Chapter 137: The Time Has Come
The impact of public opinion was promptly reflected in the stock market. After the market opened, the stock price of Qingzhou Yingni Company surged again, rising nearly 40% today. The stock price jumped from 2.2 HKD at yesterday's close to 3.1 HKD, and the market value of Qingzhou Yingni Company soared to 310 million HKD!
This situation excited retail investors holding Qingzhou Yingni shares, who cheered loudly in the market, while shareholders who had sold their stocks earlier felt immense regret. They cursed their inability to resist temptation and sold their stocks with only a 20% premium. If they had waited a few more days, their returns could have multiplied several times over!
The regret was palpable!
After the market opened, the stock price of Cheung Kong Holdings also saw an increase, with the total market value rising to 1.3 billion HKD, up by 30 million HKD. This increase reflected a strong expectation from investors, betting that Li Chaoren could successfully complete the acquisition and that Cheung Kong Holdings' stock price would rise significantly.
It can be said that these investors had a lot of confidence in Cheung Kong Holdings and Li Chaoren!
Li Chaoren learned about the increase in the company's stock price immediately. After taking a deep breath, he was even more determined to proceed with the acquisition. Even if there were some losses in the subsequent acquisition process, he could accept it, as the rise in Cheung Kong Holdings' stock price would compensate for any losses!
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Simpson Keynes went to the Shi family and successfully met with the head of the family, Norman Shi, who was at home.
Norman Shi, aged 64, was two years older than Simpson Keynes. They had been good friends since childhood, but as they took on their respective roles, their differences grew larger, and they had less contact. However, the friendship from their youth had not faded much.
"Norman, I'm in big trouble this time. I need your help," Simpson said as Norman Shi put down the *Jiuding Daily*.
"Indeed, Cheung Kong Holdings is a formidable opponent for you, and Li Chaoren is indeed a remarkable person," Norman Shi said after sipping his tea and letting out a breath.
Hearing Norman Shi's calm assessment, Simpson gave a wry smile, acknowledging the truth in his words.
Only Norman Shi could make such a statement, as despite Cheung Kong Holdings' strength, its market value was less than one-seventh of that of the Swire Group. Norman Shi was qualified to say this.
"How much equity do you hold now?" Norman Shi asked directly, understanding that Simpson was anxious and didn't have time for idle chat.
"42%," Simpson responded immediately.
"And how much equity does Cheung Kong Holdings hold?" Norman Shi asked again.
Simpson shook his head slightly and said with a苦笑: "I haven't found out yet, but it definitely won't be less than 35%. I've failed to acquire shares from other shareholders, which means they've probably sold out. Moreover, the circulating shares on the market are too few, so their holding definitely poses a significant threat."
Norman Shi frowned, not expecting the situation to be so severe. If Simpson's claim was true, then Simpson was indeed in danger.
"How can I help you?" Norman Shi asked again.
"I need funds. I currently have less than 20 million HKD. To acquire another 9% equity, it's definitely not enough. I hope you can lend me enough funds until I complete the controlling stake in the company."
"Moreover, I'd like to ask you to help me acquire shares as well. My influence is not strong enough, but Swire Group's strength should be sufficient to make some gains," Simpson said directly, stating his purpose in coming.
"Sure! I'll help with that!" Norman Shi nodded.
This request was not a big deal for him. For Simpson to acquire another 9% of the equity, apart from his own funds, he would only need to lend Simpson a few tens of millions of HKD. This amount was a small matter for him.
Considering the current stock price of Qingzhou Yingni Company, the Keynes family's 42% stake was worth at least over 100 million HKD and would certainly increase further. There was no worry about repayment.
Additionally, Norman Shi wanted to see Cheung Kong Holdings fail in the acquisition.
Even though they, as British expatriates, planned to gradually withdraw from Hong Kong and return to England, he could not allow Chinese capital to challenge British capital's position!
Over the years, with the continuous rise of Chinese capital, even though they were the second largest British consortium, Swire Group felt the pressure. Although the competition from Chinese capital was still somewhat covert before, this direct attack on Qingzhou Yingni Company by Cheung Kong Holdings was an outright challenge.
If they did not counterattack and allowed Cheung Kong Holdings to succeed, other eager Chinese capital groups would undoubtedly be greatly encouraged, making the situation very unfavorable for British capital!
From the standpoint of a British, he was unwilling to see such a situation unfold!
Therefore, even if Simpson hadn't asked for his help, Norman Shi would have actively assisted him.
From the moment the *Jiuding Daily* was published today, it was no longer just a matter between Qingzhou Yingni Company and Cheung Kong Holdings but had escalated to a level involving Chinese and British capital.
This precedent must not be set!
Li Chaoren must fail!
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With the help of the Shi family, Simpson felt a bit relieved and quickly returned to oversee the stock acquisition. Now, he was finally confident enough and vowed to acquire enough shares to keep Qingzhou Yingni Company under the control of the Keynes family.
As both Li Chaoren and Simpson were determined, the day witnessed an intense battle in the stock market, with investors and institutions closely watching.
The stock price of Qingzhou Yingni Company kept rising. By the close of trading in the afternoon, the price had reached 3.8 HKD, an increase of 0.7 HKD from the 3.1 HKD at the morning opening and up 1.6 HKD from yesterday's close. The surge was rapid.
Behind the soaring stock price were invisible blades and shadows!
However, as the stock price rose higher, the concerns of retail investors and institutions holding the stock also grew.
Retail investors, initially excited by the news, began to worry about the potential risks of the acquisition. They questioned whether Cheung Kong Holdings, despite its current success, could effectively manage the integration of Qingzhou Yingni Company. Concerns about potential operational difficulties and the impact on Cheung Kong Holdings' financial stability led to an increase in selling pressure.
Institutional investors, on the other hand, were more strategic in their approach. Many began to reassess their positions and the long-term impact of the acquisition on Cheung Kong Holdings' stock. While some saw it as a promising expansion that could lead to greater profits, others feared the risk of overextension and the possibility of financial strain. This mixed sentiment contributed to volatile trading as institutional investors weighed their options.
The overall market reaction was one of cautious optimism mingled with anxiety. Analysts and market commentators weighed in, discussing the potential benefits and drawbacks of the acquisition. The media continued to report on the ongoing developments, further influencing investor sentiment.
For Li Chaoren, this was both a challenge and an opportunity. He needed to navigate these turbulent waters carefully to maintain investor confidence and push the acquisition to a successful conclusion. The pressure was immense, as the success of this acquisition could significantly impact Cheung Kong Holdings' future and his own reputation in the business world.
Li Chaoren's next steps were crucial. He needed to ensure that the integration of Qingzhou Yingni Company went smoothly and address any concerns that investors might have. The stakes were high, and the outcome of this acquisition would determine not only the immediate future of Cheung Kong Holdings but also its long-term strategic positioning in the market.