Chapter 146: Percy’s Conditions
Given Lin Haoran’s current status, it was not difficult for him to obtain the contact information of this Hongkong Electric Group shareholder.
As for asking other people to verify whether the information was true? There was simply no need for that; he could just ask the shareholder himself.
Soon, Lin Haoran obtained the contact information of the second-largest shareholder of Hongkong Electric Group.
In addition, he learned that this foreigner named Percy did not belong to any of the British-funded consortiums, but held his shares entirely in his personal capacity.
People like this were relatively much easier to negotiate with than those major consortiums.
According to the information he had gathered, although Percy was in Hong Kong, he had not actually been there for very long. Five years ago, he had come from Scotland to Hong Kong and, taking advantage of the stock price crash, had become the second-largest shareholder and a board member of Hongkong Electric Group at a relatively low cost.
Apart from becoming a shareholder and board member of Hongkong Electric Group in Hong Kong, he was currently mainly operating a hotel in Causeway Bay.
It could be said that this Scotsman had benefited from the opportunities of the times, so it was perfectly normal for him to choose to leave while the stock market was surging.
After all, quite a few British people were already very pessimistic about Hong Kong’s future. Due to political factors, Hong Kong’s future was shrouded in uncertainty. No one knew what would happen in the future, and staying was tantamount to gambling.
Even local British-funded companies such as Jardine Matheson and HSBC, whose core businesses were in Hong Kong, were constantly seeking overseas development and moving their assets abroad. This showed that even they themselves did not have much confidence in Hong Kong’s future.
However, this Briton clearly had not anticipated that the rise in Hong Kong’s stock market at present could only be considered a slight increase. The next two years were when it would truly skyrocket.
Of course, apart from Lin Haoran, a time traveler, there was no way anyone else could have guessed that.
In the chairman’s office of Wan'an Group, Lin Haoran directly contacted Mr. Percy.
The call was quickly connected, and a voice speaking authentic Scottish English came from the other end.
“Hello, Mr. Percy, I’m Lin Haoran, chairman of Wan'an Group. I wonder if you’re free right now? I’d like to pay you a visit.” Lin Haoran directly stated the purpose of his call.
Causeway Bay was not large. Although Wan'an Group was not particularly well-known, it was at least located in Causeway Bay, and the hotel operated by Percy was also in Causeway Bay, so they could be said to have some connection.
“Mr. Lin from Wan'an Group? All right, I’ll wait for you at the Lisa Hotel.” Percy did not refuse Lin Haoran’s request to meet. Although he was somewhat puzzled as to why a Chinese businessman wanted to see him, since the two sides had no connection whatsoever.
But thinking that Lin Haoran was not an insignificant person either, meeting him would not delay anything.
After arranging the meeting, Lin Haoran left the Wan'an Group building directly and drove to the Lisa Hotel a few hundred meters away.
The hotel was 15 stories high, and the entire building was used as a hotel. It was just unclear whether it was rented or his own property.
If it was his own property, this shareholder’s financial strength was truly considerable. The value of his Hongkong Electric Group shares alone exceeded HK$100 million, and adding the building in front of him, it was probably worth even more than the Wan'an Group building, with a total value of nearly HK$200 million.
After entering the hotel lobby and explaining his purpose to the receptionist, it was obvious that Percy had already notified the receptionist. Lin Haoran was soon led to an office on the 12th floor.
“Hello, Mr. Percy.” Li Weiguo and Li Weidong, the two brothers, waited outside the office. Lin Haoran walked into the office alone and smiled as he shook hands with the middle-aged foreigner in front of him.
“Mr. Lin, may I ask what brings you here?” After exchanging greetings, the two sat down on the sofa, and Percy asked directly.
The two were not familiar with each other in the first place, so there was naturally no need for polite small talk.
“Mr. Percy, then I’ll get straight to the point. I heard that you intend to sell your Hongkong Electric Group shares, is that right?” Lin Haoran smiled as he stated his purpose.
“Indeed, I do have that idea. Where did you hear about it, Mr. Lin?” Percy’s eyes lit up, and he asked curiously.
Percy had actually already asked several British friends, and the shareholders of Hongkong Electric Group had also discussed it privately. He had even consulted some British-funded bigwigs he was not familiar with. Unfortunately, no one was interested in the shares of Hongkong Electric Group. The main reason was that he was asking for a 10% premium, causing some prospective buyers who had originally been interested to give up on the purchase altogether.
