Chapter 146 - Percy's Conditions
With Lin Haoran's current status, obtaining the contact information of this Hongkong Electric Group shareholder was not difficult. There was no need to investigate indirectly — he could just ask Percy directly.
Very soon, Lin Haoran obtained the contact details of Percy, Hongkong Electric's second-largest shareholder. He also learned that Percy was not affiliated with any British financial consortium; he held his shares personally. Such individuals were typically much easier to negotiate with than institutional investors.
According to the information gathered, Percy had only been in Hong Kong for about five years. He had come from Scotland during the 1974 market crash and, taking advantage of low prices, acquired a major stake in Hongkong Electric, becoming a board member.
Besides holding shares in Hongkong Electric, Percy mainly ran a hotel in Causeway Bay. He was someone who had clearly benefited from the economic boom. Now, with the market booming again, he wanted to cash out — very understandable.
Many British expatriates were pessimistic about Hong Kong's future due to political uncertainties. Even top British firms like Jardine Matheson and HSBC were aggressively investing overseas and shifting assets abroad. If the giants had doubts, it was natural for someone like Percy to think similarly.
Of course, what Percy didn't know was that Hong Kong's stock market had barely begun its real climb. The true explosion would come over the next two years — something only Lin Haoran, thanks to his knowledge from a previous life, could anticipate.
Sitting in his Wan'an Group Chairman's office, Lin Haoran directly called Percy.
The call quickly connected. A thick Scottish accent came through the line.
"Hello, Mr. Percy, this is Lin Haoran, Chairman of Wan'an Group. Are you available? I'd like to visit you for a chat," Lin Haoran said, getting straight to the point.
Causeway Bay wasn't big; Wan'an Group had its headquarters there, and Percy's hotel was nearby. It was destiny, perhaps.
"Mr. Lin of Wan'an Group? Very well. Meet me at Lisa Hotel," Percy replied, slightly puzzled but willing. Though he didn't know what a Chinese businessman wanted with him, Lin Haoran's name carried weight.
After setting the appointment, Lin Haoran immediately left Wan'an Group and headed a few hundred meters down the road to Lisa Hotel.
The hotel was a fifteen-story building, entirely used for accommodation. Lin Haoran wondered whether Percy owned it or merely rented the property. If Percy owned it outright, it meant his net worth exceeded even that of Wan'an Group's headquarters — perhaps nearing 200 million Hong Kong dollars.
At the hotel front desk, after explaining his visit, Lin Haoran was swiftly led to an office on the twelfth floor. Clearly, Percy had already informed the staff.
"Mr. Percy, a pleasure to meet you," Lin Haoran said as he entered, extending his hand politely.
Percy shook hands firmly and gestured for them both to sit. No unnecessary small talk — straight to business.
"Mr. Lin, what brings you here?" Percy asked.
"I'll be direct," Lin Haoran smiled. "I heard you might be interested in selling your shares in Hongkong Electric. Is that true?"
Percy's eyes lit up. "Indeed. How did you hear about that?" he asked curiously.
Percy had quietly sounded out several British acquaintances, and even discussed it informally with a few fellow shareholders. He had approached some other British investors, but no one had bitten — mainly because he demanded a 10% premium above market price.
Most buyers preferred to accumulate shares slowly through the market rather than paying a premium. Percy could have slowly sold through the open market over a month, but there was no guarantee the price wouldn't fall, and he didn't want to wait.
Worse, some British buyers even tried to lowball him. Naturally, Percy refused to sell at a loss.
Ideally, Percy would have preferred to sell to another British consortium. Selling to a Chinese buyer wasn't his first choice. But with no serious British interest, he was willing to be pragmatic.
He had bought the shares cheaply in 1974; now, after five years of growth, he was already sitting on a large profit.
"I heard it from a friend," Lin Haoran replied with a calm smile. "And I came to verify it with you directly."
Judging from the joy Percy had shown earlier, Lin Haoran knew this deal had real potential.
Sure enough, Percy leaned forward eagerly. "If Mr. Lin is serious, I'm willing to sell. I hold 44 million shares of Hongkong Electric — about 6.98% of the company. I can sell them all to you for 130 million Hong Kong dollars."
Lin Haoran frowned slightly.
Percy had publicly claimed he wanted only a 10% premium — yet here he was demanding over 20%. No wonder he had smiled earlier.
Clearly, Percy thought he had a fish on the hook.
However, Lin Haoran did not show any dissatisfaction. After all, deals were meant to be negotiated. Besides, those 44 million shares were exactly what he needed. Once he acquired them, he would immediately become the largest shareholder of Hongkong Electric Group, holding around 14.6% of the total shares — far surpassing the current largest shareholder.
