Chapter 202 A Huge Misunderstanding?
"Mr. Lin, everything that happened today has truly made me feel immensely satisfied!" Li Mingze laughed heartily in the office.
Being forced by Jardines Matheson to give up China Gas Company had left Li Mingze extremely resentful.
After all, he had never considered letting go of such a high-quality company.
The dramatic turn of events this morning—Jardines Matheson being repeatedly humiliated—had lifted a huge weight off his chest.
"Honestly, I should be thanking Jardines Matheson. If it weren't for their aggressive attempt to take over China Gas Company, I might never have had the chance to acquire it," Lin Haoran said with a smile.
It was true: Jardines Matheson's aggressive move had given Lin Haoran the perfect opportunity to step in. Otherwise, successfully acquiring China Gas would have been very difficult.
"By the way, Mr. Lin, what did you and Mr. Jamieson discuss? I'm curious," Li Mingze asked, looking directly at Lin Haoran.
There was no need for Lin Haoran to hide anything, and besides, he needed to discuss it with Li Mingze anyway.
So he said straightforwardly, "Mr. Li, Jamieson tried to threaten me, saying that since I control more than 50% of China Gas, I'm obligated to make a full offer under Hong Kong's Takeovers and Mergers Code. He wants me to buy their shares at their inflated acquisition price. Of course, I refused—I'm not going to be the sucker here.
Given that the current high share price is entirely due to Jardines Matheson's aggressive buying, and since our transaction technically hasn't finalized yet—only the contracts have been signed—I was thinking about asking you to temporarily retain about 2.9% of your shares. That way, the total controlled by my companies would be exactly 49.9%, avoiding any issues. Later on, when the time is right, I'll buy your remaining shares. You won't suffer any losses."
Li Mingze held approximately 13.5% of China Gas's shares.
If he retained 2.9%, Lin Haoran's three companies would collectively hold 49.9%, making it impossible for Jardines Matheson to raise regulatory objections.
It was up to Li Mingze to agree.
2.9% might seem small, but at the current HK$800 million market cap, it was worth about HK$23.2 million.
Lin Haoran's proposal technically meant revising their previous agreement, but it all depended on whether Li Mingze minded.
"Alright, I agree," Li Mingze said readily. "But Mr. Lin, if you do plan to buy Jardines Matheson's shares, you should think carefully.
China Gas, as a public utility with monopoly status, occupies an important position in Hong Kong's economy and daily life. If you end up holding over 90% of the shares, you'll basically have no choice but to privatize the company.
And privatizing a public utility here is a serious matter. The government might intervene, citing public interest, and carefully scrutinize or even block the privatization."
Li Mingze, while agreeing, also offered sincere advice.
He was well aware of these issues after so many years at the helm of China Gas.
Besides, from his perspective, maintaining good relations with Lin Haoran was only logical.
Their family still held 2.9% of the shares, and keeping ties strong would only benefit them.
Moreover, he knew that Lin Haoran, this young man, would inevitably become one of Hong Kong's great business giants—he already was.
Li Mingze's quick agreement greatly reassured Lin Haoran.
Otherwise, he would have had to find someone else to hold the shares temporarily, which would have been much more troublesome.
"Thank you for your support, Mr. Li, and for your advice. I'll think carefully about the privatization issue. Let's quickly draft a new share transfer contract to replace the previous one," Lin Haoran said with a smile.
"Good idea. Let's get it done quickly. I imagine news about today's events must already be spreading like wildfire. Mr. Lin, you're going to be even more famous now!" Li Mingze laughed heartily.
"Thank you for your trouble, Mr. Li."
Half an hour later, they had signed a new share transfer agreement.
Under the new contract, Li Mingze retained 2.9% of China Gas's shares, transitioning from a major shareholder to a minor one.
"Mr. Lin, now that everything's settled, I'll take my leave. As you know, I still have many other businesses to manage," Li Mingze said, checking his watch.
