Chapter 166: Acquisition Target, Buying a Building
Lin Haoran continued reading the document in his hands. The data was based on the stock market closing figures from the previous day. "So right now, I even have the strength to acquire Jardine Matheson?" Lin Haoran's eyes lit up. But after thinking for a moment, he shook his head. Jardine Matheson was the lifeline of the British financial groups in Hong Kong; most likely, he would not be able to succeed in acquiring it. Currently, Lin Haoran only had money but not enough influence. The British financial groups behind Jardine were very united, and it would be extremely difficult to acquire Jardine quietly; money alone wouldn't be enough to seize control. Besides, Jardine Matheson held a special status among the British financial groups and had even been called "the King of Trading Houses."
On the other hand, Land Holdings, just like Wheelock & Co. which was seized by Pao Yue-Kong, was only a real estate company under Jardine Matheson's control. If Pao Yue-Kong could take Wheelock, Lin Haoran could certainly take Land Holdings. Moreover, Jardine Matheson and its subsidiary Jardine Securities only held about 20% of Land Holdings' shares. Perhaps he could start with Land Holdings first.
Although Land Holdings had a high market value, Lin Haoran only needed to control 30% of its shares to have a high probability of taking over. At its current valuation, 30% would cost a little over HK$2 billion. More importantly, in Lin Haoran's eyes, Land Holdings was more valuable than Jardine Matheson. Jardine was optional; Land Holdings was a must.
Land Holdings owned most of the important commercial properties in Central: the Landmark, Prince's Building, Alexandra House, Gloucester Tower, and more. Beyond Central, Land Holdings continued expanding in Causeway Bay, Tsim Sha Tsui, Wan Chai — all the prime commercial areas in Hong Kong, with numerous office towers and hotels under its name. For instance, the tallest building in Hong Kong at the time, Gloucester Tower, also belonged to Land Holdings. These properties were worth astronomical sums; even if the price were HK$20 billion, it would still be worth acquiring. Taking Land Holdings would mean taking control of these prime properties.
Jardine Matheson, by contrast, had long shifted its focus to overseas investments. Its overseas assets already exceeded its Hong Kong assets, establishing strong international trade capabilities. However, controlling trade channels wasn't something Lin Haoran could simply acquire by taking over Jardine. Even if he managed to seize Jardine Matheson, there was a good chance he would only be left with an empty Hong Kong shell, while the real value remained firmly in British hands.
Land Holdings, however, was different. Most of its assets were firmly located in Hong Kong, and its overseas investments — in places like Singapore, Manila, Bangkok — were primarily tangible fixed assets like hotels and office buildings, all with clear property rights. Thus, taking Land Holdings was Lin Haoran's real goal; Jardine Matheson was secondary.
If it really only took HK$2 to 3 billion to control Land Holdings, Lin Haoran could definitely afford it. It would be a tremendous bargain if it worked. But he also knew that soon, the market value of these British and Chinese enterprises would keep rising. In another two or three years, companies valued at over HK$10 billion would become common.
Therefore, with stock prices still low, now was the perfect time to make a move on Land Holdings.
In addition, Lin Haoran was aware of something else. Because Wheelock had been forcibly seized by Pao Yue-Kong, Jardine Matheson's taipan, Percy Niblett, was deeply worried that Jardine and Land Holdings would both become targets for Chinese conglomerates. In response to the crisis, Niblett planned a series of measures to strengthen their control over Jardine and Land Holdings, primarily through a cross-shareholding strategy. This would be implemented at the end of the year. By then, Jardine would hold 40% of Land Holdings, and Land Holdings would hold 38% of Jardine.
If this cross-shareholding strategy succeeded and Lin Haoran had not secured Land Holdings beforehand, his opportunity would be lost. Of course, even if he failed this time, there would still be future chances. As long as he secretly accumulated enough shares without revealing it, the other side wouldn't know. In the future, Li Jiacheng and other Chinese tycoons tried repeatedly to acquire Land Holdings but ultimately failed. Li Jiacheng came close during the next major market crash but eventually gave up, unwilling to pay the previously agreed price. Missing that chance, the Chinese conglomerates never got another shot; Land Holdings remained under Jardine's control.
"Maybe I can simultaneously acquire shares of both Jardine Matheson and Land Holdings," Lin Haoran thought. "If I can't control Jardine in the end, I can at least use my Jardine shares to pressure their leadership into handing over Land Holdings."
Either way, holding shares in these two giants would never be a loss. Currently, one was worth over HK$4 billion, the other over HK$7 billion. By the end of the year, both valuations would likely rise significantly. Besides, Lin Haoran could also use Hongkong Electric Holdings to plan his acquisition strategy for Land Holdings.
At this moment, a rough plan for targeting Jardine Matheson and Land Holdings was forming in Lin Haoran's mind.
"Zhixue, note this down, but no one else must know. When we start accumulating shares, operations must be split, and even the traders must not know which companies we're targeting or to what extent. Only you and I should know. I trust you deeply, so your responsibility will be enormous from now on. Understand?" Lin Haoran said seriously to Su Zhixue.
