Chapter 806: Since you don't know how to behave, screw you!

"Roland, what you're doing is not at all like what an old friend would do,'

Norman Shi Yahuai said with a sharp gaze and meaningful words.

It was now clear that Xia Yu was going to take over Hong Kong Telephone Company, and by swapping shares with him, Sir Lawrence Kadoorie had not only increased his own self-protection capabilities, but also greatly increased his control over China Light & Power Company Limited, and transferred all the pressure to the Swire Group.

Sir Lawrence Kadoorie got all the benefits, but he had to bear all the pressure. Where in the world is there such a good deal?

Do you really think that the leaders of an alliance are here to take the blame and bear the pressure?

Roland Kadoorie seemed to have failed to see Norman Shih's anger, and he smiled and said, 'Norman, Hong Kong Telephone Company is after all operated and controlled by Swire Group. No matter what, Xia Yu will find you. If I transfer my shares to Swire Group, your control over Hong Kong Telephone Company will be greatly enhanced, won't it?'

'The share swap is beneficial to both parties, and it is definitely a win-win situation.'

On the surface, this is true.

But if this is done, then the pressure that both sides have to bear will be borne by Swire Group alone, and the pressure on Swire Group will be huge!

Therefore, Norman Shiyu said lightly, 'Although this is true, since we are allies, we naturally have to advance and retreat together. As long as you don't sell your shares, it's the same whether they're in your hands or in mine.'

'Roland, I trust you will keep our agreement.'

'As for your concern that Xia Yu will move against China Light and Power Company Limited, you don't need to worry. His target is Hong Kong Telephone Company. Even if he really plans to move against China Light and Power Company Limited, you hold 34% of the shares and we hold 11%, so together we hold 45%. He cannot secretly acquire enough shares.'

'If you buy the shares held by the Swire Group, then you will have to make a general offer to all shareholders. Nowadays, the market value of China Light and Power is close to 1.9 billion Hong Kong dollars. Are you sure you can come up with that kind of money?'

Faced with Norman Shiawai's barrage of sharp retorts, Rowlands Kadoorie was speechless.

The truth was really as Norman Shiawai had said.

According to the rules of the Hong Kong stock market, if the shareholding of the majority shareholder of a listed company exceeds 35%, it will trigger mandatory rules requiring it to launch a general offer to all shareholders for a takeover. Of course, an exemption can be applied for, but it is extremely difficult to get one!

If 50% of the shareholders accept the offer, they can buy the shares sold by any shareholder at the agreed price; if the acquisition exceeds 75%, the number of circulating shares falls below 25%, which does not meet the listing requirements, then they will be required to be delisted compulsorily; if the shareholding ratio exceeds 90%, they have the right to compulsorily acquire the shares held by any shareholder.

Of course, in all of the above cases, the equity is clearly concentrated in the name of a large shareholder.

Like Xia Yu before, all purchases are made secretly in separate accounts, and no account will exceed 5%. There is no need to disclose the shareholding ratio to the public. For some acquisitions of company control, there is substance without a name. In the event that it cannot be found officially, these rules cannot be activated.

Therefore, Lawrence Kadoorie can also register a company again and hold it in the name of a shell company that is apparently unrelated to him, so as to avoid triggering the rules, otherwise he would have to initiate a takeover bid to all shareholders.

This is why, for many listed companies in Hong Kong, the largest shareholder's shareholding percentage is around 34%, and the most is 34.99%, in order to ensure control of the company in the event that they are not sure whether they can obtain an exemption or whether they have the strength to acquire the company.

That said, now that Norman Shiawai has said this, it would be bad for Lawrence Kadoorie to propose acquiring the Swire Group's stake in CLP Holdings Limited, otherwise it would be a clear sign of distrust towards Norman Shiawai and the alliance between the two sides.

Because of the difference in strength, without the alliance, it is the Kadoorie family that will suffer more.

Just because the Swire Group can withstand the Jiuding Group, it does not mean that the Kadoorie family has the confidence to do so.

'OK, Norman, let's hope that we can support each other at our respective board meetings,' Lawrence Kadoorie laughed lightly.

Norman Shi Yahuai smiled and said, 'Of course, I will always give my staunchest support to my allies.'

The two men then chatted for a long time before Roland Kadoorie took his leave.

As he watched Roland Kadoorie's car drive away, Norman Shi Yawei let out a cold laugh, his eyes full of indifference.

Today, Roland Kadoorie had come to visit, and Norman Shi Yawei felt that his previous attitude had been unworthy.