If he sold at the stock market price, it would certainly be easy to find a buyer, but Percy was not satisfied.
Moreover, if the transaction were simply conducted at the stock market price, why would he go to the trouble of looking everywhere for someone to take over the shares? He could just sell them through the secondary market.
As long as he sold gradually, given Hongkong Electric Group’s current trading volume, he would be able to sell them all within a month.
However, no one knew whether the stock price would rise or fall a month later. The time frame was somewhat long, so unless absolutely necessary, he would not choose this method.
Even more excessively, some British shareholders or British-funded interests hoped that he would sell at a low price. Percy naturally would not agree to that.
Therefore, if he could find a suitable buyer, that would be ideal.
Originally, he would certainly have preferred to sell to his fellow Britons, but clearly no one was willing to take over the shares.
As for Chinese businessmen, he had not never considered them, but he had simply never taken the initiative to contact them.
He had acquired his Hongkong Electric Group shares in 1974, and five years had now passed. The stock price had risen several times, so he was already very satisfied with this investment.
“I also heard it from a friend. That’s why I came specifically to ask Mr. Percy for confirmation.” Lin Haoran replied with a smile.
From the delight Percy had just shown, Lin Haoran knew that there was a chance this deal could go through.
Sure enough, Percy said directly, “If Mr. Lin wants to buy them, I can sell them. I currently hold 44 million shares of Hongkong Electric Group, accounting for approximately 6.98% of the shares. As long as Mr. Lin offers HK$130 million, I’ll sell all my Hongkong Electric Group shares to you.”
After hearing Percy’s words, Lin Haoran frowned.
He had publicly indicated that he would sell at a price more than 10% above market, but with him it had become more than 20%?
Wasn’t this just trying to take him for a sucker? No wonder Percy had looked so pleased just now.
However, he did not show any dissatisfaction. After all, a transaction like this had to be negotiated.
Moreover, the 44 million shares were exactly what he needed.
Once he acquired these shares, he would directly become the largest shareholder of Hongkong Electric Group, far surpassing the original largest shareholder, with his holdings reaching approximately 14.6% of the company’s total shares.
Although this was still far from enough to take control of Hongkong Electric Group, it would give him a sufficiently solid foundation.
Moreover, he still had funds in hand and could have Universal Investment Company continue accumulating shares.
“Mr. Percy, your asking price is too high. It is far beyond the price I had in mind. I came precisely because I heard that you were seeking to trade at a stock price more than 10% above market. I happened to have a sum of money on hand that could buy these shares.
“To be honest with you, I originally planned to purchase them through the stock market, but buying this many shares on the stock market might take some time, and it’s unclear whether the future stock price will rise or fall, so that’s why I took the initiative to contact you.
“To show my sincerity, I had even planned not to bargain with you. I didn’t expect you to raise the price again. In that case, it’s a pity that this transaction couldn’t be completed. We Chinese have an old saying: ‘Even if a deal falls through, friendship remains.’ Although we couldn’t reach a deal, if Mr. Percy thinks it over during these next two days, you can contact me at any time. In a couple of days, I may consider buying shares in another company. After all, Hong Kong doesn’t have only one stock, Hongkong Electric Group.” Lin Haoran put on a regretful expression.
From the expression Percy had just shown, it was obvious that he had already contacted quite a few prospective buyers, yet none of the deals had gone through. Therefore, Lin Haoran was certain that Percy would eventually sell.
A 10% reduction meant tens of millions of Hong Kong dollars in funds. The less he paid, the better, and Lin Haoran was certainly not going to be a sucker.
Sure enough, upon hearing this, Percy immediately regretted his earlier attempt to take advantage of the situation. It was clearly unnecessary. The other party wanted to buy, and he wanted to sell, so he could simply sell. There was no need to make things so complicated.
He suddenly smiled and said, “Mr. Lin really is a straightforward man. Since Mr. Lin is so straightforward, it wouldn’t be appropriate for me to haggle over the price. Let’s speak frankly and set the price at 10% above yesterday’s final transaction price, how about it?”
“Good, Mr. Percy, it’s a deal!” Lin Haoran replied directly.
