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Chapter 751 Li Sheng, you have no choice!

Lin Haoran guessed that after the Governor's Office's "mediation," Li Jiacheng's last shred of hope would be completely shattered.

Even the governor approved Lin Haoran's request, leaving Li Jiacheng with no choice but to accept it.

"Return to Kang Le Building," Lin Haoran instructed Li Weidong calmly.

The vehicle drove smoothly away from the Governor's Palace.

Lin Haoran leaned back in the comfortable back seat and closed his eyes to rest.

Next, he only needed to wait for Mai Lihao to talk to Li Jiacheng, and then wait for news from Li Jiacheng.

This business battle that shocked Hong Kong is nearing its end.

Lin Haoran didn't know when Li Jiacheng would contact him, but right now it was the other person who was anxious, not himself.

Therefore, having successfully passed the governor's test and avoided any trouble from him, he now appears quite calm.

It was as if everything was in his hands.

Back at the Kang Le Building, Ma Shimin was still waiting for him.

Upon seeing the boss return, he quickly inquired about it.

"Everything went smoothly!" Lin Haoran laughed heartily.

He then briefly recounted his meeting with the governor.

After listening to Lin Haoran's account, Ma Shimin's face showed genuine admiration.

"Boss, you handled this so brilliantly. You not only completely defused the governor's warning, but you also turned him into our advocate, cleverly shifting the final decision-making power and pressure to Li Jiacheng."

This move, a 'retreat to advance', seemingly relinquished control of Cheung Kong Holdings, but in reality, it firmly grasped our core objective—Hutchison Whampoa.

As for Cheung Kong Holdings, we don't need to completely give up on it; we just need to stop increasing our holdings. And we've made the Governor feel that we've made a huge sacrifice and are grateful for our help. Brilliant, truly brilliant!" Ma Shimin exclaimed.

Lin Haoran smiled calmly, walked to the round glass window, and looked down at the view of Victoria Harbour.

"When dealing with these politicians, especially colonial rulers, what they value most is not absolute fairness and justice, but 'stability' and 'control'."

They wanted everything to be under their control and in a balanced way. Li Jiacheng lost control, challenged the rules but failed, and turned from a useful pawn into a problem.

As for me, although my momentum is rapid and I may become uncontrollable at any time, I have always acted within the rules and have demonstrated stronger strength and a more 'cooperative' attitude.

Comparing the two options, Mak Rihau knew which choice to make. His so-called 'mediation' was essentially a display of power and a maintenance of order.

I satisfied his psychological needs in this regard, giving him a way out and credit for his actions, so he naturally sided with us. As for Li Jiacheng's feelings? That was never Mai Lihao's primary concern.

Ma Shimin nodded in deep agreement: "Indeed. So now we just need to wait for Mr. Li Jiacheng's response. I think Governor Merrihout's call should have reached Mr. Li's office by now."

On the other side, in the Chinese Building, is the headquarters of Cheung Kong Holdings.

The atmosphere in Li Jiacheng's office was so heavy it was almost suffocating.

He did not go to Hutchison Whampoa Building today.

He has given up all hope of acquiring a controlling stake in Hutchison Whampoa.

Li Jiacheng sat alone on the sofa, flipping through some unprocessed documents from Changshi in his hand. However, he had no interest in them at all.

The defection of the four major shareholders was incredibly ironic, completely confirming his alienation from his supporters.

Now, we can only place our hopes on the Governor.

Bao Yugang had already called him and told him that as long as there were enough concessions, Lin Haoran's side didn't necessarily have to take over the controlling stake in Cheung Kong Holdings.

However, this significant concession is somewhat intriguing.

Ultimately, he still needs to continue talking with Lin Haoran.

Just as he was getting extremely agitated, the telephone on the table rang.

He glanced at the number on the screen and remembered that it was the Governor's office phone number.

Li Jiacheng, as if grasping at the last straw, immediately picked up the receiver.

"Hello? Governor!"

On the other end of the phone, Mai Lihao's calm voice came through: "Mr. Li, I just spoke with Mr. Lin Haoran."

