Chapter 322 Progress of the Jardines-Land Development Cross-Holding Plan
"Mr. Lin, the key challenge you now face is how to properly handle pressure from the government. Whether it's Governor MacLehose or the Prime Minister's wife personally intervening, I believe you should show them due respect. After all, the business world is always subordinate to politics, something I'm sure you understand," Niu Bik Kin said frankly. "However, as long as you promise not to further increase your holdings in Jardines Matheson, I have the ability to mediate and ensure that you retain your current shares, and even secure key management positions within Jardines. You could also appoint a trusted confidant to an important executive role — but on the condition that you do not touch the Taipan position. If you agree to this, I am confident I can persuade the higher-ups to refrain from seeking pressure through Governor MacLehose or the Prime Minister's wife. In other words, as long as you don't acquire more shares and don't covet the Taipan position, I can guarantee your interests in Jardines will not be harmed — and I could even win Huifeng Bank's support for you. Additionally, I need your ongoing support for me to remain the Taipan. As a professional manager, I am here to serve shareholders like you, always prioritizing the best interests of Jardines. You must know: if the Keswick family regains control, your influence within Jardines will be severely compromised," Niu Bik Kin added, making his true intentions clear.
It was a crafty plan: if Lin Haoran agreed not to increase his stake or compete for the Taipan position, he would effectively relinquish any chance of gaining true control. Although holding 20% of the shares gave Lin Haoran considerable voting power, in Niu Bik Kin's eyes, he would merely become a pawn to counterbalance Henry Keswick. Moreover, once the Jardines-Land Development cross-holding plan was implemented, Lin Haoran's percentage of control would decrease further. Although Henry Keswick had strong backing, as long as Niu Bik Kin secured the support of Lin Haoran, Huifeng Bank, and a few allied shareholders, Keswick would struggle to oust him. If Niu Bik Kin avoided major missteps, he could continue to dominate Jardines and preserve his position.
At this moment, Lin Haoran fully understood Niu Bik Kin's game — he simply wanted to cling to the Taipan position indefinitely. From Lin Haoran's knowledge of Jardines' history in his previous life, he knew that Niu Bik Kin would eventually be forced to resign in two to three years. The official reason given at the time was the loss of Wharf Holdings and the severe damage during Hong Kong's real estate bubble, for which he was scapegoated. Despite Niu Bik Kin's deep foundation at Jardines, he was eventually forced to step down after decades of service. He had resented it deeply, believing the Keswick family had unfairly blamed him in order to retake control. Now, it was clear that the internal struggle between Niu Bik Kin and the Keswicks had long been simmering. Otherwise, Niu Bik Kin wouldn't be seeking Lin Haoran's help now.
At this point, Lin Haoran saw everything clearly. Not allowed to increase his stake? That was no problem. He had never intended to buy more anyway. Jardines' stock price was now too high and had deviated from its true value. Moreover, the British consortium still held the majority of Jardines' shares. Even if he wanted to buy more, it would have been pointless. As for the Taipan position — Lin Haoran didn't really care about that either. If he gained enough control, the Taipan, whoever it was, would still have to listen to him. And even without further acquisitions, Lin Haoran already had a way to gain de facto control. It all hinged on the Jardines-Land Development cross-holding plan.
Currently, Lin Haoran's control over Land Development Corporation was already strong enough to take over at any time — he simply hadn't announced it yet. No one at Jardines knew this yet, except Su Zhixue — and Li Jiacheng, who had promised to stay silent. Once he entered Jardines' decision-making structure, he could push the cross-holding plan forward. When Land Development held a significant stake in Jardines, Lin Haoran could control Jardines indirectly — without having to buy a single additional share himself. Even if the financing process diluted his control slightly, with over 40% of Land Development, his grip would still be firm. Moreover, he could still increase his holdings later if needed.
He was also hopeful about acquiring Li Jiacheng's 5% stake in Land Development. Knowing Li Jiacheng's ambitious nature, Lin believed he wouldn't want to hold onto a minor stake if he couldn't control the company. Five billion Hong Kong dollars could fund many new opportunities. Currently, with Land Development's secondary market liquidity extremely low, Li Jiacheng would either have to sell to Lin Haoran or to the British consortium — and given their rocky history, it was unlikely he would sell to Jardines. If Lin Haoran secured that 5%, his total control would soar to over 45% even before further financing — making Land Development unassailable. Still, even without it, he was in a strong position.
"Mr. Niu Bik Kin, before answering your proposal, may I ask: how far along is the cross-holding plan?" Lin Haoran asked calmly.
"I can be honest with Mr. Lin," Niu Bik Kin said. "Our immediate focus is increasing Jardines' stake in Land Development. Currently, we hold 20% of Land Development. After the next phase, we expect to increase that to 27.8%. At that point, Jardines' control over Land Development will be much stronger. Following that, we plan to have Land Development buy into Jardines as well — completing the mutual cross-holding. Our goal is to reach approximately 40% mutual ownership over time. That way, no external force — Chinese or British — can threaten our dominance. I aim to complete this plan within six months, ideally before the end of this year," Niu Bik Kin explained earnestly.
Even if he hadn't disclosed it, the news would have become public soon anyway, since both Jardines and Land Development were listed companies. Such major moves had to be reported promptly under securities regulations. In the alternate world Lin Haoran knew, by December 1980, Jardines announced that Jardines and Jardines Securities together held 40% of Land Development, while Land Development held 38% of Jardines — meaning Niu Bik Kin's plan had succeeded. In this world, Lin Haoran's presence had shifted some events slightly, but the overall trend remained.
Hearing all this, Lin Haoran was overjoyed internally. The British consortium's desperation was greater than he had expected. Completing the cross-holding plan within three months? They were truly racing against time. And once Land Development held nearly 40% of Jardines, and Lin Haoran controlled Land Development… Then even if his direct holding in Jardines was diluted to about 15%, combined with the 40% held by Land Development, he would effectively control over 50% of Jardines. At that point, how could the British consortium ever hope to wrest Jardines back from him? Even if they mobilized the government, even if Governor MacLehose and the Prime Minister's wife personally intervened — what could they do? Unless the British were prepared to offer a fortune to buy back those Land Development-held shares, they were doomed. Thus, whether he ended up seizing Jardines outright or sold his stake for a massive profit, Lin Haoran couldn't lose.
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