Chapter 194 Take as Much as You Can
Jardines Matheson had chosen a perfect time to strike, launching their attack on China Gas Company while everyone was still immersed in Chinese New Year celebrations.
At this moment, Li Mingze must still be bewildered, completely unprepared for such a move.
Although it was already the third day of the lunar new year, for the British, Chinese New Year was not a holiday.
Now, if Lin Haoran wanted to take control of China Gas Company and become its actual controller, there was only one path.
That was to get Li Mingze and the other Chinese shareholders to sell him part—or preferably all—of their shares. Only then could he hold more shares than Jardines Matheson.
However, convincing Li Mingze and the others to sell would not be easy.
After all, Li Mingze had previously said he had no intention of selling his shares in China Gas Company.
Besides, China Gas Company had very stable annual profits; it was an excellent company to hold shares in.
As the chairman of China Gas Company, Li Mingze and the other Chinese shareholders could decide when to distribute dividends at their discretion. If they didn't want to distribute profits, they could simply reinvest or channel them into related businesses, firmly controlling the company's profitability.
But Lin Haoran knew there was one situation that could force Li Mingze to give up controlling power.
If Jardines Matheson managed to gain actual control of China Gas Company, the Chinese consortium would have no choice but to seek outside help—or even cede control.
Once Jardines Matheson reached a controlling position, China Gas Company would no longer be under Chinese control, and the existing Chinese shareholders would lose influence over its development.
Their dividends would shrink, the value of their shares would drop, and the fact that the company reverted to being a British-controlled enterprise would be intolerable for them—who prided themselves as patriotic businessmen.
At that point, powerless against Jardines Matheson's strong assault, they would have to seek help from other Chinese entrepreneurs.
In another timeline, it was precisely because they couldn't resist Jardines Matheson that they ended up turning to property tycoon Li Zhaoji, who ultimately took control of China Gas Company.
"Tell Hong Kong Electric Group to continue secretly acquiring shares this afternoon. Take as much as you can," Lin Haoran instructed.
"Boss, if Jardines Matheson is really aiming to control 40% or more of the shares, we probably won't be able to compete for China Gas's control. Besides, this afternoon's prices are heavily inflated. From a business perspective, it might not be worth it," Chen Shoulin raised his concern.
"Chairman Chen, remember when we visited Li Mingze before New Year's? We still have a chance to control China Gas. If things go as expected, Li Mingze will likely turn to us for help.
That will be our best opportunity to seize control of the company. Also, don't forget, I have another investment company that has been absorbing shares independently. If all goes well, I'm confident we can make Hong Kong Electric the true controller of China Gas—even if Jardines Matheson manages to secure 40%, we can still out-hold them," Lin Haoran explained with a smile.
They had already made their intentions known to Li Mingze beforehand, and Hong Kong Electric was a major shareholder in China Gas.
Furthermore, during their meeting at China Gas headquarters, Lin Haoran had left a very positive impression on Li Mingze.
Under these circumstances, Li Mingze and the others would naturally prioritize seeking help from Lin Haoran—a fellow Chinese entrepreneur.
Compared to Li Zhaoji, Lin Haoran's strength was clearly superior at this stage, giving them greater confidence in resisting Jardines Matheson's aggressive acquisition.
Also, Li Mingze himself seemed eager to establish a good relationship with Lin Haoran.
Therefore, if Jardines Matheson forced the Chinese consortium to seek outside help, Lin Haoran would have a huge chance of taking control.
"How much should we acquire, then?" Chen Shoulin asked.
"As much as possible. The more shares we control, the more bargaining power we have. Don't worry about short-term gains or losses.
Even though China Gas's market cap jumped from under 600 million to 800 million Hong Kong dollars, and it looks like buying now would be a loss, in the long term, if Hong Kong Electric gains control, the benefits will far outweigh the costs.
China Gas is a top-quality company. Otherwise, you wouldn't have considered acquiring it five years ago.
Now, with Hong Kong's stock market boom, even without Jardines Matheson's raid, China Gas's price would likely have risen to this level within months.
However, don't push the price higher. Just buy at the offer price Jardines Matheson announced. If we drive prices up and trigger a price war, it might prevent Jardines Matheson from acquiring enough shares, eliminating the crisis that would make the Chinese shareholders turn to us.
Without a crisis, we'll lose our chance," Lin Haoran said.
"You're right. Like Hong Kong Electric itself, our stock price has been rising steadily. China Gas's current valuation isn't unreasonable. Alright, I'll instruct our securities department to prepare for this afternoon's action," Chen Shoulin agreed.
"Good, get going. The afternoon session is about to start," Lin Haoran said, glancing at the clock—it was already around 12:40 PM.