As the leader of the alliance, Norman Shiyahuai was prepared to take responsibility. The reason was to prevent British capital from being broken up one by one. So there was no need for Rowlands Kadoorie to say much, he would resist the pressure. But the prerequisite was that no one else stabbed him in the back and betrayed him.

Now that Rowlands Kadoorie came to him to shift the pressure, this attitude made Norman Shiyahuai doubt his true thoughts.

It's up to Sir Lawrence Kadoorie to decide what to do next. This is a test for him, and also a test for the British-Hong Kong alliance in the truest sense.

If Sir Lawrence Kadoorie doesn't sell his stake in Hong Kong Telephone Company, but instead invites Xia Yu's retaliation, then he will do his best to support the Kadoorie family.

Learning from the previous examples of the Jardine Matheson Group and Hutchison Whampoa, Norman Shiaway has long since made preparations. He has secretly strengthened his control over the Swire Group by several notches. This is the result of his repeated trips back to the UK in the second half of last year and the first half of this year.

Therefore, judging from Xia Yu's current strength, the Swire Group, which he controls, is not necessarily afraid of Xia Yu's Jiuding Group.

If Sir Lawrence Kadoorie sold his stake in Hong Kong Telephone Company to Xia Yu behind his back, then he would also give up fighting Xia Yu and simply give up his stake in Hong Kong Telephone Company.

After all, this company is not the core of the Swire Group, and for market reasons, relying on its monopoly advantage, its revenue-generating ability is far inferior to other industries such as real estate, aviation, and beverages. It would be a pity to sell it.

But if that really happened, then from then on, if the Kadoorie family encountered any trouble and wanted the help of the Swire consortium again, it would be wishful thinking.

It can only be said that when interests are involved, the alliance becomes extremely fragile, and it remains to be seen if it can withstand the test of wind and waves.

...

After returning home, Sir Lawrence Kadoorie pondered for two hours before finally deciding to join forces with the Swire consortium.

Now the Kadoorie family's industries are in direct competition with Xia Yu's Jiuding Consortium in many ways, and it is destined that the two sides cannot become friends.

In the opinion of Lawrence Kadoorie, Xia Yu is not causing him trouble now, but he will definitely do so in the future. Judging from the way Xia Yu has risen to power, this is very likely.

Not to mention that his Kadoorie family is also in Kowloon, in the same area as Xia Yu.

At present, it seems that the Kadoorie family is the number one British family in Kowloon, while Xia Yu's Jiuding Group is the number one Chinese financial group. It is difficult to avoid conflict when there is no room for two tigers in the same mountain.

Since conflict is inevitable, and the Kadoorie family is sure to be unable to withstand it, it would be better to hold on to the Swire group from the start, and there is still a chance for survival.

'As long as Norman Shih Yawei of CLP Power Hong Kong Limited keeps his word, I don't need to worry. The focus now is on the Shangri-La Hotel Group, and we must first stabilize the Liang family. I also need to raise enough funds...'

Roland Kadoorie took a deep drag on his cigar, his eyes narrowing as he thought to himself.

Although he is now the chairman of the board of directors of the Shangri-La Group, and from the outside it may seem that the hotel group belongs to his Kadoorie family, in reality this is not the case.

It is just that it happens to be his Kadoorie family's turn to serve as chairman of the board of directors these past few years. The Kadoorie family's shareholding ratio is only 16.7%, making it the second largest shareholder, and it is mainly responsible for operating the hotel and related businesses.

The largest shareholder is the Leung family, the founding family of Hang Seng Bank, with a 31% stake. Today, Leung Chung-ho, the second generation of the Leung family, has joined the board of directors as vice chairman. The Leung family is mainly engaged in the real estate business of the hotel group.

The two families have a clear division of labour and work together to manage the Shangri-La hotel group. As for the chairman of the group's board of directors, the two sides take turns to serve, and that's it.

After considering it, Lawrence Kadoorie called the Leung family and confirmed it before setting off again, taking a small gift with him.

Although it is not known what made Sir Lawrence Kadoorie so uneasy, the Liang family still readily agreed not to sell their shares.

Two days later, Wang Qi paid another visit, and Sir Lawrence Kadoorie's attitude became strange. He kept playing tai chi with Wang Qi, refusing to budge, and he even stopped mentioning the price. His unwillingness to sell was obvious.

Seeing this, Wang Qi decisively stopped the negotiations, and without lowering his guard, just gave Lord Kadoorie a deep look before leaving, which made the latter's heart race.

After returning to the company, Wang Qi reported the situation to Xia Yu in its entirety.

After listening quietly, Xia Yu didn't have much to say, except for two words – screw him!