Chapter 458 Successfully Acquired a Stake in Hutchison Group

Chapter 458 Successfully Acquired a Stake in Hutchison Group

Chapter 458 Successfully Acquired a Stake in Hutchison Group
"Hutchison Whampoa, what do you think?" Yang Wendong asked.

The most suitable object is naturally the successful case object in history;
Among the four major trading companies in Hong Kong in the future, Jardine Matheson, Swire and Wheelock are traditional giants that have been operating in Hong Kong for hundreds of years. After hundreds of years and several generations, they have successfully become the kings of this era. But Hutchison or Hutchison Whampoa is different. As early as the early 60s, Hutchison was just a medium-sized enterprise. It was relying on the current boss Qi Dezun, through more than ten years of hard work, that the company was developed into a giant level.

In other words, even if we ignore the Whampoa Group, it is still cost-effective to invest in Hutchison now. Qi Dezun is also a rare smart man. During the real estate crisis in 1967, he bought land and carried out mergers and acquisitions on a large scale, and then created Hutchison, one of the four major trading companies in the future.

"Hutchison Whampoa? They are in the business of trade." Fang Xianjue reminded, "Isn't it a bit of a mismatch to let Hutchison acquire Huangpu?"

Yang Wendong said: "Huangpu's main business is ports, and only Jardine Matheson and Swire are in the same industry. We can't have any plans for Jardine Matheson and Swire, so any other British company would not be a good match.

Besides, except for a few, most of the British companies in Hong Kong are engaged in trade, so it doesn’t matter which one you choose. What I value is the ability of the company’s boss.”

He is familiar with many British giants in Hong Kong's history, but it is hard to say which ones are more powerful, because these big companies have high starting points, and except for HSBC, other British companies are also swimming in the fish pond of Hong Kong.

Qi Dezun was a semi-exception. At least Hutchison Group grew from small to large under his leadership. Although he misjudged the real estate crisis in 73 and ruined his career, he still had the ability.

If there is no choice, this person must be the most appropriate one.

Fang Xianjue said: "As far as I know, Hutchison Whampoa was completely acquired by International Enterprises in the middle of the year and then changed to Hutchison International. Qi Dezun himself holds almost 30% of the shares, and the others are also like the Whampoa Group, with several British shareholders.

If we want to acquire shares, we won’t be able to get a certain share just by buying on the stock market.”

"I agree with this point." Yang Wendong nodded and said, "Well, let's check the entire Hutchison International information first, and then I plan to ask Qi Dezun to come out and talk to him to see if we can cooperate."

After listening to this, Fang Xianjue agreed and said, "Okay, Mr. Yang."

"That's it for now." Yang Wendong said, "Old Zheng, don't worry about this for now. Even if you succeed, you won't be able to get Huangpu so quickly."

"Okay." Zheng Zhijie nodded and said, "I will stay calm and follow Singapore and Mr. Huo to study the dock matters together."

"Yes, even if we succeed in acquiring Huangpu one day, we will need our own people to fight against the old forces of Huangpu when we build a container terminal in Hong Kong in the future." Yang Wendong continued: "Otherwise, we will not be able to accept their management rights."

Acquiring a high-tech company is definitely not a way to sit back and relax. In the past, after acquiring Hutchison Whampoa, Li Jiacheng was confronted by Hutchison Whampoa's senior management many times, but he could only pretend not to care and generously stated that he would respect Hutchison Whampoa's independence. It was not until 4 years later, after splitting up Hutchison Whampoa's management and learning for many years, that he officially took over Hutchison Whampoa.

"I understand." Zheng Zhijie agreed.

Yang Wendong added: "Lao Fang, please check the information of Hutchison International and Qi Dezun or its board members as soon as possible. Only after we have confirmed it can we take the next step."

Historically, although Qi Dezun was very capable, he was limited by his own capital. Therefore, in the next few years, he acquired various companies and real estate on a large scale through issuing stocks. Although he successfully operated the Hutchison Group into one of the four major trading companies, he was also heavily in debt, and his own equity was reduced to insignificant.

