Chapter 630
Year of Jubilee
As the new millennium began, Chen Guangliang was already 90 years old.
However, he is in good health and it seems that living to 110 years old should not be a problem.
It's just that he's changed his mind about women; after all, survival is the priority right now.
On this day, Chan Kwong-leung, accompanied by his eldest son Chan Man-kit, inspected the underground vault of Ping An Bank in Central, where a large amount of gold reserves belonging to the Chan family offices were stored.
Two and a half years have passed since Chen Guangliang ordered his family to stockpile physical gold. Currently, the Chen family holds approximately 550 tons of gold, comparable to the trading companies of small and medium-sized countries in later generations.
Currently in Hong Kong, the Chan family's office stores less than 300 tons of cash, while Ping An Bank's headquarters alone stores over 200 tons. In addition, Ping An Bank's Kowloon headquarters stores 50 tons, and another 50 tons are stored in underground vaults in other buildings.
Underground vault.
Chen Guangliang was about to retrieve a gold ingot when the vault manager of Ping An Bank quickly reminded him, "Sir Chen, it's a bit heavy!"
After all, it weighs several dozen kilograms, and Sir Chen is a ninety-year-old man.
Chen Wenjie indicated that it was alright.
Amidst the astonished gazes of the crowd, Chen Guangliang nonchalantly picked up the gold brick, his mind stirred with memories of his past life.
In his previous life, between 2025 and 2026, Chen Guangliang had speculated on 'bank gold reserves'. At that time, holding a few hundred grams of it required him to monitor the market at night, and he would even update the trends of London gold and New York gold after midnight, becoming deeply involved in it.
Today, he holds several hundred tons of gold, making him equivalent to a trading company in a medium-to-large country.
These memories piqued Chen Guangliang's interest in holding gold reserves.
Although his family was expected to hold more than 1300 tons (two family offices) according to the plan, the actual cost at this time was only a little over HK$100 billion.
This amount of wealth is not very large for his entire family.
But looking to the future, this amounts to a fortune of HK$2 trillion, which is quite enormous.
“Dad, all aspects of the gold reserves are personally overseen by my brothers and I, so there won’t be any problems!” Chen Wenjie took the gold from his father’s hand, felt its weight, and then casually put it down.
Just now, outsiders were amazed by the father's strength, and he had to take the initiative to defuse the situation.
Chen Guangliang smiled and said, "Mm."
This gold was also the 'foundation' he left to his family. After all, at his age, even if he spent it recklessly every year, he wouldn't be able to spend all the interest.
Not to mention, the main source of income is investment, not interest.
Back in his office on the 70th floor of the Ping An Bank building, Chen Wenjie was still with his father.
Now, Chen Wenjie's eldest son, Chen Zerui (42 years old), has also become the "General Manager of Cheung Kong Holdings", while Chen Wenjie is in a semi-retired state, only serving as the Chairman.
"Dad, after Orange was sold, Hutchison Whampoa's management is now eager to get involved in 3G in Germany. But I think the dot-com bubble will inevitably cool down the telecom boom, and the competition for 3G licenses in Germany will be fierce."
Chen Guangliang said with a smile, "Since you already know the answer, then go for it boldly. 3G is indeed a business that involves high investment and no return in sight."
Yes, Father.
Hutchison Whampoa.
As the largest company in the Cheung Kong Group, Hutchison Whampoa is now a well-deserved Fortune Global 500 company, and even ranks high.
Hutchison Whampoa's businesses include:
Hutchison Whampoa currently owns 23 port terminals in 12 countries and regions, including Hong Kong, mainland China, the United Kingdom, Panama, the Netherlands, and India.
In the energy and mineral sector, Husky Energy, a Canadian subsidiary of Hutchison Whampoa, has become a massive oil company. Over the years, it has been acquiring oil reserves and investing in US natural gas, and now it is almost harvest season. At the same time, Hutchison Whampoa also holds mineral assets such as Eagle Bridge Corporation (copper and lithium mines) in Canada, with a value of tens of billions of US dollars.
In the telecommunications sector, Hutchison Whampoa has invested in telecommunications assets in Hong Kong, the UK, Australia, Israel, and other countries. Even after its recent sale of assets worth hundreds of billions, the remaining telecommunications assets are still substantial.
