Chapter 623 New Governor Murray MacLehose

Time soon came to October. This month, another major event happened. The mainland successfully entered the United Nations and became one of the five permanent members.

Judging from the number of votes in favor and the camps among the countries participating in the vote, any smart person knows what it means. Affected by this, Hong Kong's Hang Seng Index further increased, and some British companies also saw huge gains.

Changxing Group Headquarters:

Fang Xianming was brought in by his assistant and said with a smile, "Mr. Yang, good news. Wharf Holdings is preparing to raise additional shares and funds again."

"Another increase in shares? This is really like a pillow falling on your face when you are sleepy." Yang Wendong asked with a smile: "How much are they increasing this time?"

Fang Xianming said: "About 500 million shares, accounting for 8% of the total number of shares. This increase in shares is also for the purpose of developing its multiple warehouse sites on Hong Kong Island. It is intended to build office buildings and then hold them for its own use."

"That's enough." Yang Wendong was speechless, but except for Qi Dezun, all other British investors of this era behaved in this way, so he didn't say much, so he said, "Then take the opportunity to acquire enough shares. At this rate, when can we reach 33.4% of the shares?"

According to Hong Kong's Listed Companies Law, 33.4% of the shares mean at least 5 out of 2 voting rights and a veto power, which is the most core sign of controlling a company.

A lion fighting a rabbit is Yang Wendong's attitude in this acquisition battle against Hutchison Whampoa.

He did not want to give the Jardine Matheson Group too much time to react, otherwise it would most likely turn into a tug-of-war between Pao Yu-kong and Jardine Matheson in history. Although Pao Yu-kong won in the end, he suffered heavy losses on the economic level.

Moreover, the Jardine Matheson Group gradually declined in the 70s. That is to say, the current Jardine Matheson is still stronger than it was in the 80s. Even if it cannot compare with the Changxing Group, there is no need for it to bear unnecessary losses.

Fang Xianming replied: "If everything goes well this time, we will be able to acquire 30% by the beginning of next year. We will then need to connect with some Wharf shareholders. This process is likely to attract the attention of Jardine Matheson."

"Let's just attract attention. It's within expectations. With a 30% chance, that's enough chance of winning. Even if it's exposed earlier, it will only cost a few more points of funds at most," Yang Wendong said, nodding.

When it comes to such a high proportion, something like an acquisition is bound to easily alert the other party and even some keen stock experts. This is difficult to avoid completely. No matter how good the method is, at most it will be discovered later.

Even if a company like Hutchison Whampoa had not been established for a long time, it would not have been possible to secretly acquire so many shares even over a longer period of time. Although it was listed ten years ago, it also absorbed many other shareholders during the development process over the past few decades or even hundreds of years. After the listing, the shares of these shareholders were also circulated and cashed out, which gave others the opportunity to secretly acquire the shares.

Fang Xianming said: "If this is the case, then we will need to launch a takeover campaign at the beginning of next year. With our preparations, I don't think funding will be a problem, but the biggest problem is politics."

"Haven't you seen that the mainland has become one of the five permanent members of the UN Security Council? This is our best chance." Yang Wendong said with a smile, "NKS will visit China next year. The US attitude is very clear, and the British will certainly be the same. So as long as we don't go too far, the Hong Kong government will not be in any trouble.

Besides, at worst I can just test it out. I can become a major shareholder of Wharf Holdings and I will have a chance to slowly gain control. No one can make me give up my shares, right? Jardine Matheson can't come up with any other assets to exchange."

In fact, in terms of relations, the relationship between the UK and the mainland is better, and the reason for this is actually because of Hong Kong.

Moreover, at this time, Britain is still obsessed with the dream of being a great power and does not think there will be any problems in Hong Kong.

Winning over Chinese capital is also a strategic step that the British and Hong Kong governments need to take. So even if they fail, they will definitely be able to keep their stocks. If they really fail due to political reasons, then waiting a few more years will do the same. In history, it took Pao Yu-kong two years to succeed.

Fang Xianming said: "Indeed, with our capabilities, even if we hold a public shareholders' meeting, Wharf's shareholders will most likely choose us to manage it."

"This is indeed a good method. It can shut everyone up." Yang Wendong nodded and said.

The shareholders' meeting is recognized worldwide as the highest decision-making body for companies. If a company really chooses one side, the government cannot interfere unless it breaks the law, otherwise it would undermine market freedom.

"If the acquisition doesn't go smoothly, we can use this trick." Fang Xianming smiled and said, "Mr. Yang, the stock price of Hong Kong Electric has risen sharply in the past month. Obviously Qi Dezun has already made a move."

"Have other people or people from HK Electric discovered it?" Yang Wendong asked.

Fang Xianming said: "No, I know because I paid attention to it in advance. Now the entire Hong Kong Hang Seng Index has skyrocketed, and all stocks have also risen sharply. Many British stocks have also risen sharply. Under this circumstance, it is indeed a good time to secretly acquire."

