Rebirth of the Hong Kong Millennium Conglomerate

January 1972, 11

In a detached villa deep in the hillside of Victoria Peak, Henry Joseph was reclining on a deckchair on the terrace, a cigar between his fingers, his gaze casually sweeping over the shimmering waves of Victoria Harbour in the distance.

His cashmere bathrobe was soft and thick, making him look lazy and relaxed, but his deep eyes held a sharpness like that of a falcon.

In his mind, the outcome of this "bull market battle" that has stirred up Hong Kong's capital market for months is already decided.

Outside the villa, a bustling crowd had already gathered, with dozens of reporters carrying cameras and microphones, crowding the small space to the point of being impassable.

The flashes of camera lights rose and fell, like a silent drumbeat, striking the final beat of this capital game.

The noisy entrance fell silent as Henry Joseph walked slowly out of the villa.

He straightened his robe, a confident smile on his face, and walked calmly to the front of all the reporters.

"I'm sorry to have kept you waiting."

"Regarding the share swap plan between Hong Kong Land and Dairy Farm, I can tell you definitively that we are confident of success."

As soon as he finished speaking, a collective gasp filled the air, followed by a barrage of questions.

Henry Joseph raised his hand to signal everyone to be quiet, then changed the subject, pointing to the real estate company that Zhou Xinian and Wang Dehui had just established, his tone undisguisedly sarcastic.

"As for the new companies hastily set up by certain individuals, if I may be so bold, Hong Kong Land has never taken them seriously." He raised an eyebrow slightly, his gaze sweeping over the reporters with their varied expressions below the stage.

"Chinachem Properties? Everyone here should know that this company's history is nothing more than developing small, unsavory properties in industrial areas of Kwai Chung, old streets and alleys of Kowloon, and remote, sparsely populated areas of the New Territories."

Had they ever had any experience managing such prime real estate held by the dairy company?

Henry Joseph chuckled, his tone growing increasingly disdainful: "The Milk Company's choice to partner with Chinachem is a complete waste of talent."

What is it but a waste to hand over such good land resources to a group of people who only know how to mess around in the margins?

This decision offers no benefit whatsoever to the dairy company; on the contrary, it will undermine the company's foundation and harm the vital interests of its shareholders.

He paused, his eyes suddenly sharpening, and declared emphatically, "Therefore, this new company is destined to fail."

Xiangjiang Land is completely unconcerned about this. More importantly, we have already gathered enough shares to completely veto this absurd transaction.

The contents of the press conference spread like wildfire throughout Hong Kong.

Major newspapers rushed to feature Henry Joseph's words as their headline, the eye-catching headlines brimming with Hong Kong Land's confidence.

Faced with such blatant ridicule and suppression, Chinachem Group and Dairy Farm did not choose to back down.

On the Huamao side, Wang Dehui and his wife personally took charge and joined this silent battle immediately.

In recent days, major newspapers in Hong Kong have been filled with full-page articles about Chinachem, from the advantages of the cooperation model to the prospects of real estate development, and the promises of benefits to shareholders. The articles are carefully worded and extremely sincere, aiming to make every shareholder of Dairy Farm clear about the value of this cooperation.

The counterattack by the Milk Company's board of directors carried a tragic air of fighting with their backs against the wall.

Their GG battle was extremely tenacious, lasting from the beginning until November 29th.

That is, the day before the share swap deadline set by Xiangjiang Land.

That spirit was as if they were going to fight to the last moment, to use every last bit of strength, with the spirit of "not retreating a single soldier".

At the start of this battle, Zhou Xinian, chairman of the board of directors of Dairy Farm, was not without ambition.

He traveled extensively, trying to win over more allies, believing that with the dairy company's decades-long foundation and reputation, he would surely win the strong support of shareholders large and small.

But when he appeared in the public eye with Wang Dehui and his wife from Chinachem Group, the discerning people in Hong Kong's capital market could see clearly that Zhou Xinian's chances of winning were already extremely slim.

The capital market has always been a battleground for profit-seeking and risk-avoidance, and shareholders are more shrewd than anyone else in their calculations.

