Chapter 219: The Successful Acquisition of Zhongba
On July 4th, a sensational news story spread like wildfire across Hong Kong: the Post-it King, Yang Wendong, had officially announced the public acquisition of Zhongba shares at a price of HK$28 per share.
That price was 120% of Zhongba's current market value. In an instant, it sent the entire investor community into a frenzy. A 20% profit might not seem like much at first glance, but to many retail investors, that was equivalent to several days' worth of market gains. Compared to the slow growth of real estate investments, this was lightning-fast return on capital.
Standard Chartered Bank specially arranged a table inside the Hong Kong Stock Exchange to facilitate the transaction. It was a classic "cash-for-shares" table, but instead of physical cash, Standard Chartered issued bank-certified checks that could be cashed at any of their branches. A massive line formed instantly as shareholders rushed to sell.
At this point, anyone in Hong Kong who followed the stock market knew without a doubt that the previous mysterious buying spree in Zhongba stock was orchestrated by Yang Wendong. And the purpose was now obvious: a takeover of the company.
What no one knew yet was how much stock Yang Wendong already held—or how much more he intended to buy.
Just an hour later, a new message arrived: the current controlling family of Zhongba, the Yan family, issued a public statement that they would repurchase Zhongba shares at HK$30 per share.
As soon as this news hit, the line in front of Standard Chartered's table scattered like sand in the wind. On the opposite side of the trading floor, the Yan family set up their own table, and a new line began forming—though it was noticeably smaller than the one before.
From the second-floor viewing gallery, Yang Wendong watched the ebb and flow of the crowd below. He turned to Huang Yaonan and said, "They're all just waiting to see if we raise our price again."
Huang Yaonan nodded. "Yes. Everyone here is savvy. They're watching to see which side will blink first."
"This Yan Chengkun really is irrational," Yang Wendong said, a bit exasperated. "He knows he can't win, yet he insists on draining funds."
Huang Yaonan responded, "It's a family business. When the legacy is on the line, people are willing to go all out. Take my Huang family—we haven't controlled Zhongba in decades, but for two generations, we've poured everything into trying to regain that control."
Yang Wendong nodded. "That's a fair point."
In actual history, the Huang family didn't sell their Zhongba shares until the 1980s—only after they had finally accepted that their dream was dead. Fifty years of struggle, all for one goal. If they had sold the shares earlier and bought real estate instead, they might have lived a much easier life.
Huang Yaonan added, "But aside from us, no one knows how many shares we actually hold. The Yan family's desperate push is only burying them deeper in debt."
"That's why I've kept our numbers secret," Yang Wendong nodded. "Let them burn through their capital. When we officially take over Zhongba and the stock price returns to normal, Yan Chengkun will be forced to sell off his shares to repay his debts."
Even if this acquisition succeeded, the Yan family would still be Zhongba's largest single shareholder. Yang Wendong and Huang Yaonan, together, only had a controlling bloc.
But that still left the Yan family with a veto. That was dangerous.
This needed to be either a friendly takeover, where the Yan family voluntarily handed over shares, or a strategy to increase their debt and force them to sell.
Otherwise, if Yang Wendong just rushed to buy the last few percent at sky-high prices, and Yan Chengkun refused to sell, it would become a major problem.
The Huang family had waited 50 years in hopes of taking back Zhongba—who was to say the Yan family wouldn't be just as stubborn?
Huang Yaonan nodded. "I hadn't thought that far ahead. Mr. Yang Wendong, you really are brilliant. But this approach will cost you more."
"A few percentage points more—what's that, a few hundred thousand dollars?" Yang Wendong said dismissively. "Ensuring smooth operations post-acquisition is far more important."
"Thank you, Mr. Yang Wendong," Huang Yaonan said sincerely. "You've helped the Huang family realize a dream we've chased for decades. From now on, you'll have full control over Zhongba's routes."
He understood that Yang Wendong's goal in acquiring Zhongba wasn't just for the company itself—but to control its bus routes, which would benefit his future real estate developments.
Yang Wendong replied, "Yes. But don't worry—I won't recklessly expand routes in defiance of market logic.
My residential projects are all high-end and large in scale. Once completed, there'll be significant population density. Those places need public transport—buses benefit both the residents and Zhongba's revenue."
"Haha, that's perfect," Huang Yaonan said, delighted.
After learning about the management style of Changxing Real Estate, Changxing Shipping, and Changxing Industrial, Huang Yaonan knew that he'd have free rein in managing Zhongba, as long as the company aligned with the overall group's strategy.
Yang Wendong nodded, then turned to Wang Lianhua. "From here on, let the Yan family waste their own money. We'll slowly follow their bids upward—just enough to keep them bleeding."