In the retail trade, Watsons has spread to more than 30 countries, becoming a major enterprise in the retail industry.
In addition, Hutchison Whampoa also has assets in investment, manufacturing, and other sectors.
In the conference room.
Hutchison Whampoa's top executives have high hopes for the bid for the German 3G license.
A senior foreign executive stated, "The atmosphere surrounding 3G development in Europe is incredibly vibrant; most people see it as a goldmine. We previously capitalized on the competition between Europe's two major telecom operators to successfully sell Orange Company at an ideal price."
His words revealed his determination to obtain the German 3G license.
Other members of the management team also agreed with this view.
General Manager Huo Jianning glanced at his superior, Chen Zerui, and then said, "I adhere to the principle of prudence. The cost cannot exceed the budget; otherwise, we will abandon the bid for the German license and not proceed blindly."
This statement surprised everyone, after all, a German 3G license is such a great investment opportunity.
Hutchison Whampoa Chairman Chen Zerui firmly stated at this point: "I disagree with investing in this project. First, the development of the internet in the United States is no different from Japan's bubble economy back then. Telecommunications is following the internet, and it is clear that investment is currently overheated and competition is too fierce, making it difficult to obtain ideal returns. Second, 3G investment is too long-term, and the returns may not be ideal. Therefore, we should not only suspend 3G licenses in Germany, but also review 3G licenses in other regions."
Some high-level officials began to question: "Was the American internet bubble a bubble? Was the telecommunications bubble also a bubble?"
Chen Zerui nodded firmly.
In fact, he was initially keen to bid for German 3G, but his father's recent reminder and his understanding of the family's investment trends fully demonstrate that the family has already withdrawn from the internet.
Regardless, the boss has made the decision, and there's no point in senior management objecting.
Of course, some at the top began to waver—were they really wrong?
It is well known that the Chen family has an exceptionally keen eye for investment. Their investments in Husky Energy, U.S. Natural Gas, and Eagle Bridge Mining have yielded substantial returns and promising futures.
Other investments, needless to say, are almost all projects with very good returns or promising prospects.
On January 24, British Cable & Wireless and Singapore Telecommunications simultaneously announced that they would be in talks to merge the two companies, but no final agreement was reached on the specific details.
Yuan Tianfan arrived at Chen Zeqi's office, his voice trembling with excitement, and said, "Andy, our chance has come!"
In previous years, Chen Zeqi wanted to combine technology and real estate. First, he took over Cyberport from Governor Tung, and then acquired a Hong Kong-listed company. After several acquisitions, the company's market value became a "star stock" in Hong Kong.
Firstly, Chen Zeqi is a third-generation member of the Chen family. His father, Chen Wenming, is the chairman of the Global Group, with enormous wealth and influence.
Secondly, Chen Zeqi was the first to propose the concept of "technology + real estate + internet", and his "Digital Port" project was highly regarded.
The fact that China Mobile's market capitalization has soared to over HK$2000 billion is the best proof of this.
However, Yuan Tianfan, who assisted Chen Zeqi, and Chen Zeqi himself understood that the market value of 200 billion was nothing but 'illusion', and they dreamed of turning 'illusion' into 'reality'.
Chen Zeqi immediately said, "It's Hong Kong Telecom."
"right"
The two shared the same opinion.
Yuan Tianfan said, "HKT is one of the major telecommunications providers in Hong Kong, with a market share of up to 97% in the Hong Kong telecommunications service market. Its 1999 asset report shows that its net assets reached HK$3800 billion, and it has ample cash flow and no long-term debt. Now, Great Eastern, which holds a 54% stake in HKT, wants to sell it. This is our best opportunity!"
Chen Zeqi nodded and said, "But to take it down, we need a lot of cash flow to have a chance of defeating Singapore!"
Even if Cable & Wireless wanted to sell Hong Kong Telecom, it wouldn't be so easy for them to get away with it, because Singapore Telecom would definitely offer mostly 'post-merger' shares, with only a small amount of cash to pay.
Equity, however, is nothing but a mirage.
