We're building a super chaebol in Hong Kong

"Mr. Su, I wonder if you are interested in Wheelock and Company?" said Newbigging.

Su Cheng frowned slightly upon hearing this, a hint of doubt flashing in his eyes.

"Wheelock and Company? Mr. Newbigging, what are you referring to?" he asked politely, trying to understand the meaning behind the words.

Seeing this, Newbigging's expression became even more serious, and he explained: "Mr. Su, it's like this. Jardine Matheson Group originally held 11.8% of the shares of Wheelock and Company, but due to strategic adjustments, these shares have been transferred to Hongkong Land through a share swap.

And I, as the head of both Jardine Matheson and Hongkong Land, am currently facing a challenge—Hongkong Land's investment project in Central's commercial buildings has encountered a funding bottleneck. Therefore, I am considering transferring the Wheelock and Company shares held by Hongkong Land to you, Mr. Su. I wonder if you are interested in this?"

In 1976, facing the uncertainty of Hong Kong's future prospects, John Marden, the chairman of Wheelock and Company, had the idea of selling the family's shares, intending to hand over this important commercial legacy to a more confident manager.

Therefore, he took the initiative to contact Jardine Matheson, which had a long history, and expressed his hope that the latter could take over Wheelock and Company completely.

For Jardine Matheson, this was undoubtedly a rare opportunity.

They had long been deeply interested in Wheelock and Company, understanding its position and value as one of the four major hongs.

If the acquisition could be successful, Jardine Matheson would not only be able to directly control Wheelock, but also take the opportunity to greatly enhance its own strength, and even hope to surpass HSBC Group, regain the peak of British-funded enterprises in Hong Kong, and become the most prominent consortium in Hong Kong's financial landscape.

However, this plan did not proceed as smoothly as Jardine Matheson had hoped.

HSBC Group, as a potential competitor of the Jardine Matheson Group, naturally did not want to sit idly by and watch Jardine Matheson's power expand.

Therefore, they announced the same acquisition intention through Hutchison International, which they controlled, intending to disrupt the situation and maintain their own commercial position in Hong Kong.

This move quickly triggered a chain reaction in the market. Swire Group, Inchcape Group, the Nanyang Gang consortium, and even many Chinese-funded companies expressed strong interest in Wheelock and Company. For a time, acquisition rumors abounded, and the entire market was boiling.

Faced with this sudden change, John Marden fell into deep thought.

He realized that the value of Wheelock and Company had far exceeded his expectations, and the competition among all parties was the best proof of its market value.

In this context, taking the initiative to give up was obviously not a wise move.

In the end, under the interference of HSBC Group and other forces, the seemingly natural acquisition plan had to be declared a failure.

Although the previous acquisition plan failed, Jardine Matheson's covetousness for Wheelock and Company never died out.

They secretly continued to acquire Wheelock's shares in the market. After a period of careful deployment, they finally quietly accumulated 11.8% of the equity.

However, in this process, Jardine Matheson also encountered the challenge of financial pressure, especially when Hongkong and Kowloon Wharf faced Bao Yugang's strong acquisition, they had to invest a lot of money to deal with it, thus temporarily shelving the plan to further absorb Wheelock's shares.

Nevertheless, Jardine Matheson did not give up control of these valuable shares. They were like an invisible shield, silently guarded, and even the senior management of Wheelock and Company had never noticed this layout.

Until recently, in order to consolidate its position in Hongkong Land and prevent it from getting involved in the sensitive area of ​​Hongkong and Kowloon Wharf, Jardine Matheson carefully planned a shareholding transaction.

In this transaction, Jardine Matheson used its Wheelock shares and some properties as chips to exchange shares with Hongkong Land, aiming to increase its shareholding ratio in Hongkong Land.

This move had to be made public because it involved major asset changes, thus accidentally exposing Jardine Matheson's secret layout of Wheelock for many years.

When the news reached Wheelock and Company, John Marden suddenly realized that Jardine Matheson had never really given up its attempt to acquire Wheelock.

However, if John Marden has no intention of giving up Wheelock and Company, it is basically impossible for outsiders to forcibly acquire this hong.

Because John Marden holds enough controlling rights.

After learning the ins and outs of the whole incident with the help of Xiao Ai, Su Cheng had a meaningful smile on his face, and he leisurely asked: "Then, what is the price in your mind? Let me think about it, after all, as far as I know, even if I acquire these shares, I may not be able to touch the core of Wheelock's controlling rights. At best, I will only become one of the many shareholders and enjoy some dividends."

Newbigging's expression became more serious when he heard this, and he directly quoted a number: "Mr. Su, we are willing to transfer all of the 11.8% of Wheelock and Company's shares held in our hands to you for a price of 276 million Hong Kong dollars. We believe this price is fair and reasonable."

Wheelock and Company, like Hongkong and Kowloon Wharf and Hutchison Whampoa, the old British-funded companies that had not been acquired, also faced the dilemma of severely undervalued stock market value.

In fact, Wheelock's potential value is no less than that of the former Hutchison Whampoa and Hongkong and Kowloon Wharf.

However, Wheelock's current total stock market value is only hovering around 2 billion Hong Kong dollars, far from reflecting its true commercial value.

Newbigging's decision to push these precious shares to the market reveals that Jardine Matheson has quietly adjusted its strategic direction, and seems to have completely given up the idea of ​​directly acquiring Wheelock and Company.

After all, the market consensus is clear: unless John Marden actively transfers control, any purchase will only obtain shareholder status and will not touch the essence of the acquisition.

This reality undoubtedly makes many potential buyers flinch.

However, Su Cheng is an exception.

He is well-known for his strong financial resources and unique vision, and may really be interested in this seemingly "chicken rib" but actually valuable asset.

In Newbigging's eyes, Su Cheng may be the buyer who can break the routine and dare to take action.

276 million Hong Kong dollars?

Su Cheng considered it.

This amount of money is indeed not high for him now.

Moreover, Jardine Matheson's offer is also very fair.

In the future, he does have plans to take down Wheelock and Company, so if he takes these shares now, to be honest, it will really help him control this British-funded large enterprise that used to be one of the four major hongs. (End of this chapter)