However, this is not a big problem. In the UK and even in Europe and the United States, many families do not hold large shares in their own companies, but hold a minority of shares to expand the scale of the company.

The first advantage is that the larger the enterprise, the greater the influence of the individual or family. The second advantage is that through legal cooperation, one can have his own privately held enterprise cooperate with the company and thus gain greater profits.

Under normal circumstances this is not a problem, but once an economic crisis or major operational problems occur, there is a huge risk of losing control. It's just that the benefits of doing so are too great, so many people still do it.

Greed is something that no capitalist can avoid. British capital in Hong Kong is also worried about the future, so they are more likely to use this method to cash out their wealth and leave.

This also lays the groundwork for the possibility of large-scale Chinese acquisitions of British capital in the future. Otherwise, even if the mainland strongly supports Chinese capital, it can only be on the basis of "fairness". Once there are no structural problems with British companies, Chinese capital will be unable to do anything to them. For example, Swire Holdings has very high-quality wealth, but it has never been attacked because the family has a firm grip on the controlling stake and no one can do anything about it. At most, it can set up an airline to compete with Cathay Pacific.

"Yes, I will investigate it immediately." Fang Xianjue also agreed.

A week later, Fang Xianjue came to Yang Wendong's office again and handed over some information: "Mr. Yang, these are the detailed information of Qi Dezun and Hutchison International."

"Let me take a look." Yang Wendong also put down the newspaper in his hand and took it to read.

Fang Xianjue gave a brief description: "Mr. Yang, Qi Dezun was an artilleryman in Hong Kong in his early years. Later, the Japanese came and he became a prisoner. He stayed in prison for more than a year without surrendering. In 42, he successfully escaped from prison and went to Guangdong Province to become an artillery commander of the anti-Japanese armed forces. Later, he went to India and Burma, where he fought against Japan. His highest position was colonel, and he also won many British and Allied medals.

After the war, he retired and came to Hong Kong, where he joined Hutchison, which was then a subsidiary of Wheelock. After another ten years of operation, Hutchison became larger and larger, and he gradually acquired Hutchison shares through the listed company International Enterprises. Eventually, Hutchison separated from Wheelock and merged with International Enterprises to become Hutchison International Group.

"This experience is really amazing." Yang Wendong also had to praise it.

If Hutchison had not been too radical in 73 and fell into a debt crisis, Qi Dezun would definitely have become the most successful modern British businessman in Hong Kong history. Unfortunately, there are no ifs in history. If he was a Chinese, Yang Wendong might have helped him, but he is a white ghost. Although he can praise him, he will definitely not help him for a long time. At most, he can use him.

Fang Xianjue also said: "Yes, just the fact that he had fought against Japan for several years also made me admire him a little."

"Yeah, me too." Yang Wendong added, "According to this data, 57% of Hutchison Group's shares are in the hands of British capital, and another 12% is controlled by someone unknown. The remaining 30% is circulating on the stock market. Even if we acquire it, we can only get about 10 points."

Circulating shares do not mean that all of them are being traded. After acquiring shares, many shareholders may not trade them again and become small shareholders. Therefore, once a large consortium comes in to acquire the shares, even if it keeps a low profile, once it acquires a certain share, the market or the company will find it abnormal.

Fang Xianjue also said: "Yes, then what should we do now?"

"Well, ask Qi Dezun to come out for me." Yang Wendong said, "It might be more convenient to explain it to him directly."

He also hopes to get Hutchison or the future Hutchison Whampoa, but not now, because the current Hutchison, although not small in scale, is not big either, and is far behind the original Hutchison Whampoa in history.

If he acquired it now, even if Hutchison was not "secretly blocked" by the Hong Kong government due to its small size, it would not be of much significance, because only the "British capital" identity could allow Hutchison to become one of the four major trading companies in the future.

"Okay, I'll arrange it right away." Fang Xianjue said immediately.

"Yang Wendong from Changxing Group wants to see me?" In an office building in Central, Hong Kong, the white guy Qi Dezun said in surprise after hearing the report from his assistant.

The assistant said, "Yes, he asked you to meet him in the presidential suite of the Four Seasons Hotel within the next week at your time."

