Chapter 191: Acquiring Zhongba

Sir Bao still had some questions: "I have some questions, can you answer them for me?"

"Cooperation between two families should be based on sincerity." Dalao Jun nodded: "Please go ahead."

Sir Bao stared at Chen Jiajun and said: "Why me?"

"When I raided Kowloon Wharf back then, you helped me out."

Chen Jiajun's inner thoughts were, you are too rich; if I don't choose a big spender like you, who would I choose?

Sir Bao puffed on his Cigar and smiled: "You are wrong. I wasn't actually helping you; I was helping myself. Besides, if you hadn't made a move, Jardine Matheson's taipan Niubijian was also preparing to sell me Kowloon Wharf shares secretly through a broker."

"One thing is one thing; if you hadn't acquired the Kowloon Wharf shares in my hands at a premium back then, I wouldn't be where I am today."

Facing Sir Bao's frankness, Chen Jiajun appeared very humble.

Sir Bao nodded: "Fine, I will participate in this operation."

Then he looked at his son-in-law Wu Guangzheng and said: "Guangzheng, assist A Jun well, and learn from him properly."

With Zhongba Group having a market value of 500 million, Sir Bao naturally would not make a move personally, and Yan Chengkun was an old acquaintance of his, but having his son-in-law Wu Guangzheng make the move was both reasonable and appropriate.

Wu Guangzheng was overjoyed upon hearing this: "Understood, I will humbly seek advice from Mr. Chen."

Chen Jiajun gave a hearty laugh: "Mr. Wu, you are the protagonist of this acquisition; I will do my best to be your assistant."

"Mr. Chen, if you don't mind, you can just call me Guangzheng."

"You are older than me, so just call me A Jun."

After finishing the discussion about the acquisition of Zhongba Group, Chen Jiajun changed the subject: "By the way, Sir Bao, I am holding a private investment meeting tomorrow. I will invite you, Nan Ge, Xin Ge, and Sir Lin Mingze to attend together."

"An investment meeting? Investing where?"

"Japan."

Chen Jiajun gave a meaningful answer.

The next day.

Guojun Building.

Huo Yingnan, Huo Zhenting, Huo Zhenhuan, He Xin, He Tianbao, Sir Bao, Wu Guangzheng, Su Haiwen, and the couple Lin Mingze sat around a table in the conference room, looking solemnly at the financial statements in front of them, as well as the K-line charts of Japanese bank stocks.

Chen Jiajun explained: "I have been investing in Japanese bank stocks for a year now. The first batch of funds was 6.3 billion Hong Kong dollars, which, according to the exchange rate at the time, was equivalent to 1.26 billion US dollars."

"Calculated based on the current market value, the annual rate of return has already reached 104%."

"The second batch of funds was 4.5 billion Hong Kong dollars; in just two short months, the rate of return has already reached 30.9%."

Everyone present was a veteran of capital operations and knew one principle: it is common to see small funds target a stock and double their money within a week of a heavy position.

But when the funds reach the tens of billions, wanting to achieve such a rate of return is as difficult as ascending to heaven.

The group began to discuss it one after another.

Chen Jiajun continued: "Hong Kong's current economy is overheating, housing prices are rising again and again, and the inflation rate remains high, but residents' incomes have not seen much improvement."

"Coupled with the approaching negotiations next year, the Hong Kong dollar will continue to fall by then."

"Meanwhile, Japan's economy has been steadily improving over the past few years, and 'Made in Japan' has even become a calling card."

"What about Hong Kong? Due to the cheap labor and land prices in the Mainland, many Hong Kong businessmen have gone to Shekou and the Mainland to open factories."

"With one rising and the other falling, Hong Kong's monetary policy will definitely not be able to hold up."

"Therefore, the purpose of me gathering everyone here today is to lead everyone to make a fortune."

"My traders are Sima Xiang, Zhan Peizhong, Huang Shitong, Chen Zhan..."

Every time Chen Jiajun mentioned a name, someone would stand up to greet the Chinese tycoons. Huo Yingnan, Sir Bao, and others had also had many dealings with top Chinese gold-medal brokers like Zhan Peizhong, Huang Shitong, and Sima Xiang.

They also did not expect that, unknowingly, these Chinese gold-medal brokers had all defected to Dalao Jun.

Sir Bao looked at Sima Xiang and said: "A-Xiang, investing in the Japanese stock market, this was your idea, right?"

He had previously absorbed quite a few Kowloon Wharf shares through Sima Xiang and knew that Sima Xiang had always been steady and not reckless in his work.

"Sir Bao, on the contrary, investing in Japanese bank stocks was Mr. Chen's idea." Sima Xiang shook his head and spoke the truth.

