You Can't Catch a Wolf Without Risking Your Child
It wasn't until this trip to Mainland China that he finally heard an answer that wasn't really an answer.
The other party was a minor official in charge of foreign affairs in Shanghai. When he met John Keswick, who had once again come to Shanghai to declare that Jardine's branch did not belong to the China government and that the confiscation was invalid, this minor official said one sentence, "Go back to Hong Kong, pack your things, and hurry back to Britain. Everything on China soil belongs to China. I'm giving you time to pack now, but once we drive out the United States devils in the Korean War, even the entire Hong Kong Island will be taken back into China's hands."
It was the outbreak of the Korean War and the confident words spoken by this minor official that made John Keswick realize the reality: China was no longer afraid of even Britain and the United States combined, so how could it be afraid of the so-called tough talk of a mere Britain businessman?
Utterly desperate, Keswick returned to Hong Kong and met Morse of HSBC again. The two men, sharing a similar plight, shed tears together.
However, Keswick was in a better position than Morse because the Keswick family was the largest shareholder of Jardine Matheson and had absolute control over this largest British-owned conglomerate in Hong Kong. Even if Jardine Matheson suffered significant losses in mainland China, Keswick was not worried about anyone ousting him, while the removal of HSBC tycoon Morse was already a foregone conclusion.
When Keswick discussed the situation in Hong Kong with his advisors, almost everyone lacked confidence in Hong Kong's future. Mainland China was acting too aggressively. On the North Korea battlefield, when the Allied forces offered a ceasefire, China refused, insisting on gaining an advantage before stopping to continue negotiations. This attitude shown on the battlefield already demonstrated China's attitude towards future development. Hong Kong is not North Korea. If China were to take Hong Kong by force, this small city could be quickly occupied in less than 24 hours. Even if Britain and the United States responded strongly and a war broke out in Hong Kong, Jardine's businesses in Hong Kong would likely be wiped out in the war.
Ultimately, Keswick and Jardine Matheson's shareholders agreed that Jardine's most pressing task was to go public, sell assets, raise cash, and be prepared to withdraw from Hong Kong at any time.
John Keswick was naturally happy to see the Lin Family buy back the shares of Xizhen Properties. However, he had also heard about the rapid rise in Xizhen Properties' stock price in the past two days. To him, although Jardine was eager to raise cash to protect itself, simply selling off shares at a low price was not the Keswick family's business style.
Perhaps Jardine and the Lin Family have a friendship spanning two generations, but at times like these, friendship is no match for money.
Chapter 367 You can't catch a wolf without risking your cub.
"Bastard!" The usually refined Lin Xiaosen cursed angrily as he walked out of the Jardine Building and got into his car, "That old wolf Keswick, who eats people alive!"
Once he was in the car, Lin Xiaohe, who had gotten in earlier, said, "The price has been set. We just need to figure out a way. Considering the current stock price, Keswick's offer isn't too high. Jardine isn't an orphanage."
Jardine Matheson holds 20.64 million shares of Xizhen Properties, representing 24% of the total shares. John Keswick does not object to the Lin Family's share buyback, but to get him to sign the share transfer agreement, the price offered is the Lin Family's share of Union Soda Company plus Hong Kong dollars 100 million in cash.
Lin Xiaosen knew that the price offered by Keswick wasn't outrageous. Today, the share price of Xizhen Properties had already surged to HK$5.06 per share and was clearly still rising. John Keswick was asking for Hong Kong dollars 100 million in cash, which was lower than today's share price. However, what Lin Xiaosen couldn't accept was that John Keswick actually wanted to take over the Lin Family's soft drink company!
The Lin Family's stable cash income today comes from orders from the soft drink company.
One hundred million Hong Kong dollars in cash—we could find a way to raise it and hand it over to Jardine —but the soft drink company absolutely could not be taken over by Keswick.
Lin Xiaoze sat in the car with his eyes closed, saying nothing. Lin Xiaosen, being younger, was already starting to lose his composure in the absence of outsiders. Only Lin Xiaohe spoke calmly:
"We've only just started talking, what do you mean, brother?"
Lin Xiaoze opened his eyes. "Cash can be negotiated further, even a higher offer is fine. But the soft drink company cannot be handed over. The soft drink company is the most stable business for the Lin Family right now. With the situation uncertain, we can't let others take our money."
"How much cash did Studwell and that young man surnamed Tang plan to raise in the stock market using Prosperity Rubber?" Lin Xiaohe nodded slightly in agreement with his elder brother's idea, paused for a moment, and then looked at Lin Xiaosen, whose face still showed a slight displeasure, and asked.
Lin Xiaosen began, "The initial plan is to use the ten million they borrowed from the Bank of East Asia to manipulate the market, and then withdraw sixty million from the stock market."
"From what I've received, Jardine's operations on the mainland have been completely wiped out. The total losses, including land, assets, and profits, amount to approximately Hong Kong dollars 30 million. If we quote HK$150 million, I think Keswick will agree. However, we can't delay too long; we need to act quickly. After A-Sen returns, contact Studwell and the young man surnamed Tang to ask if they can do more. If we can obtain HK$100 million in cash from Prosperity Rubber in the stock market, we can easily raise the remaining HK$50 million from several banks, which will greatly reduce the pressure," Lin Xiaohe said, gazing out the window.
Just then, a Ford 49 passed by the Lin Family's Rolls-Royce, Lin Xiaohe saw Song Tianyao, full of ambition, in the back seat of the Ford 49.
Lin Xiaohe turned his head and saw the Ford 49 slowly stop outside the Jardine Building. Song Tianyao got out of the car, accompanied by an elderly Britain man.
"It's Song Tianyao, he's going to Jardine," Lin Xiaohe said to Lin Xiaoze and Lin Xiaosen.
Lin Xiaohe and Lin Xiaosen also turned around and looked through the car's rear window. Lin Xiaosen said, "Song Tianyao met with John Keswick? What does he want? To buy Jardine Matheson's shares? Jardine should definitely inform us first about this kind of thing. Keswick didn't even tell us. He also made an appointment with Song Tianyao!"
"Whether it's buying stocks or not, we'll know soon enough. If Song Tianyao offers Keswick a price, we'll receive a call from Jardine very soon," Lin Xiaoze said decisively. "Studwell and Tang Boqi said they can raise money in the stock market without considering bank loans, so tell them to hurry up, otherwise the money we can borrow from banks will become increasingly scarce."