Chapter 1004: Eyeing the pillar of the Taikoo Consortium

Xia Yu knew Song Bo's objective, and he had been waiting for Song Bo to arrive.

He had instructed the network to keep a close eye on the Shi Yahuai family, and every day, information about the family's movements in all aspects was sent to him. Of course, he also knew that a number of companies under the Taikoo Consortium were preparing to hold an extraordinary board meeting.

And without exception, all of these companies have shares held by the Song family!

After the actions of the Shi Yahuai family, it was already somewhat unexpected for Song Bo to still be able to hold out for four or five days before asking for help.

It was clear that Song Bo was truly at his wit's end.

However, no matter how important the matter was, it was not a matter of a few minutes.

He said in a calm voice, 'Mr. Song, don't worry, let's talk slowly.'

With that, he personally boiled water to make tea.

Since he had already met Xia Yu, a few minutes made no difference. Song Bo waited patiently. After Xia Yu poured him a cup of tea, he said thank you, took a sip, and then set the cup down again.

Xia Yu didn't want Song Bo to think that he was being perfunctory, so he pretended not to know the situation and asked knowingly:

"Mr. Song, did the Shi Yahuai family take revenge on you?'

Song Bo nodded with a grave face and told Xia Yu the truth: 'Yes, and Shi Yahuai's retaliation was very fierce. Now all the managers related to my Song family have been targeted. The Shi Yahuai family's goal is very clear, which is to completely eliminate the influence of our Song family.'

'In addition, the Shi Yahuai family is preparing to dilute our Song family's equity in some companies through private placements. The boards of directors of many companies have already been taken over by the Shi Yahuai family, and there is nothing I can do to stop it.'

Having said this, Song Bo deliberately glanced at Xia Yu, and there was something inexplicable in his eyes.

Xia Yu had previously done this to Swire Pacific Airways, and now the Swire family was doing the same to the Song family. Song Bo felt helpless when he thought about it.

Xia Yu naturally did not show any signs of embarrassment, and he directly stated his position and asked, 'Mr Song, although I had expected this before, I still feel sympathy for you now that it has actually happened. However, since I have made a promise, I will definitely not go back on it.'

'Just tell me, what are you going to do? What do you need me to do?'

Xia Yu was confident of winning a large-scale war with the Swire consortium, but the process would definitely be much more difficult than the battle against the Jardine Matheson consortium. After all, the Swire consortium had learned from the lessons of the Jardine Matheson consortium, filled in many loopholes, and few fatal weaknesses remained.

Xia Yu had ordered a simulation, and using only normal business methods, the Swire consortium could only be crippled, and it was almost impossible to be eliminated like the Jardine Matheson consortium, unless the Sze Ya Huai family chose to give up, leave Hong Kong and return to the UK.

Although there were some assets under the Swire group that were attractive to him, there were not many. Therefore, after taking over the aviation sector, he did not want to go to war with the Swire group.

But since he had promised Song Bo, he would do it.

Now he would leave the choice to Song Bo. How to fight and to what extent would depend on Song Bo's decision and his courage and appetite!

Song Bo was waiting for Xia Yu to say this.

His eyes narrowed, his burning gaze meeting Xia Yu's, and he said firmly, 'I hope Mr Xia can help me, and let the Song family's assets be concentrated in the two companies, Swire Pacific and Swire & Maclaine.'

Xia Yu raised an eyebrow, not immediately agreeing, but smiling and asking, 'Mr Song, I wonder if you have the details of these two companies with you?'

As Xia Yu finished speaking, Song Bo took the information he had prepared from his briefcase and handed it to Xia Yu.

'Mr Xia, please take a look.'

Xia Yu took the information without saying anything, and after pouring Song Bo some more tea, he said, 'Mr Song, please have some tea while I finish reading the information.'

'Okay.'

Under Song Bo's watchful gaze, Xia Yu opened the information, and the situation regarding the Swire Pacific Group and Swire Pacific Trading Group came into view.

The information was very detailed, and Song Bo had collected it with all his strength after deciding to side with Xia Yu. As it concerned the future of the Song family, he could be said to have done his best.

Swire Pacific Limited is one of the main listed companies under the Swire group. It was listed in December 1969, and now has a total share capital of 285 million shares. With the current recovery of the Hong Kong stock market, its market value is as high as 2.14 billion Hong Kong dollars, making it one of the top 50 large companies in Hong Kong.

Swire Industrial Group has six pillar companies: Taikoo Bakery & Food Company Limited, Taikoo Sugar Limited, Taikoo Rubber Company Limited, Taikoo Machinery Manufacturing Company, Taikoo Textile Company and Taikoo Paint Company Limited.

In addition, there are 12 other large and small companies that have been invested in or acquired, and there are as many as 18 directly managed subsidiaries.

Under the six pillar companies, there are more or less subsidiaries.

In fact, the entire Swire group of companies has as many as 46 directly and indirectly affiliated companies.

Such a large number of companies is the fundamental reason behind the high market value of the Swire group of companies.

To put it bluntly, even if the Swire group of companies were to be spun off from the Swire consortium, it would still be comparable to the assets of most families in Hong Kong.

Xia Yu briefly scanned the assets and then passed them by. Although there were quite a few good companies, they did not attract him much.

His focus was on the shareholding structure.

In terms of the shareholding structure of the Swire group, the Swire group of Hong Kong holds 33.7%, making it the largest controlling shareholder.

The second largest shareholder was the Sze Ya Huai Family Fund, with a 8.2% stake.

