Chapter 182 Everyone Relies on Their Own Abilities!
Now, as the controlling shareholder of Hong Kong Electric Group, if Hong Kong Electric could take over China Gas Company, it would be equivalent to Lin Haoran taking control of China Gas Company.
If possible, Chen Shoulin actually agreed with the acquisition of China Gas Company. Even merely holding a certain amount of shares would be an excellent investment project, as long as China Gas Company didn't recklessly invest and self-destruct.
Back in 1975, when Hong Kong Electric Group secretly acquired 7.2% of China Gas Company's shares, the cost wasn't high — it cost less than ten million Hong Kong dollars.
Over the past few years, the stock prices of most quality listed companies in Hong Kong had at least multiplied several times, and China Gas Company's stock was no exception. Over the years, it had already increased several-fold.
Through the dividends alone over these years, disregarding inflation and other complex factors, Hong Kong Electric Group had already fully recouped its investment.
Thus, this clearly reflected the quality of China Gas Company.
It was dozens of times better than keeping money in the bank and carried virtually no risk.
Investments elsewhere still carried certain risks.
For instance, Hong Kong Electric Group had diversified over the years, no longer limiting itself to electricity sales. Over a few years, they had entered into real estate development, property management, technical services, retail, advertising, finance, and more.
Through diversification, they had significantly boosted revenue and profits. But in truth, some investments had lost money.
For example, in 1978, Hong Kong Electric Group loaned 8 million Hong Kong dollars to a listed company, but after that company's investment failed, they couldn't repay the loan. Their stock price collapsed, leaving them insolvent. In the end, Hong Kong Electric had to apply to the court to forcibly liquidate the company, recovering just over 5 million Hong Kong dollars—losing over 2 million and gaining no interest at all.
This example clearly demonstrated that investments carried risks!
Even the real estate industry, which had been booming and had made many companies rich, could not guarantee safety forever—no one knew when a property crisis might strike.
Meanwhile, China Gas Company's stable revenue and its monopoly in the Hong Kong market made it nearly risk-free, barely affected by the market economy. After all, gas is an essential residential energy source. Even if people became poorer, they still needed to cook. It's not like they could burn firewood in the city. This alone made China Gas an excellent investment and financial project.
Following Lin Haoran's instruction, Chen Shoulin called Nobby Jamieson directly from the office.
Even if they decided not to sell, they still had to give a polite reply.
At that moment, Nobby Jamieson, sitting in Jardines Matheson's headquarters office, was studying detailed materials about China Gas Company handed to him by his subordinates.
Five years ago, they had tried to acquire this Chinese-funded utility company but ultimately failed and had to abandon the effort.
Now, five years later, Jardines Matheson finally saw another acquisition opportunity.
Originally, Chinese shareholders controlled over 42% of China Gas's shares, and they were very united. Back then, even the joint forces of Jardines Matheson and Hong Kong Electric Group couldn't forcibly acquire the company—buying enough shares through the stock market to overcome the Chinese consortium was practically impossible.
But just recently, Jardines Matheson received an important message: China Gas Company's third-largest visible shareholder had secretly sold off almost all their shares amid high trading volumes and high prices.
This third-largest shareholder held 8.8% of China Gas's shares.
Both Jardines Matheson and Hong Kong Electric Group held certain shares, and Jardines Matheson even held more than this visible third shareholder, but no one knew exactly how much Jardines Matheson controlled.
Only now was it revealed that Jardines Matheson secretly controlled a substantial amount of shares.
Because of this new information, Nobby Jamieson rekindled his plan to acquire China Gas Company.
Losing that 8.8% stake meant the Chinese shareholders now only controlled about 33% of the company, meaning 8.8% more shares were circulating among retail investors.
Shares in retail investors' hands were much easier to acquire than shares held by wealthy major shareholders.
It had been almost impossible to buy out 42% ownership.
But with only 33% remaining, the chances of a successful acquisition increased significantly.
Because of this, Nobby Jamieson wanted to buy Hong Kong Electric Group's shares.
If he could acquire their shares and add them to Jardines Matheson's existing holdings, he could launch a "dawn raid," aggressively absorbing China Gas shares in the market to surpass the combined holdings of the Chinese shareholders and seize control of China Gas Company.
Jardines Matheson and Hongkong Land had used such tactics many times before and had always succeeded!
Just then, the telephone rang.
"Mr. Jamieson, this is Chen Shoulin. After discussions among several key directors of Hong Kong Electric Group, we have decided not to sell our shares of China Gas Company. I apologize," came Chen Shoulin's voice.
Hearing this, Nobby Jamieson was momentarily stunned. He had offered a 20% premium over the current market price to buy Hong Kong Electric's shares—a very generous offer.
However, he quickly regained his composure and said calmly, "Mr. Chen, if the price isn't right, we can still negotiate."
"No, Mr. Jamieson, it's not about the price. We genuinely have no intention of selling. In fact, we plan to increase our holdings of China Gas Company shares," Chen Shoulin replied.