Li Jiacheng's heart leaped into his throat, anxiously awaiting the next word.

"He agreed to make concessions and would no longer seek a controlling stake in Cheung Kong Holdings."

Upon hearing this, Li Jiacheng felt a sudden sense of relief and almost burst into tears of joy. It seemed that the governor's influence was indeed effective!
However, what Meryl Streep said next was like a bucket of ice water, completely extinguishing the flame of hope that had just been ignited in him.

"However, he demanded that Cheung Kong Holdings transfer all of its Hutchison Whampoa shares to him at a 'reasonable price,' which was a prerequisite for the settlement."

Besides, although Lin Haoran is not pursuing further increases in his stake in Cheung Kong Holdings, he insists on continuing to hold his shares in Cheung Kong Holdings. Mr. Li, this is the best outcome you can get right now.

If you accept it, Cheung Kong can still be preserved, and you can still be the chairman of Cheung Kong. When you have money in the future, you can still increase your shareholding to a level that you feel comfortable holding.

otherwise……"

Mai Lihao didn't finish his sentence, but the warning he conveyed was clear.

Li Jiacheng's hand holding the receiver trembled slightly, and his face turned pale.

“A reasonable price?” he repeated in a dry voice. “Governor, this is blatant robbery! Those Hutchison Whampoa shares are among Cheung Kong’s most valuable assets, and at the current market price…”

Li Jiacheng naturally understood the meaning of those words. Wasn't this "reasonable price" ultimately up to Lin Haoran?
How can he accept whatever price the other party sets?
Moreover, and most importantly, allowing Lin Haoran to continue holding shares in Cheung Kong Holdings is practically a ticking time bomb.

With his current shareholding in Cheung Kong Holdings, Lin Haoran is well able to obtain a significant number of voting rights on the board of directors of Cheung Kong Holdings.

If the other party opposes him, even if he is the chairman of the board of directors of Cheung Kong Holdings, he will find it difficult to fully control the company.

This is tantamount to planting a landmine next to one's own heart!
His original idea was that Hutchison Whampoa could be abandoned, but it had to be sold at a normal market price so that Cheung Kong Holdings would at least not suffer such heavy losses.

In addition, Lin Haoran will also take back his shares in Cheung Kong Holdings, so that he will have complete control over the entire Cheung Kong Holdings.

Lin Haoran holds shares in Cheung Kong Holdings, and he is really worried about him!
But what does this mean now?
“Mr. Li!” Mai Lihao interrupted him, his tone becoming serious and cold. “You need to understand your current situation. Without Lin Haoran’s concessions, you will lose not only Hutchison Whampoa’s shares, but the entire Cheung Kong Holdings!”

This isn't a discussion with you; it's a warning about the price you must pay to maintain commercial stability in Hong Kong. If the trouble you started fails, you'll have to bear the consequences.

This is my final opinion.

The silence on the other end of the phone was filled with an undeniable authority.

Li Jiacheng felt a chill run down his spine, from the top of his head to the soles of his feet.

He understood that although the Governor's Office had approached Lin Haoran, it was only because of Standard Chartered Bank's influence, not because of him.

Mai Rihau wasn't mediating; he was issuing a final order.

His so-called "way out" is to exchange Cheung Kong's most core assets for a chance to barely survive.

“I…I understand, Governor.” Li Jiacheng’s voice was filled with exhaustion and despair. “Thank you, I will consider it carefully.”

After hanging up the phone, Li Jiacheng slumped onto the sofa, as if all his strength had been drained away.

The setting sun outside the window shone into the office, but he only felt a sense of gloom.

We've lost. Utterly lost.

They were defeated not only by Lin Haoran's ruthless business tactics, but also by the cold reality and the weighing of options.

The office was deathly silent, save for the ticking of the antique clock on the wall, which clearly echoed his shattered pride and ambition.

After a long while, he sighed and instructed his secretary, who was standing guard outside, in a hoarse, almost inaudible voice: "Connect me to Mr. Lin Haoran's phone."

At that moment, he seemed to age ten years in an instant. All his shrewdness, sharpness, and indomitable spirit vanished, leaving only dejection after being utterly crushed by reality.