"Understood, Mr. Yang Wendong," Wang Lianhua said. "I'll make sure they spend every last penny."
Meanwhile, Yan Chengkun stood in his office, watching the crowd of shareholders on the trading floor.
Behind him, Ho Sin Hang said, "Mr. Yan, it's not too late to step back. If you keep this bidding war going, you'll bankrupt the Yan family."
Yan Chengkun shook his head. "As long as I can protect my family's control of the company, it's worth it—even if we go into debt. Don't tell me Hang Seng Bank is backing out?"
"Of course not. We'll do legitimate business," Ho Sin Hang said. "Your shares can be pledged for emergency loans at any bank.
But as a friend, I urge you to reconsider. You've seen Yang Wendong's financial strength. Even Hang Seng wouldn't go toe-to-toe with him. And we don't even know how much he and the Huang family hold."
"It can't be much," Yan Chengkun insisted. "If they had enough shares, they would've increased their bid already. Clearly, they're still short."
"You only believe what you want to believe," Ho Sin Hang said, shaking his head. "Per our agreement, I'll issue your loan. But whether you win or lose, your repayment pressure will be immense.
After the Liu Chong Hing collapse, the entire banking sector is more cautious. If you run into trouble repaying, I won't be able to help you."
With that, Ho Sin Hang left.
Alone in his office, the phone rang. Yan Chengkun picked up.
"What? They raised by 50 cents? Then raise ours by another dollar!"
He slammed the phone down with renewed conviction.
...
Over the next two days, the Hong Kong stock market lit up with excitement.
Zhongba's current management and the acquisition side battled back and forth, raising prices in turn. Retail investors jumped between camps, hoping for better offers. Some, sensing opportunity, sold quickly and pocketed their gains.
July 7 — Outside the Hong Kong Stock Exchange, in Standard Chartered's satellite office, Yang Wendong received good news.
Wang Lianhua and Huang Yaonan approached.
With a big smile, Wang Lianhua said, "Mr. Yang Wendong, as of one hour ago, we've acquired enough shares. Combined, you and Mr. Huang Yaonan now hold 50.02%."
"As expected," Yang Wendong said calmly.
In terms of financial strength, this was never a fair fight. But because the Yan family's stake was so large, success hinged on Huang Yaonan's cooperation. Without him, it wouldn't have been possible.
Grinning, Huang Yaonan asked, "Mr. Yang Wendong, shall we make it public?"
"Not yet," Yang Wendong said. "We've already won. A few more days won't hurt. Right now, our priority is eliminating the Yan family's veto power. Otherwise, managing Zhongba will always be a headache."
Huang Yaonan nodded and said, "Understood. I was just too eager."
"I completely understand your feelings, Mr. Huang," Yang Wendong said gently. "But now, focus on thinking about how to manage Zhongba going forward." He then turned to Wang Lianhua and added, "Mr. Wang, continue acquiring stock on the open market. Even if we take a loss, we need to make sure Yan Chengkun loses more. As long as he takes on enough debt, once we take control of Zhongba and the stock price drops back to normal, he'll be forced to sell the shares he just bought at a premium."
"Understood," Wang Lianhua replied.
For someone who had worked in finance his whole life, he had never seen a takeover executed this way. Normally, once a buyout succeeded, the new owner would immediately take over the company.
But Yang Wendong's thinking made sense—he needed to ensure that the Yan family's veto power couldn't cause problems later.
...
A few days later:
Yan Chengkun was brimming with hope as he asked his aide, "Is there a sign that the Huang family is retreating?"
The aide hesitated. "They're still buying, but not as aggressively as before. Their rate of bidding has also slowed. But…"
"But what? Speak freely," Yan Chengkun pressed.
The aide paused, then said, "Based on our analysis, the Post-it King, Yang Wendong, has far more capital than he's shown so far. It feels… unusual."
"I know that," Yan Chengkun nodded. "But it's also possible that Zhongba is just a small play for him. Maybe now that he's seen how much money he's losing, he's slowly backing out?"
Even he wasn't completely sure—but this was his life's work. He had to believe he was right.
"It's possible," the aide said. "Mr. Yan, we now hold nearly 37% of shares. With a few of our aligned shareholders, we could hit 46%. If we push a little harder, they would need to acquire virtually every remaining share to win. That's nearly impossible."
"Good," Yan Chengkun said. He could see hope for saving the family business. "Put everything in. All the loan from Hang Seng and the money we got from selling properties—put it all in."
"Yes, sir." The aide left immediately.
Back in his office, he made a phone call. "Mr. Liu, tell Mr. Huang that Yan Chengkun is ready to go all in."
...
Upon hearing the news, Huang Yaonan quickly rushed to see Yang Wendong, who was in the middle of discussing trading strategies with Wang Lianhua.
