Chapter 136: Lin Haoning's Frankness
After arranging for Su Zhixue to lead the team in handling the operations, Lin Haoran went to Citibank, exchanged the 40 million US dollars into Hong Kong dollars, approximately 212 million HKD, and then transferred the funds to his HSBC account.
His Hong Kong Stock Exchange account was linked to an HSBC bank account, and all transactions were settled through that account.
With this sum of money, Su Zhixue's operations in the short term would be more than enough to keep Universal Investment Company operating for quite a long time.
Looking at the time, it was already past three in the afternoon, so Lin Haoran simply went straight back to the Deep Water Bay villa.
“Hmm, Haoran, why are you home so early today? Don't you usually not show up until six or seven in the evening?” Lin Wan'an was holding a watering can and watering the flowers and plants in the courtyard when he saw Lin Haoran return early, and an expression of surprise immediately appeared on his face.
Although these daily chores were usually handled by the servants, ever since retiring from Wan'an Group, Lin Wan'an had come to enjoy the pleasure of doing things himself. It allowed him to exercise his muscles and bones while also enjoying a moment of tranquility, which could be considered part of his recuperation.
“Dad, there wasn't much going on at the company today, so I came back early. Actually, I came back because there's something I'd like to ask for your help with.” Lin Haoran smiled as he approached, took the watering can from his father's hand, and continued watering.
“You're my son, why are you being so polite with me? Just say what you need to say, don't beat around the bush.” Lin Wan'an pretended to scold him, but his eyes were full of affection.
“Dad, I want to discuss something with you. I'm planning to buy the 10% stake in Wan'an Group that Big Brother holds.” Lin Haoran got straight to the point.
“Oh? That portion of shares doesn't affect your actual control over Wan'an, so why did you suddenly think of buying it?” Lin Wan'an asked curiously.
To Lin Wan'an, whether it was Lin Haoning or Lin Haoran, both were his sons, so it made no difference which of them held shares in Wan'an Group.
“Dad, my idea is to completely privatize Wan'an Group. As a listed company, the benefits it brings are limited, while it instead makes me feel constrained in all sorts of ways. It would be better to privatize it directly, so I can plan the group's development more freely.
Of course, besides Big Brother's shares, I also hope that through you, I can talk to the other shareholders at the shareholders' meeting and see whether I can acquire their shares as well.” Lin Haoran explained seriously.
In Wan'an Group, besides the Lin family, which held absolute influence as the largest shareholder, there were also several shareholders who held substantial stakes.
However, because they lacked actual decision-making power within the group, they often chose not to participate directly in the group's affairs, including board meetings, where their participation was merely formal.
It could be said that Wan'an Group was effectively under the Lin family's sole control.
Given that Wan'an Group's current financial condition was sound and it had no need to rely on external financing, there was no longer any need to maintain its listed status, much less have others share the risks.
Moreover, Lin Haoran was full of confidence in the group's future development.
Wan'an Group currently had no need to worry about the risk of an external hostile takeover, but as a listed company, it had to regularly disclose operational information, which increased the risk of the group's business secrets being leaked to some extent.
Especially as the value of the group's properties, land, and other assets continued to rise, rather than let small shareholders with relatively small stakes share in these gains, Lin Haoran preferred to maximize his own interests through privatization.
Therefore, to Lin Haoran, keeping Wan'an Group listed was not only of no benefit, but might instead become a burden hindering the group's development.
At present, Wan'an Group's market capitalization was relatively low, only about 170 million HKD.
Moreover, Lin Haoran already held 49.99% of the group's shares. Based on the current stock market price, he would only need approximately 85 million HKD to acquire the remaining shares and completely privatize Wan'an Group.
And Wan'an Group's true value was far more than its total market capitalization of 170 million. He also held the high-quality plots of land he had previously purchased for 130 million HKD, as well as the commercial building in North Point that was nearing completion.
By early 1981, the value of these assets would rise sharply: the total value of those dozen or so plots of land was expected to reach more than 300 million or even over 400 million HKD; meanwhile, the commercial building under construction in North Point had equally enormous appreciation potential, and increasing in value to 200 million HKD would be no difficult feat.
Moreover, the Wan'an Group Building itself was a treasure.
Located in a prime area of Causeway Bay, although slightly inferior to Central and not particularly tall, it likewise possessed extremely high commercial value.
By then, if the Wan'an Group Building were sold, its value could very likely exceed 400 million HKD.
At that point, if all of Wan'an Group's saleable properties were liquidated, their total value by early 1981 would easily exceed one billion HKD.
The frenzied rise of Hong Kong's real estate market in recent years was by no means undeserved, and its prosperity was plain for all to see.
Even after repaying the 130 million HKD HSBC loan and interest by then, there would still be more than 800 million HKD left.
When Hong Kong's property market crashed in 1982, he could then buy the building back at a low price, and by selling and buying it back, he could make several hundred million for nothing.
That would bring in money much faster than spending time running a business.
