Chapter 435 Li Jiacheng's Frustration and Despair
Some even speculated that if it weren't for regulatory restrictions preventing public utility companies like Hongkong Electric Holdings, Kowloon Motor Bus, and Hong Kong and China Gas Company from being easily privatized, they too would have fallen into Lin Haoran's hands.
Now, faced with the Securities Commission's demand that Jardines Matheson limit its ownership of Hong Kong Telephone Company to 75%, it was clear that regulators were deeply worried about Lin Haoran's potential move to privatize the company aggressively.
By capping the ownership threshold, they sought to preserve Hong Kong Telephone Company's listed status and ensure the continuity of its public services.
Still, holding 75% of a company was virtually no different from full control.
The only real difference was that Hong Kong Telephone Company would still be required to disclose financial and operational information, corporate governance updates, significant board decisions, and so forth.
Private companies, by contrast, faced far fewer disclosure requirements, allowing them greater flexibility in managing information, albeit at the cost of reduced transparency and lower investor protection.
It was clear that the Securities Commission's insistence on maintaining Hong Kong Telephone Company's listed status was aimed at preserving public transparency.
After some thought, Ma Shimin said: "From our standpoint, a 75% ownership stake is more than sufficient for effective control. Keeping Hong Kong Telephone Company publicly listed won't impact our ability to manage it. Thus, I recommend we accept the Securities Commission's suggestion without resistance."
Lin Haoran nodded, agreeing.
"Your view matches mine. Since they've made the request, let's comply.
It's wiser to prioritize a smooth acquisition and stable future operations over fighting unnecessary battles with regulators.
Proceed accordingly and start preparing a plan to adjust the shareholding structure," Lin Haoran instructed.
Ma Shimin promptly began drafting the reply letter and organizing the adjustments.
Meanwhile, Lin Haoran leaned back in his chair, deep in thought.
Once the Securities Commission staff had left, Ma Shimin hesitated briefly and then suggested: "Boss, since the Securities Commission is already aware, we can no longer keep this confidential.
Why don't we go public with the news now?"
"Alright, go ahead. Handle it yourself; I won't get involved publicly," Lin Haoran agreed readily.
With authorization secured, Ma Shimin set about preparing an official statement for the media.
The announcement needed to clearly convey Jardines Matheson's position while reassuring the market and investors.
After several drafts and revisions, they finalized a concise yet powerful announcement.
In it, Ma Shimin, on behalf of Jardines Matheson and Lin Haoran, formally confirmed their intention to acquire Hong Kong Telephone Company.
He explained that the acquisition was part of a long-term strategic plan.
The announcement also emphasized that Hong Kong Telephone Company would retain its listed status and continue fulfilling its information disclosure obligations, ensuring transparency for all shareholders and investors.
In short, the message was clear: they had no intention of privatizing Hong Kong Telephone Company.
The announcement was promptly sent to Hong Kong's major media outlets, including Oriental Daily News, Hong Kong Commercial Daily, and Securities Daily.
The next day, Hong Kong's media exploded with headlines:
"Global Investment Company Officially Announces Acquisition of Hong Kong Telephone Company—Lin Haoran Revealed as the Mastermind!"
"Half-City Lin Conquers Again—Hong Kong's Business Landscape Faces Reshuffling!"
"Lin Haoran's Empire Expands—Hong Kong Telephone Company Joins His Ranks!"
The news spread like wildfire across Hong Kong's business community, causing shockwaves everywhere.
On the streets, in cafes, at trading houses—people were buzzing with discussion.
This was no ordinary company.
Hong Kong Telephone Company had an even greater impact and recognition than Hongkong Electric Holdings.
While Hongkong Electric monopolized the island's electricity, Hong Kong Telephone Company monopolized the city's entire fixed-line communications market.
Thus, Jardines Matheson's acquisition of it triggered a major stir.
Even the retail investors who had been "harvested" finally woke up to the truth:
It was Jardines Matheson—backed by Lin Haoran—that had orchestrated the entire play.
Confronted with such a colossal opponent, their anger and resentment seemed futile.
They didn't even bother complaining anymore.
Before a behemoth like Jardines Matheson, backed by immense capital and resources, small investors were nothing—specks of dust drowned in the tidal waves of commerce.