He knew that the time had come for him to personally end this humiliating war that he had started. He couldn't wait any longer; continuing to wait would bring no benefit and might even lead to greater losses for him.

The "beep...beep..." waiting tone coming from the receiver was so jarring.

He knew that Lin Haoran would definitely make an exorbitant demand, but he could only hope that the other party's request wouldn't be too unreasonable!

……

At 6:30 p.m., the sky over Hong Kong was dyed a deep golden-red by the setting sun, but the offices on the 51st floor of the Connaught Building were brightly lit.

Lin Haoran stood in front of the floor-to-ceiling window, looking down at the neon lights of Central as they began to illuminate the city, his heart as calm as still water.

He was waiting for someone—a business tycoon he had only ever seen in the news in his previous life—Li Jiacheng.

Just half an hour ago, unsurprisingly, he received a call from Li Jiacheng.

On the phone, Li Jiacheng's tone was no longer angry; instead, it returned to its previous humility and calmness, even carrying a hint of undisguised fatigue and hoarseness.

He proposed that he personally visit Lin Haoran at the Kang Le Building to discuss the terms of the settlement in person.

Lin Haoran agreed without hesitation.

He understood that this was Li Jiacheng's last way to maintain some semblance of dignity—taking the initiative to visit was better than being summoned again or receiving an ultimatum over the phone. It also meant that Li Jiacheng had completely given up resistance and was prepared to accept reality.

"Boss, the security captain just said that Mr. Li's car is parked in the underground parking lot of Kang Le Building, and he's about to come up," Ma Shimin reported to Lin Haoran from the next office.

"Okay." Lin Haoran nodded slightly, his expression still calm. "Mr. Ma, please go to the elevator to greet him. Remember to be polite."

"Understood, boss." Ma Shimin understood and turned to walk quickly toward the private elevator.

Although they are opponents, and even the defeated generals, they must still be given sufficient superficial respect. This is the demeanor of the victor and a basic rule in the Hong Kong Chinese business community.

A few minutes later, there was a gentle knock on the office door.

Ma Shimin led Li Jiacheng in.

After just over a day apart, the once spirited "Superman Li" seemed to have lost all his energy.

His suit was still impeccably pressed, and his hair was neatly combed, but a gloomy look lingered between his brows, his eyes were dim, and his steps were no longer as steady as before, exuding a heavy sense of fatigue.

He tried hard to maintain his usual composure, but his slightly hunched back and somewhat stiff smile betrayed the immense pressure and humiliation he felt inside.

"Lin Sheng." Li Jiacheng's voice was a little hoarse as he took the initiative to greet him.

"Mr. Li, welcome, welcome! Please have a seat!" Lin Haoran greeted him warmly, his smile sincere yet appropriate, neither overly enthusiastic to appear hypocritical, nor cold to appear arrogant.

He led Li Jiacheng to sit down on the sofa in the reception area.

"Mr. Lin, you're too kind." Li Jiacheng forced a smile, sat down on the sofa, and placed his hands somewhat awkwardly on his knees.

He glanced at Ma Shimin, who was standing half a step behind Lin Haoran, and felt a mix of emotions.

This former senior executive of Jardine Matheson is now a capable lieutenant under Lin Haoran, a situation that is particularly jarring.

Li Ka-shing and Simon Murray actually knew each other long before. When Murray was the sales manager of Jardine Matheson's Air Conditioning Company, a subsidiary of Jardine Matheson, he was responsible for promoting products to real estate developers in Hong Kong.

After talking with Li Jiacheng, Li Jiacheng realized Ma Shimin's business acumen and international vision, and gradually regarded him as a partner.

Later, Simon Murray left Jardine Matheson and co-founded a consulting firm in Singapore with descendants of the Rothschild family. At that time, Li Ka-shing wanted to take this opportunity to persuade Murray to join Cheung Kong Holdings and become a professional manager at Cheung Kong.

Unfortunately, the other party was persuaded by Lin Haoran first, and he had no choice but to miss out on this talented person.

Ma Shimin's assistant quietly served three cups of hot tea and then left.

