Rebirth of the Hong Kong Millennium Conglomerate

On October 29, 1972, the night was as dark as ink, heavily enveloping the bustling Central district of Hong Kong.

Inside the conference room on the top floor of the Landmark Tower, the lights were as bright as day, illuminating every detail of the vast space.

The crystal chandelier cast a cold halo of light, which fell on the gilded trim of the long conference table, making the figures sitting around it display different expressions.

Seated at the head of the table was Henry Joseph, the taipan of Jardine Matheson and chairman of Jardine Matheson Land Development. He wore a well-tailored dark suit and a tie that was perfectly tied. A cigar was between his fingers, and the wisps of smoke could not conceal the sharp glint in his blue eyes.

To the left, Niu Bijian, the second-in-command of Jardine Matheson and Landmark, sat upright. His sharp suit accentuated his tall and straight figure, but his tightly pursed lips betrayed a hint of seriousness.

On either side of the long table sat senior executives from various departments of Jardine Matheson Land. Each person had an open document in front of them, but at this moment, no one had the mind to read through the dense text.

All eyes were subtly drawn to Henry Joseph, who sat in the main seat, and the air was thick with a sense of impending doom.

This meeting was for a momentous game that could shake up Hong Kong's capital markets—the takeover of Dairy Farm.

Ever since Henry Joseph took office as the head of Jardine Matheson, this idea had been lingering in his mind for a long time. He was just waiting for the most opportune moment to bare his fangs.

But no one expected that just last week, news of Jardine Matheson's interest in the Dairy Farm Company was leaked at some point and quietly spread in the market.

The news immediately caused a huge stir in the stock market. The share prices of Hongkong Land and Dairy Farm both surged dramatically, as if injected with a powerful stimulant.

This sudden turn of events disrupted Henry Joseph's original rhythm somewhat, but it did not shake his resolve.

In his view, stock price fluctuations were merely secondary. He had long harbored a groundbreaking plan: no matter how high the milk company's stock price soared, he would swallow this lucrative prize without spending a single penny.

When Henry Joseph first told Niu Bijian about this idea, the veteran minister who had worked at Jardine Matheson for many years almost thought he had misheard.

Niu Bijian's father was a veteran of Jardine Matheson and had once held the position of taipan.

Although the Niu Bijian and Joseph families inevitably engaged in open and covert struggles within Jardine Matheson, they always shared the same stance on matters concerning the company's core interests.

But this time, Henry Joseph's ambition still exceeded Niu Bijian's imagination.

To Niu Bijian, it was utterly absurd that a young man who had just taken power dared to set his sights on a well-established dairy company and even made the outrageous claim of "acquiring it at zero cost."

Henry Joseph had already planned everything out, and he had meticulously refined every detail of the acquisition plan until it was flawless.

Tonight's meeting is merely the clarion call for a formal offensive.

What's even more unusual is that this supposedly highly confidential internal meeting was attended by reporters from several major Hong Kong media outlets.

Reporters from The Daily News, Oriental Daily News, Sing Tao Daily, and Sing Pao Daily News were sitting in a corner of the conference room, looking at each other with puzzled expressions.

They were notified at the last minute and rushed over. They were only told that there was a major announcement to be made, but no one knew what kind of earth-shattering news was about to be revealed.

Recently, the share prices of Dairy Farm International Holdings Limited and Hongkong Land Limited have been soaring. However, Hong Kong is currently in the golden period of a bull market, and the surge in the two stocks is seen by most people as an inevitable result of the overall market improvement, nothing to be surprised about.

The reporters whispered among themselves, speculating about Jardine Matheson's true intentions, but none of them could guess the real answer.

The clock on the wall steadily points to 6:30 p.m.

Henry Joseph finally stubbed out his cigar, slowly raised his eyes, and scanned everyone present.

His gaze swept over the solemn-looking executives, over the bewildered reporters, and finally settled on the center of the conference room. His voice was deep and powerful, carrying clearly through the microphone to every corner:

"Dear journalists, I have invited you all here tonight to announce a very important event to the whole of Hong Kong—Jardine Land will officially launch a full takeover bid for Dairy Farm Company."

In short, it was earth-shattering!

The meeting room erupted in chaos.

The reporters jumped to their feet, their confusion instantly replaced by shock, and the gasps of surprise nearly lifted the roof off the conference room.

This news is absolutely explosive!

What kind of entity is Hong Kong Land? It is a giant hailed as the world's largest listed real estate company, the undisputed leader in Hong Kong's real estate industry, and the "crown" at the top of the pyramid.

