People in Hong Kong create super chaebols

While the new board meeting of Wheelock Group was in full swing, a secret meeting room of Cheung Kong Holdings located in the China Bank Building in the bustling district of Central was also shrouded in a tense and focused atmosphere.

This conference room brings together Li Chaoren's elite team and the group's think tank. Their eyes are filled with anticipation and determination for unknown challenges.

In the conference room, the air seemed to freeze, and every breath was accompanied by deep thought about the future.

Two years ago, after taking over Hutchison Whampoa in Suzhou, Li Ka-shing also called his men together to discuss matters. Since the acquisition of Hutchison Whampoa had failed, a new challenge had quietly emerged - finding the next British trading giant worth conquering.

After careful consideration and analysis, everyone's attention was focused on the Wheelock Group.

The strategic value and market potential of this British bank with a long history and extensive business are self-evident.

More importantly, the intention to sell expressed by John Madden, chairman of Wheelock Group, was like an unexploded bomb, allowing Cheung Kong Holdings to see the dawn of opportunity.

Although there have been precedents of failed sales in the past, the think tank of Cheung Kong Holdings firmly believes that opportunities always come to those who are prepared.

They feel that if John Madden or his successor considers leaving again, the future of Wheelock Group may take a major turn.

And Cheung Kong Holdings is the hunter that is well prepared and ready to go.

However, this acquisition battle is not an easy road.

Jardine Matheson, as a competitor that also coveted Wheelock, had already made secret arrangements. The competition between the two sides in the stock market was silent but extremely fierce.

Although the Cheung Kong Group team tried its best, progress was still slow in the face of the strong competitor Jardine Matheson. So far, it only holds 9.7% of the shares of Wheelock Group and has not yet reached the critical point that can affect the situation.

“Dear colleagues, we are now standing at a critical crossroads. There are two paths before us: one is to give up, which means we need to quickly adjust our strategy, find opportunities to properly dispose of our shares in Wheelock, and turn our attention to other acquisition targets with greater potential;
The second is to continue to persevere, but we must be aware that this road may be long and full of unknowns, and the final result is likely not what we want. Our opponents are much stronger than us. To keep moving forward, we need greater determination and wisdom to face the possibility of nothing.

I know that every attempt and challenge is accompanied by risks and uncertainties. Especially for someone like me who is over 50 years old, past setbacks have undoubtedly left a mark on my heart.

However, I also believe that it is these experiences that have shaped who we are today, making us more resilient and better able to find opportunities in adversity.

Now, I hope everyone can have a frank exchange and brainstorm. We should not only discuss how to deal with the current difficulties, but also plan a new blueprint for the company's future development.

Whichever path we choose, it must be based on our team’s common belief and determination, as well as a deep insight into market trends.

Let us work together, whether we continue to move forward or adjust our direction, and keep our desire and pursuit for success, so as to jointly create a more brilliant future for Cheung Kong Holdings."

Li Jiacheng's words revealed a complex and deep emotion, including both regrets for the past and expectations for the future. He used his own experience to inspire the team to face challenges together and find new development opportunities.

In fact, Li Ka-shing's business philosophy has always been to actively seek development while maintaining a steady pace. In the past two years, although he failed to successfully acquire Wharf Holdings and Hutchison Whampoa, this did not cause him any substantial losses.

On the contrary, he skillfully operated in the buying and selling of Wharf Holdings shares and achieved a considerable profit of HK$60 million.

As for Hutchison Whampoa, although the acquisition failed, he also ensured that the investment in the process was properly managed and no unnecessary losses were caused.

In the past two years, Cheung Kong Group has developed rapidly. Not only has it achieved remarkable success in the real estate sector in Hong Kong's urban area, it has also expanded its business scope to Singapore and other places, demonstrating its strong expansion capabilities and market adaptability.

Today, the strength of Cheung Kong Holdings cannot be underestimated.

However, Li Jiacheng is very clear that although Cheung Kong Holdings is strong enough, there is still a certain gap compared with the world's richest man in Suzhou.

This clear awareness made him consider future strategic directions more carefully.

Therefore, after weighing the pros and cons, he is more inclined to advocate giving up the continued acquisition of Wheelock Group and instead investing energy and resources into areas that are more certain and more in line with the long-term development of the group.

Such a decision not only reflects Li Ka-shing's foresight as a successful entrepreneur, but also demonstrates his careful consideration of the future development of Cheung Kong Holdings.

When convening this meeting, Li Jiacheng was fully aware that he needed to obtain unanimous approval from the team to ensure the smooth progress of subsequent actions.

After all, as a listed company, although Cheung Kong Holdings plays a key role in decision-making, collective wisdom and consensus are equally indispensable.

“Mr. Chairman, after in-depth discussions within our think tank, we believe that abandoning the acquisition of Wheelock Group is a wise choice.

The Hong Kong market still holds abundant opportunities, especially in the field of British-owned enterprises. Apart from Jardine Matheson, which is temporarily out of our reach, Swire & Co. is undoubtedly a potential target worthy of in-depth consideration.

In addition, there are many medium-sized British companies with promising prospects waiting for us to discover.

Regarding the shares of Wheelock Group, we proposed a flexible strategy. We could first send tentative signals to Mr. Su Cheng to find out whether he was interested in taking over the entire business.

Given that we have always focused on purchasing low-priced stocks, the cost of our current Henderson Land shares is relatively low. If we have the opportunity to sell them to Mr. Su Cheng, we will not only be able to exit safely but also realize a considerable profit, which will undoubtedly be an effective appreciation of the company's assets.

As for the next acquisition plan, we advocate maintaining a cautious and optimistic attitude and conducting a comprehensive and in-depth review of the market first.

It is not too late to act decisively only when we find a target that is in line with the group's development strategy and has good growth potential.

We believe that with everyone's joint efforts, Cheung Kong Group will be able to seize more opportunities and achieve a more brilliant future! "The head of the think tank stood up straight and expressed their ideas on behalf of the entire team. (End of this chapter)