"Understood. I'll head to the securities department now," Chen Shoulin said, leaving the office in a hurry.
Lin Haoran didn't stay idle either. He immediately picked up the office phone and called Su Zhixue.
"Boss, I was just about to call you—there's an urgent situation. Jardines Matheson suddenly..." Su Zhixue blurted as soon as he answered.
"I already know. That's why I'm calling. Prepare your team—this afternoon, go all out acquiring shares. Take as much as you can," Lin Haoran interrupted him and gave his order.
"Understood, Boss. If the competition heats up, should we increase our offer price?" Su Zhixue asked.
"No need. Just match Jardines Matheson's offer price," Lin Haoran replied.
"Got it, Boss. I'll handle it properly," Su Zhixue said.
"Also, what was the share acquisition situation this morning?" Lin Haoran asked.
"This morning, the stock price rose rapidly. Jardines Matheson's buying pressure was fierce, but we also managed to pick up a good amount. So far, we've secured close to 4% of China Gas's shares.
Since Jardines Matheson hadn't officially announced their move yet and because it's still the New Year holidays, we didn't want to disturb you immediately," Su Zhixue reported in detail.
"Good. I understand. Go prepare—the market's about to reopen," Lin Haoran instructed.
"Yes, Boss!"
After hanging up, Lin Haoran remained calm.
Huanyu Investment now held about 4%, and Hong Kong Electric held 8%, meaning he effectively controlled 12% of China Gas's shares.
Combined with the 33% held by the Chinese consortium, they controlled about 45%.
Even if Jardines Matheson managed to grab 40%, they still couldn't outvote the Chinese side.
However, Lin Haoran didn't intend to play defense.
He wanted to take full control—and he would never reveal that Hong Kong Electric was secretly absorbing shares.
The Chinese shareholders, unwilling to invest more but unwilling to lose control, would eventually have no choice but to seek outside help.
In the afternoon, Lin Haoran decided to stay at Hong Kong Electric Group and monitor the situation personally.
He was curious to see just how much Jardines Matheson could grab at such inflated prices.
Paying a 35%+ premium—this was Jardines Matheson's way of deterring the Chinese shareholders from increasing their stakes.
They had thoroughly investigated the Chinese shareholders and knew they were unlikely to invest more under these circumstances.
That's why they were so confident.
For Newbigging and the Jardines Matheson executives, this time, they were sure China Gas couldn't escape their grasp.
In a single day, the market cap had been pushed from 590 million to 800 million—a 35% premium.
If not for the goal of seizing control, even Jardines Matheson wouldn't have paid such a high price.
Meanwhile, as soon as Jardines Matheson publicly announced their plan to acquire 15% of China Gas's shares at a premium, Chairman Li Mingze immediately learned of it.
As a prominent figure of a powerful Chinese family in Hong Kong, Li Mingze had many social obligations during the New Year—receiving visitors, making visits, managing connections.
Thus, during the holiday, he hadn't been able to focus on China Gas matters.
Besides, he wasn't only chairman of China Gas, but also chairman of Lee Hysan Estate Company, Steel Pipe Company, and other businesses. He couldn't spend all his time on one company.
However, upon hearing the news, he dropped everything and rushed back to China Gas headquarters.
He urgently contacted He Tingxi and other major shareholders.
Within an hour, all key shareholders gathered in a conference room at China Gas headquarters.
Most of them still hadn't mentally returned from the New Year celebrations.
"Chairman Li, what's the situation now?" He Tingxi asked.
"It's not looking good. The market reopened half an hour ago. After Jardines Matheson's public offer, trading volume exploded. The morning's heavy buying was already extreme, and now, in just half an hour, today's volume has already surpassed the morning's.
We must prepare ourselves—Jardines Matheson might surpass our holdings," Li Mingze sighed.
"What should we do? We fought so hard to wrest control of China Gas from the British. If they take it back, we'll lose face at the Hong Kong Chinese General Chamber of Commerce," He Tingxi said bitterly.
Each of them had their own businesses and were prominent members of the Chinese Chamber of Commerce. Taking back China Gas from the British had been a point of pride.
Now losing it would be a public humiliation.
"My situation is well known. I can't increase my holdings. If any of you are willing to invest and preserve our control, I'll even resign as chairman," Li Mingze said, sweeping his gaze across the room.
"I've tied up all my funds expanding into the North American market. There's no liquidity available," He Tingxi shook his head.
His company, Jiali Company, manufactured plastic and metal components—an unremarkable player in Hong Kong's business scene.
Li Mingze sighed and looked toward the other three shareholders.
They too shook their heads.
They all knew their own limitations.
(This chapter ends.)
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