Those who once dreamed of easy profits from stock trading now had to confront the brutal realities of the market.
Regardless, the acquisition of Hong Kong Telephone Company would forever leave its mark on Hong Kong's business history.
In Hong Kong's inner business circles, top tycoons like Li Jiacheng, Shen Bi, and Simon Keswick were all left in stunned disbelief.
They hadn't anticipated that Lin Haoran could, once again, pull off such a massive acquisition without making a sound.
In his office, Li Jiacheng sat with his brows furrowed.
"So it was him...," he muttered, deeply troubled.
"Even with Hutchison Whampoa under my control, surpassing Lin Haoran is looking harder and harder."
Li Jiacheng had always harbored grand ambitions.
After seizing control of Hutchison Whampoa and gaining full support from Hui Fung Bank, his aspirations had exploded, reaching for dominance not just in Hong Kong but across all of Asia—and even the global stage.
But reality had erected an insurmountable mountain in his path: Lin Haoran.
The young tycoon, who had only risen to prominence two years ago, now stood before him as an unshakable giant.
Lin Haoran's holdings included Jardines Matheson, Hongkong Electric Holdings, Man Cheung Group, China Gas Company, Kowloon Motor Bus, and now Hong Kong Telephone Company.
His empire was breathtakingly vast.
In contrast, Li Jiacheng's holdings—limited to Cheung Kong Holdings and Hutchison Whampoa—seemed painfully meager.
Did he still have a chance to surpass Lin Haoran?
Facing such a daunting gap, Li Jiacheng fell into deep thought.
Elsewhere, Shen Bi picked up the phone and called Lin Haoran.
"Mr. Lin, congratulations. The acquisition of Hong Kong Telephone Company is truly remarkable," Shen Bi said, his tone mixed with admiration and resignation.
He knew full well that, although Hui Fung Bank was still nominally Hong Kong's largest conglomerate, Lin Haoran's empire had already surpassed it in real terms.
Most of Lin Haoran's companies ranked among Hong Kong's top thirty listed firms.
Jardines Matheson and Hongkong Electric Holdings were both firmly entrenched in the top ten.
If Man Cheung Group were publicly listed, it too would be among the top ten.
Collectively, these enterprises covered every major sector in Hong Kong, giving Lin Haoran undisputed dominance.
Thus, Shen Bi could only feel a deep sense of helplessness.
Originally, their strategy to help Pao Yue-Kong capture control of Wharf Holdings had aimed to ensure Hui Fung Bank's supremacy.
But now, only two years later, that dream had evaporated.
All their meticulous planning had been rendered meaningless.
Lin Haoran chuckled lightly and modestly replied: "Mr. Shen, you flatter me. This is just a small part of our broader strategy."
"Mr. Lin, your strategic vision commands my deep respect," Shen Bi said, then added meaningfully: "But as your empire grows, so too will your challenges and rivals. I hope you'll maintain your humility and discretion. Hui Fung Bank would be honored to remain a partner to your businesses."
"Of course, Mr. Shen. I also look forward to deeper cooperation with Hui Fung Bank. After all, I am still a board member there," Lin Haoran replied cheerfully, pretending not to hear the veiled warning in Shen Bi's words.
He knew full well: in business, towering trees drew the fiercest winds.
But he wasn't afraid of competition or challenges.
Lin Haoran's business empire was expanding at a dizzying pace.
With Hong Kong Telephone Company now under his wing, his influence penetrated every corner of Hong Kong.
Real estate, retail, energy, electricity, construction materials, investments, finance, transportation, communications—he now spanned all critical industries.
His dominance in Hong Kong's business world was now indisputable, and he was steadily emerging on the global stage.
Yet, as Shen Bi warned, new challenges and alliances against him were inevitable.
Hui Fung Bank, notorious for its aggressive style, might soon join forces with Li Jiacheng and others to resist Lin Haoran's rise.
Still, Lin Haoran viewed such resistance as nothing more than ripples on the vast ocean of commerce.
His vision already extended far beyond Hong Kong.
For him, acquiring Hong Kong Telephone Company was just one more move on a grander chessboard.
A move that secured his dominance over Hong Kong's communications sector—and paved the way for future global expansions.
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