noveldepot Chapter 20: Bao Yugang and Li Ka-shing Reach a Deal
Chapter 20: Bao Yugang and Li Ka-shing Reach a Deal
Around 12:15 pm.
Luxury private room on the top floor of the Peninsula Hotel.
Sir Michael Sandberg and Pao Yuk-kong stood in front of the floor-to-ceiling window of their private box, quietly gazing at Victoria Harbour and the bustling people on the dock.
"Bao! Are you really going to give up the shipping industry?" Sir Michael Sandberg broke the silence first, asking Bao Yugang, "The competition on land will be even greater, and the road will be even more difficult."
Pao Yuk-kong did not respond immediately, his gaze turning towards the pier. After a moment, he said, "I am not giving up the shipping industry, but rather expanding my business." He then pointed to the headquarters of Jardine Matheson and Wheelock in Central: "Since these foreign firms intend to withdraw, this is the best time for me to expand ashore."
Shen Bi nodded in approval.
Since news broke not long ago that Hong Kong must return to its motherland, there have been constant rumors that Hong Kong will no longer be under British rule within a specified time.
It was also rumored that the British housekeeper would be going there to discuss issues concerning Hong Kong.
After these news broke, British-owned companies and even some Chinese-owned companies in Hong Kong began preparations to shrink their businesses in Hong Kong and transfer assets to leave.
Many businessmen were pessimistic about the takeover of the mainland, but Pao Yue-kong was the exact opposite; he had considerable confidence in the mainland. Coupled with the shipping industry's downturn in the past two years, and British capital's intention to withdraw from the Hong Kong market, he simply wanted to develop his business on the mainland.
"OK! Since you've made your decision, I, on behalf of HSBC, will fully support you."
"Thank you for your trust, Mr. Sim Bi."
"Knock knock knock!!!"
Just then, there was a knock on the door of the private room. Both of them knew it must be Li Ka-shing, so they stood up and straightened their clothes.
"Come in."
Sir Michael Sandberg's assistant brought Li Ka-shing in.
"Hello! Mr. Li, welcome!"
"Haha! Mr. Shen Bi, it's an honor to receive your invitation."
"Mr. Li! Hello."
After Shen Bi and Li Ka-shing finished their pleasantries, Bao Yugang stepped forward to greet him.
"Oh! Sir Bao, hello."
He was knighted in 1976, so many people outside the community call him Sir John Paul Bao.
Li Ka-shing was genuinely surprised to find Pao Yue-kong present. He had assumed that Sir Michael Sandberg's invitation to meet him was related to the Wharf Holdings stock issue.
He even considered that the head of Jardine Matheson would be present, and that Sir Michael Sandberg would act as an intermediary to help the two sides reach a consensus and complete the deal.
Or perhaps this meal was a "trap".
But to his utter surprise, only Shen Bi and Bao Yugang were in the private room. This overturned all his previous assumptions, and he couldn't figure out their plans.
"Li! Please have a seat."
"Very well! Sir Michael Sandberg and Sir John Paul Wong, please also."
After Shen Bi and Bao Yugang sat down, Li Chaoren slowly sat down.
Upon meeting, neither Shen Bi nor Bao Yugang immediately got to the point. The three chatted casually and exchanged pleasantries.
Until we had almost finished eating.
"Mr. Li," Sir Michael Sandberg's expression shifted from its previous jovial demeanor, and he finally got to the point: "What Sir John Paul wants to do is what HSBC wants to see. It's time to change the way we play this game of Wharf Holdings."
Shen Bi's words contained many meanings.
But Li Ka-shing was a man of great stature, and he certainly understood. He glanced at Bao Yugang and realized that he had never guessed that Shen Bi's invitation to him today was to act as a go-between for Bao Yugang.
Li Ka-shing was indeed shocked.
Because Pao Yue-kong was, after all, a Chinese businessman, and Sir Michael Sandberg, as the British-owned conglomerate with the greatest influence in Hong Kong, would actually help Chinese capital acquire Wharf Holdings?
This was completely unexpected.
Although at that time Pao Yue-kong was the most powerful Chinese businessman in Hong Kong and one of the directors of HSBC, he never imagined that HSBC would help a Chinese man acquire British capital.
That's why he's so shocked now.
His mind raced, and he overturned all his previous ideas about maximizing his own interests without offending HSBC in the negotiations, and began to recalculate.
He has now grasped a key point.
HSBC was willing to help Chinese capital deal with British capital.