Thus, the transaction was concluded in just a few words.
Hongkong Electric Group currently had no dominant shareholder. Even the largest shareholder held less than 10% of the shares, and Hongkong Electric Group’s senior management system was based on a board of directors, with management mainly handled through externally hired executives. The entire Hongkong Electric Group was completely managed by these hired executives.
Therefore, while Hongkong Electric Group had not yet attracted the attention of powerful players, this was the best time to acquire it.
Once he had sufficient funds, he would be able to acquire this giant in one fell swoop.
But if he waited another year or two and someone set their sights on Hongkong Electric Group, it would not be so easy to take it down then.
In his previous life, why did Hutchison Whampoa acquire Hongkong Electric Group? Simply because Hongkong Electric Group’s profits were high enough.
Several years after Hutchison Whampoa was acquired by Li Ka-shing, it had accumulated a large amount of funds. If these funds were not invested, they could only be placed in banks.
And bank interest rates were far too low for Li Ka-shing.
But once he used this money to acquire Hongkong Electric Group, the annual returns would be far greater than leaving it in the bank, while also indirectly gaining control of another British-funded major company, achieving two objectives with one move.
In order to acquire the 34.6% stake in Hongkong Electric Group held by Jardine Matheson, Hutchison Whampoa ultimately spent a huge HK$2.9 billion in cash to acquire it, eventually becoming the controlling shareholder of Hongkong Electric Group.
This showed just how high-quality a company Hongkong Electric Group was.
However, Hongkong Electric Group’s market value several years later would also become ridiculously high. Based on Li Ka-shing’s acquisition price, Hongkong Electric Group’s market value had reached more than HK$8 billion.
Hongkong Electric Group currently had a total market value of only HK$1.5 billion. Acquiring it required only a little over 30% of the shares. If he could acquire it before its market value rose to HK$2 billion, then Lin Haoran would only need to invest HK$500–600 million in Hongkong Electric Group to completely control this British-funded major company, second only to the Big Four British trading houses. It was simply too worthwhile.
After reaching an agreement, the conversation between the two became even more harmonious.
However, Percy had one condition. He hoped to sign the share transfer agreement in the presence of the Hongkong Electric Group board of directors.
If British people did not give priority to selling their companies or shares to their own countrymen, they could easily face ostracism from their own people.
But Percy had already asked all his British compatriots, and those fellow countrymen who were interested in acquiring the shares all hoped that he would sell to them at a low price.
And now, it was not that he did not want to sell to them; it was that they were unwilling to offer this price. Therefore, they could not blame him for selling to Lin Haoran, a Chinese businessman.
Lin Haoran agreed to this condition without hesitation.
Because he knew that no one would think he had the ability to acquire Hongkong Electric Group. At most, they would assume that he had simply taken a liking to Hongkong Electric Group’s potential and become a shareholder.
Although he had already acquired Qingzhou YingniCompany, Qingzhou Yingni Company and Hongkong Electric Group were completely different levels of enterprises.
In the eyes of many people, perhaps ten Qingzhou Yingni Companies would only be equivalent to one Hongkong Electric Group, so acquiring Qingzhou Yingni did not mean that Lin Haoran had the strength to acquire Hongkong Electric Group.
For Lin Haoran, becoming Hongkong Electric Group’s second-largest shareholder openly while continuing to secretly accumulate Hongkong Electric Group shares was clearly also a very good cover.
Most importantly, publicly becoming a shareholder or even a board member of Hongkong Electric Group had another advantage: if any Hongkong Electric Group shareholder planned to sell their shares in the future, he would be able to know immediately, rather than relying solely on rumors to find out.
However, to prevent Percy from changing his mind, although the share transfer agreement had not yet been signed, they signed a transaction agreement.
This transaction agreement stipulated that Lin Haoran would acquire Percy’s 44 million Hongkong Electric Group shares for HK$119 million. In the event of a breach of contract, compensation equal to 20% of the total transaction amount would be required.
At the same time, Percy was required to sell his 44 million Hongkong Electric Group shares to Lin Haoran for HK$119 million. Otherwise, he would likewise have to pay compensation equal to 20% of the total transaction amount.
In other words, the transaction had effectively already been finalized. They simply needed to sign the transfer agreement at Hongkong Electric Group’s headquarters.
(End of Chapter)
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