Chapter 445: The Century-Size Pie

When Liang Liang Botao arrived at Li Li Dongling's yacht, personnel from Nishiguchi Taifu Group and Bank of China Hong Kong on another yacht also arrived in succession.

"Manager Cao!"

Li Li Dongling was the first to shake hands with Cao Cao Zongyan, manager of Bank of China Hong Kong, and said to him, "Thank you for your support, Manager Cao!"

Li Li Dongling's words carried a double meaning: during this trip to Hong Kong, Bank of China Hong Kong had contributed significantly, including applying pressure on Zhao Zhao Shinan and the Zhao family, and had secretly intervened.

There were certainly coordination efforts from the Beijing Economic and Trade Commission, the Postal and Telecommunications Department, the Foreign Exchange Division, and the Hong Kong Office, but Li Li Dongling still owed Bank of China Hong Kong a favor.

Moreover, in the future, Li Dongling High-Tech will need Bank of China Hong Kong's support to acquire Hong Kong Telecom and for many other matters.

"Mr. Li is too modest—these are all our duties!"

Cao Cao Zongyan smiled warmly, his slightly chubby cheeks creasing, for Li Li Dongling's arrival in Hong Kong was, frankly speaking, an opportunity for Bank of China Hong Kong.

Bank of China Hong Kong had been established early, but its development in Hong Kong had always lagged behind foreign banks like HSBC; the Li family of the Yangtze River, for instance, maintained the closest ties with HSBC.

As for how close those ties were, whenever Hong Kong's economy or real estate market declined, HSBC would lend vast sums to the Yangtze Jiang Li family, who would then massively buy land at low prices.

They would then re-inflate Hong Kong's land prices; and when land prices rose, who benefited? For decades, Hong Kong's land had been controlled by the British; all local real estate companies, whether buying or speculating, had to pay for land and pay taxes—where else would the money go but into the hands of the Governor's Office and the British?

Bank of China (Hong Kong) once engaged in a sensational feng shui rivalry with HSBC in Central; feng shui was already deeply popular in Hong Kong, and this battle further convinced Southeast Asia of feng shui's power, triggering a surge of feng shui masters, many of whom were fraudulent.

Wars between giants often took unexpected forms: hiring feng shui masters to curse opponents, scalding their fortune trees with hot water, stealing their ornamental koi fish…

But this also revealed the nature of their relationship; Li Li Dongling and Li Dongling High-Tech's arrival presented Bank of China Hong Kong with an opportunity to change the balance of power.

After helping Li Dongling High-Tech this time, where would Li Dongling High-Tech's future Hong Kong revenue settlements, and the closely related Ning's Trade Company, choose to bank?

Moreover, if they truly acquired Hong Kong Telecom, the deposits, payroll disbursements, and other operations of Hong Kong Telecom—one of the top three companies by market value in Hong Kong—would all be handled by Bank of China Hong Kong, a massive shift for the bank in Hong Kong's financial sector.

After Cao Cao Zongyan, Li Li Dongling shook hands with Lu Lu Pengyuan, the vice president sent by Nishiguchi Taifu Group.

Liang Liang Botao looked at the group on the yacht; as one of Hong Kong's largest Chinese-invested investment banks, he was naturally familiar with Cao Cao Zongyan, Lu Lu Pengyuan, and others. Seeing them all arrive, Liang Liang Botao recalled earlier rumors, and his expression changed.

Beneath the blue sky and clear sea, the yacht sailed across the water, and Li Li Dongling said to Liang Liang Botao, "President Liang, I've asked you here today because I have a project I'd like Baifupin to assist with."

"I've always said—any project of Mr. Li's interests Baifupin!" Liang Liang Botao said directly.

Li Li Dongling glanced at Liang Liang Botao, then exchanged a look with Ning Ning Wenke and Lin Lin Xianhui, and said directly, "The reason I've asked everyone here is to negotiate the acquisition of Nishiguchi Taifu Group's shares in Hong Kong Telecom."