"Did you say anything?" Qi Dezun asked.

The assistant replied: "No, the people from Changxing Group didn't say anything."

"Okay, then I'll go to the appointment two days later in the afternoon." Qi Dezun then agreed.

Although Hutchison International Group has no major relationship with the Cheung Hsing Group, the other party is now the largest Chinese financial group with influence throughout Hong Kong. Even the Governor of Hong Kong and the boss of HSBC have to give him some face, so he has to meet him no matter what.

"Okay." The assistant agreed.

Two days later in the afternoon, in the presidential suite of the Four Seasons Hotel:
"Hello, Mr. Qi Dezun." Yang Wendong also extended his hand politely and smiled. He and Qi Dezun had actually met before. The Hong Kong government had invited political and business people to gatherings many times before. Yang Wendong also knew the bosses or managers of famous Hong Kong companies.

But even though they knew each other, they had never spoken a word to each other because there was no business cooperation. In fact, Changxing Trading was still a competitor of many British companies.

Qi Dezun also shook hands and said, "Hello, Mr. Yang. I have heard of your name for a long time."

"Please sit down." Yang Wendong signaled with his spiritual sense. After the two sat down, Qi Dezun went straight to the point and asked, "Mr. Yang, I wonder why you asked me out?"

"Mr. Qi Dezun, I want to invest in Hutchison International." Yang Wendong also said directly.

The two of them didn't know each other, so there was nothing else to talk about. It would be better to just get straight to the point.

"Invest in Hutchison International? Why?" Qi Dezun had actually made some guesses before, but he was not sure.

Yang Wendong smiled and said, "First, I am optimistic about your ability, Qi Dezun, and second, I want to indirectly invest in many industries in Hong Kong, but you also know that I am Chinese, and it is not convenient for me to participate in many industries."

"Mr. Yang wants to plan some British-funded industries?" Qi Dezun did not doubt it, and asked again: "I wonder which industries Mr. Yang is interested in."

Yang Wendong replied: "A lot. I am interested in all of Hong Kong's infrastructure, including electricity, transportation, ports, large real estate, gas, communications, etc."

"These are all listed companies. If Mr. Yang is interested, can't he just buy the stocks directly?" Qi Dezun asked puzzledly.

Over the years, Hong Kong Chinese forces and even some new British capital have been very dissatisfied with the large-scale infrastructure being controlled by a few British companies. They have organized many fights, which eventually led to the water company being taken over by the Hong Kong government. Even a few years ago, even the electricity was almost taken back by the Hong Kong government.

Therefore, in order to avoid further conflicts, the Hong Kong government ordered that all public enterprises must be listed. Whoever was a sole proprietor would lose the corresponding license. As a result, around the 60s, a large number of monopoly enterprises were listed, creating a short-lived prosperity in Hong Kong's financial market.

Yang Wendong smiled and said, "Buying stocks is easy, but I want a certain influence. Otherwise, in terms of investment returns, they may not be able to match my business."

"Mr. Yang's management ability is indeed known to the whole of Hong Kong." Qi Dezun nodded, and then said: "So Mr. Yang wants to invest in these companies through me; then you and I will obtain some of the director rights of these companies, and you will become a director of my company?"

"Smart, I like to cooperate with smart people." Yang Wendong said: "Qi Dezun, this matter will also be of great benefit to you. If I become a shareholder and director of Hutchison, then whether it is funds or relationships with banks, I can help you expand rapidly.

Whether it is social influence or wealth, you have gained a great improvement, and even Hutchison International can participate in the cooperation with some of my Changxing Group’s businesses.”

If you want to catch fish, you naturally have to give more bait. If you give enough bait, even the smartest fish may not be able to resist coming to take a bite.

"But if that's the case, I'm worried that one day I will lose control of Hutchison." Qi Dezun said with a faint smile.

He is a very smart man, and he naturally understands the benefits of this, but there are also risks. There is no free lunch in this world.

“Why do I want control?” Yang Wendong asked in return: “When you become a director of HK Electric, Wheelock and even Jardine Matheson someday, if I swallow up Hutchison, wouldn’t that mean I’m cutting myself off from these companies?
But I understand your concerns, and I can give you a written promise that the shares I raise this time will not compete with you for the control of Hutchison."