The Dairy Farm Corporation was by no means a pushover. It not only monopolized the entire milk market in Hong Kong, but also held large tracts of prime land in Causeway Bay and Pok Fu Lam.

More importantly, the chairman of the board of directors of Dairy Farm Company is Zhou Xinian—a figure of great influence in Hong Kong's business world, whose every move can shake the industry.

Both companies have British investment backgrounds, are equally strong, and have roughly the same market value.

Now, Hongkong Land is actually going to acquire Dairy Farm International? This is nothing short of a showdown between giants, how can it not cause an uproar?

After a brief commotion, a reporter from Sing Tao Daily was the first to react, squeezing to the front and eagerly raising his microphone to ask, "Mr. Joseph! How much capital does Hongkong Land intend to use to complete this acquisition?"

In everyone's mind, acquiring a company of comparable size must come at an astronomical price. To do so without spending a fortune is simply wishful thinking.

Faced with this question, Henry Joseph suddenly smiled. That smile carried a confident air, yet also a hint of the shrewdness characteristic of a businessman. He slowly leaned back in his chair, interlaced his fingers on the table, and clearly presented his solution, word by word:

"Ladies and gentlemen, Hongkong Land will appoint Jardine Fleming and Walter Reed as financial advisors for this acquisition. Our terms are—two Hongkong Land shares for one Dairy Farm Company share. In other words, we will acquire Dairy Farm Company Limited in its entirety through a share swap."

A share swap acquisition? Without spending a single penny?

The moment those words were spoken, the conference room fell into a deathly silence.

The reporters were completely dumbfounded, speechless, as if frozen in place. They never imagined Henry Joseph was plotting something like this. This wasn't an acquisition; it was practically a get-rich-quick scheme!

Henry Joseph seemed pleased with the crowd's reaction. He leaned forward slightly and continued, "Based on the closing prices of the Hong Kong Stock Exchange on October 27, Hongkong Land shares were priced at HK$94 per share, and Dairy Farm shares at HK$135 per share."

According to our share swap plan, this is equivalent to raising Dairy Farm's share price to HK$188 per share. In other words, by accepting the share swap, Dairy Farm's shareholders will directly increase the capital value of their shares by 40%!

These words, like a boulder thrown into a calm lake, once again stirred up a storm among the reporters.

Shock, disbelief, and a hint of bewilderment at being outmaneuvered.

Everyone understood that Henry Joseph was using Landsea stock to leverage the vast assets of the Dairy Farm Company.

He calculated meticulously, using a seemingly generous premium to conceal the true nature of the "zero cash" acquisition.

Henry Joseph then donned a dignified demeanor and began to explain in detail the reasons for the acquisition.

He said that the board of directors of Hongkong Land has always firmly believed that, for the long-term interests of all shareholders, Hongkong Land should further strengthen and expand its existing hotel and catering business.

The merger with the dairy company is a key step in implementing this strategy.

"We assure you all," Henry Joseph's voice was earnest and sincere, "that after the merger, the interests of all executives and ordinary employees of the Dairy Company will be fully protected. Joining the larger Hongkong Land Group will undoubtedly brighten their career prospects."

He also promised to maintain the milk company's independent brand image and operating system in the future, preserving its unique quality and characteristics.

The new group formed after the merger will encompass three core businesses: hotels, food and beverage, and real estate, and is expected to become a leading conglomerate in the Pacific region.

"This merger offers a rare opportunity for the shareholders of both sides," Henry Joseph's gaze swept across the room, his tone full of allure, "allowing everyone to participate in a diversified and highly synergistic group."

Our resources will be invested in the three fastest-growing sectors within the real estate, leisure and entertainment, and food and beverage regions to maximize value.

He further outlined the blueprint: "Once the Group's capital strength is enhanced, we will seize the opportunity to promote the expansion of the dairy company's business scope."

As Hongkong Land's recognized leading and most professional real estate operator in Hong Kong, the company will fully leverage its strengths to assist Dairy Farm in revitalizing its remaining real estate properties and achieving long-term development.

"In addition, the shareholding institutions under both groups have different focuses in terms of geographical distribution and market position."

Following the merger, these resources will be integrated, significantly enhancing the new group's business expansion capabilities across a wider region.

Finally, he concluded his speech with a resounding statement: "The Board is convinced that this proposed shareholding merger is extremely beneficial to the shareholders of both parties."

As soon as he finished speaking, a buzz of discussion filled the conference room once again.

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