Chapter 426 Target: Hong Kong Telephone Company
After receiving the good news from Motorola, Lin Haoran didn't waste any time. He immediately called Ma Shimin, the General Manager of Jardines Matheson Group in Hong Kong.
"Mr. Ma, how is the privatization process of Jardines Matheson Group progressing?" Lin Haoran asked with a smile as soon as the call connected.
"Boss, according to the latest feedback from Victory Company, we have now accumulated over 98.5% of Jardines Matheson Group's shares. The shares still held by small investors are very few.
However, as the acquisition progresses, the pace has indeed slowed down. In fact, it was only due to the strong willingness of most shareholders to sell that we managed to achieve such significant results in such a short time.
As for the remaining shares, based on past experience, Victory Company's analysis suggests they are mainly in the hands of two types of shareholders: one group consists of those who bought Jardines Matheson shares early on and have since emigrated overseas—they might not even be aware of the privatization; the other group consists of shareholders who aren't too concerned about the small number of shares they hold and might even want to keep them as mementos.
Therefore, achieving 100% shareholding is quite difficult.
Based on this, Victory Company recommends that we start preparing to apply to the Securities Regulatory Authority to declare the privatization successful. They will assist us with all the necessary procedures," Ma Shimin reported thoroughly.
Lin Haoran nodded and said, "Alright, then proceed with the application to the Securities Authority. Make sure to settle this matter. I've wrapped up most things on the U.S. side and will be heading back to Hong Kong soon. I hope that when I return, I'll hear good news from you."
Although Jardines Matheson Group had already been delisted and the privatization work had been ongoing, as long as the formal announcement of successful privatization hadn't been made, the company couldn't yet be considered Lin Haoran's private enterprise.
"Please rest assured, Boss. I will coordinate with Victory Company and expedite the process to complete it for you," Ma Shimin promised.
"Has anything else happened with Jardines Matheson recently?" Lin Haoran asked.
"Not much on our side," Ma Shimin replied, "but there is one thing that has had a considerable impact on Hong Kong, indirectly due to our recent actions."
"Oh? What is it?" Lin Haoran asked curiously.
"Boss, during this period, we put more than thirty real estate projects up for sale, and ultimately, we recouped about 6.8 billion Hong Kong dollars.
Over twenty real estate companies across Hong Kong participated in the bidding, leading to a saturation of real estate projects in the short term.
Last week, the government sent invitations to all significant real estate companies in Hong Kong, including ours, announcing that on January 1, 1981, they will auction five plots of government land.
The locations of these plots are exceptionally good—scarce and highly valuable within Hong Kong. One is situated just over 100 meters east of the Kang Lok Building in Central, with an area of 73,000 square feet.
The others are scattered across premium areas like Hennessy Road in Causeway Bay, south of the Central Ferry Piers, East Tsim Sha Tsui, and so on.
The starting prices are reasonable, but surprisingly, only three real estate companies have accepted the invitation to participate in the auction so far. Their interest seems weak—they appear to be participating merely to show respect to the government.
In the past, at least a dozen companies would have participated, and the bidding would have been fierce. This is the first time in recent years that government land auctions have seen such a situation," Ma Shimin explained in detail.
Lin Haoran sighed slightly. His operations had indeed indirectly affected Hong Kong's real estate market, with the government feeling the impact first. Hopefully, the Hong Kong government wouldn't blame him for it.
"In that case, Jardines Matheson Group should also register to participate in the auction. If we can purchase the land at a low price, we should secure as much as possible, as long as the prices aren't unreasonable," Lin Haoran decided after a moment of thought.
These plots weren't ordinary. Missing the opportunity now might mean never having the chance again.
Moreover, Jardines Matheson currently had ample funds—over 10 billion Hong Kong dollars in available capital.
Although some of this money was earmarked for ongoing projects, and several billion were set aside for debt repayment, before repaying, the funds were still usable.
Even after accounting for these reserved funds, Jardines Matheson still had several billion Hong Kong dollars at its disposal.
The group was now more financially robust than ever.