Upon hearing this, Cao Cao Zongyan's smile remained unchanged—he had already known Bank of China Hong Kong's stance before arriving: within limits, support Li Dongling High-Tech's acquisition of Nishiguchi Taifu Group's Hong Kong Telecom shares.

This matter involved Beijing's Postal and Telecommunications Department and other agencies; Bank of China Hong Kong needed to make a public stance and would naturally support mainland companies, but since they belonged to different entities, Bank of China Hong Kong could not unconditionally or at any cost guarantee this deal—only offer as much support as possible.

Liang Liang Botao's expression turned serious; seeing the setup, he knew the media rumors were not baseless.

"This time, Li Dongling High-Tech will join forces with Ning's Trade Company to support Digital Harbor Company's entry into Hong Kong Telecom's board, and we hope Bank of China Hong Kong and Baifupin will support Digital Harbor Company."

Li Li Dongling glanced at Lin Lin Xianhui, who placed the dossier on Digital Harbor Company—the shell company—before the group.

Liang Liang Botao, Cao Cao Zongyan, and Lu Lu Pengyuan picked up the Digital Harbor dossier, glanced at it, and set it aside; they all knew that Digital Harbor or any other company was merely a shell—the key was Li Dongling High-Tech behind it.

"Nishiguchi Taifu Group is willing to cooperate with Li Dongling High-Tech—this is also the will of Nishiguchi Taifu Group's parent company!"

After arriving, Lu Lu Pengyuan made his position clear: Nishiguchi Taifu Group's major shareholder was CITIC on the mainland; without intervention from Beijing's Postal and Telecommunications Department and the mainland's Hong Kong office, Nishiguchi Taifu Group could sell its Hong Kong Telecom shares to anyone without interference—but with Beijing's involvement, they could no longer sell freely, certainly not to companies like Singapore Telecom.

"But in business, business is business—when Nishiguchi Taifu Group originally acquired these shares, it incurred significant costs, and Nishiguchi Taifu Group also plans to acquire shares in China Electric soon."

"Singapore Telecom is also negotiating with us to acquire these shares, so… we hope to complete this transaction at a reasonable price!"

With those words, Lu Lu Pengyuan clearly did not intend to give away the 8% stake in Hong Kong Telecom at fire-sale prices to Li Dongling High-Tech.

His tone subtly implied that Hong Kong Telecom's shares were now a hot commodity, with Singapore Telecom and many other companies eyeing them.

"Of course!"

Li Li Dongling glanced at Lu Lu Pengyuan, rubbed his brow, then smiled, "Digital Harbor Company will acquire these shares at a fair price—Nishiguchi Taifu Group will not suffer losses."

After a brief private discussion with Ning Ning Wenke and Lin Lin Xianhui, Ning Ning Wenke looked at Lu Lu Pengyuan and said, "Digital Harbor Company is willing to acquire Nishiguchi Taifu Group's 900 million shares of Hong Kong Telecom at HK$12.62 per share, based on the current market price."

Upon hearing the price, Lu Lu Pengyuan quickly calculated in his mind; before arriving, Nishiguchi Taifu Group's board and parent company had already discussed this: selling the shares to Li Dongling High-Tech was certain, but the price remained negotiable.

The higher the price, the better for Nishiguchi Taifu Group—and the greater the benefit for Nishiguchi Taifu's executives like himself.

Ning Ning Wenke's offer was moderate; if the news leaked, Singapore Telecom might bid higher, and more buyers might emerge, pushing the price up by 20 to 30 percent.

But just as Lu Lu Pengyuan was about to speak, he looked up and saw Cao Cao Zongyan watching him with a faint, knowing smile; Lu Lu Pengyuan suddenly shivered—he realized he could indeed try to squeeze Li Dongling High-Tech, but if he drove them out of the acquisition entirely, he'd be creating a disaster!

Whether Nishiguchi Taifu Group would pay a price was uncertain, but Lu Lu Pengyuan, responsible for these negotiations, would certainly be fired.

"Nishiguchi Taifu Group agrees to transfer its 8% stake in Hong Kong Telecom to Digital Harbor Company at the current market price of HK$11.3 billion, with payment in cash!" Lu Lu Pengyuan said.