This statement was absolutely correct before the mainland rose and made friends with the West. British financial groups and the Hong Kong government would never allow Chinese capital to interfere in their local core industries. Even Yang Wendong would have been suppressed long ago if the foundation of Changxing Group's rise was not manufacturing.

As for this promise, it was also to reassure Qi Dezun. In this way, with his support, he could expand more than in his previous life. The promise was only for this time's shares, and this was the loophole.

When Hutchison reaches its peak, he only needs to sell his shares, and the promises will naturally disappear. He can also make a fortune and then wait for its collapse. Just like what happened in previous history, once Hutchison is on the verge of bankruptcy, he can buy other stocks and take over again.

"How do we cooperate?" Qi Dezun felt relieved when he heard that there was a written commitment.

Yang Wendong, the upstart Chinese, wanted to increase his influence rather than cut himself off from the British Hong Kong government or confront so many British companies. Even HSBC, which had a good relationship with him, would not support him in such a matter.

If he cooperates with him, even if the other party becomes a director of Hutchison, it will not affect his rights at all.

Yang Wendong said: "We will raise funds directly. I will get 20% of Hutchison's shares, and Hutchison International will get a large sum of cash. The price will be based on the average market value of the previous few days.

After you get the funds, we will work together to invest in some British trading company stocks that we think are suitable through bank loans.

Even if Hutchison International is still British-owned after I buy shares, your purchase of shares of a British-owned company will not cause much market reaction. When you have enough shares, you can seek a board seat. How do you think? "

Any Hong Kong citizen who has a desire for power will not be able to resist this temptation. Being able to become a director of several large British companies is enough to make one the top figures in Hong Kong. Even the Governor of Hong Kong would have to be polite to him.

Qi Dezun is such a person. In the past, in order to expand the scale of Hutchison, he engaged in crazy financing and acquisitions, which created the Hutchison International Group that is comparable to Jardine Matheson.

"I need to think about it." Qi Dezun did not answer directly. Even if he was the sole authority in the company, he had to ask for other people's opinions on such a major matter.

"Okay." Yang Wendong naturally knew that this matter would not be decided as soon as they met, so he said: "Qi Dezun, I hope you can make a decision on this matter as soon as possible, because Hutchison International is not my only choice."

His target from the beginning to the end was Hutchison International and Qi Dezun. Only Qi Dezun could successfully run a medium-sized company into the future "Hutchison Whampoa", so the so-called indirect influence on other British capital was just a cover.

Of course, if Hutchison can really acquire shares of many high-quality British companies, that would be a good thing for him. This would require him to negotiate with Qi Dezun on which companies to invest in after he becomes a director of Hutchison in the future.

Huangpu Group will also be one of them, but he will not reveal his intentions now.

If successful this time, investing in Hutchison will help him achieve many strategic goals in the future.

"Okay, I'll give you a reply as soon as possible." Qi Dezun naturally believed that Yang Wendong was not lying.

If he were Yang Wendong, he would naturally try to communicate with several medium-sized British companies and then choose a suitable one. Moreover, other companies would surely agree to such conditions. Although his company might have another Chinese shareholder, it would also allow him and his company to reach the pinnacle of Hong Kong. He was also very tempted by this situation.

A few days later, news came from Hutchison Group that it was willing to discuss cooperation. So Fang Xianjue of Changxing Financial immediately formed a comprehensive team of financial investment, legal affairs, and business and went to the headquarters of Hutchison International for negotiations.

Time soon came to December, and Hong Kong's real estate and stock markets continued to fall, as did Hutchison's shares. Under the insistence of the Changxing Group on using the stock price one week before the negotiation as a condition for investment, Qi Dezun and others quickly made concessions.

As a listed company, Hutchison International also had to announce such big news, so on December 12, the news spread throughout the Hong Kong stock market.

Changxing Group acquired a stake in Hutchison International Group for HK$2360 million and obtained one of the six board seats of Hutchison International.

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(End of this chapter)