Chapter 434 Forced to Confess Early to the Securities Commission
Hong Kong's business world was still abuzz with speculation about the Hong Kong Telephone Company acquisition.
Major media outlets and business tycoons alike were eager to uncover the identity of the mystery player behind the move, but no one had yet found a definitive answer.
Although Lin Haoran's name occasionally came up, most dismissed him as a candidate since he was currently in the United States.
Still, if Lin Haoran wasn't the mastermind, who could it be?
After all, acquiring Hong Kong Telephone Company was no small feat.
In Hong Kong, there were only a handful of financial groups capable of pulling off such a large, silent operation.
Names like Li Jiacheng, Pao Yue-Kong, Chan Sung-Ching, Kwok Tak-Seng, Cheng Yu-Tung, and Lee Chao-Kee all surfaced as potential suspects.
These tycoons had made fortunes in the real estate boom and certainly had the financial muscle to stage such an acquisition.
Thus, reporters swarmed these figures, hoping for any useful information.
But everyone firmly denied involvement in the Hong Kong Telephone Company move.
Even Hui Fung Bank and Jardines Matheson were suspected—but both Shen Bi and Simon Keswick publicly denied it.
Simon Keswick even went so far as to confirm that Jardines Matheson was planning to withdraw from Hong Kong entirely.
Thus, suspicion fell upon outsiders.
By now, the business world largely believed that someone from outside Hong Kong was behind the move.
...
At 3:30 PM on December 28, a flight slowly landed on the runway at Kai Tak International Airport.
This was a flight from Los Angeles—and Lin Haoran was among the passengers.
Gazing out the window at Hong Kong's familiar skyline, Lin Haoran couldn't help but feel emotional.
This trip to the United States had lasted nearly twenty days.
Although the U.S. was vast and resource-rich, Lin Haoran still felt that Hong Kong—a cosmopolitan city dominated by Chinese culture—was the place that truly captured his heart.
This was his domain.
His return to Hong Kong had been kept strictly confidential.
Stepping out of the cabin, he took a deep breath, savoring the familiar air and atmosphere.
Soon, he spotted Ma Shimin, now the steward of Jardines Matheson Group, waiting to greet him personally.
"Boss, welcome back to Hong Kong!" Ma Shimin said with a warm smile.
"Mr. Ma, how's the public opinion regarding the Hong Kong Telephone Company acquisition?" Lin Haoran asked casually after shaking hands.
Ma Shimin hesitated slightly but quickly regained composure and lowered his voice:
"Public opinion is still very heated. Everyone is guessing who the buyer is.
However, since you've been in America, most don't associate you with this acquisition.
So far, Li Jiacheng, Pao Yue-Kong, and several others have publicly denied involvement. Even Hui Fung Bank and Jardines Matheson have been drawn into the speculation but have also denied it.
Simon Keswick even announced Jardines Matheson's intention to withdraw from Hong Kong, adding to the confusion."
"Interesting," Lin Haoran chuckled.
To him, acquiring Hong Kong Telephone Company was just a routine move.
But it had thrown Hong Kong's business world into a frenzy.
After all, Hong Kong Telephone Company was in the same league as China Gas Company—both giants with top-tier influence and recognition.
Thus, the uproar was understandable.
Outside the airport, a black Rolls-Royce was already waiting.
The chauffeur respectfully opened the door, and Lin Haoran and Ma Shimin got in.
Half an hour later, they arrived at the General Manager's Office in Kang Lok Building.
Once inside, Ma Shimin began a detailed briefing on recent events.
Though he had given some updates by phone, face-to-face discussions were much more thorough.
"So, you're saying we've already submitted the takeover documents to the Securities Commission?" Lin Haoran asked sharply.
"Yes, Boss.
We had no choice. Originally, we planned to keep it confidential.
But this morning, the Securities Commission sent an inquiry asking whether we were behind the Hong Kong Telephone Company maneuver.
Since they were already investigating, we couldn't keep it hidden.
However, we only disclosed the 34.9% stake held directly by Jardines Matheson.
Other shares are controlled by offshore funds or held under overseas shell companies.
Even the Securities Commission can't accurately trace the total shares we control.
They can only confirm that Jardines Matheson holds 34.9%.
Currently, only Dai Shi and I know the full extent of our holdings.
Even the Global Investment Company trading team doesn't know the complete figure.
Thus, the risk of leaks is minimal," Ma Shimin explained, handing over a copy of the inquiry letter stamped by the Securities Commission.
Lin Haoran glanced at the letter and handed it back.
Since the commission had formally reached out, there was no point in denying involvement—otherwise, it would complicate the acquisition later.
He understood this completely and wasn't upset that Ma Shimin had made the decision without consulting him.
It had been an emergency, and Lin Haoran had been mid-flight and unreachable.
Besides, with Jardines Matheson now controlling over 40% of Hong Kong Telephone Company, they didn't have to fear competition.
The acquisition was practically over—only procedural steps remained.
"Any further messages from the Securities Commission?" Lin Haoran asked.
"Not yet.
If there are updates, they'll either send another letter or contact me directly.
But I don't think they can stop us.
Our acquisition process is legal and compliant.
At most, they might insist that we keep Hong Kong Telephone Company listed," Ma Shimin replied.
Indeed, Hong Kong Telephone Company was critical to the city's infrastructure—almost like a public utility, even if not officially classified as one.
Just then, there was a knock at the door.
"Come in," Ma Shimin called.
The door opened to reveal a receptionist from Kang Lok Building, followed by a sharply dressed young man.
"Boss, Mr. Ma, someone from the Securities Commission is here to deliver a document," the receptionist announced politely.
"Thank you, you may go," Ma Shimin said with a smile.
He turned to the young man.
"Mr. Lin, Mr. Ma, I am from the Securities Commission. I'm here to deliver a formal letter from the Chairman," he said, handing over the envelope.
Lin Haoran stayed seated calmly; small matters like this didn't require his attention.
Ma Shimin accepted the letter, smiling politely:
"Thank you. Please also convey our regards to Chairman Mac."
"I will, Mr. Ma," the staff member replied.
As the young man waited, Ma Shimin opened the envelope, skimmed the contents, and showed a brief flicker of surprise before regaining composure.
"Boss, this is the official response from the Securities Commission," Ma Shimin said, handing over the document.
"They're requesting a more detailed breakdown of the ownership structure and assurances that our acquisition won't affect Hong Kong Telephone Company's public service standards.
They also emphasize maintaining the company's listing status.
Specifically, they require that at least 25% of the shares remain in public circulation.
Meaning, even after the acquisition, we can hold at most 75%."
Lin Haoran read the letter carefully, deep in thought.
"Seventy-five percent?" he looked up at Ma Shimin. "What's your view?"
Clearly, the Securities Commission was worried about Lin Haoran's reputation for privatizations.
His past acquisitions—Green Island Cement, Man Wah Holdings, Jardines Matheson—all showcased his strong tendency toward full control.
In Hong Kong's business circles, Lin Haoran was already infamous for his aggressive control strategies.
Every one of his privatizations had cemented this reputation.
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