The next eight announced shareholders and their respective shareholdings were: HSBC with 5.9%, the Heung Kong He Family's He's Group with 5.6%, the Song Family's Song's Group with 5.4%, the Kuala Lumpur Kepong Group with 5.2%, Standard Chartered Bank with 5.1%, the Bank of East Asia with 4.3%, the Harilela Group with 4.1%, and Sun Hung Kai Securities with 3.4%.

The remaining 16.8% of the shares were distributed among other companies, institutions, and retail investors. Since the shareholding percentages did not reach the threshold of the top ten shareholders, it was difficult to collect information due to the lack of transparency.

However, Xia Yu was certain that his Jiuding Securities Company must hold a considerable amount of shares, but Wang Qi was following his orders and secretly hiding it, so it was not announced.

This is the condensed information on the Swire Pacific Group.

As for the Swire & Maclaine Group, although it is an old company that the Swire Group has relied on to grow, it is far smaller than the Swire Pacific Group and is not listed. The company has a total share capital of 80 million shares, and its valuation in the Economic Weekly is 840 million Hong Kong dollars.

There are a total of 13 subsidiaries under the Swire & Maclaine Group, all of which provide trade services. Four of these companies are the most important: Swire Motors Limited, Swire Pacific Cold Storage Limited, Swire Resources Trading Limited, and Swire Dinghan Limited.

Similarly, after looking at the list of Swire & Maclaine subsidiaries, he initially judged that although these companies were valuable, they were not irreplaceable. Even though many of them were in competition with some of his own companies, he did not feel compelled to acquire them.

In terms of the shareholding structure, since it was not listed, the Swire Group had stronger control over Swire & Maclaine, with the Group holding as much as 57% of the shares.

The second largest shareholder was the Soong family, with the Soong Group holding 12.4% of the shares.

The third largest shareholder is an English family, the Stephen Company, with a 11.7% stake.

Then there is the Lee family's Hysan Group with a 7.3% stake, Wheelock with 6.2%, and Dah Chong Hong with 5.4%.

...

Xia Yu spent ten minutes going through the information. When he finished, he smiled faintly and said, 'I've finished reading the information carefully. Mr. Song, it's not easy to implement your idea.'

'These two companies, Swire Pacific Limited is a listed company, and the combined shareholding of Swire Pacific Limited and the Sze Ya-huai family has reached 41.9%. Even if you want to take it over, it is very difficult to get it completely. The key is whether the Sze Ya-huai family is willing to let go.'

'It is even more difficult for Swire Pacific Trading Group. The company is not listed, and Swire Pacific Limited directly holds 57% of the shares. Even if you take over the shares of all other shareholders, plus your own, you will only have 43%, which is only enough to protect yourself.'

Xia Yu was telling the truth, and Song Bo did not argue with him. It was precisely because it was difficult that he had come to Xia Yu.

He knows his own limitations, and if he tries to do it on his own, he will never succeed!

So he said sincerely, 'Mr Xia, I know what you're saying, but I have no choice. Right now, the Song family has only one pillar, and that is the Song Group.'

'But the Song Group's business is diverse but not strong. It holds more equity in companies under the Swire Group, with a wide range of types but a small shareholding percentage. It's a typical example of diverse but not strong.'

'Now the Sze family is determined to take revenge on our Song family. It will be easy for them to break us up, just like Swire & Maclaine. Although our Song family holds 12.4% of the shares, the Sze family has already reached an agreement with the Stephen family and taken control of the board of directors. They are also persuading the Lee and Madden families. As long as they all reach an agreement, my shareholding will definitely be diluted and my interests will be seriously infringed upon.'

'So I reflected on this: it is better to have one bird in the hand than ten in the bush. I hope to use other shares to exchange for the shares of Swire Pacific Group and Swire Commerce Group.'

'As long as Swire Pacific Group and Swire Commerce Group are in our hands, coupled with our original Song Group, at least I can leave a solid foundation for my Song family, so that even if I go one day, my family will not have to suffer too much.'

At this, Song Bo paused for a moment, looked directly at Xia Yu, and said solemnly, 'Mr Xia, I know this is difficult, but the Shih Yahuai family is already infringing on my interests. If I go to them and ask for a replacement, they will definitely not agree. Throughout Hong Kong, the only person who has the ability to make them agree is you!'

'I hope you can help our Song family. From now on, our Song family will do whatever you say!'

'And I will pay the appropriate compensation according to the rules.'

Xia Yu's gaze hardened as he looked directly at Song Bo.

Song Bo's meaning could not have been clearer: his family had been bullied, and he had come to pay his respects to the Xia family, asking Xia Yu to help him regain face and protect his interests.

This request was not excessive. After all, Xia Yu had previously promised to help, and although Song Bo's request was large, it was just on the verge of the line of what had been promised.

Song Bo also knew that his request was very difficult, and if it was successful, the Song family would gain huge benefits, so much so that it could be said to be rebuilding the foundations of the Song family.

So he was very wise not to just hope that Xia Yu would fulfil his promise, but instead he decisively bowed to Xia Yu.

As long as Xia Yu agreed, then the promise would be fulfilled, and there would be an ally in the Song family with even stronger power, and he would also earn a full commission for the acquisition.

As for other benefits, such as those Xia Yu has scraped off the Taikoo consortium, Song Bo wisely didn't even mention them.

Xia Yu was able to analyse all of this in the twinkling of an eye.

The key is whether Song Bo is sincere or not!