Although it was still far from the ultimate goal of fully controlling Hongkong Electric Group, it would give him a solid foundation. Moreover, he still had available funds to allow Huanyu Investment Company to continue quietly absorbing more shares.
"Mr. Percy," Lin Haoran said calmly, "your asking price is too high. It far exceeds what I had in mind. I only approached you because I heard you were seeking to sell your shares at a 10% premium above market price, and it just so happened that I had funds ready for such an acquisition.
To be honest, I originally planned to accumulate shares directly from the stock market, but acquiring this much through open trading would take time, and there's no telling whether prices might rise or fall during that period. That's why I proactively reached out to you.
Out of sincerity, I wasn't even planning to haggle much. But now that you've raised your price even further, I'm afraid this deal won't be possible. As we say in China, even if a deal doesn't go through, we still part on good terms.
However, if you change your mind within the next few days, feel free to contact me. After that, I might turn my attention to other stocks. After all, Hongkong Electric isn't the only opportunity in Hong Kong right now."
Lin Haoran displayed a regretful expression.
Judging from Percy's earlier demeanor, it was clear he had already approached quite a few potential buyers — none of whom had agreed to buy. Lin Haoran was confident Percy would eventually sell.
Saving 10% could mean saving over 10 million Hong Kong dollars — not a trivial amount. Lin Haoran had no intention of being taken for a fool.
As expected, Percy immediately showed a hint of regret for having tried to overreach. It was obviously unnecessary — if someone wanted to buy and someone wanted to sell, they should just complete the transaction straightforwardly.
Seeing Lin Haoran about to leave, Percy suddenly smiled and said, "Mr. Lin, you are indeed a straightforward person. In that spirit, I shouldn't get too caught up over the price. Let's settle at 10% above yesterday's closing price. What do you say?"
"Good. Mr. Percy, it's a deal," Lin Haoran replied decisively.
Thus, the transaction was quickly agreed upon with just a few words.
Currently, Hongkong Electric Group had no dominant shareholders. Even the largest shareholder held less than 10%. The company's senior management operated entirely under a board of directors, staffed mainly by external hires. It was a structure fully controlled by appointed executives.
Thus, this was the perfect moment to quietly seize control — before any major power took notice. When Lin Haoran's funds were ready, he would make his move.
But if he waited another year or two, Hongkong Electric would inevitably catch the eye of bigger players, and it would no longer be so easy to buy out.
In his previous life, Hutchison Whampoa had acquired Hongkong Electric precisely because of its high profits. After Li Jiacheng took over Hutchison, the company accumulated vast cash reserves. Simply leaving that cash in banks would earn pitiful interest. But investing it into Hongkong Electric's steady income stream made far better sense — generating high returns and allowing Hutchison to control a major British enterprise in Hong Kong.
In the end, Hutchison had spent 2.9 billion Hong Kong dollars to acquire Jardine Matheson's 34.6% stake in Hongkong Electric, becoming the largest shareholder.
It showed just how valuable Hongkong Electric was.
By that time, Hongkong Electric's market capitalization had soared to over 8 billion Hong Kong dollars.
Right now, however, Hongkong Electric was worth only 1.5 billion. To secure control, Lin Haoran needed just around 30% of the shares. If he moved before the company's market cap rose to 2 billion, he could achieve control with an investment of just 500-600 million — an absolute bargain compared to future prices.
Once the deal was verbally agreed upon, the atmosphere between Lin Haoran and Percy became much more relaxed.
However, Percy did propose one condition: he wanted the share transfer to be formally signed in front of Hongkong Electric's board of directors.
Among British expatriates, selling shares to outsiders without offering them to fellow countrymen first could lead to social exclusion and backlash. But Percy had already offered the shares to his British peers — and they had either declined or tried to lowball him.
Thus, it was no longer his fault if he sold to a Chinese buyer.
Lin Haoran immediately agreed.
He understood that few would believe he had the capability to truly take over Hongkong Electric. Most would assume he was simply a savvy investor taking a stake in a promising company.
After all, owning Qingzhou Cement — a relatively small company — didn't imply he had the ability to acquire a giant like Hongkong Electric.
In fact, having his name publicly listed as Hongkong Electric's second-largest shareholder, and a board member, would be a perfect cover for his future plans.
Even more importantly, as a board member, he would be the first to hear if any shareholder intended to sell their stake — he wouldn't have to rely on rumors.
Still, to prevent Percy from backing out, they drafted a preliminary agreement immediately.
The agreement stipulated that Lin Haoran would purchase Percy's 44 million shares for 119 million Hong Kong dollars. If either party reneged, they would owe a 20% penalty based on the transaction value.
In other words, the deal was already locked in. The only thing left was to formally sign the transfer agreement at Hongkong Electric's headquarters.
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