"Boss, why have you suddenly decided to purchase land again?" Ma Shimin asked, curious but supportive, his tone even carrying a hint of amusement.
Clearly, he strongly agreed with this strategy.
"These plots, as you said, are rare resources. If we don't seize them now, we might not have the opportunity later.
Although we predict a coming real estate crisis in Hong Kong, I believe it won't last long.
Once the crisis passes, Hong Kong's real estate market will experience another surge.
Thus, missing these premium plots now could make it extremely difficult to reclaim such opportunities in the future.
While we have recently sold over thirty projects, none of them were truly premium assets, which is why we let them go to reduce Jardines Matheson's debt ratio.
Now that the group's finances are healthy and debt-free, we have no financial concerns.
Moreover, from what I know, premium government land plots are becoming increasingly rare—each one sold is one less available in the future.
So, wherever possible, we should secure them now," Lin Haoran explained.
"Boss, I completely agree with your view. I was planning to discuss this with you myself, but you brought it up first!" Ma Shimin said joyfully.
At that moment, Ma Shimin felt a deep sense of connection with his boss's strategic thinking.
Sharing the same management vision with Lin Haoran gave him immense confidence in the group's future development.
Lin Haoran smiled and said, "Mr. Ma, being on the same page like this—that's what I call true synergy. Jardines Matheson's development needs this kind of synergy between us to go even further."
Although Lin Haoran wasn't an expert in corporate management, he had a very clear grasp of general development directions—mainly thanks to his knowledge of major future trends.
As for Ma Shimin, despite lacking future information, he had the foresight and sensitivity to industry dynamics, aligning naturally with Lin Haoran's ideas.
This kind of executive was exactly what Lin Haoran needed.
He had traveled all the way to Singapore to invite Ma Shimin back to Hong Kong—a decision that had paid off handsomely!
Ma Shimin nodded in agreement and added, "Boss, once we finish talking, I'll immediately begin preparations for the auction. I'll also maintain close communication with Victory Company to speed up the privatization process and ensure everything is finalized before your return to Hong Kong."
Lin Haoran nodded with satisfaction. "Very good, Mr. Ma. I've always trusted your work. Under your management, Jardines Matheson has developed steadily, and I believe this time will be no different."
"Thank you for your trust, Boss!" Ma Shimin said with a chuckle.
"By the way, Mr. Ma, there's one more important matter I need you to handle," Lin Haoran continued.
"In the past, Jardines Matheson once attempted to acquire Hong Kong Telephone Company, though we didn't succeed. However, we still hold ten million shares in Hong Kong Telephone Company, correct?"
"Yes, Boss. Jardines Matheson currently holds ten million shares," Ma Shimin confirmed, though he wasn't sure why Lin Haoran was bringing up Hong Kong Telephone Company now.
"Today, I met with Robert Galvin, the CEO of Motorola," Lin Haoran explained. "You've heard of mobile phones, right? Although it's still an emerging technology not yet commercially launched, there have been plenty of news reports over the years.
I plan to launch commercial mobile phone services in Hong Kong, and cooperation with Motorola will be crucial.
We have already reached a preliminary agreement to jointly invest in establishing a mobile communications company.
Therefore, I have decided to have Jardines Matheson resume its acquisition plan for Hong Kong Telephone Company. As the largest telecommunications company in Hong Kong, if we successfully acquire it, we can use it as a foundation for cooperation with Motorola."
Considering Jardines Matheson was now virtually Lin Haoran's private company and already held a significant stake in Hong Kong Telephone Company—with ample funding—he felt it was the most suitable entity to carry out the acquisition.
Since he had secured preliminary cooperation with Motorola to establish a mobile communication company in Hong Kong, acquiring Hong Kong Telephone Company would provide strong support for that partnership.
Hong Kong Telephone Company not only had a solid technological foundation but also carried a rich legacy, having been founded in 1925 and thriving for over fifty years.
In Hong Kong, it held an extremely high market share, effectively monopolizing the communications sector.
Thus, acquiring Hong Kong Telephone Company would be pivotal to advancing the collaboration with Motorola.
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