Chapter 218: The Zhongba Acquisition War (Part 2)
"Hang Seng Bank?" Yang Wendong frowned slightly after hearing Zheng Zhijie's report and said, "Liu Chong Hing Bank just barely escaped collapse due to a bank run. I'd expect all Chinese banks in Hong Kong to be more conservative during this period."
Wang Lianhua, who was overseeing the acquisition from Standard Chartered, added, "Mr. Yang Wendong, Chinese banks will indeed be more cautious than before. But the shares held by Yan Chengkun are now worth close to HK$10 million. Even if the current valuation is partly due to our acquisition activity, Zhongba is still a fundamentally sound company. Pledging those shares to a bank could easily secure a HK$3–4 million loan. The risk isn't high.
The only issue is that in a situation like this, banks will apply a heavy discount to short-term emergency loans."
Yang Wendong nodded. "So Hang Seng Bank is really willing to support Yan Chengkun?"
Emergency loans come with steep conditions. Even when he arranged loans to buy up Liu Chong Hing's properties, Yang Wendong had to negotiate with HSBC and Standard Chartered over a month in advance.
Wang Lianhua replied, "I've heard that Mr. Ho Sin Hang of Hang Seng Bank and Yan Chengkun have a long-standing personal relationship. Supposedly, they did business together in their younger years.
I don't know the current status of their relationship, but if Yan Chengkun dared to bring it up, it probably still holds weight."
"Zheng Zhijie, arrange a meeting with Mr. Ho Sin Hang for me," Yang Wendong said after a moment of thought.
"Understood," Zheng Zhijie nodded, then asked, "Mr. Yang Wendong, are you planning to persuade Mr. Ho not to get involved?"
Yang Wendong nodded. "Yes. We're only short about 3% of the stock. Even if it came down to a bidding war and the stock price doubled, I could afford to pay a few million more to win. But it's better to avoid unnecessary losses.
Also, if Hang Seng really supports Yan Chengkun, our showdown between major shareholders could drag on and end up harming Zhongba's operations."
Technically, the stock market and company operations were separate. But in reality, that wasn't the case—there would definitely be ripple effects.
A clean takeover had to be fast and decisive. If dragged out, Yan Chengkun might still have time to lay traps before his fall.
"I'll arrange it right away," Zheng Zhijie said.
...
That evening, Yang Wendong met Ho Sin Hang at a private suite in a high-end hotel.
"Mr. Yang Wendong, long time no see," Ho Sin Hang said with a warm handshake. "I heard you recently became a father—congratulations! With such a massive company like Changxing Group, now you have a successor."
"Thank you," Yang Wendong smiled.
In a company of Changxing's scale, having no heir was dangerous—having only one wasn't very secure either.
They sat down and exchanged a few pleasantries before Ho Sin Hang asked, "Mr. Yang Wendong, why did you ask to meet today? Are you looking for a new loan for a major project?"
At their level, normal business didn't require personal involvement. Over the years, Hang Seng had collaborated with Changxing multiple times, and Ho Sin Hang had always admired Yang Wendong's potential.
Previously, however, Changxing had prioritized Liu Chong Hing Bank for its aggressive lending terms. Many Chinese banks, including Hang Seng, had tried to win the business but failed.
Now that Liu Chong Hing was effectively dead and Yang Wendong had requested a personal meeting, he assumed there was a significant new project on the table—and perhaps even a long-term partnership.
Yang Wendong smiled and said, "If I need financing in the future, I'll definitely consider Hang Seng first.
But today's meeting isn't about that. I'm here with a small favor to ask."
"Please, go ahead," Ho Sin Hang replied, somewhat puzzled.
Yang Wendong continued, "The unusual activity in Zhongba's stock these past few days? It's due to a large-scale acquisition. I've heard that Hang Seng is preparing to fully support the current chairman, Mr. Yan Chengkun?"
"Mr. Yang Wendong? You're the one behind this?" Ho Sin Hang's face changed slightly, startled.