“Privatize Wan'an Group? Good, I fully support you. I'll contact those shareholders right away. But as for your Big Brother, don't you plan to talk to him yourself?” Lin Wan'an asked with a smile.
For Lin Wan'an, there was indeed nothing wrong with privatizing the group.
When he had originally chosen to list Wan'an Group, besides raising funds for its initial development, the more important reason was that he hoped to share the risks with the shareholders and reduce the risks the group brought upon himself.
Having experienced multiple real estate crises, he understood the importance of acting cautiously and was unwilling to bear all the risks alone.
Now, Wan'an Group no longer needed external financing, and his son's management philosophy was vastly different from his own.
So Lin Wan'an was open to the idea and had no intention of interfering. Instead, he was willing to let his son manage and develop the group in his own way.
Therefore, he gave his full support and understanding to the decision to privatize it.
“Okay, Dad, as for Big Brother, you should contact him. Also, if those shareholders try to raise the price while taking advantage of the situation, tell them that I've already mortgaged the Wan'an Group Building to apply for a 130 million HKD loan. I believe they'll weigh the pros and cons and make a wise choice.” Lin Haoran shook his head slightly, his tone firm.
The loan had not yet been publicly announced, and even the group's shareholders were still unaware of it. Otherwise, these shareholders would certainly have objections.
If the loan had been decided by Lin Wan'an, naturally there would be no issue, but now that the group was being led by the young Lin Haoran, it was obvious that these shareholders would not trust him, though they had no choice.
Hearing this, Lin Wan'an nodded silently, secretly sighing with emotion.
Ever since Lin Haoning got married and moved out of the family home, the relationship between the two brothers was indeed no longer as close as it had once been.
However, he also understood that every child would make their own choices and follow their own path as they grew up.
About an hour later, Lin Wan'an finished his calls with several shareholders and returned to the living room.
“Haoran, good news. Those shareholders all said they were willing to sell their shares to you. However, two of them insisted on a price 10% higher than the stock market price before they would let go. Also, Haoning said he'll come back tonight. You can discuss this matter with him in detail then.” Lin Wan'an reported the results of his contacts to Lin Haoran.
“Dad, let's do as they say. I hope to complete the privatization of Wan'an Group as soon as possible and make the group's development more stable.” Lin Haoran said without hesitation.
The shares held by these shareholders were actually not substantial. According to Lin Haoran's understanding, the six members of the shareholders' meeting held only about 16% of the shares in total. The two demanding 10% above the market price would only cost him a few hundred thousand more HKD, so there was no need to haggle over such a small amount for too long.
“Good, I understand. As for Wan'an Group, just go ahead and do what you want. Dad will now play more of an advisory role, giving you some suggestions, but I will never interfere with your decisions.” Lin Wan'an smiled as he expressed his trust and support for his son.
Witnessing Lin Haoran surpass in just a few short months the achievements in business of this “old hand” who had spent decades navigating the commercial world, not only successfully taking control of a British-owned enterprise but also smoothly privatizing it, Lin Wan'an could not help but feel emotional, gradually losing his former enthusiasm for business affairs.
This contrast truly made one feel that “the younger generation is formidable,” and even carried a hint of “a blow,” but then he thought about how this outstanding young man was his own son, and Lin Wan'an's heart was once again filled with indescribable pride and relief.
A little after six in the evening, Lin Haoning indeed returned.
However, he still came back alone.
As for Lin Haoran's sister-in-law and nephew, since he had crossed over, he had only seen them twice.
Once on New Year's Eve, and once on his father Lin Wan'an's birthday.
Before dinner, everyone tacitly avoided discussing the sale of the shares, with Madam Lin's simply chatting about everyday matters.
After dinner, the three of them gathered in the study, and the atmosphere was somewhat formal.
“Haoran, regarding the shares in Wan'an Group, if you're interested, I can transfer them to you at the stock market trading price at any time.” Lin Haoning's words broke the silence.
His straightforwardness surprised Lin Haoran, and a hint of astonishment flashed in his eyes.
Before Lin Haoran could speak, Lin Haoning continued, “Last time, thank you for your reminder. It made me pay attention to the North American market, and I found that the North American market really is just as you said, much better than the Middle Eastern market.
In the Middle Eastern market, you work yourself to death just to earn a meager profit, while over in the North American market, there are plenty of orders too, and most importantly, the profits are much higher than in the Middle East. I've already reached cooperation agreements with several North American distributors.”
Lin Haoning's face was filled with gratitude, and there was more sincerity and admiration in the way he looked at Lin Haoran.
He had lost the competition for the inheritance rights to Wan'an Group, but he had not lost anything because of it, and still received a considerable amount of property from his father.
Moreover, he could now devote himself wholeheartedly to running his Wanfeng Fan Factory.
“I was only casually giving you a reminder. Whether you could take it to heart was up to you; if you couldn't, you wouldn't have had this blessing.” Lin Haoran replied with a smile.
In the study, the conversation between the two brothers seemed to make the competition and estrangement of the past disappear without a trace at this moment.
(End of Chapter)
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