Yuan Tianfan said, “Don’t forget your family! As long as you have your father’s support, a lot of banks will be willing to provide cash loans, and that’s our advantage. We must do this: First, PCCW needs to become a physical enterprise; second, I believe the Chen family also doesn’t want Hong Kong Telecom to fall into Singapore’s hands.”
Yuan Tianfan spoke with certainty in his last sentence.
The Chen family wields immense influence in Hong Kong, practically a pillar of the city's economy. Their countermeasures against the influx of global capital into Hong Kong are the best proof of this. Chen Zeqi decisively replied, "Alright, I'll consult with Father immediately. You don't need to worry about cash flow; just focus on negotiations and report back to me regularly."
"no problem"
Yuan Tianfan came to assist Chen Zeqi because he was a member of the Chen family, and secondly because he was deeply grateful for the promotion he received from his uncle Chen Wenjie.
Chen Zeqi is considered one of the few independent entrepreneurs in the third generation of the Chen family, and his achievements are quite influential.
"Dad, what did Grandpa say?" Chen Zeqi asked nervously.
When he sought help from his father to acquire Hong Kong Telecom, he didn't expect to alarm his grandfather.
Chen Wenming said seriously, "Your grandfather said that acquiring Hong Kong Telecom would definitely be a losing proposition, but we can't just sit by and watch Hong Kong Telecom fall into the hands of Singapore Telecom, as that would be detrimental to Hong Kong's information security."
"A loss-making business? How could that be?"
Chen Wenming's eyes widened, and he said, "You're questioning your grandfather."
"No. It's just that Hong Kong Telecom's annual profit exceeds 10 billion, its assets are worth 380 billion, and it's currently experiencing the most glorious period for the world's internet and telecommunications industries."
Chen Wenming said, "You know it was the most glorious time, but do you know what a bubble is? You know about Japan's economic bubble, right? Moreover, our family is cashing out from the internet, so the telecommunications industry is naturally overvalued."
"So, what do you and Grandpa mean?"
Chen Wenming said, "I support your all-out acquisition of Hong Kong Telecom. But your grandfather reminds you, you must hold onto your Tencent shares forever!"
"Ah, I was thinking of finding an opportunity to cash out! Isn't the family making money from the internet?"
Chen Wenming said, "Anyway, just listen to your grandfather!"
Chen Zeqi thought to himself, since he had only invested a few million Hong Kong dollars, he would listen to his grandfather and just keep it in his hands to see how it goes.
"Ok"
After a brief discussion with Chen Zeqi, Yuan Tianfan decided to take over Hong Kong Telecom from Singapore Telecom, making their "failed final agreement" a final agreement that ultimately failed to be reached.
But winning this war is no easy task.
Yuan Tianfan estimated that this was at least a $350 billion deal, and aside from their stock market value, they were essentially empty-handed. Where to find that much money was a very thorny issue.
Besides money, they also face a major problem: getting Da Dong to give up on Singapore Telecom, which must have been planning to cooperate with them long ago, will certainly not be easy.
Singtel is not only a formidable competitor, but also one that will fight tooth and nail to win this deal.
The small size of the Singapore local market and the opening up of the telecommunications market have forced Singtel, which was already looking to expand beyond Singapore to find its future, to go even further overseas.
Acquiring Hong Kong Telecom would not only grant them immediate access to the Hong Kong market, but also allow them to set their sights on the mainland market. Therefore, there is no doubt that Singapore Telecom will go all out.
Chen Zeqi and Yuan Tianfan will have to go through a fierce battle to win this fight.
Yuan Tianfan's plan was still being devised when Singapore Telecom took another step forward.
On January 26, the two companies presented a preliminary cooperation model and plan.
This made Chen Zeqi and Yuan Tianfan very anxious and unable to sleep at night.
The two men worried that before their proposal was even ready, Hong Kong Telecom would already have a new owner.
Therefore, they immediately changed their conspiracy strategy: to quickly muddy the waters within a limited area, delay the opponent's progress, and gain time to turn the tide.
He immediately tipped off Tai Tung: PCCW was also interested in Hong Kong Telecom.
As Yuan Tianfan predicted, the transaction process between Datong and Singtel soon took a turn for the worse.
