Chapter 173: Doubts and Suspicions, A Representative of Citibank?
Bowers hurriedly returned. From his perspective, the conditions offered by Hongkong Electric Holdings were acceptable and beneficial for Land Holdings. Although it required giving up shares, it would save Land Holdings a significant amount of capital. Five hundred million Hong Kong dollars in cash was not something even Land Holdings could easily produce. During the battle for Wheelock, after realizing they couldn't win, Land Holdings had opted to sell their Wheelock shares at a high price, profiting only six to seven hundred million Hong Kong dollars.
Bowers, thinking from Land Holdings' standpoint, naturally supported the financing model proposed by Hongkong Electric. However, whether Percy Niblett, Jardine's taipan, would agree was another matter. Thus, Bowers had to report back and leave the decision to Percy Niblett.
At Gloucester Tower, Land Holdings' headquarters, Percy Niblett came over from Jardine House upon hearing that Bowers had urgent matters to discuss. The two headquarters were close, making it convenient for senior executives to move between them. In the near future, Jardine would also move its headquarters to Gloucester Tower and rename it Jardine House.
In Bowers' general manager office, he explained in detail the outcome of his meeting at Hongkong Electric and the conditions proposed by Lin Haoran. "Equity financing for cooperation?" Percy Niblett frowned upon hearing this. "Bowers, what do you think?" he asked.
"Taipan, I believe this cooperation method is feasible. If they want equity, they could always buy shares on the secondary market. This way, we save cash for other investments," Bowers said.
"But do you think they have ambitions toward Land Holdings, trying to take control?" Percy Niblett's voice grew tense. After the debacle with Wheelock, he had become extremely sensitive to such risks. Losing Wheelock had been a heavy blow, even if they had exited with a profit. If Land Holdings were also lost, it would be an unforgivable disaster — one that would personally disgrace Percy Niblett.
Wheelock's loss had been inevitable — Pao Yue-Kong's final offer of HK$105 per share had left no room to maneuver. At least they had exited profitably. But Land Holdings was different. After Wheelock's loss, losing Land Holdings too would be a failure entirely blamed on Percy Niblett's leadership.
Thus, Land Holdings had become a bottom line that must not be crossed.
"Currently, it's unclear. We have investigated Mr. Lin Haoran's background. Recently, he spent HK$1 billion buying two buildings from Wheelock and renamed the Federal Building to Wan'an Building. Acquiring Hongkong Electric likely cost him at least HK$1 billion as well. In just a short time, he has spent HK$2 billion. Through my investigation, I found that all these funds came from Citibank. I even suspect that Mr. Lin Haoran may be backed by Citibank — otherwise, how could he possibly have so much capital? He might simply be a frontman for Citibank," Bowers said.
From Lin Haoran's rapid rise — first acquiring Qingzhou Cement, then Hongkong Electric — everything seemed implausible for such a young man acting alone. Although there were rumors he had made a fortune investing in oil before the crisis, even if oil prices tripled, he could at most have made a few hundred million, not billions. His source of capital remained mysterious.
Bowers had privately tried to probe the Citibank Hong Kong branch president. While the president hadn't explicitly confirmed anything, his respectful tone toward Lin Haoran suggested that Lin was indeed an important figure for Citibank.
Thus, Bowers concluded that Lin Haoran being Citibank's Hong Kong proxy was highly likely.
However, even if that were true, Bowers doubted Citibank would continue pouring massive resources into Hong Kong. Over the past few years, not only British firms but also many American firms had begun withdrawing. Three years ago, for example, Li Jiacheng had acquired Wing On, previously owned by American capital — a testament to this retreat.
Investing over HK$2 billion already defied expectations. It seemed unlikely that Citibank would invest even more, especially given the uncertain future of Hong Kong. While Citibank pursued global investment strategies, concentrating so many resources in one city was unusual.
As for Hongkong Electric itself, it lacked the financial strength to take over Land Holdings. Land Holdings' market value was three times that of Hongkong Electric, and its true hard assets were even greater.
"Thus, I believe Mr. Lin Haoran is likely just Citibank's representative," Bowers concluded. Otherwise, his meteoric rise made no sense. Lin Haoran's family background was no secret — his father, Lin Wan'an, was only a modest tycoon. There was no way he could have provided the vast sums Lin Haoran was now wielding.
Even for Land Holdings, raising HK$2 billion in cash on short notice would be difficult. Companies might appear wealthy but typically had little cash on hand, preferring to reinvest profits into projects rather than letting money sit idle in banks.
In fact, even Citibank's Hong Kong branch manager only knew part of the truth. Lin Haoran's relationship with Citibank's New York headquarters was extraordinary. The chairman himself had instructed that Lin be treated as a top-tier client, but the details remained confidential — client privacy was paramount.
Bowers' analysis left Percy Niblett deep in thought. He pondered the risks associated with the proposed cooperation.
"Is it really unacceptable to cooperate by injecting cash rather than shares?" Percy Niblett asked, unwilling to give up the safer path. Although requiring a huge cash outlay, it posed no risk to control over Land Holdings.
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