facing difficulties, focus on the core issues, invest heavily, and make good use of the power of the capital market.

"External pressure—" He paused, "Then respond with better performance and a higher stock price."

You should familiarize yourself with the situation as soon as possible, focusing on assessing international business operations and solutions for dealing with non-core assets.

Huo Jianning will cooperate with you.

We need to come up with a comprehensive integration plan outline as soon as possible.

"clear."

Marissa sensed the decisiveness in Chen Bingwen's tone and felt more confident.

The challenges are enormous, but the opportunities are equally enormous.

Just after Michael left, Vincent Fang walked into Chen Bingwen's office with a thick proposal in his hand.

"Mr. Chen, Lin Zhiwei has completed the detailed plan for donating to build schools in mainland China. Please take a look."

Fang Wenshan placed the documents on the table.

Chen Bingwen put down the documents he was working on regarding Hutchison Whampoa and picked up the proposal to carefully review it.

Lin Zhiwei is very thorough in his work, and his plans are very detailed.

The first step was to select the most urgently needed township central primary schools in Shunde and Chaozhou. The budget for each school ranged from HK$200,000 to HK$400,000 depending on its size. This included building or reinforcing teaching buildings, constructing standard dormitories, connecting water and electricity, and equipping them with basic desks, chairs, and blackboards.

In addition, a separate education fund was established, with an initial investment of HK$100,000, which was used for meal subsidies for impoverished students, scholarships for outstanding students, living allowances for private school teachers, and the unified procurement of stationery and medicines.

The plan includes photos of the current state of each school and preliminary design sketches.

"The plan is well done and very practical." Chen Bingwen nodded. "What is the total budget?" "The hardware investment for the ten schools is about three million Hong Kong dollars, the education fund is one hundred thousand Hong Kong dollars in the first year, plus project management, transportation and emergency expenses, the total budget is controlled within three million eight hundred thousand Hong Kong dollars."

Fang Wenshan gave a report.

"Okay, let's proceed with this plan. The funds will come from Sugar Heart Capital's account."

Lin Zhiwei was tasked with leading a project team to immediately liaise with the governments of both regions and get things started as soon as possible.

I want to see concrete progress reports.

Chen Bingwen gave instructions.

This is not only about fulfilling our ambitions and giving back to our hometown, but also a crucial part of shaping a positive image for our family and business in mainland China, and it must be done well.