In Hong Kong, we build a global business empire

Chapter 716 One whale falls, and all things come to life!

In the morning, he and Laurence Kadoorie had a complete falling out, exchanging the most hurtful words.

Lin Haoran originally thought that he would probably never have any further contact with this old aristocrat in his life.

Unexpectedly, that evening, the other party took the initiative to call him.

Although he didn't know what the other party wanted, Lin Haoran still answered the call.

"Mr. Kadoorie, is there anything else you would like to say?" Lin Haoran pressed the answer button, his voice calm and undisturbed.

The hoarse voice of Laurence Kadoorie, a stark contrast to his earlier rage, came from the other end of the phone: "Mr. Lin, on behalf of the Kadoorie family, I am willing to sell our 1023 million shares of Hong Kong Grand Hotel at market price."

Lin Haoran raised an eyebrow and exchanged a meaningful glance with Ma Shimin.

He paused deliberately for a few seconds before slowly speaking, "Oh? Mr. Kadoorie, why have you suddenly changed your mind?"

There was a moment of silence on the other end of the phone. The old man seemed to have made a great decision before continuing, "In our business competition, the Kadoorie family concedes defeat."

"I'm willing to transfer the shares, but I have one condition: I hope Mr. Lin will no longer target any of the Kadoorie family's businesses, and that the Kadoorie family will no longer be enemies with Mr. Lin!"

Upon hearing this, Lin Haoran's lips curled into a meaningful smile.

Interesting, so interesting.

He had originally thought that the two sides would remain mortal enemies, and he no longer held much hope for privatizing the Xiangjiang Hotel.

Unexpectedly, less than a day later, the other party called again to seek reconciliation and even offered to sell him the shares.

It seems that the other party has finally thought it through and decided to give up the Peninsula Hotel, which represents the honor of their Kadoorie family.

Ma Shimin also looked at the mobile phone in his boss's hand. Although he couldn't hear what Laurence Kadoorie was saying on the other end of the line, he could guess a thing or two from his boss's reply.

“Mr. Kadoorie, you seem to have misunderstood something. Now, you are begging me to buy it at market price? I cannot accept that! For me, whether or not the Hong Kong Grand Hotel is privatized is not very meaningful. Even if it cannot be privatized, I still have control over it.”

By the way, I have some news for you. We now hold more than 50% of the shares in Xiangjiang Hotel. You don't really think that with your 1023 million shares, you can still influence the future of Xiangjiang Hotel, do you? Even if you continue to increase your holdings, it won't change the fact.

In addition, I am also very interested in Taiping Carpets, owned by Mr. Kadoorie. As you probably know, I have a lot of funds on hand and I don't know what to do with them, so if possible, I plan to acquire Taiping Carpets.

As far as I know, your Kadoorie family only holds 21% of Taiping Carpet's shares. Why don't you just sell Taiping Carpet to me as well, so I don't have to go through so much trouble to acquire it through other shareholders and the secondary market!" Lin Haoran said with a calm smile.

Tai Ping Carpets are also a source of pride for the Kadoorie family.

Despite its seemingly small size, this carpet company has a great international reputation.

In 1958, Taiping Carpets gained international renown for its design and craftsmanship, and received a large order from the Grauman Chinese Theatre in the United States. Due to the tight schedule and insufficient workshop space, a temporary workshop was set up in the tent of a bankrupt circus in an adjacent tennis court. The carpet production was successfully completed, which shocked the entire industry. The legend of "Taiping Tent" was born.

In the 60s, Tai Ping Carpets created "main color carpets" to showcase rich colors and also decorated a wedding gift for Princess Alexandra. In 1961, they were commissioned by Windsor Castle in England to make carpets.

In the 70s, Taiping Carpets opened a showroom in Paris, introducing Taiping to the international market.

It can be said that Tai Ping Carpets is the Rolls-Royce of the carpet industry, another luxury brand that the Kadoorie family is proud of.

