Chapter 385 Less Than 5 Billion to Take Over the Land Group!
As Lin Haoran finished speaking, the entire lobby fell into a brief silence. Compared to Lin Haoran's last comment directed at the British consortium, what caught the reporters' attention more was his announcement of the Land Group's privatization. They exchanged glances, trying to digest the sudden information. Privatizing the Land Group was undoubtedly explosive news, and announcing it on the same day that Jardines Matheson's control changed hands made it even more impactful.
Everyone present understood what privatizing the Land Group truly meant. It was a giant corporation with a market value of over 10 billion Hong Kong dollars. Privatizing it would require, aside from the shares Lin Haoran already controlled, an additional investment of billions more. Reflecting on Lin Haoran's earlier remark—"They offered too much; I'd be a fool not to agree"—the reporters couldn't help but speculate. Was it because Lin Haoran had received unimaginable funding from the British consortium that he now had the means to privatize the Land Group? No wonder he suddenly gave up Jardines Matheson.
Compared to controlling Jardines Matheson, privatizing the Land Group was obviously far more profitable. The Land Group, after all, was known as the "King of Central"—the giant of Hong Kong's real estate sector. At this point, Lin Haoran's bold move to privatize the Land Group completely overshadowed Jardines Matheson returning to British hands.
Although Jardines Matheson had once been called the "King of the Trading Houses," everyone in Hong Kong knew that title was due to its previous holdings in Wharf Holdings and the Land Group. Now that Jardines Matheson had lost both, its true value paled in comparison to the Land Group. Even Wharf Holdings' market value was now close to Jardines Matheson's.
Though the exact transaction details and conditions weren't public, as Lin Haoran said, if one had to choose between controlling Jardines Matheson or privatizing the Land Group, nearly everyone in Hong Kong would pick the Land Group—if they had the capital to do so. Once again, Lin Haoran's financial strength stunned the crowd. Who would have dared imagine privatizing the Land Group?
For a moment, what was supposed to be Jardines Matheson's triumphant event became Lin Haoran's personal showcase. The British figures' faces darkened visibly. A foreign journalist stood up and asked in English, "Mr. Lin, could you disclose how much funding you secured from the British consortium, enabling you to privatize the Land Group?"
"In business transactions, specific figures are typically considered confidential," Lin Haoran replied with a smile. "But I can say that the transaction was fair and reasonable. Both sides demonstrated great sincerity and professionalism, leading to a win-win outcome. Some of the terms are confidential, so I can't reveal exact numbers, but I can assure you that I have sufficient funds to proceed with the Land Group's privatization. Furthermore, I would like to announce another important piece of news: Jardines Matheson and the Land Group have completed a mutual share swap. Previously, Jardines Matheson held 30.2% of the Land Group's shares, but now those shares have returned to the Land Group. I plan to spend 3 billion Hong Kong dollars to acquire that 30.2% stake. The process is already underway. Once complete, I will control nearly 90% of the Land Group's shares, bringing me even closer to full privatization."
Now, almost all the reporters' focus shifted entirely to Lin Haoran, leaving the British consortium figures sitting awkwardly on the sidelines. Who exactly owned the spotlight now?
At that moment, Niu Bijian regretted letting Lin Haoran attend. Had he known this would happen, he wouldn't have allowed him to come or even left Ma Shiming there. Now, all the reporters cared about was Lin Haoran's privatization of the Land Group, treating the British consortium's reclamation of Jardines Matheson like a footnote.
"Everyone, the press conference is ending now. Please leave; any further matters will be addressed later," Niu Bijian announced at Henry Keswick's signal.
Though polite in tone, it was obvious they were cutting the event short before more questions could be asked. Originally, they had prepared extensively to handle the media, but their narrative had been hijacked by Lin Haoran's explosive announcement. Continuing the conference would only embarrass them further.
Lin Haoran wasn't surprised by their reaction. The necessary announcements had been made, and it was time to wrap up. Before leaving, he announced, "Later, Huanyu Investment Company and Hotholly will release statements regarding the Land Group privatization. Please feel free to cover those as well. Thank you, everyone."
With Lin Haoran's final words, the press conference ended. The reporters, though reluctant, had no choice but to leave, minds buzzing with excitement and countless questions.
Lin Haoran's announcements would ripple through Hong Kong like a stone tossed into a still pond. Reporters scrambled to get back to their offices to file stories or rushed to call sources for confirmation. Others hurried to Hotholly's headquarters to seek more details about the privatization.
Only a few British-affiliated media outlets stayed behind to cover Jardines Matheson's internal details, while the privatization news spread like wildfire across the city.
The British consortium leaders left behind looked furious, resigned, or deeply wary of Lin Haoran. Whatever triumph they felt about reclaiming Jardines Matheson had evaporated.
That same day, Hotholly announced that Huanyu Investment's privatization plan for the Land Group had been approved and filed with the Hong Kong Securities and Futures Commission. The privatization process had officially begun. Meanwhile, Huanyu Investment announced it had financed the HKD 3 billion needed to acquire the 30.2% stake previously held by Jardines Matheson.
Additionally, Hongkong Electric announced that it sold its 6% stake in the Land Group to Huanyu Investment for HKD 600 million.
On the stock market, Hotholly aggressively bought up available Land Group shares, swallowing most of the market listings. By day's end, they had absorbed an astonishing 4.8% of the Land Group's shares.
Thus, Huanyu Investment now controlled 93.7% of the Land Group.
Only about 6.3% of the shares remained on the open market.
On the morning of November 26th, Hotholly's general manager announced that, since Huanyu Investment now held over 93.7% of the Land Group's issued shares, they would proceed with a mandatory acquisition of the remaining shares under Hong Kong's Takeovers and Mergers Code.
Under the Code, the price offered must match the highest price paid for shares during the offer period or the six months preceding it. For the Land Group, the peak market cap had been HKD 11.6 billion.
Although the Land Group's current valuation was slightly lower, because only 6.3% of the shares remained, fulfilling the mandatory offer at peak valuation would cost Lin Haoran only about HKD 60 million more.
For him, spending a few tens of millions more to fully privatize the Land Group was a trivial expense.
Thus, Huanyu Investment could already declare victory—the Land Group was effectively privatized.
Still, Lin Haoran wasn't in a rush to declare it officially. He preferred to cleanly absorb as many remaining shares as possible first, ensuring no legal disputes or operational disruptions post-privatization.
Any shareholders who refused to sell would be bought out at the mandatory offer price after the process concluded.
As for dividends? Those shareholders would no longer be entitled to them—once privatized, the Land Group would belong solely to Lin Haoran.
After privatization, the Land Group's tens of billions in assets—including the HKD 3 billion paid to reclaim the 30.2% stake—would become Lin Haoran's personal property.
Thus, he could easily repay the HKD 3.3 billion (principal plus interest) owed to Citibank, as well as the HKD 2 billion plus interest he borrowed earlier from HSBC.
During this period, the Land Group had also sold several projects, recouping substantial cash flows. After full privatization, all of these funds would belong solely to Lin Haoran.
In reality, the final cost for Lin Haoran to privatize the Land Group would be less than HKD 5 billion.
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