Rebirth of the Hong Kong Millennium Conglomerate

After Zhou Xinian finished speaking, Li Zhu straightened his clothes and, on behalf of the board of directors of the Dairy Farm Company, slowly walked to the podium.

He cleared his throat, looked steadily at the audience, and clearly explained to everyone present the three core reasons for opposing the acquisition.

"Firstly, from the perspective of dividend income, accepting the acquisition would undoubtedly be a huge loss for our shareholders."

"According to the financial report data for 1972, Dairy Farm Company's dividend per share was as high as HK$3. This is our company's commitment to shareholders and a reflection of our strength."

The exchange plan proposed by Hongkong Land is that two shares of Hongkong Land stock are equivalent to a dividend of HK$2.40.

"The difference between the inflow and outflow is enormous. How can our shareholders accept such an unfair transaction?"

These words immediately sparked a murmur among the audience, with many nodding in agreement, agreeing with Li Zhu's point.

Li Zhu raised his hand to press down, and continued, "Secondly, let's look at the profitability."

Using the same data from 1972, Dairy Farm's earnings per share were HK$3.65, while the combined earnings of Hongkong Land's two shares were only HK$2.58.

Once the acquisition is completed, our shareholders will face a significant reduction in profits, an outcome no one can accept.

He paused for a moment, then continued, "Thirdly, everyone knows that Jardine Ma's intentions behind this acquisition are as clear as day!"

They are simply coveting the strength of the milk company, attempting to use it to expand their own business and swallow up the empire we have built up over the years.

However, please understand that our dairy company has been deeply involved in the industry for many years and has already established a renowned reputation and a solid foundation. Whether it is milk source supply or market channels, we have unparalleled advantages.

We are fully capable of developing independently and have absolutely no need to rely on any external forces!

The moment Li Zhu finished speaking, a commotion erupted in the hall, with applause and murmurs mingling together.

He surveyed the room, his gaze resolute, and added, "I hereby assert that Hongkong Land's acquisition plan goes against the interests of shareholders and violates the principles of market fairness; it is doomed to failure!"

These words were like a thunderclap from a clear sky, exploding in the meeting hall.

But it's clear to everyone that this press conference had another deeper meaning—to reveal its hand to Landsea.

Among the four major British trading companies, the personal presence of the leaders of Hutchison International and Wheelock and Company undoubtedly signaled that they had clearly chosen sides and stood shoulder to shoulder with the Dairy Farm Company.

At this point, the two sides are evenly matched, and the outcome of this contest remains uncertain; no one dares to draw any conclusions lightly.

With the dairy company's management's resounding response, investors in the capital market have come to their senses.

Zhou Xinian was not one to compromise easily; what he wanted was not short-term gains, but the long-term survival of the dairy company.

The addition of Hutchison Whampoa and Wheelock further eliminated the possibility of Jardine Matheson acquiring Dairy Farms easily, making this battle destined to be extremely difficult.

Although the details of this press conference have not yet appeared in the next day's newspapers, the news has already spread quietly to every corner of Hong Kong through various channels, as if it had grown legs.

In teahouses, taverns, and the trading hall, the sounds of people discussing this matter could be heard everywhere. Everyone was speculating about the final outcome of this duel between the two heroes.

At this moment, inside a luxurious villa located halfway up Victoria Peak, the lights were on. Henry Joseph stood alone in front of the huge floor-to-ceiling window, overlooking the myriad lights of the homes below.

The night view of Hong Kong was dazzling, but he showed no interest in appreciating it. His deep eyes were filled with contemplation.

A sudden, urgent phone call broke the silence of the room; it was his capable assistant, Niu Bijian, calling.

Henry Joseph slowly picked up the phone, and Niu Bijian's slightly hurried voice came through the receiver, giving a detailed report on the situation at the Milk Company's press conference.

He listened quietly without interrupting, his expression remaining unchanged—no surprise, no anger—as if everything was within his expectations.

After Niu Bijian finished speaking, he slowly said, "Come here now."

After hanging up the phone, Henry Joseph turned around, walked to the wine cabinet, and poured himself a glass of red wine.

Shortly after, the doorbell rang at the villa.

Niu Bijian strode in, walked straight to Henry Joseph, bowed slightly, and said in a deep voice, "Boss, I knew Zhou Xinian wouldn't give up easily. He's been in the Hong Kong business world for so many years, and his pride and tenacity are not so easily broken."