Huang Shitong also smiled and said: "Sir Bao, Mr. Huo, investing in the Japanese stock market was indeed not our idea. We have always focused on the Hong Kong stock market; we don't have Mr. Chen's world-shaking vision."

"Swish."

All the Chinese tycoons present looked at Chen Jiajun.

A year ago, Dalao Jun was just a raid expert.

Unexpectedly, after lying low for a year, he had actually buried such a big card in the Japanese stock market.

And Chen Jiajun, the person involved, did not feel much pressure: "It's a piece of cake. If any of you want to invest, feel free to come find me."

"A Jun, since it's your idea, and Sima Xiang and Huang Shitong are now your people, let's get the ugly talk out of the way first: how will the money be split if we make a profit?" Lin Mingze, the head of the Lin Xishen family, asked a key question.

Chen Jiajun thought for a moment and said: "The benchmark is 10%. If your rate of return is below 30% by this time next year, I won't take a cent. If it's between 30% and 60%, I will take 10%. If it's above 60%, I will take 10% of your returns. If there is a loss, I will cover the loss."

He Xin raised his head and said: "A Jun has always been steady in his work; he wouldn't call us if he wasn't sure. How about this, I'll invest 1 billion. Nan Ge, what do you say?"

"I have to go back and discuss this with my family."

Compared to He Xin, Huo Yingnan's style tended to be conservative.

Sir Bao was already considering the operational issues: "Do we transfer the money directly to our respective banks in Japan, or?"

"Invest it into my Longteng Fund," Chen Jiajun replied immediately: "If there are too many accounts, Sima Xiang and the others won't be able to manage them; after all, Hong Kong and Japan are too far apart."

"Even if it loses money, I don't need you to cover my losses; that would be a matter of my own judgment."

"But Longteng Fund must provide me with a report every week." Sir Bao waved his hand: "As for how much money to invest, I also have to go back and calculate."

Lin Mingze smiled and said: "Since everyone is investing, our Lin family will invest too."

Just like that, Chen Jiajun easily obtained a sum of funds from several major financial groups in Hong Kong.

A week later, all the families had transferred the funds: the He Family 1 billion, the Bao Family 2.5 billion, the Lin Family 1.5 billion, and the most low-key Huo Yingnan, although he did not agree immediately that day, also invested 2 billion.

A total of 7 billion.

Chen Jiajun hurriedly misappropriated 500 million... It is just comfortable to do big things with other people's money.

Once the funds were in hand, Chen Jiajun and Bao Jueshi's son-in-law Wu Guangzheng jointly established Asia Investment Co., Ltd., and had Zhan Peizhong arrange a meeting with the former Managing Director of Hutchison Whampoa—Wei Li.

Back in the day, Wei Li had single-handedly taken Hutchison Whampoa, which was on the verge of bankruptcy, and through a series of drastic restructuring measures, breathed new life into it.

Just as he was in high spirits, Shen Bi sold Hutchison Whampoa to Li Jiacheng and Chen Jiajun without a word, and Wei Li, as the Managing Director, did not even receive the news before the company was about to change hands.

This dealt a heavy blow to Wei Li.

After Chen Jiajun sold his shares of Hutchison Whampoa to Li Jiacheng, Wei Li was dismissed by Li Jiacheng.

After being dismissed, it would be no exaggeration to describe Wei Li as having lost all face; he rested for over half a year and was now working at an investment bank.

Chen Jiajun knew that Wei Li was one of the most capable professional managers in all of Hong Kong, so when it came to choosing someone to spearhead the acquisition of China Motor Bus, Chen Jiajun thought of Wei Li first.

"Mr. Chen." Seeing Chen Jiajun arrive, Wei Li hurriedly stood up.

"Mr. Wei Li, hello." Chen Jiajun smiled and shook his hand: "Have you been waiting long?"

"No, I just arrived as well." Wei Li sat down across from Chen Jiajun: "I didn't expect to be able to have tea with you, Mr. Chen; I am truly fortunate."

Since Chen Jiajun became famous, his status and position had been constantly rising, and since he never liked socializing anyway, he rarely had afternoon tea with others on weekdays.

Wei Li was a smart man and knew that Chen Jiajun must have serious business if he was looking for him.

Anything that could involve Chen Jiajun was definitely not a small matter.

Since stepping down from the Managing Director position at Hutchison Whampoa, Wei Li had thought a lot during his period of silence; he was no longer aggressive, but rather more humble and restrained.

"Mr. Wei Li is too polite." Chen Jiajun sat opposite him and took a sip of black tea first: "I just saw that you acquired a piece of land in Mong Kok under Baishun Real Estate for a mere 200 million Hong Kong dollars; that was truly clean and efficient."

