Chapter 120 - The Conditions for Closing the Deal
"I'm sorry, but I'm completely uninterested in your proposal. To me, 5 Hong Kong dollars per share is completely beyond my acceptable range. Before coming to the company, I already learned that there are a large number of Qingzhou Cement Company shares listed on the stock market for less than 4 Hong Kong dollars, some even as low as 3.5 or 3.4 Hong Kong dollars. If I want to buy, I'd rather buy those shares. There's no need to purchase from you!" Lin Haoran said bluntly.
When shares on the market were priced at just over 3 Hong Kong dollars, on what basis were they asking 5?
Facing Lin Haoran's direct rebuttal, the shareholders did not show much anger.
They had already anticipated that the price negotiations would not go smoothly.
"Then, Mr. Lin, what price do you consider reasonable?" Henry asked on behalf of the shareholders. They were prepared to adjust their strategy based on Lin Haoran's response.
"Currently, just the amount of Qingzhou Cement shares listed at 3.5 Hong Kong dollars exceeds one million shares — and no one is buying them.
Given this market situation, I propose acquiring your shares at 3.5 Hong Kong dollars per share.
This price is fair.
And before you get angry, consider: in this sluggish secondary market, I believe you'll find it very difficult to find any other buyer besides me."
"Of course, if you find this price unacceptable, we can simply maintain the status quo — remain colleagues in the company and continue working together to develop Qingzhou Cement," Lin Haoran said, feigning disinterest in the privatization plan.
He then shifted tone, painting a grand vision for the company:
"I'm very confident about Qingzhou Cement's future.
Our cement products are in hot demand — supply is struggling to keep up.
Thus, I plan to invest twenty to thirty million Hong Kong dollars over the next three years to expand production by building more cement plants.
Imagine — from the New Territories to Yuen Long, to Tuen Mun, and across Hong Kong Island — our cement plants everywhere."
"This expansion will greatly boost our production capacity and market share, bringing unprecedented profit growth.
I've already asked General Manager Burton to prepare a detailed investment plan.
Once completed, I'll share it with everyone."
Such a naive investment plan was, of course, meant to disgust them.
The key was, Lin Haoran's controlling influence over Qingzhou Cement Company was undeniable.
If he truly took an aggressive approach, these shareholders could hardly stop him.
Lin Haoran's idea was simple — make them feel so sickened that they wouldn't want to hold onto their shares any longer!
Upon hearing this, the shareholders looked at each other in shock.
They suspected that Lin Haoran might be bluffing.
Even if he were foolish enough to want to build endless cement plants, General Manager Burton would surely advise him against it — everyone knew the market would become saturated.
But still, Lin Haoran's words chilled their hearts, pushing them to seriously consider selling.
The risk of dancing with a controlling shareholder willing to bet the company's future was just too high.
Moreover, Lin Haoran was telling the truth about the secondary market —
massive listings below 4 Hong Kong dollars were dominating the landscape.
Even so, the shareholders obviously didn't want to accept 3.5 Hong Kong dollars easily.
Clearly, the real negotiation had only just begun.
"Mr. Lin, your offer is really difficult for us to accept.
How about we each take a step back and set the transaction price at 4.5 Hong Kong dollars per share?
This is already a very sincere offer — even lower than your earlier acquisition average cost.
We believe this is a win-win solution," Henry said sincerely, trying to strike a compromise.
"Given that," Lin Haoran said, "let's put the privatization discussion on hold for now.
Personally, I'm not currently keen on pushing for privatization.
Since I'm now chairman of Qingzhou Cement, my priority should be optimizing management, not rushing to change ownership structure.
Steady development is key."
"Speaking of development, I actually have many ideas about Qingzhou Cement's future.
Although I haven't been at the company much recently, I've thought a lot about ways to make Qingzhou Cement a model enterprise in Hong Kong and in the industry!" Lin Haoran said passionately.
Obviously, he was making it clear that he was not interested in the 4.5 Hong Kong dollar offer.
At that moment, another British shareholder spoke up:
"Mr. Henry, I think 4 Hong Kong dollars per share is more reasonable.
The market conditions are what they are — we must be realistic."
"Yes, although dropping 0.5 Hong Kong dollars will cause us some loss,
in the long term, being able to sell is the most important thing."
"I still support Mr. Henry's 4.5-dollar proposal.