As for Qi Dezun and Ma Deng, they were simply worried that after we acquired the dairy company, Jardine Matheson's strength would further increase, threatening Hutchison Whampoa and Wheelock. Ultimately, it's a struggle for interests.

Henry Joseph simply nodded slightly, a faint smile curving his lips.

He gently swirled the wine in his glass, and the rich aroma of the red wine filled the air.

These situations were actually within his expectations.

If Zhou Xinian had so easily surrendered and obediently handed over control of the Milk Company, he wouldn't be the Zhou Xinian who had led the Milk Company for so many years and enjoyed such a prestigious position in Hong Kong's business world.

Despite the tense situation and increasingly fierce exchanges between the two sides, Henry Joseph's eyes still shone with confidence.

He took a small sip of red wine, the rich flavor spreading in his mouth, and a confident smile appeared on his face.

He understands human nature too well, and he understands the thoughts of those retail shareholders too well.

Those retail shareholders may still be watching, hesitating, and waiting to see what more powerful counterattack Zhou Xinian can come up with.

They're holding onto their shares now because they want the price to rise further, hoping to gain more from this gamble.

Henry Joseph firmly believed that once the stock price was tempting enough, and once the conditions for selling the property were attractive enough, these retail investors would eventually make the choice that best served their own interests.

In the face of absolute self-interest, so-called loyalty and sentiment are nothing but empty talk.

Henry Joseph downed the rest of his red wine in one gulp, his eyes growing ever sharper.

In his view, the balance of this capital game that affects the entire Hong Kong is ultimately in his own hands.

On November 10, 1972, before the morning mist had dissipated in Hong Kong, Zhang Zeyang, in his villa in Repulse Bay, clutched a copy of today's "Eternal Daily News," his eyes fixed on the bold, black "GG" headline on the front page.

Just last night, Dairy Farm Company launched its first major counterattack against Hongkong Land's share swap takeover plan. No one expected that just over ten hours later, this long-established company would unleash an even more ruthless weapon.

On the full page of Google, the announcement from Milk Company clearly stated that the company would launch two major capital operations—first, splitting the existing shares into five shares, and then distributing all the newly split shares as bonus shares, with each share receiving an additional bonus share.

Through this series of operations, what was originally one ordinary share held by the shareholder was transformed into ten shares.

That's not all. The announcement also included a stellar earnings forecast: for 1972, Dairy Farm's net profit after tax was projected to exceed HK$2670 million, a surge of 35 percentage points compared to the same period last year.

The matching dividend plan was even more attractive, with the dividend per share soaring to HK$3, an increase of 67% compared to HK$1.8 in 1971.

At this moment, Zhang Zeyang's mind raced through memories of his past life's domestic stock market.

Whether in Hong Kong or the mainland, the underlying logic of the capital market has always been the same—stock splits and bonus share issues may seem like a numbers game of expanding share capital, but in reality, they are a precise grasp of the psychology of retail investors.

Especially in this era, Hong Kong's stock market is in an unprecedented bull market. Investors are far more sensitive to stock price fluctuations than to the company's fundamentals. Whenever there is news of a stock split or bonus share distribution, it will inevitably attract a frenzy of buying, and the stock price will soar.

The Dairy Farm Company's board of directors made a brilliant move. They aimed to leverage this favorable wind to firmly bind minority shareholders to their cause, thereby resisting Hongkong Land's share swap takeover.

As Zhang Zeyang predicted, Dairy Farm's stock price soared like a rocket from the opening bell, reaching a record high of HK$290 during the day. Even though it fell slightly at the close, it still settled steadily at a high of HK$268.

Looking back at the closing price on October 27, the stock price doubled in just over ten days, a surge that would drive any investor crazy.

Meanwhile, Hongkong Land's share price was also swept up by this frenzied sentiment, soaring to a record high, with a corresponding price-to-earnings ratio reaching an astonishing 98.45 times.

The Hang Seng Index also rose sharply, breaking through the 759-point mark.

Even more astonishing was the trading volume. The total turnover of the four stock exchanges that day exceeded HK$7 million, a figure that would have been unthinkable in the past.

It's worth noting that before this, the highest daily turnover on the Hong Kong stock market was only one or two hundred million Hong Kong dollars.

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