Ma Shimin sat quietly on the single sofa to the side and did not go out. Lin Haoran had asked him to stay there.

A brief, suffocating silence ensued.

The aroma of tea wafted through the air, yet it couldn't dispel the heavy atmosphere.

Finally, Li Jiacheng took a deep breath and broke the silence. He knew that he was the one seeking peace, and the initiative was no longer in his hands.

“Mr. Lin,” his voice was dry, with a deliberately maintained calm, but unable to hide the weariness beneath, “I’m here this time to discuss the equity issues between Cheung Kong and Hutchison Whampoa.”

The Governor should have already conveyed your message.

Lin Haoran picked up his teacup, blew on it gently, and said calmly, "Sir Merrihau did have a fruitful conversation with me, and I also expressed my willingness to consider the bigger picture and seek reconciliation."

He emphasized the phrase "considering the overall situation" slightly, as if he were the one who made a huge concession.

Li Jiacheng's lips twitched almost imperceptibly. He suppressed the humiliation in his heart and said with difficulty, "Yes, thank you, Mr. Lin, for giving us this opportunity. Changshi is willing to accept the settlement."

We agree to the transfer of Hutchison Whampoa shares and also accept Mr. Lin's entry into the Cheung Kong board of directors.

He spoke extremely slowly, each word carrying immense weight.

"However," he changed the subject, looking at Lin Haoran with a last glimmer of hope, "regarding the transfer price, Mr. Lin, Hutchison Whampoa's assets, especially the land and ports, are all high-quality assets, and their value is obvious to all."

Although the market price has fluctuated due to the takeover battle, the net asset value is still a relatively fair benchmark. Do you think we can use the net asset value per share before the turmoil as the basis for the transaction?

This is already the limit that Cheung Kong can withstand, any lower..."

He paused, finding it difficult to speak the rest, but the meaning was clear: any lower and it would be a devastating blow, a complete annihilation.

This was his most important objective for the trip—to negotiate a better price.

Even if we can only gain a tiny bit, it can save him some face and preserve some of Changshi's strength.

Lin Haoran listened quietly, without any sign of impatience on his face.

After Li Jiacheng finished speaking, he put down his teacup, leaned forward slightly, and looked at Li Jiacheng sincerely: "Mr. Li, I understand your difficulties."

Li Jiacheng felt a chill run down his spine; usually, such an opening remark was not followed by good news.

Sure enough, Lin Haoran continued, "But, Mr. Li, you must understand my situation. I did not start this storm. I was forced to fight back and invested a lot of resources and reputation."

Market sentiment is currently volatile, and Hutchison Whampoa's share price appears to be in a bubble. Trading at the current market price or even net asset value would be difficult for me to justify; I would be paying too high a price and appear to be a sucker in Hong Kong.

Li Jiacheng's heart sank.

"Moreover," Lin Haoran said in a calm tone, but with an undeniable logic, "the financial pressure that Cheung Kong is currently facing largely stems from its previous aggressive expansion and the costs of this acquisition battle."

It's unfair and against business principles for me to bear this entire risk.

"So what does Lin Sheng mean..." Li Jiacheng's voice trembled slightly.

“My opinion,” Lin Haoran stated clearly, “is to offer a certain discount based on Hutchison Whampoa’s market value before the crisis, in order to reflect the special circumstances Hutchison Whampoa is currently facing and the actual risks inherent in this portion of the equity.”

I believe a 50% discount is a relatively fair price.

50% off!

Li Jiacheng felt a sudden darkness before his eyes and his blood rush to his head!
Although it was worse than the worst-case scenario he had foreseen from the governor's words, at the time he thought it would be at most 20% off.

This 50% discount is nothing short of blatant profiteering!

Before this turmoil, Hutchison Whampoa's market capitalization was around HK$10 billion, and Cheung Kong Holdings held a 40% stake, worth at least HK$4 billion.