That's the best compromise we can offer," another insisted.
"True.
It's clear Mr. Lin isn't interested in 4.5 dollars.
If we keep insisting, it's pointless.
Today our goal is simple: reach a mutually acceptable deal," another said.
Inside the meeting room, opinions were divided, and the atmosphere grew tense.
Lin Haoran watched coldly, clearly noticing the emerging rift among them.
He remained calm, waiting patiently.
"Mr. Lin, we need a bit of time to discuss among ourselves.
Could you give us ten minutes?" Henry, as the largest shareholder among them, asked politely.
"Of course. Take your time," Lin Haoran replied lightly, feeling confident about the outcome.
He already knew their willingness to sell was strong —
as long as the price was reasonable, the deal was just a matter of time.
Lin Haoran stood up, left the conference room, and returned to his office.
Looking out through the large glass window, he gazed at the busy factory yard below.
Even though the newly acquired and renovated cement plant in Luzon had relieved the burden on the Hung Hom plant in supplying the Philippines, Hung Hom still bore the heavy responsibility of supplying Hong Kong and Macau, with daily demand remaining high.
Clearly, infrastructure was a highly profitable business.
Ten minutes later, Lin Haoran returned to the conference room.
Everyone sat very quietly —
obviously, they had finished discussing and reached a consensus.
"Mr. Lin, we've discussed it.
We agree to sell at 4 Hong Kong dollars per share," Henry said on behalf of everyone.
"Uh, Mr. Henry, I think there's been a misunderstanding.
I never said I would buy your shares at 4 Hong Kong dollars per share," Lin Haoran said, shaking his head.
Indeed, he had never explicitly agreed to buy at that price.
They just assumed he had accepted.
In fact, Lin Haoran had accepted it in his heart —
but saying 3.5 Hong Kong dollars earlier was a tactic to push the price lower.
4 Hong Kong dollars was already his target price —
an extremely favorable price for him.
Moreover, he had other conditions.
Selling at 4 Hong Kong dollars would cause these shareholders significant losses —
they could have sold for 5 dollars yesterday but didn't.
Now, they were willingly offering 4.
Previously, former chairman Harry Centurion had been forced to sell at a similar price to cover up past financial secrets.
Now these British shareholders, who dared to report him behind his back,
were getting their punishment.
"If we can't even get 4 dollars, I'd rather keep my shares.
Although I'd prefer to cash out, there must be a bottom line," a shareholder said stubbornly.
"Exactly.
4 dollars is already very sincere," another grumbled.
They hadn't expected Lin Haoran to be so difficult.
They thought he was just a proud young man —
if they pressured him together, he would surely fold.
Unexpectedly, he was slippery as an eel — refusing to budge no matter how they pressed.
Just as the atmosphere was about to become deadlocked, Lin Haoran shifted tone:
"However, the price of 4 Hong Kong dollars per share isn't impossible.
My funds are indeed sufficient to buy all of your shares."
"But before that, I have one condition.
If you can meet it, I will buy all your shares at 4 dollars per share."
Hearing this, hope rekindled in the shareholders' eyes.
They all turned eagerly to Lin Haoran.
"Mr. Lin, please tell us your condition.
As long as it's within our ability, we will fully cooperate," Henry promised, and the others nodded.
"My condition is simple.
You should already know that during recent media interviews, I publicly stated that I don't have the capability to privatize Qingzhou Cement right now."
"Therefore, if I suddenly buy all your shares and initiate privatization,
it would create serious public doubt —
even accusations of market manipulation,
bringing legal risks I absolutely do not want."
He continued:
"The whole fiasco was triggered not by me but by your complaint letter.
I was dragged into it unwillingly."
"If I act now, it would contradict my previous public statements and provide ammunition for regulatory agencies."
"So, my condition is that you must help me resolve this potential public relations and legal issue."
"If you can do that —
not only will this share transfer go smoothly,
but I will also proceed with privatization ahead of schedule."
Lin Haoran's demand was simple:
help him clear the public perception,
then the deal would go through.
"Mr. Lin, I must admit —
we hadn't considered the trouble this could cause you.
But please rest assured, we can solve this," Henry immediately said.
Indeed, it wasn't difficult —
as long as they collectively clarified that Lin Haoran's decision was purely circumstantial,
no accusations of manipulation could stick.
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 20 Chapters In Advance: patreon.com/Albino1