On the other end of the phone, Laurence Kadoorie's breathing became noticeably rapid, and the sound of a teacup being knocked over could be heard through the receiver.

Clearly, Lin Haoran's words struck a nerve with the old man.

“Mr. Lin, are you trying to wipe us out?” Roland Kadoorie’s voice trembled violently.

Losing the Hong Kong Grand Hotel is already unacceptable to the Kadoorie family.

If they were to lose the Peace Carpet as well, it would be more than just a simple disgrace for the Kadoorie family.

Having suffered blow after blow, this 82-year-old man may really not be able to bear it anymore.

Although the Kadoorie family holds a 21% stake, it wouldn't be difficult for them to increase their holdings. However, if Lin Haoran really wanted to force a takeover, it would be quite challenging.

Laurence Kadoorie was clearly also worried that Lin Haoran would join forces with other shareholders to dilute the Kadoorie family's equity, or even seize control.

Even if the possibility is small, Laurence Gardner wouldn't dare gamble on it.

Lin Haoran walked to the round window, looked down at the dazzling night view of Victoria Harbour, smiled slightly, and continued, "Mr. Kadoorie, you misunderstand. This is not a ruthless act, but a normal business operation."

I always focus on the issue, not the person. I appreciate your wise decision to propose a reconciliation, but since you've admitted defeat, shouldn't you pay some price?

In reality, Lin Haoran had no interest in the so-called Taiping carpet at all.

After all, although Taiping Carpets has a good reputation, it is ultimately just a carpet company with limited earning power.

He was using the Peace Carpet to threaten the Kadoorie family, making them pay a higher price.

Lin Haoran would not be merciful and let the other party go just because he was an 82-year-old man.

The business world is like a battlefield. Since the Kadoorie family took the initiative to target his businesses, the feud was already established, and Lin Haoran would naturally not hold back.

Moreover, since the goal is to "make an example of someone," the more ruthless the better, so that other potential rivals will truly be wary.

To be honest, Lin Haoran had already set his sights on the global market, not just this small Hong Kong.

This is also why he is now investing heavily in Japan, the United States, Southeast Asia, and other places.

From a global perspective, Hong Kong is ultimately just a small pond.

He was unwilling to waste too much time and energy on this pond.

Looking back, it's not hard to see that whether it was Jardine Matheson, Huafeng Bank, or even the so-called "Hong Kong Luxury Hotel Alliance," they were all the first to take the initiative to target him.

He was already quite satisfied with the size of his assets in Hong Kong, but some people just had to cause trouble, forcing him to take action.

As a result, his wealth in Hong Kong has grown so much that he even accidentally drove Jardine Matheson out of Hong Kong and brought down Huafeng Bank.

But these people just won't learn their lesson. The lesson from Huifeng Bank is still bloody, and some people can't hold back anymore.

Therefore, Lin Haoran decided to teach these people a lesson so that they would never dare to provoke him again.

Hong Kong is ultimately his home base, and he doesn't want a fire to break out in his own backyard every now and then while he's constantly investing globally!
After hearing Lin Haoran's words, Laurence Kadoorie fell silent.

Clearly, although Lin Haoran didn't say it directly, he already understood what Lin Haoran meant.

Since the Kadoorie family has admitted defeat, they must concede more benefits.

The other party was not satisfied with merely giving up shares in the Xiangjiang Hotel.

This sense of frustration was something the Kadoorie family hadn't experienced in many years.

Now, being pressured again and again by a young man, Laurence Kadoorie's hand holding the phone was trembling.

But he had no way.

Perhaps having calmed down all day, the other party knew that getting angry at Lin Haoran would be pointless, so after Lin Haoran finished speaking, the other party did not fly into a rage at Lin Haoran.

After about half a minute of silence, Laurence Kadoorie finally spoke: "Mr. Lin, I can make a concession. I can sell you the shares of Hong Kong Grand Hotel on behalf of the Kadoorie family at a 10% discount!"