Before coming, Chen Jiajun had specifically looked into Wei Li's recent activities.

"Just luck; Baishun Real Estate had too many losses and could only rely on this to pay off debts." Speaking of his own achievements, Wei Li was a little happy: "And I am very familiar with their General Manager, plus I used the most convenient cash, which is why I was able to complete all the transactions within 5 days."

"Mr. Wei Li, is your plan for the future to just do this kind of low-buy, high-sell business?" Chen Jiajun picked up a piece of dim sum and asked while eating.

"Let's just do the work at hand well first; I don't have the energy to think about anything else." Wei Li drank his tea: "I have already fallen once, and now that I am back out working, I only hope to prove myself again."

"You are being a bit self-deprecating; by the way, are you interested in taking advantage of this time while you are in Hong Kong discussing cooperation to recreate your former glory?"

Chen Jiajun leisurely sipped his tea twice, then joked quite casually.

Wei Li immediately understood: "If Mr. Chen has any instructions, please feel free to command."

"That really depends on your own interest."

Chen Jiajun took out a document and pushed it gently across the wide, smooth tabletop toward Wei Li.

Wei Li quickly browsed the document and probed: "Does Mr. Chen want me to come forward to acquire China Motor Bus?"

"For you, this kind of operation is something you are well-versed in."

Chen Jiajun nodded: "I will provide the necessary resources; after the matter is accomplished, you personally can serve as a member of the Board of Directors of China Motor Bus and share in the benefits of a major shareholder position."

Wei Li was not worried about being taken advantage of, because Dalao Jun's benevolence and integrity were well-known, but he was a bit puzzled: "Since Mr. Chen is optimistic about the potential of China Motor Bus's land reserves in Hong Kong Island, why not make a move directly?"

"I have already acquired Bar Group, so it would be a bit troublesome to start taking action against China Motor Bus as well."

Chen Jiajun explained leisurely: "Moreover, Yan Chengkun, who controls China Motor Bus, is not only the founder but, like Deng Zhaojian, holds the titles of Justice of the Peace and British Knight in Hong Kong, as well as multiple social public offices, and has high prestige. He is also a big-shot figure in the Chaozhou Gang of the Hong Kong business world; it wouldn't be very dignified for me to step in personally and fight him."

Wei Li suddenly realized: "I will go and establish a company right now to be responsible for the acquisition of China Motor Bus."

Chen Jiajun looked gratified: "I have already established the company; the shareholders are myself and Bao Jueshi, but I am not coming forward, so Bao Jueshi has put forward his son-in-law Wu Guangzheng."

"Your actions had better be fast, because once the heat brought on by my acquisition of Bar is up, others will definitely participate once we acquire China Motor Bus."

Wei Li being submissive in front of Chen Jiajun did not mean he lacked pride in front of others; he said confidently: "Rest assured, with the foundation that you and Bao Jueshi have in the Hong Kong financial circle, I believe the chances of winning the acquisition of China Motor Bus are very high."

Chen Jiajun nodded slightly: "I hope everything goes smoothly."

Soon, Wei Li became the Chairman of the Board and Chief Executive Officer of a company named Asia Investment.

Bao Jueshi's son-in-law Wu Guangzheng served as the company's Executive Director and General Manager.

In addition, Landlord Association members Sima Xiang and Huang Shitong also appeared on the list of directors for Asia Investment Company.

As for the Financial Advisor for Asia Investment's acquisition of China Motor Bus, it was Wardley, a subsidiary of HSBC.

Once the funds were in hand, Chen Jiajun and Bao Jueshi's son-in-law Wu Guangzheng jointly established Asia Investment Co., Ltd., and had Zhan Peizhong arrange a meeting with the former Managing Director of Hutchison Whampoa—Wei Li.

In essence, Wei Li had been completely swept out the door by HSBC Managing Director Shen Bi.

At that time, Wei Li had even reached the point of losing all face.

But Wei Li did not dare to harbor resentment toward HSBC, the hegemon of the Hong Kong banking industry.

Wei Li readily accepted Chen Jiajun's choice of Wardley, a subsidiary of HSBC, as the Financial Advisor.

In the face of powerful strength, rational people often choose to be pragmatic.

Although Asia Investment could acquire China Motor Bus just by using the services provided by a few top-tier gold-medal brokers without hiring Wardley.

Then why did Chen Jiajun still go to the trouble of inviting Wardley to serve as the Financial Advisor for the acquisition of China Motor Bus?

The reason was very simple.

This acquisition targeting China Motor Bus could not be compared to the "blitzkrieg" against Kowloon Motor Bus.

The capital market had already come to its senses by now.

Compared to the land of Bar Group, the land reserves of China Motor Bus on Hong Kong Island were even more covetable.

