Chapter 379 Stripping Jardines Matheson Bare, Deal Reached!
It wasn't long before Ho Kin Ning and Ma Shiming arrived at Lin Haoran's villa on Shixun Road.
Although it was their first time visiting, villas on Shixun Road were not densely packed, and since Lin Haoran had given them the address, they found it easily.
Lin Haoran personally welcomed them outside and led them to the study on the first floor.
"Today, you two worked hard," Lin Haoran said after they were seated, pouring tea for them himself.
"Boss, it's what we should do," Ma Shiming said with a shake of his head.
"Boss, we lived up to your expectations. The results of today's negotiation are very promising. Although one condition is still pending, based on Mr. Henry's attitude, it should be settled very soon," Ho Kin Ning reported seriously.
Hearing this, Lin Haoran filled their cups and poured himself some tea. Then, he lifted his head and focused his gaze on Ho Kin Ning.
"Kin Ning, tell me in detail about the negotiation process and the final results."
"Yes, boss!" Ho Kin Ning answered immediately and began describing the entire negotiation in a vivid and detailed manner.
The conditions that Lin Haoran's side reached with the British consortiums covered almost everything Lin Haoran had previously requested:
They agreed to persuade the four British shareholders of the Land Group to sell their shares to Lin Haoran at market price.The Mandarin Oriental Hotel and Oriental International Hotel brands would be returned to the Land Group.The Rothschild family and the Keswick family proposed to buy Lin Haoran's 19% stake in Jardines Matheson at a total price of HKD 1.9 billion, valuing Jardines Matheson at HKD 10 billion overall—a price they ultimately agreed to.The British consortiums agreed to support the privatization of the Land Group.Jardines Matheson and the Land Group would sever all affiliations, with no future ties between the two.The Land Group would acquire a 20% stake in Gammon Construction Company.
These were the major points already agreed upon.
The Mandarin Oriental and Oriental International brands were originally created by the Land Group but were later spun off and taken over by Jardines Matheson. Now, they were finally returning to where they belonged.
Compared to Jardine Fleming Securities, the hotel brands weren't considered crucial by Jardines Matheson anymore, so they agreed to the transfer to avoid haggling further.
As for Lin Haoran's 19% stake in Jardines Matheson, although he hadn't brought it up during the talks, the British consortiums proactively requested to buy it.
They were worried that if Lin Haoran retained that 19%, he could one day regain control.
Thus, even at a slightly inflated price, they were willing to buy it off him.
Huanyu Investment had spent around HKD 1.1 billion over the past year to accumulate the 19% stake.
Now, selling it for HKD 1.9 billion meant Lin Haoran pocketed a handsome profit of HKD 800 million.
Moreover, securing a 20% stake in Gammon Construction was an unexpected bonus!
Originally, Lin Haoran had only casually mentioned Gammon Construction during discussions, not expecting anything to come from it.
Yet Ho Kin Ning and Ma Shiming managed to secure it, surprising and delighting Lin Haoran.
These two truly were the capable hands who had once supported Li Ka Shing in another world.
Now, they had become Lin Haoran's right-hand men.
As for Li Ka Shing—sorry, but your talents are now mine.
As Ho Kin Ning narrated the negotiation process, Lin Haoran listened, occasionally nodding in satisfaction.
The one unresolved issue was the control of Kwai Chung Terminal No. 5.
Lin Haoran knew well the significance of the Kwai Chung container terminals.
Once the busiest port terminals in the world, even as China's economy rose, Kwai Chung retained strategic importance.
Thus, Lin Haoran was determined to force the British consortiums to agree to sell Terminal No. 5's controlling interest for HKD 100 million.
The British side was reluctant because losing the terminal would mean Jardines Matheson's Hong Kong assets would shrink to less than 10% of its portfolio—essentially turning it into a company focused solely on international operations.
Nonetheless, Henry Keswick appeared ready to sacrifice the terminal to regain Jardines Matheson's control.
In his mind, it was better to lose one asset than to lose Jardines Matheson entirely.
Hearing all this, Lin Haoran couldn't help but applaud.
"You two did an excellent job today!" Lin Haoran said with a big smile.
"Boss, I plan to reposition the Land Group into a diversified business conglomerate, no longer relying solely on real estate but emphasizing multiple core industries simultaneously," Ma Shiming added.
"In the past, Jardines Matheson's British leadership sought to strip the Land Group of all non-real estate businesses, aiming to create a purely property-focused company.
They wanted to peel away the hotel, retail, and shipping sectors—like how they spun off the Mandarin Oriental when it became successful.
Even Dairy Farm International, the Land Group's strongest subsidiary, was targeted for separation.
Now that we've reclaimed these businesses, it's an ideal opportunity to push the Land Group toward a diversified and integrated future," Ma Shiming said.
"I agree completely," Lin Haoran nodded. "Although Hong Kong's real estate market seems booming now, I'm sensing potential risks.
Going forward, you should scale back risky real estate projects and consolidate our core assets."
"Understood. Out of our seventy-plus ongoing property projects, we are already looking to sell off non-core assets.
I aim to reduce the Land Group's total debt to less than HKD 1 billion within a year," Ma Shiming replied confidently.
Lin Haoran spent more than two hours discussing strategy with Ho Kin Ning and Ma Shiming at the villa.
In the evening, he hosted a dinner for them at the villa, showing his appreciation.
Later that night, Lin Haoran received a call from Henry Keswick.
"Mr. Lin, we have persuaded Mr. Shen Bi and other shareholders.
We're willing to relinquish control of Kwai Chung Terminal No. 5 to the Land Group.
I hope we can formalize all agreed terms and sign the deal tomorrow," Henry Keswick said, his voice weary.
It was obvious that regaining control of Jardines Matheson had taken a huge toll on him.
Today's Jardines Matheson was but a shadow of its former self.
However, for Henry Keswick, retrieving Jardines Matheson was better than losing everything.
He still believed Jardines Matheson, with its massive overseas assets and global brand, had the potential for a grand revival.
Domestically, they still held valuable assets like Jardine Fleming Securities.
Besides, many British elites were increasingly pessimistic about Hong Kong's future anyway.
Perhaps now was the time to fully pivot toward expanding international operations.
"Excellent, Mr. Henry! I'll come personally to Jardine House tomorrow morning to sign the agreement.
Congratulations to you on regaining control of Jardines Matheson!" Lin Haoran said heartily.
Although he was giving up a non-essential Jardines Matheson, he had secured a tremendous amount of profit from it.
This was, without a doubt, a winning move.
The ones truly losing were the now-battered Keswick family and the British consortiums.
Lin Haoran had stripped Jardines Matheson bare—then graciously "returned" it to them.
Thinking of this, Lin Haoran's mood grew even lighter.
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