Lin Haoran chuckled upon hearing this, returned to his chair, and said, "10% off? Mr. Kadoorie, if that's the case, then I don't think there's any need to continue this discussion. My bottom line is 40% off. If you're not willing, then forget it. I never like to force people to do things against their will. You, the Kadoorie family, can continue to hold those 12% of the shares."

Now that I have complete control of the Xiangjiang Hotel, I plan to have it sell the Peninsula Hotel separately to the Mandarin Oriental Hotel Group. I think Mr. Kadoorie should know this; it shouldn't be difficult. The only question is, how much will the Xiangjiang Hotel's share price be left after that?"

His tone seemed calm, but his words were full of threat.

Lin Haoran was indeed powerless against CLP Power, because the company was not only firmly controlled by the Kadoorie family, but also held a monopoly. It was impossible for Lin Haoran to acquire it, as the Governor's Office would not stand idly by and watch Hong Kong's power supply be monopolized by a Chinese.

However, given Lin Haoran's abilities, he is capable of interfering with the Kadoorie family's other businesses.

For example, this would make the Kadoorie family targeted in all industries except the power sector.

This is probably the biggest reason why Laurence Kadoorie suddenly conceded defeat.

If Lin Haoran really lets Xiangjiang Hotel sell Peninsula Hotel, and they get to decide the price, then once Peninsula Hotel is separated from Xiangjiang Hotel, it's questionable how much market value Xiangjiang Hotel will have left.

A threat, a very direct threat.

Laurence Kadoorie, a man who had dominated the business world all his life, had never suffered such humiliation. Yet now, faced with Lin Haoran's aggressive attitude, he had no choice but to suppress his anger and resentment.

"Mr. Lin, this is going too far! A 40% discount? This is outrageous!" Finally, Laurence Kadoorie could no longer contain himself, his voice trembling with anger. Lin Haoran, however, remained calm, as if he had expected such a reaction.

He leaned back in his chair and said slowly, "Mr. Kadoorie, the business world is like a battlefield, and opportunities are fleeting. You should know that the initiative is in my hands now. The price I'm offering is already because you've taken the initiative to seek peace."

If you feel this is inappropriate, then we can continue to drag it out. However, I believe that the longer it drags on, the more detrimental it will be to your Kadoorie family.

He also knew that Lin Haoran's words were true. Lin Haoran's side now held more than 50% of the shares of Xiangjiang Hotel, and was even increasing its holdings. The control was completely in the hands of the other party.

If the stalemate continues, the other party has plenty of ways to make the Xiangjiang Hotel's shares increasingly worthless.

“Mr. Lin, aren’t you afraid that if you go too far, you’ll be scorned by the entire Hong Kong business community?” Laurence Kadoorie tried to put moral pressure on Lin Haoran.

Lin Haoran chuckled lightly, his laughter full of disdain: "Mr. Kadoorie, the business world has never been a place for personal relationships. When you joined forces with other forces to target me back then, did you ever think that things would turn out this way? I was just giving them a taste of their own medicine. Don't you think it's too late to say all this now? Your words are a bit laughable."

Laurence Kadoorie was speechless after Lin Haoran's words. He remained silent for a long time, constantly weighing the pros and cons in his mind.

Currently, the market value of Xiangjiang Hotel is around HK$31 billion.

Hongkong Land's announcement of the privatization of Hong Kong Grand Hotel did not raise the stock price.

After all, everyone knows that no one can wrest control of the Hong Kong Grand Hotel from Hongkong Land Group, not even the Kadoorie family.

The reason why Wharf Holdings' stock was able to rise from a dozen Hong Kong dollars to more than one hundred Hong Kong dollars per share was entirely because neither Jardine Matheson nor Paul John had actual control of Wharf Holdings at the time. Both of them were frantically buying shares, which led to the soaring stock price.

Unlike Xiangjiang Hotel, Lin Haoran's side has firmly grasped control, and market expectations for this acquisition battle have already cooled down.

No one would have thought that the Kadoorie family would increase their stake when Hongkong Land already had actual control of the Hong Kong Hotel.