Once Asia Investment Company started the war, the stock price of China Motor Bus would instantly double.

And since Asia Investment Company had first won over Wardley, according to the exclusivity agreement, China Motor Bus and other competitors could not recruit Wardley as their Financial Advisor.

Wei Li also knew very well that as long as they were not held back by HSBC, he, Bao Jueshi, and Mr. Chen could walk sideways in the Hong Kong capital circle by joining forces.

Taking down China Motor Bus was an opportunity for him, Wei Li, to shine brightly in the Hong Kong business world once again.

Wei Li wanted to do the acquisition of China Motor Bus beautifully, so first of all, he had to do the most with the least amount of money.

Therefore, the acquisition of China Motor Bus should avoid, as much as possible, the unskilled, cost-insensitive approach of throwing money at people.

Thus, after receiving Chen Jiajun's appointment, Wei Li immediately notified Bao Chuanwang's son-in-law Wu Guangzheng and the Landlord Association members to hold a meeting.

Within the following week.

Wei Li absorbed 7,561 shares of China Motor Bus in the primary and secondary markets, spending a total of 166 million Hong Kong dollars, with an average cost of 22 dollars per share.

With this, Asia Investment Company, holding a 20.4% stake, had already become the second-largest shareholder of China Motor Bus, second only to Yan Chengkun.

This achievement was enough to prove that Wei Li was a highly qualified Professional Manager; he had saved Chen Jiajun an untold amount of money.

The next day.

Oriental Daily News: "Corporate Doctor Wei Li returns to the Hong Kong business world."

Hong Kong Economic Journal: "Asia Investment Company, second-largest shareholder of China Motor Bus."

Industrial Daily: "Acquisition battle for China Motor Bus about to begin."

Wah Kiu Yat Po: "Former Hutchison Whampoa taipan Wei Li points out the drawbacks of the Yan family's control over China Motor Bus."

No one could have imagined that Wei Li, who had been silent in Hong Kong for so long and was nearly forgotten by the people, would make such a sudden return.

This was the second goal of Wei Li's acquisition battle; he wanted to make the acquisition of China Motor Bus appear more respectable.

After all, one must have a legitimate reason for one's actions.

China Motor Bus was property with an owner; for Asia Investment Company to want to control it amounted to a forceful seizure, so it was best to whitewash the objective.

China Motor Bus, which was in a downward trend from its peak, was criticized for far too many things; besides the problems that existed with Kowloon Motor Bus, China Motor Bus also had unique drawbacks bestowed upon it by its controllers, the Yan Family.

For instance, the Yan Chengkun family had always insisted that buses were a low-end mode of transport, and as long as basic transportation requirements were met, there was no need to improve passenger comfort.

To give a simple example, when office workers went out, they were originally dressed impeccably, but after riding China Motor Bus, they would get off covered in sweat or even dust, and the negative impact resulting from this was easy to imagine.

One must know that it was no longer the fifties or sixties, and the demands of Hong Kong citizens for their quality of life were becoming higher and higher.

However, the Yan Chengkun family had never thought about improving this point; furthermore, the Yan Chengkun family was quite stingy regarding the dividend payouts of China Motor Bus shares, leaving numerous retail investors with no profit to be made.

When Wei Li submitted the solutions to these problems to the China Motor Bus board of directors, Yan Chengkun scoffed at them and ignored them entirely.

Consequently, Wei Li immediately announced that Asia Investment Company would acquire 13.5 million China Motor Bus shares at a price of 37 Hong Kong dollars in cash per share, increasing Asia Investment Company's stake in China Motor Bus to over 55% to ensure the complete seizure of controlling interest in China Motor Bus.

Once this capital operation, with a funding scale of nearly 500 million Hong Kong dollars in cash, was announced, it immediately ignited the enthusiasm already brewing in the stock market, and the share price of China Motor Bus jumped from 22 dollars to 37 dollars in one go.

Numerous retail investors holding China Motor Bus shares were further encouraged.

Inside the Yan Family mansion at Kennedy Road No. 64 in the Mid-Levels of Hong Kong Island, which occupied nearly 28,000 square feet, the atmosphere was tense as the family discussed countermeasures with solemn expressions.

Although Asia Investment Company had previously been unknown, its lineup was formidable.

Yan Chengkun had one daughter and two sons, all of whom had been arranged early on to enter the board of directors and executive management of China Motor Bus; the youngest, the second young master of the Yan Family, Yan Jiewen, had taken the position of director of China Motor Bus as early as 1976.

Of course, the founders of China Motor Bus were not just the Yan Family, but also the Huang Family, though the two families shared a very close marital relationship.

(End of this chapter)