With Hong Kong Land's formidable strength on display and Henry Joseph's confidence and control evident to all, many shareholders have already quietly switched sides and sided with Hong Kong Land.

Even so, the board of directors of the Dairy Farm Company did not call it quits.

The newspaper still updates GG daily, but anyone with eyes can see that the passion in those words is being gradually eroded by a sense of powerlessness.

This stubborn persistence gradually faded in the face of the market's indifferent response.

On the morning of November 28, Zhang Zeyang was sitting in the dining room of the villa, leisurely enjoying his breakfast.

On the placemat in front of him lay a newly delivered morning newspaper, the front page of which was a full-page GG published by the board of directors of the Dairy Farm Company.

Judging from this display of force, this must be the last cry from the dairy company in this protracted and drawn-out battle for survival.

Zhang Zeyang put down his chopsticks, picked up his warm coffee, and his gaze fell on the lengthy Google article.

"Although Dairy Farm has a wealth of high-quality real estate resources, its core foundation has always been a food trading company that has been deeply rooted in the Western Pacific region for many years."

GG's opening statement clearly outlines the company's core principles: "Our trading business is managed by a team of experienced and highly successful professionals."

These elite talents have not only brought the company numerous achievements, but have also long ago drawn up a grand blueprint for future development in the Western Pacific region.

The board of directors firmly believes that the energy these key personnel can unleash on an independently operated platform far surpasses that of someone dependent on others in a subsidiary trading department of a real estate company.

This is especially true when the real estate company is only focused on acquiring and seizing absolute control, rather than sincerely seeking cooperation.

Every word in this passage subtly alludes to Hong Kong Land's domineering ambitions, while the words themselves convey a strong sense of perseverance.

GG shifted his tone slightly, softening his words: "We have never had the slightest doubt about Hong Kong Land's capabilities in the real estate development field."

In fact, if Hongkong Land were willing to lower its stance and show sufficient sincerity to formally discuss a joint real estate development plan with Dairy Farm, the board of directors would certainly give it serious consideration.

However, our final decision to partner with Chinachem Group was not made on a whim, but based on three core considerations.

"Firstly, the Dairy Company must retain complete independent operation rights in the food trading business. This is the foundation of our survival and cannot be compromised in any way."

Secondly, Chinachem Group holds only 24.9% of the shares in the new real estate company jointly established by the two parties.

This means that the Dairy Farm Company still maintains absolute control over the allocated real estate resources.

"Thirdly, this is by no means a simple asset sale. Chinachem Group injected HK$1.24 million worth of high-quality properties and sufficient cash into Dairy Farm's asset pool, which effectively increased the company's total asset value."

That is why we are confident enough to give each shareholder new company shares worth approximately HK$17 free of charge, without sacrificing company profits or diminishing asset value.

At the end of GG, a detailed financial calculation was attached, clearly listing the price-to-earnings ratio comparison between Hong Kong Land and Dairy Farm in 1973.

A line of bold black text reads: "The Board of Directors of Dairy Farm Company firmly believes that the intrinsic value of each of our shares far exceeds the combined value of the two shares of Hong Kong Land."

This GG can be considered a complete summary statement from the board of directors of Dairy Farm Company regarding this "Dairy Farming War".

From the initial intention of cooperation to the deeper considerations of rejecting Landlord, their writing is clear and sincere, fully expressing their perseverance and helplessness.

Unfortunately, in the profit-driven wave of the capital market, it ultimately appears somewhat weak.

The board of directors of the Milk Company continued to paint a rosy picture of the company's future in their statements, attempting to revive shareholders' confidence.

But investors have long seen through the tilt of the scales in this game; no matter how appealing the blueprints for the future may be, they cannot sway their own balance of interests.

Zhou Xinian and his board of directors are still putting up a last-ditch effort.

But faced with Henry Joseph's unwavering conviction and the market's indifferent response, this struggle seemed more like a final curtain call.

Tomorrow marks the deadline set by Hong Kong Land for the share swap, and this "bull market battle" that has shaken Hong Kong will finally come to an end.

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