Many investors were already aware of the takeover attempt. That Yang Wendong knew wasn't surprising.
But the decision to help Yan Chengkun had only been made a few hours ago. Even within Hang Seng Bank, very few people knew. That Yang Wendong had found out so quickly—he had to be directly involved.
"It's not exactly me," Yang Wendong smiled. "I'm just helping the Huang family reclaim what's rightfully theirs. We're now in the final stages. I don't want this to become a conflict between us and Hang Seng—it would only result in losses for everyone."
"How much stock do you have now?" Ho Sin Hang asked with a furrowed brow.
He'd previously discussed this with Yan Chengkun and concluded that Huang Yaonan must be involved. Huang's stake was around 24%. The Yan family held about 35%. Without Huang, no acquisition was possible.
He hadn't expected that the man behind it all would be the most promising young tycoon in Hong Kong—Yang Wendong.
Yang Wendong smiled. "I currently hold around 22.5%. Combined with Huang Yaonan's stake, we're short just 3 to 3.5%. That's all."
"Impressive, Mr. Yang Wendong," Ho Sin Hang said, genuinely surprised. "That means you've basically succeeded."
"Not quite. Unless we hold 50.1%, even a 0.2% shortfall means failure," Yang Wendong shook his head. "There are too many uncertainties—like Hang Seng suddenly stepping in to help the Yan family. If not, I wouldn't have rushed to meet you."
"Hahaha!" Ho Sin Hang nodded. "You're certainly cautious, Mr. Yang Wendong. But my relationship with Yan Chengkun makes this complicated..."
"I understand," Yang Wendong nodded. "We should always respect our old friends. But Mr. Ho, if you loan him a few million and he uses that money to wage war against us in the market, you know my financial strength.
What happens if he loses it all? How will you recover that loan?"
"That's..." Ho Sin Hang hesitated.
Everyone in Hong Kong's elite business circle knew of Yang Wendong's financial power. Among the Chinese, he was already at the top.
His acquisition of seven buildings from Liu Chong Hing Bank, the launch of a shipping company, the construction of the Ten-Thousand-Person Industrial Park—each was headline-worthy.
Yan Chengkun was also a prominent figure, but compared to Yang Wendong, he was clearly outmatched.
Yang Wendong continued, "Mr. Ho, I don't want us all to suffer. Here's a better solution—you act as a neutral party. Convince the Yan family to sell us their shares. I'll offer a very generous price.
That way, the Yan family walks away with a profit, I achieve my goal, and Hang Seng avoids any potential bad debt. We might even strengthen our future cooperation. How about it?"
The most successful corporate takeovers were friendly acquisitions. Even if they didn't start that way, ending without bloodshed was always the best outcome.
Ho Sin Hang nodded thoughtfully. "Alright, I'll pass on the message. But whether they'll agree—I can't say."
"If that's how it is, then we'll settle this on the open market," Yang Wendong said casually. "Mr. Ho Sin Hang, you can also lend your support to whoever you want. At worst, I'll throw in a few million more. That's nothing to me."
He had already shown respect—if the other party didn't appreciate it, then he would show them what financial firepower looked like.
"Very well," Ho Sin Hang responded.
That same night, at the top floor of Hang Seng Bank's headquarters, 22 stories above Central—
"No. I absolutely refuse!" Yan Chengkun said through gritted teeth, his face ashen. "I'd rather go bankrupt than lose my family's legacy!"
Ho Sin Hang sighed. "Mr. Yan, sometimes effort alone doesn't bring success. You cannot win against Yang Wendong's financial strength.
He acquired seven commercial buildings from Liu Chong Hing Bank—worth over HK$20 million. Even though part of that was financed, the fact that HSBC would lend him that much speaks volumes about his strength."
"What kind of agreement does he have with Huang Yaonan? Do you know?" Yan Chengkun slowly calmed down. He needed to find a solution. Fighting head-on was hopeless.