But if the price is halved, wouldn't that 40% stake be worth only HK$20 billion?
This means that Cheung Kong Holdings will lose more than HK$2 billion in asset value out of thin air!
"50% off?" Li Jiacheng almost lost his voice. He could no longer remain calm, and all the color drained from his face. "Mr. Lin! This price, if I may be so bold, is simply sucking the blood out of Changshi!"

How can I explain this to the other shareholders of Cheung Kong Holdings? How can I explain it to the banks? Cheung Kong Holdings will be severely damaged as a result, and may even be unable to recover!
Is this the 'reconciliation' Lin Sheng wanted?

He was somewhat agitated, and his voice had risen considerably. From his perspective, this reaction was entirely reasonable.

Ma Shimin frowned slightly, but seeing that Lin Haoran's expression remained unchanged, he remained silent.

Lin Haoran waited for Li Jiacheng to calm down a bit before speaking slowly, his tone still calm: "Mr. Li, please calm down. I understand your agitation, but please try to think about it from a different perspective."

"First, with this funding, Cheung Kong can immediately repay most of its urgent debts, stabilize its position, and avoid falling into a more dangerous liquidation situation. This is a lifeline."

As far as I know, the price your Cheung Kong Holdings paid for Hutchison Whampoa was not high, especially the 22.4% stake you acquired from HSBC, which cost negligible.

Although the price per unit of subsequent acquisitions was significantly higher, the average price per unit you acquired wasn't high, so Cheung Kong didn't lose money!

"Secondly, if I hadn't agreed to give up controlling stake in Cheung Kong Holdings, you wouldn't be considering how many billions you'd lose, but rather whether you'd completely lose Cheung Kong Holdings."

"Li Sheng, you should understand the principle of choosing the lesser of two evils better than I do."

“Third,” he said, softening his tone, “regarding the future, I promise that once the transaction is completed, I will be a ‘quiet’ financial investor in Cheung Kong.”

As long as Cheung Kong's business strategy does not harm my fundamental shareholder interests, I will not interfere with your management decisions. In fact, at certain critical moments, I can even be a force to support you.

"As for the current value of this stability, Mr. Li, you can judge for yourself. Don't say I haven't made any concessions; this is a significant concession on my part."

Although Cheung Kong Holdings wasn't bad back then, it still lagged far behind Hutchison Whampoa.

It can be said that Cheung Kong's ability to acquire a major player was due to the support of HSBC, and the fact that it obtained HSBC's stake in Hutchison Whampoa at a very low cost.

This is why Mr. William Ralph, then the taipan of Hutchison Whampoa, fiercely criticized the deal, saying that HSBC's price was too low.

Some media outlets even claimed that Huifeng Bank was "giving" Hutchison Whampoa to Li Ka-shing!
Therefore, even if it's a 50% discount, even if Cheung Kong Holdings might lose money, it certainly won't lose much in terms of costs.

After coercion, they offered a seemingly wonderful but actually unrealistic promise about "future stability."

Li Jiacheng clenched his fists so tightly that his nails almost dug into his palms.

He knew, of course, that part of what Lin Haoran said was true, but the huge 50% discount felt like a red-hot iron branding his heart!

This is no longer cutting flesh, it's deboning!

Moreover, he knew perfectly well how unreliable that promise of "non-intervention" was.

As long as Lin Haoran holds a large number of shares, he is a Damocles' sword hanging over Cheung Kong Holdings.

“Mr. Lin! A 50% discount… that’s absolutely impossible!” Li Jiacheng’s voice trembled with excitement and despair. “This is not a business negotiation at all, this is outright robbery, and Cheung Kong’s board of directors will never approve it!”

"You can't do this, the market's criticism is overwhelming..."

"Mr. Li! You have no choice! I want you to understand that I'm not negotiating a price with you now, but informing you of my decision. What you need to consider now is not whether the board of directors approves it, but whether Cheung Kong can continue to be owned by the Li family!"

Lin Haoran interrupted him, his tone remaining calm.

He stared directly at Li Jiacheng, an invisible pressure emanating from him: "Do you think you have a choice? How much more patience will Standard Chartered Bank have for you? Or will Galaxy Securities continue to increase its stake in Cheung Kong after the stock market opens tomorrow?"

(End of this chapter)