After all, no matter how much they increase their holdings, they can't possibly seize control.

In other words, the Kadoorie family's current holdings in the Xiangjiang Hotel are valued at around HK$3.7 million.

If sold at a 6% discount, only about HK$2.2 million would remain, resulting in a direct loss of HK$1.5 million for Kadoorie.

This amount of money, while not much to Lin Haoran, is not a small sum.

Even for a super-rich family like the Kadoorie family, it would be painful to spend so much money.

Lin Haoran's goal was to teach the Kadoorie family a lesson and make them pay a heavy price for their rash actions.

Saving money is secondary.

Finally, Laurence Kadoorie sighed, as if he had come to a decision, his voice growing hoarse: "Alright, Mr. Lin, I agree to sell the shares of Hong Kong Hotel at a 6% discount, but you must guarantee that from now on, you will not target any of the properties under my Kadoorie family."

He has fully experienced the consequences of provoking Lin Haoran.

Previously, he didn't think much of it, believing that the Kadoorie family was different from Jardine Matheson and Huafeng Bank, and that with CLP Power backing them, they had unlimited confidence.

But now, he no longer thinks that way.

Unless the Kadoorie family focuses solely on the electricity supply business and abandons other ventures such as Taiping Carpets, he will indeed have the confidence to proceed.

But are they willing to give up other industries?

Of course I wouldn't want to part with it.

Lin Haoran's lips curled up slightly, revealing a smile: "Mr. Kadoorie, rest assured, I, Lin Haoran, always keep my word. As long as your Kadoorie family does not provoke us again, I will naturally not make things difficult for you."

“Very well, I hope our feud ends here. I will send someone to Hongkong Land Group to sign the contract tomorrow.” Laurence Kadoorie’s voice carried a hint of weariness and helplessness.

"No problem, I wish us a pleasant cooperation." Lin Haoran said and then hung up the phone.

……

After hanging up the phone, Ma Shimin couldn't help but ask, "Boss, why did they suddenly..."

Ma Shimin couldn't hear what Laurence Kadoorie said; he could only guess at some things from Lin Haoran's reply.

Clearly, the boss has won this negotiation, and completely crushed the other side.

"Because he finally saw the situation clearly." Lin Haoran walked to the window, looking down at the night view of Hong Kong, "and knew that continuing to resist would only make the Kadoorie family lose even more miserably and suffer greater losses."

“Once this news is released, it will be great news for us. Not only did they sell their shares in the Hong Kong Grand Hotel to us, but they even sold them at a 60% discount. Isn’t it obvious that the Kadoorie family has submitted to us? From now on, these guys will have to think twice before trying to deal with us!” Ma Shimin was also very happy.

"That's what they say, but in reality, some people never learn their lesson. We've already achieved brilliant results by defeating Jardine Matheson and Huafeng Bank, but these people are still eager to try again!" Lin Haoran said with some emotion.

As the saying goes, "the nail that sticks out gets hammered down." Lin Haoran, having become the richest man in Hong Kong and the most powerful person in the Hong Kong business world, was destined to be coveted by others who wanted to divide up his business empire.

When a whale falls, all things are born.

Clearly, Lin Haoran is now seen as a whale by others, and everyone wants to draw nourishment from him.

"Then boss, won't we be targeted forever?" Ma Shimin frowned.

Lin Haoran laughed and said, "So, my method is to beat them until they are afraid. If once is not enough, then twice. If twice is not enough, then three times. Everyone who provokes us will become a stepping stone for us to establish our authority. Let them understand that provoking me, Lin Haoran, means being accompanied by huge risks and painful consequences. Sooner or later, no one will dare to provoke us anymore."

Mr. Ma, as you know, my focus these days is more on overseas markets. The Hong Kong market is too small; it's so small that I have very little room for further growth.

Even the British couldn't just stand by and watch me devour more giant companies in Hong Kong. I can't keep acquiring them all indefinitely, like Swire Group, Wheelock & Co., CLP Power, and so on. I do have the capability, but I know I can't do that.