Yang Wendong asked, "What's the news?"
Huang Yaonan said, "Yan Chengkun has taken the bait. He's preparing to go all in and bring his shares up to a safe level."
"Perfect," Yang Wendong nodded. Then he turned to Wang Lianhua and said, "Mr. Wang, sell some of the excess stock we've acquired over the past few days at an even higher price. Might as well make a little profit while we're at it. We only need to hold 50.01%."
"Understood," Wang Lianhua replied.
...
Soon after, the market received another shock. The Yan family announced they would continue buying Zhongba stock—now offering HK$32 per share.
The market was stunned. Within half a day, a wave of retail investors flooded the exchange, eager to cash out their holdings to the Yan family.
By the afternoon, the rush had slowed. Many investors lingered around the Standard Chartered desk, hoping for an even higher offer.
Yang Wendong sat upstairs, sipping coffee as he watched the crowd.
Wang Lianhua walked over and reported, "Mr. Yang Wendong, we've sold all our excess stock. Just the 3% we sold earned us tens of thousands in profit."
"Not bad," Yang Wendong nodded. "The Yan family must be running out of capital."
"They must be close," Wang Lianhua said. "They've likely thrown in at least HK$5–6 million during this fight."
"Then it's time to wrap this up," Yang Wendong said.
He never intended to push the Yan family into absolute ruin. Cornered people were dangerous. Even if they lost, they should still be able to live comfortably as wealthy private citizens.
Wang Lianhua smiled. "Then I'll prepare the public announcement."
...
July 12, at the Hong Kong Stock Exchange, Huang Yaonan held a press conference with reporters from across the city. He officially announced that he and his allies now held more than 50% of Zhongba's shares and would soon take control of the company.
He also graciously thanked Mr. Yan Chengkun for his many years of contributions to Zhongba and confirmed that Mr. Yan would retain a seat on the board.
With cameras flashing, Huang Yaonan was beaming with pride—his family's decades-old dream had finally come true.
At the same time, upon hearing the news, Yan Chengkun nearly collapsed. He stumbled, and his aides rushed to steady him.
After regaining his composure, he asked weakly, "How is that possible? I've been buying non-stop these past few days… Huang Yaonan barely made a move. How could they suddenly control over 50%?"
One of his aides said, "Mr. Yan, it appears to be true. The press conference was held at the Exchange. If it were false, they'd face legal consequences—and no one in Hong Kong business would ever trust them again."
Yan Chengkun fell silent. Around him, his team began quietly pondering their own futures. Zhongba had a new owner. What would happen to them?
...
The next day, Yang Wendong and Huang Yaonan arrived at Zhongba headquarters in Causeway Bay.
Despite his bitterness, Yan Chengkun had no choice but to greet them. The atmosphere was tense.
Yang Wendong broke the silence. "Mr. Yan, at this point, I think we should sit down and talk."
"Zhongba is yours now. I have nothing more to say," Yan Chengkun said coldly.
The previous night, he had confirmed the truth. Several small shareholders he once considered allies had secretly sold their shares. With the Exchange's certification, the result was undeniable.
Yang Wendong continued, "That's not what I'm referring to. Mr. Yan, since you can no longer manage Zhongba, why not sell your remaining shares to me?"
"You want my shares too?" Yan Chengkun glared at him.
Yang Wendong shrugged. "Mr. Yan, I'm actually trying to help you. You've poured millions into this stock fight. The debt pressure must be intense."
"That's none of your concern," Yan Chengkun growled.
Yang Wendong said, "Yesterday, after Mr. Huang Yaonan's announcement, Zhongba's stock price plunged nearly 40%. Your holdings also lost massive value.
While your finances are personal, you're still a major shareholder. Naturally, I have to be concerned about your financial risk."
"Don't worry. I'll handle it," Yan Chengkun said.
Yang Wendong smiled. "Alright. But think carefully. The price I'm offering today is still very good.
Remember when we met at Hang Seng Bank? If you'd agreed back then, you'd be several million dollars richer now."
Yan Chengkun said nothing—but the regret was visible in his expression.
Yang Wendong turned to Huang Yaonan. "Mr. Huang, according to Exchange regulations, since our acquisition has caused a drastic drop in market liquidity, Zhongba now fails to meet the requirements for a listed company.
Please submit a request to issue new shares. We'll all dilute our holdings and bring fresh capital into the market."
"Yes," Huang Yaonan said with a grin. This was a strategic move—offering a legitimate reason to dilute Yan Chengkun's remaining shares.
After all, unless Yan Chengkun could somehow regain 50%, he'd never control Zhongba again.
"Wait." Yan Chengkun realized that if new shares were issued, he'd lose his last advantage. "Let me consider this," he said cautiously.
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