Chapter 305 Jardines Matheson's Mutual Control Plan Between Jardines and Land Development
The article from the Hong Kong Times indeed contained some real information.
It even revealed that Universal Investment Company had begun acquiring shares of Land Development Corporation as early as the beginning of the year.
This further convinced Lin Haoran that the leak had come from within Universal Investment Company.
However, the article only speculated about how many shares Universal Investment actually held, estimating between 10% to 15%, which was still far from the actual amount.
Moreover, Universal Investment's targeting of another objective — Jardines Matheson — had not been exposed.
Putting down the newspaper, Lin Haoran frowned slightly.
The initiative he once held regarding Land Development Corporation had now turned passive.
Fortunately, aside from him and Su Zhixue, no one else knew the actual number of shares Universal Investment had acquired.
After reading the newspaper, Li Weidong had already returned.
Lin Haoran, taking Li Weiguo with him, left the Lin family villa, boarded the Rolls-Royce, and instructed Li Weidong to drive straight to Wanching Tower.
Meanwhile, at the headquarters of Jardines Matheson in Central, chaos erupted among the senior management of Jardines and Land Development Corporation.
Universal Investment Company, widely known in Hong Kong, was essentially understood to be Lin Haoran's personal investment platform.
Thus, the company's every move, in a sense, represented Lin Haoran's own intentions.
Now, a shocking piece of news had quietly spread: Universal Investment had been secretly acquiring shares of Land Development Corporation over the past six months.
No matter who was in charge of Jardines Matheson, this news would be difficult to believe and felt absurd.
Lin Haoran — he actually harbored ambitions toward Land Development Corporation?
Jardines immediately convened an emergency teleconference, with even the Cassels family representatives from the UK participating.
Land Development Corporation's importance to Jardines Matheson was immense.
Originally, Jardines had two most critical listed subsidiaries: Wharf Holdings and Land Development Corporation.
Now, Wharf Holdings had already been taken by Bao Yugang; there was no way they would allow Land Development Corporation to be lost as well.
"What are your thoughts on this matter? How should we respond to Lin Haoran's actions?"
Former Jardines chairman Henry Keswick asked sternly over the phone.
Although the Keswick family appeared to be the major shareholder of Jardines, in reality, they only held about 10% of the shares.
Nevertheless, they regarded Jardines as their family enterprise.
After Henry Keswick stepped down, Niu Bik Kin had taken over.
However, Henry Keswick was already planning to reclaim control, preparing to remove Niu Bik Kin and appoint his brother Simon Keswick instead.
Of course, to oust Niu Bik Kin, sufficient mistakes needed to be accumulated.
Losing Wharf Holdings was a major mistake but still not enough.
Even so, Henry Keswick did not want to see Jardines lose Land Development Corporation.
Wharf Holdings and Land Development Corporation were like the two arms of Jardines.
Losing Wharf was like losing one arm; losing Land Development would mean both arms were gone.
"I think we should first find out exactly how much stake Lin Haoran currently holds in Land Development Corporation," one shareholder suggested.
"This is just a newspaper report. Are we sure it's true?" another shareholder questioned.
"No, it's likely true. Our Jardines Securities Company just reviewed the past year's trading data for Land Development Corporation.
Starting from the beginning of the year, trading volumes surged significantly, especially in the past three months.
Whether it's true or not, we must prepare. Jardines cannot afford to lose Land Development Corporation!"
The general manager of Jardines Securities Company said gravely.
"If, as reported, Lin Haoran holds only 10% to 15%, then we still have time to act.
Since Huifeng Bank helped Bao Yugang forcibly acquire Wharf Holdings, it's clear that the other British capital groups in Hong Kong are no longer reliable.
To protect the controlling rights of Land Development Corporation, we must rely solely on ourselves.
Especially in the past two years, companies like Qingzhou Cement, Hutchison Whampoa, and Hong Kong Electric have all been taken over by Chinese-funded groups.
The myth of British financial invincibility in Hong Kong has been completely shattered.