Su Zhixue immediately pulled out a notebook and a pen, nodding firmly. "Boss, rest assured. I understand the gravity of the situation and will ensure absolute confidentiality!"
Everyone knew that investing tens of billions of Hong Kong dollars was a massive deal. If word leaked, it would be catastrophic.
"From now on, your primary task is to work on the share acquisition plans for Jardine Matheson, Land Holdings, Towngas, and Kowloon Motor Bus. For the latter three, our target is about 30% ownership in each company. You don't need to worry about funding. As for Jardine, acquire as much as you can without overreaching. Especially for Land Holdings, I want you to secure over 20% of the shares within six months. This is crucial to my future plans. As for other requirements, stick to our usual protocols: maintain the utmost caution and secrecy. Our moves must remain undetected to avoid alarming the enemy," Lin Haoran continued.
"Boss, you're really planning to acquire Jardine Matheson and Land Holdings?" Su Zhixue was utterly shocked. Towngas and Kowloon Motor Bus didn't surprise him much, but Jardine and Land Holdings were entirely different. They were two of Hong Kong's top enterprises, even more prestigious than Hongkong Electric Holdings. Hearing that his boss now aimed to acquire these giants, Su Zhixue's face was full of disbelief.
Who would have thought that just over a year ago, Lin Haoran was cautiously working to acquire Qingzhou Cement? In such a short time, not only had he successfully taken over Qingzhou Cement and Hongkong Electric, but now he was directly aiming at Land Holdings and Jardine Matheson. It was simply incredible.
"Yes, that's the plan. Whether we succeed depends on how well you execute the acquisition. Your mission will be tough, but I expect you not to disappoint me. For every successful acquisition, you will receive a handsome reward. Work hard!" Lin Haoran patted Su Zhixue's shoulder solemnly.
"Understood, Boss! I know what to do. Although the task is difficult, I will not let you down. I will immediately start assembling a new team. Based on our current workload, we'll need around 30 to 50 traders," Su Zhixue said seriously.
"Handle it as you see fit. Just ensure that our intentions aren't leaked. Screen every hire carefully — character is critical. After the team is assembled, I will personally vet them to ensure no one unsuitable is included," Lin Haoran instructed.
His vetting method was simple — he would use the loyalty meter. Anyone whose loyalty didn't meet the standard would not be hired. If their secret plans leaked, the difficulty of future acquisitions would skyrocket.
"Understood, Boss!"
"Prepare well. Once the team is ready, let me know. The current team can quietly start accumulating Land Holdings shares. As for the other three companies, wait until the new team is in place before proceeding," Lin Haoran added.
After issuing his instructions, Lin Haoran left Huanyu Investment and Wan'an Group's buildings. He had entrusted the tasks to his teams and would be notified once they made progress.
After leaving, Lin Haoran first visited Citibank's Hong Kong branch to transfer HK$200 million into Wan'an Group's corporate account. Then he returned to Hongkong Electric Holdings' headquarters. It was already past 2 PM.
Since Lin Haoran took over Hongkong Electric, the company's daily operations hadn't changed significantly. Essentially, the company simply had a new owner, while all strategic plans continued as before.
"Boss, tomorrow I'm scheduled to visit Lamma Island to inspect the progress on the new power plant construction. Would you like to come along?" Chen Shoulin asked when Lin Haoran walked into the office.
Currently, electricity on Hong Kong Island was supplied by the Ap Lei Chau power plant, which had been operating since 1968. However, with Hong Kong Island's rapid growth, the Ap Lei Chau facility was no longer sufficient. Thus, two years ago, Hongkong Electric started planning the construction of a new, larger power plant at Po Lo Tsui on Lamma Island, which was now under intense construction and expected to be operational by 1982.
The Lamma Island Po Lo Tsui power station? Lin Haoran immediately asked, "What time tomorrow?"
"10 AM," Chen Shoulin replied. "Once I finish arranging a few matters here, we'll depart."
"Good, I'll come by tomorrow morning and we'll go together," Lin Haoran said.
After all, this would be one of Hongkong Electric's most critical assets for decades. He definitely needed to inspect it personally.
"By the way, Mr. Chen, I'm planning to purchase a commercial building near Central. Have you heard of any buildings currently for sale?" Lin Haoran asked suddenly.
He already had plans for Huanyu Investment's expansion — it was time to get a much larger headquarters. Continuing to squeeze into a small office inside Wan'an Group wasn't appropriate anymore. Moreover, it was only early 1980, far from the peak of the real estate boom. Even if the future market correction came, prices wouldn't fall below current levels. Buying a commercial building now would be very cost-effective.
He had long wanted to buy a building in Central. Until now, lack of capital had stopped him. Now that he had sufficient funds, it was time to act. A year later, property values would likely double. No matter how you looked at it, it was a smart investment.
Friends, if you enjoyed the novel, you can subscribe to my Patreon channel.
Until November 30th, get 40% off your subscription and the purchase of the novel.
Read 30 Chapters In Advance: patreon.com/Albino1