"Of course, Mr. Li. I'll arrange payment before this afternoon. Also, your seat on the board of directors will remain," Lin Haoran said, seeing him out.
Li Mingze waved and disappeared down the hallway.
For him, retaining a board seat was not particularly important.
If the company no longer distributed dividends, his remaining shares wouldn't be very significant to the Li family.
Still, he trusted Lin Haoran's promise to eventually buy the shares.
Thus, the Li family's remaining 2.9% stake was merely temporary.
After Li Mingze left, Lin Haoran headed to the meeting where Chen Shoulin and He Zhenxing were gathering the senior management.
The meeting was held on the fifth floor, the same floor as the Chairman's office, for convenience.
As Lin Haoran entered, everyone stood up.
"Let's welcome our new Chairman, Mr. Lin Haoran, with a round of applause!" said General Manager He Zhenxing, starting the applause.
Immediately, the room filled with enthusiastic clapping.
There were over fifty senior and mid-level managers present—those based at headquarters.
In reality, the management structure of China Gas wasn't greatly affected. It was only the ownership that had changed.
Lin Haoran scanned the room, checking everyone's loyalty.
Except for the audit supervisor, everyone's loyalty was at least 70, some reaching into the 80s.
That was acceptable.
Thus, he had no intention of reshuffling the senior management.
As for the untrustworthy audit supervisor, Lin Haoran had already instructed He Zhenxing to investigate.
The cashier, who wasn't part of the senior management, was not present at the meeting.
Investigating those two would be an easy task for the General Manager.
Moreover, He Zhenxing would surely want to prove himself to the new boss.
"Thank you, everyone. I hope we will continue to work together wholeheartedly to manage the company well. That is my biggest expectation," Lin Haoran said with a smile.
"Boss, here's the announcement we prepared. Please review it," said Chen Shoulin, handing him an A4 sheet.
The draft stated that the former major shareholders had sold all their shares to Hong Kong Electric Group, Wan An Group, and Huanyu Investment Company, and that Lin Haoran was now the new Chairman, with Chen Shoulin as Vice Chairman.
"Make a change. I've renegotiated with Mr. Li Mingze. He sold 10.6% of his shares to Wan An Group but retained 2.9% himself. So now, Hong Kong Electric, Wan An, and Huanyu collectively hold 49.9%," Lin Haoran instructed.
"Understood, Boss. I'll revise it immediately," Chen Shoulin said, retrieving the sheet.
After the correction, and with Lin Haoran's approval, the announcement was sent to Oriental Daily, Hong Kong Commercial Daily, Hong Kong Economic Times, and others.
Simultaneously, TVB and ATV received the announcement for broadcast.
By noon, three hours after the morning's farce, everything had changed.
Throughout the morning, Hong Kong citizens had been discussing Jardines Matheson's supposed victory.
Many were disheartened, believing that another great Chinese enterprise had fallen to the British.
Yet at noon, during TVB's lunchtime news, a stunning announcement shocked everyone.
"Breaking news! Just ten minutes ago, China Gas Company issued an official announcement to our station: former Chairman Mr. Li Mingze has officially resigned. Mr. Lin Haoran, Chairman of Hong Kong Electric Group, will assume the position!"
The news, broadcast across countless Hong Kong television screens, stunned the public.
"What? I thought Jardines Matheson acquired China Gas?"
"A complete reversal? Jardines Matheson made a huge mistake?"
"China Gas isn't being bought by the British after all—this is wonderful!"
"Now Jardines Matheson looks like a fool. I really thought they had taken over China Gas!"
"Mr. Lin Haoran did an amazing job. I've been frustrated all morning, but now I can finally smile!"
"Exactly. I've always supported the rise of Chinese enterprises. I can't stand those foreigners who look down on us. I was even considering replacing my gas heater with an electric one—but now I'll proudly keep it!"
...
In an instant, all of Hong Kong was abuzz with this sudden and dramatic turn of events.
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