Even our Land Development Corporation and Jardines Matheson may already be seen as prime targets by Chinese conglomerates.
Today's report in the Hong Kong Times confirms my fears — someone is already coveting Land Development Corporation.
Thus, I've been thinking about ways to defend it, and I have come up with a plan, not yet perfect but with great potential.
If it succeeds, no one will be able to acquire Land Development Corporation — nor Jardines Matheson!"
Niu Bik Kin spoke up.
"Mr. Niu Bik Kin, what is your plan?" Henry Keswick asked, curious.
Despite the internal power struggle, Henry Keswick still respected Niu Bik Kin's capabilities.
However, when it came to family interests, no matter how capable Niu Bik Kin was, he had to be replaced by a Keswick.
Thus, although Niu Bik Kin remained in office, Jardines had already entered a phase of internal political conflict.
Niu Bik Kin composed himself and said, "I call this the 'Mutual Control Plan Between Jardines and Land Development.'
As the name suggests, I propose that Jardines, Jardines Securities, and Land Development Corporation mutually increase their shareholdings in each other, creating a stable iron triangle of mutual control.
In this way, any Chinese financial groups coveting our companies would be deterred.
If each party holds about 40% of each other's shares, combined with the shares held by our British financial shareholders, the total would easily exceed 50%.
Thus, the controlling rights over Jardines and Land Development would be unshakeable."
Those present immediately began discussing the proposal.
It was indeed a good plan.
If successfully implemented, no matter how wealthy the opposing side was, they would be unable to seize control.
However, challenges remained — namely, how to actually increase mutual shareholdings.
"Please be patient. I have thought about this as well.
Given the immediate threat to Land Development Corporation, we should prioritize securing it first.
I propose that Land Development Corporation issue new shares, injecting premium assets such as Jardines' holdings in Wharf Holdings A shares and the World Trade Center property in Causeway Bay.
This way, Jardines can increase its control, and the issuance will dilute Lin Haoran's stake, killing two birds with one stone,"
Niu Bik Kin explained when the group's debate became heated.
His plan immediately garnered widespread support, even from Henry Keswick himself.
"Mr. Niu Bik Kin's plan is excellent.
Since the opposing side has surfaced, as long as we are well-prepared, Lin Haoran — no matter how wealthy — won't be able to take Land Development Corporation away from us.
We are not as easily attacked as Hong Kong Electric!"
Henry Keswick said.
"Very well, it's decided. Let's aim to resolve this within half a month!" Niu Bik Kin said decisively.
"Half a month is too long. Regarding the new stock issuance, we must accelerate the process. I propose we finish within ten days!" Henry Keswick added urgently.
Henry Keswick remained highly alert to Lin Haoran's actions.
Especially since Lin Haoran's maneuvers during his visit to Britain, notably the Shipley Company incident, had caused a huge stir and netted him tens of millions of pounds while humiliating many British companies.
The Keswick family's wealth was merely average in Britain — only holding about 10% of Jardines Matheson.
They couldn't compare to the squid-like mega-conglomerates backing groups like DHL.
Thus, Henry Keswick feared that delays would create further complications.
He had grand ambitions to let the Keswick family fully control Jardines Matheson and use it to boost the family into Britain's top elite circles.
"I'll do my best!" Niu Bik Kin cautiously replied.
Completing such tasks within ten days would be a major challenge, but it was necessary to defend against Lin Haoran's threat.
Thus, the decision was finalized.
However, issuing new shares in Land Development Corporation would not be easy — it required detailed planning, filings with the stock exchange, public disclosures, and other procedures.
Ten days would indeed be extremely tight.
Meanwhile, after Jardines' high-level conference ended, Lin Haoran's car had already arrived at Wanching Tower.
Taking the elevator up to the 31st floor, the home of Universal Investment Company, he headed straight to the Land Development Corporation project team and found Su Zhixue organizing tasks.
"Boss, you're here!"
Seeing Lin Haoran, Su Zhixue finally felt relieved, as if he had found his backbone.
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