So, I hope this time is the last. I really don't want to keep struggling in this small Hong Kong anymore; I just want to steadily expand in the global market!

After saying this, Lin Haoran looked out the window at Victoria Harbour, a hint of weariness flashing in his eyes.

He really just wanted to be a hands-off manager, instead of encountering these terrible things every now and then.

He is already quite satisfied with the size of his assets in Hong Kong. Apart from Hutchison Whampoa owned by Li Ka-shing, he has no interest in acquiring any other companies.

As for why he insisted on acquiring Hutchison Whampoa, the reason was naturally that Li Ka-shing had angered him in the past few months.

Using the Kadoorie family as a 'weapon' to scare the monkey' doesn't mean he'll let the instigators off the hook!
However, Li Ka-shing currently holds a 40% stake in Hutchison Whampoa through Cheung Kong Holdings, which is too high a percentage for him to openly tell others that he intends to acquire Hutchison Whampoa.

Now, what he needs to do is to secretly continue accumulating shares in Hutchison Whampoa and Cheung Kong Holdings, and then look for an opportunity to crush Li Ka-shing's business empire in one fell swoop.

If you have a grudge, it's best to settle it on the spot.

However, Li Ka-shing is too cautious and has too high a shareholding. If the other party finds out about this before he can find out the right time, then Li Ka-shing will be on guard, and this takeover battle against Hutchison Whampoa will become extremely difficult.

Li Ka-shing has been a prominent figure in the business world for many years, and in the world before his time travel, he was the richest Chinese person for many years. His business acumen and adaptability should not be underestimated.

His 40% stake in Hutchison Whampoa is like a solid defensive line; to break through it, one must plan carefully and proceed step by step.

“Now, the privatization of the Xiangjiang Hotel is no longer difficult. Once this matter is over, Hongkong Land will do everything in its power to suppress Hutchison Whampoa. I want to see Hutchison Whampoa’s financial statements look like those of Hutchison Whampoa four years ago. Mr. Ma, this is up to you!” Lin Haoran patted Ma Shimin on the shoulder with his right hand and said solemnly.

In the mid-70s, Hutchison International suffered heavy losses for many years due to a failed investment strategy, and its financial statements looked terrible.

Ultimately, Huifeng Bank had to invite Mr. W. W., known as the "corporate doctor," to serve as the head of Hutchison Whampoa.

After taking office, Wylie implemented a major overhaul and reform of Hutchison International, which quickly stopped the losses, improved the group's management system, and merged Hutchison Whampoa with its most important subsidiary, Whampoa Dockyard, at the end of 1977, forming the present-day Hutchison Whampoa.

Lin Haoran knew that although Li Ka-shing now controlled Hutchison Whampoa, it was actually a very tight grip on the position.

Putting aside other things, the funds used to purchase the shares from Huifeng Bank were all loans from Huifeng Bank, and it took two years to pay off that loan.

In addition, Li Ka-shing also spent a great deal of money increasing his stake in Hutchison Whampoa in the past two years.

Acquiring shares from the secondary market is not like Huifeng Bank, where shares were practically given away to Li Ka-shing; these acquisitions were all at genuinely high prices.

However, the real estate market is now in a downturn, which has led to both Cheung Kong Holdings and Hutchison Whampoa facing enormous pressure to recover their capital in the real estate sector.

With a large number of properties remaining unsold, the cash flow is like a taut string, ready to snap at any moment.

This situation undoubtedly provided Lin Haoran with an excellent opportunity to break through.

If the real estate sector worsens and Hutchison Whampoa's other businesses also perform poorly, Li Ka-shing will inevitably face significant debt pressure.

That will be the perfect opportunity for Lin Haoran to make his move!
He cannot touch these British-owned companies like Swire Group; the Governor's Office will most likely intervene directly to stop them.

But now Hutchison Whampoa is considered a Chinese-owned enterprise, and the Governor's Office has no reason to stop Lin Haoran from coveting it.

(End of this chapter)