This is a crucial point in Li Ka-shing's view, so in the short term, he is not thinking about maximizing immediate profits, but rather how to get on HSBC's side.
Given the choice between a one-time gain and long-term HSBC support, Li Ka-shing would not hesitate to choose HSBC's support.
"Sir Matthew Cheung, Sir John Paul Wong," Li Ka-shing's voice was calm yet powerful. "To be honest, I initially suspended all company development and mobilized all working capital in an attempt to control Wharf Holdings. But now I know that my strength does not allow it. If you two are interested in Wharf Holdings, I am willing to support you."
Li Ka-shing's words also contained multiple meanings, indicating that he had paid a heavy price for setting up Wharf Holdings.
Why couldn't Shen Bi and Bao Yugang understand?
But what concerned them even more was that Li Ka-shing was willing to support them, meaning he was willing to transfer his shares in Wharf Holdings to them.
This made them all secretly happy.
As long as Li Ka-shing is willing to give in, it's fine.
As for the price and compensation, we can discuss it.
"Hehehe, good, good, good."
Shen Bi, standing nearby, raised his glass: "Li! This is a toast to you." The two drank it down in one gulp. "I hope we can become good friends in the future."
Li Ka-shing was waiting for Shen Bi to say those words, and he was very happy at that moment.
As for the price of Wharf Holdings, to be honest, it's secondary in Li Ka-shing's mind right now.
At this moment, Bao Yugang also raised his wine cup: "Mr. Li, I, Bao, owe you a favor."
"Sir Bao, you flatter me."
Li Ka-shing quickly picked up his wine glass and lowered it slightly to clink it with Bao Yugang's.
All three are intelligent people. Sometimes, negotiations don't require much talk, let alone arguing to reach a consensus. Like they are now, a few simple words conveyed a lot of meaning, and each achieved the best possible outcome for themselves.
Li Ka-shing gained the friendship of Sir Michael Sandberg, which he considered more valuable than making money.
He also gained a favor from Bao Yugang, although he didn't expect that Bao's favor would be of great use to him at the moment.
But Bao Yugang is currently the most powerful person in Chinese business, and he thinks he will be useful in the future.
With Pao Yue-kong acquiring the "Wharf Holdings" shares he desired, the chances of him wanting to go public are much higher.
What about Shen Bi's side?
He works in the finance industry.
Their negotiations were able to reach a consensus, which was a win-win situation for him. It secured a major client, Bao Yugang, and at the same time, he encountered another businessman he believed was worth cultivating and supporting.
He also knew that British capital was doomed.
If HSBC wants to continue its development in Hong Kong and solidify its position there, it must support Chinese capital to become the new representative and stabilize the company's business.
"Mr. Li, regarding the price..."
Before Bao Yugang could finish speaking, Li Ka-shing interrupted him.
"Sir Bao, this is my idea..."
Li Ka-shing shared the collaboration method he had just come up with.
Upon hearing this, Bao Yugang and Shen Bi exchanged a glance and then smiled simultaneously.
"Of course, but I don't own many shares in Hutchison Whampoa," Pao Yuk-kong replied.
"No problem," Li Ka-shing replied.
Just now, Li Ka-shing offered to transfer his Wharf Holdings shares to him at a low price, but he wanted to exchange them for the Hutchison Whampoa shares held by Pao Yue-kong.
This is Li Ka-shing's shrewdness and cunning.
In a short time, they can figure out how to make their next move.
He didn't care how many Hutchison Whampoa shares he held; he did this to send a message, or rather, to tell Sir Michael Sandberg that he was interested in Hutchison.
In 1975, Hutchison Whampoa fell into a financial crisis, and HSBC funded its restructuring. Currently, HSBC is Hutchison Whampoa's largest shareholder.
At the same time, as a financial company, HSBC is prohibited from directly or indirectly participating in the management of industrial enterprises in accordance with Hong Kong's Company Law.
He only made this request now that he knows that Pao Yuk-kong has no interest in Hutchison.
When Pao Yue-kong agreed to transfer the Hutchison Whampoa shares to him, Li Ka-shing was very happy, one could say he was excited.
Because he kept an eye on Shen Bi throughout that time.
He noticed that when Pao Yuk-kong agreed to transfer Hutchison Whampoa shares to him, it was only after Sir Michael Sandberg nodded in agreement that Pao finally spoke up.
This means that Shen Bi at least did not object to his coveting of Hutchison Whampoa, which must have excited Li Ka-shing.