In Jardines Matheson's executive office, Nobby Jamieson frowned.
What did Hong Kong Electric Group mean by this? Were they planning to fight for control of China Gas Company too?
It seemed highly possible. After all, Hong Kong Electric Group was now a Chinese-owned enterprise, and based on Lin Haoran's usual behavior, he very likely wanted to acquire China Gas Company.
At that moment, Nobby Jamieson could barely resist cursing.
He thought that after five years had passed and with Hong Kong Electric Group under new management, they would no longer be interested in acquiring China Gas Company. He didn't expect they would remain just as determined as Jardines Matheson.
It seemed that monopolizing China Gas Company alone was now impossible.
"Mr. Chen, since that's the case, why don't we revive the cooperation agreement we signed five years ago?" Nobby Jamieson said directly.
Chen Shoulin, of course, knew what he was referring to. Five years ago, to successfully acquire China Gas Company, Jardines Matheson and Hong Kong Electric Group had signed a cooperation agreement to work together to obtain a controlling stake.
Regarding the issue of who would dominate management after acquisition, they had agreed that whichever party held a larger share would appoint the chairman of China Gas Company.
In other words, both sides would acquire the company together, but ultimate control would depend on their respective holdings.
Unfortunately, that cooperation failed, and the agreement was voided.
Now, Nobby Jamieson proposed reviving it because he was confident Jardines Matheson held more shares than Hong Kong Electric Group.
Except for a few Jardines Matheson executives, no one knew how many shares they secretly held.
"Alright, Mr. Jamieson, on behalf of Hong Kong Electric Group, I agree. But there's no need to sign a new agreement—it's unnecessary. We've cooperated many times, and Hong Kong Electric Group's credibility is well established," Chen Shoulin replied with a smile.
These were Lin Haoran's instructions.
"Very well. Goodbye, Mr. Chen!" Knowing Hong Kong Electric's attitude, Nobby Jamieson had no intention of chatting further.
After hanging up, Chen Shoulin discussed things again with Lin Haoran.
"Boss, do we really stand a chance of beating Jardines Matheson? From the way Jamieson spoke, I'm almost certain they hold a significant amount of shares—maybe even 15%—while we only have 7.2%. Plus, they have stronger financial backing. Honestly, the odds are very slim," Chen Shoulin expressed his doubts.
If he were still in charge of Hong Kong Electric Group, he wouldn't even have tried. It seemed hopeless, better to simply hold onto the 7.2% stake.
But since Lin Haoran instructed him to proceed, he found it puzzling.
"I can't guarantee it either," Lin Haoran smiled. "But you said it yourself—China Gas Company is a high-quality investment. Even if we don't win controlling rights, just holding shares is already a good investment. There's no real loss."
"That's true. In that case, let's just go with the flow," Chen Shoulin agreed.
In truth, Lin Haoran had a more ambitious plan.
Now that Jardines Matheson had made their move, Lin Haoran knew that acquiring China Gas Company had become much harder.
But he didn't intend to back down. So what if it was Jardines Matheson?
With his strong financial strength, he wasn't afraid of them at all.
In fact, he even entertained the idea of acquiring Jardines Matheson one day.
How could he be afraid of a target he might one day buy?
Since he had decided to compete, he planned to act from three directions:
First, Hong Kong Electric Group would continue absorbing shares in the secondary market.
Second, Huanyu Investment Company would do the same.
Third, he would secretly contact the current chairman of China Gas Company to see if he could purchase shares directly from the board.
Hong Kong Electric Group was now a Chinese-owned enterprise, not a British one.
Thus, if Lin Haoran showed up to negotiate, the Chinese shareholders might be less resistant.
And if they refused now, he could wait until Jardines Matheson launched a full-scale attack—by then, the Chinese shareholders might sell their shares to him to avoid Jardines Matheson's takeover.
Based on what he had learned from Chen Shoulin about the failed acquisition attempt five years ago, Lin Haoran knew these shareholders would rather sell to a Chinese company than a British one.
Originally, Lin Haoran had planned to let Huanyu Investment quietly absorb shares and strike later.
But now, it was clear that the situation forced him to act faster.
Unexpectedly, circumstances were pushing him to seize China Gas Company sooner than expected.
"Oh, by the way, Chairman Chen, could you please give me the contact information for Mr. Li Mingze, the chairman of China Gas Company? I'd like to talk to him privately," Lin Haoran said.
"Of course, boss, give me a moment, I'll look it up." Chen Shoulin pulled out a small notebook from his pocket and flipped through it.
This notebook recorded the valuable network of contacts Chen Shoulin had built over decades.
Mr. Li Mingze, it turned out, had a special identity—he was the elder brother of Li Xiaohu, chairman of TVB in Hong Kong.
And in a few months, Li Xiaohu would die of heart disease.
Establishing ties with Li Mingze now might someday help Lin Haoran acquire Li Xiaohu's family's shares in TVB.
(This chapter ends.)
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