Li Li Dongling mentally calculated, then nodded, "Digital Harbor will pay the initial installment within three days, and the remaining purchase amount within six months—this acquisition is not a small sum, and Digital Harbor needs time to raise the funds."

Lu Lu Pengyuan opened his mouth to argue the timeline was too long, but seeing Li Li Dongling's expression, he closed it and agreed.

After the talks concluded, Lu Lu Pengyuan nodded to Liang Liang Botao and Cao Cao Zongyan, then boarded the yacht he had arrived in and returned to Hong Kong to report to Nishiguchi Taifu's board.

Once Lu Lu Pengyuan departed, Li Li Dongling looked at Liang Liang Botao and Cao Cao Zongyan, "I'm sure you both understand—no need for me to elaborate—the funds for Digital Harbor's acquisition of these Hong Kong Telecom shares, plus the additional 5% to be acquired on the Hong Kong Stock Exchange, require financing. I hope Bank of China Hong Kong and Baifupin can help raise this capital for Digital Harbor Company."

"Bank of China Hong Kong requires Digital Harbor Company to provide collateral and can offer a loan of $600 million," Cao Cao Zongyan said.

Upon hearing Bank of China Hong Kong would provide $600 million, Ning Ning Wenke and Lin Lin Xianhui both looked at Li Li Dongling.

To acquire Nishiguchi Taifu Group's Hong Kong Telecom shares plus the additional 5% on the Hong Kong Stock Exchange, the total cost would be roughly $2.3 billion; with Bank of China Hong Kong providing only $600 million, the gap remained $1.7 billion.

Li Li Dongling's expression didn't change—he turned to Liang Liang Botao and said, "President Liang, I hope Baifupin can help Digital Harbor Company secure the remaining $1.7 billion through loans from banks in Southeast Asia and by issuing bonds, to raise the acquisition funds."

Before Liang Liang Botao could respond, Li Li Dongling continued, "Ning's Trade Company and Li Dongling High-Tech's subsidiary Flyaway Technology can provide loan guarantees for Digital Harbor Company."

"Additionally, Li Dongling High-Tech will transfer to Digital Harbor Company the sales agency rights for the Little Smart phone in Hong Kong, Siam, and other Southeast Asian regions, as well as Hong Kong's PHS base stations and mobile phone services!"

"Hong Kong Telecom can block PHS services from entering Hong Kong for a while—but not forever!"

Liang Liang Botao and Cao Cao Zongyan did not oppose this; after Hong Kong's return next year, if Li Dongling High-Tech and Digital Harbor Company wished, they would surely obtain Hong Kong's telecom license from the Hong Kong Telecommunications Authority.

But before Liang Liang Botao could speak, Li Li Dongling uttered words that left him stunned—not just him, but Ning Ning Wenke, Lin Lin Xianhui, and Cao Cao Zongyan were all frozen in place.

"Li Dongling High-Tech established Digital Harbor not just for Hong Kong Telecom—you've all heard about the internet wave rising in America."

In the future, no region in the world can avoid the internet, and Hong Kong is no exception; the internet flame has already ignited in Beijing's Zhongguancun, which has the technology, while Hong Kong has the capital—Digital Harbor plans to establish a Hong Kong Internet Investment Center here, becoming a bridge connecting Zhongguancun and Hong Kong!"

"If Digital Harbor's plan succeeds, Asia's internet industry will see a landscape of 'North Zhongguancun, South Digital Harbor,' establishing Digital Harbor as the forward base for Hong Kong companies and overseas investors to invest in Zhongguancun and other mainland internet firms."

"Moreover, if mainland internet companies grow, they can use Hong Kong's Digital Harbor as their first step overseas, using it as a springboard to conquer Asia's internet market and enter the global internet industry!"

Li Li Dongling spoke without a flicker of embarrassment; whether Liang Liang Botao and Cao Cao Zongyan believed him or not, the grand vision had been laid out—and it was far more plausible, and much larger, than the Digital Harbor dream once painted by the Yingke Group in his previous life.