Taking advantage of the low stock price to secretly acquire is a way to save costs, but the speed cannot be too fast, otherwise the abnormality may be discovered. Changxing Group has long been plotting against Wharf Holdings, and it took several years to acquire just over 10 percentage points;
When the stock price is going up, the acquisition cost is high, but the advantage is that it can be done faster;

There is no good or bad in these two methods, it all depends on the needs of the acquirer.

Yang Wendong smiled faintly and said, "Let's follow up on this matter. If Hutchison Whampoa can really acquire Hong Kong Electric, it will be a great thing."

He had long been optimistic about Hong Kong's energy companies, but it was not convenient for him to make a move before, and he had been planning Wharf Holdings, so he had no chance to make a move on HK Electric. Moreover, HK Electric was an energy company, and the Hong Kong government might find a reason to interfere, which would be very troublesome. If Qi Dezun, a British-funded consortium, made the move, it would be difficult for other British-funded companies and the Hong Kong government to stop it openly.

Fang Xianming asked: "Should we get involved and buy some stocks first?"

Yang Wendong thought for a while and said, "Forget it, let's not participate. If we participate, we can only make a little money at most. It's meaningless. What if our funds also go in and affect Qi Dezun's plan? That would be bad. The most important thing right now is to ensure that he can acquire HK Electric. You just need to provide some financial support."

With the current wealth of Changxing Group, unless it is a top-level speculative opportunity, it will not have much significance. Strategic success in business is more important. With the help of Hutchison Whampoa's acquisition of HK Electric, he will have the opportunity to enter the energy field in the future, which is the most strategically valuable.

"Okay." Fang Xianming agreed.

In early November 1971, Murray MacLehose, the new Governor of Hong Kong, officially took office.

This future best governor of Hong Kong has not changed, just as it was in history. According to Yang Wendong's estimation, his actions in Hong Kong have not had a great impact on the highest level of Britain and have not affected the candidates for the future governor of Hong Kong.

This was also a good thing for him. After all, Yang Wendong had a rough idea of how this person would behave in the future.

On November 11, the retiring Governor of Hong Kong, David Trench, invited elite celebrities from all walks of life in Hong Kong to hold a grand welcome ceremony at the Governor's House.

British-Chinese financial groups, British-Chinese politicians, and representatives from the cultural community all attended the ceremony.

But everyone is still divided into camps, the British foreigners stay together, and the Chinese people also stay together.

"Mr. Bao, I heard that your Global International is also going to be listed on the stock market?" Yang Wendong was chatting with Bao Yugang, as there was nothing else to do at the moment.

Bao Yugang nodded and said, "Yes, it will probably be early next year. Global International also has many other shareholders, and everyone needs a way to cash out, otherwise the stocks will always be just a pile of paper."

If there is no controlling stake, then the investor needs any company to be listed. This is the ultimate goal. Even if there is no rush to cash out, as long as the company is listed, the stocks in hand can become financial assets that can be mortgaged.

"Congratulations! Given the current situation of the Hong Kong financial market, Global International will surely achieve very high financing results." Yang Wendong said with a smile.

Bao Yugang said: "Haha, maybe, but it is far inferior to Yang Sheng's performance. If Changxing Shipping is listed, its market value will not be much lower than mine."

"My company will not be listed for the time being." Yang Wendong said with a smile.

Bao Yugang nodded and said, "Haha, if Mr. Yang's company goes public, the Hang Seng Index will rise significantly. But I think Mr. Yang's goal should be the global market, right? Will he go public in Europe and the United States in the future?"

Yang Wendong thought for a while and said, "Maybe some companies, most of them should still be listed in Hong Kong, but the current timing is not right, so we will choose the right time later."

If one day your prophet's golden finger advantage is almost gone, you can consider listing for financing. Listing itself is also a way to attract many allies;
Bao Yugang said: "Haha, that's good. When your company goes public, I will have to buy some shares."

"I welcome it." Yang Wendong said with a smile.

While they were chatting, Trench took MacLehose to the area where the Chinese gathered.

Trench smiled and said, "Mr. MacLehose, this is Yang Wendong."

"It's a pleasure to meet you, Mr. Yang," said MacLehose in perfect English.

Yang Wendong immediately returned the handshake and said in English, "Me too, Mr. Governor."

Unlike several previous governors of Hong Kong who came from Hong Kong society, MacLehose was parachuted in. He was a diplomat-turned-officer chosen by the highest level of Britain. At present, he still does not speak Chinese, but only English.

MacLehose smiled and said, "A few years ago, I heard about Mr. Yang's achievements in Hong Kong. You have also invested in several factories in the UK. I hope we can have good cooperation in Hong Kong in the future."

"No problem. I also hope that Hong Kong will get better and better." Yang Wendong nodded.

(End of this chapter)

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