"I don't know," Ho Sin Hang replied honestly, then added slyly, "You're not thinking of driving a wedge between them, are you?"
"Everyone is driven by profit. Yang Wendong couldn't possibly be helping Huang Yaonan for free. Whatever the Huang family offered him, my Yan family can offer too," Yan Chengkun said.
"That's an interesting thought," Ho Sin Hang smiled. "I think it's unlikely, but it's worth trying. How about this—I'll arrange a meeting with Yang Wendong tomorrow. The three of us can talk it through."
"Alright," Yan Chengkun nodded.
...
The Next Day, Hang Seng Bank Headquarters
Yang Wendong finally met face to face with his "opponent," Yan Chengkun.
"Mr. Yan, I've heard a lot about you," Yang Wendong said with a polite smile. Basic courtesy still applied.
Yan Chengkun felt bitter inside, but with Ho Sin Hang present, he had no choice but to return the pleasantry. "Not at all. Compared to the Post-it King, I'm nothing."
"Haha, gentlemen, there's no need to be so tense," Ho Sin Hang interjected with a chuckle. "Let's sit."
Though the words were cordial, the tone was anything but.
Out of respect for Ho Sin Hang, Yang Wendong took his seat.
Yan Chengkun said bluntly, "Mr. Yang, if you're interested in investing in Zhongba, you're more than welcome. But I don't understand—why would someone with no experience in running a bus company launch a takeover?"
Yang Wendong shrugged. "This stock market acquisition is actually Mr. Huang Yaonan's initiative. I'm merely supporting him.
After the acquisition, the Huang family will manage Zhongba. I'll just be a financial investor."
That wasn't a lie. He had no intention of personally managing a bus company. As long as Zhongba could support his broader urban infrastructure and real estate plans, that was enough.
Public transport could benefit not only his commercial property values but also the service industries he planned to enter.
Yan Chengkun frowned.
Ho Sin Hang cut in. "Mr. Yang, I don't know what agreement you've made with Huang Yaonan, but I believe the Yan family can offer the same terms.
In terms of management expertise and political connections, Mr. Yan far surpasses Mr. Huang."
"You flatter me," Yang Wendong replied calmly, now fully aware of their real intention. "But I don't betray my partners. That's a matter of principle."
No matter how powerful Yang Wendong became in Hong Kong, he knew he couldn't do everything alone. Many future ventures would require strategic partnerships—just like the Four Great Families of the past had cooperated with each other and foreign business groups.
Betraying a partner for short-term gain would only bring ruin. Even if no one found out, Yang Wendong would never stoop to that level.
His long-term targets were the British conglomerates. If no one was willing to work with him, acquiring those would become infinitely harder.
Yan Chengkun asked, "Mr. Yang, is there really no room to negotiate?"
Yang Wendong thought for a moment and replied, "You can keep a portion of your shares as family legacy. I'm even willing to let you retain most of them. I can promise that.
As for management control, that's between your family and Mr. Huang's. If you can convince him, I won't interfere."
In Hong Kong, many company laws followed British commonwealth practices. For example, a public company's largest shareholder could only hold up to 49.9%.
So Yang Wendong didn't need every share from the Yan family. He only needed enough to reach 49% for effective control.
Ho Sin Hang frowned but said nothing. This wasn't something he could force.
Yan Chengkun's face was dark. "Fine. Then we'll settle this in the stock market."
Back at his own office, Yang Wendong told Wang Lianhua, "Announce our acquisition of Zhongba. Raise the offer by 20% and start open-market purchases immediately."
"Understood," Wang Lianhua said. Negotiations had clearly failed.
Yang Wendong then turned to Zheng Zhijie. "Old Zheng, Zhongba is a regulated business. Go speak to the officials at the Transportation Department. Let them know that our acquisition will not disrupt normal bus service."
"Yes, Mr. Yang Wendong," Zheng Zhijie replied.
"That's it, then. Let's finish this within the next few days," Yang Wendong said, tapping the table lightly.
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