On February 3, the differences between the two parties on issues such as the valuation of the merged holding company and the distribution of equity began to be exposed by the media.
Out of affection for Hong Kong Telecom, some members of the public and industry insiders who were aware of the transaction also began to express opinions unfavorable to Singapore Telecom.
Amid a series of unfavorable intelligence and public opinion surrounding the transaction, Hong Kong Telecom's share price continued to decline.
The scales began to tip in favor of Chen Zeqi and Yuan Tianfan, who decided to openly declare war on Singapore Telecommunications.
On February 11, while negotiations between Singapore and Datong were still ongoing, Chen Zeqi and Yuan Tianfan unexpectedly played their first card, publicly stating their intention to make an offer to acquire Hong Kong Telecom.
Then, they split up and launched substantive actions.
In a conference room, many major local and foreign banks in Hong Kong gathered, including more than a dozen top financial institutions in Hong Kong such as HSBC, Citibank, Bank of China, Ping An, and Standard Chartered.
At the start of the meeting, Chen Zeqi delivered a speech: "PCCW's acquisition of HKT is a mutually beneficial merger. PCCW represents the future, while HKT represents the present. The merged company is worthy of your loans, both in terms of assets and prospects."
In recent years, Chen Zeqi has given the impression of being an entrepreneur in emerging industries within the Chen family, with projects such as Cyberport and Internet TV.
A representative from Standard Chartered Bank asked, "How much are you looking to borrow? What kind of collateral?"
Chen Zeqi confidently stated, "We hope to secure a loan of US$150 billion, using Hong Kong Telecom as collateral!"
Everyone was surprised, and then they started discussing it among themselves.
Later, a representative from Bank of China raised a new question: "Why is US$150 billion needed? According to our expectations, US$100 billion would have been sufficient for you to complete the acquisition! Furthermore, if you are acquiring the 54% stake held by Da Dong, how will you use Hong Kong Telecom as collateral? You are only the major shareholder!"
If it weren't for the Chen family's influence, people would probably be questioning Chen Zeqi even more harshly right now.
Chen Zeqi said, "US$120 billion is enough to defeat Singtel. I want a 100% chance of winning. As for the remaining US$30 billion, it is for the future development of the new company. As for the issue of collateral, we are based on a Hong Kong law - if our acquisition can win the approval of 75% of the remaining shareholders of Hong Kong Telecom other than Tai Tung, we can acquire the entire Hong Kong Telecom; if we do not reach this approval rate, our acquisition will be void."
Upon hearing this, everyone's expressions turned serious.
The fact that 75% of shareholders, excluding Tai Tung, approved the acquisition means that this is a genuine merger, not just making HKT a subsidiary of PCCW, but a wholly-owned subsidiary.
Needless to say, the bankers eventually agreed to join the 'combination loan'.
After everything became clear and a final decision was made, Yuan Tianfan told Da Dong: "My final proposal is to value Hong Kong Telecom at HK$4000 billion. I can offer US$120 billion in cash, and the rest can only be in stock. I have no more money. If you accept this, the deal is done. Otherwise, this deal is over."
The struggle then intensified.
Singapore Telecom, whose plans were disrupted midway, launched a counterattack.
On February 26, Singtel issued a statement announcing its intention to sue its financial advisor, HSBC, on the grounds that HSBC was playing both sides while providing them with services—helping Chen Zeqi bid for Hong Kong Telecom.
In addition, Singtel proposed to increase its cash investment to US$50 billion and issued a statement saying that News Corporation, owned by media mogul Rupert Murdoch, would invest in Singtel and fully support its plan to merge with Hong Kong Telecom, in an attempt to shake the morale of Da Dong, which had already sided with Chen Zeqi.
The market was worried for Yuan Tianfan.
However, after seeing Singapore Telecom's new proposal, Yuan Tianfan felt a sense of relief, as if he had already secured victory, and was also glad that he had offered a super proposal with more than 10 billion US dollars in cash.
He believes that compared to the Singaporeans' $50 billion in cash, the fact that Tai Tung can immediately receive $120 billion in real money is what will ultimately lead to their success.
Three days later, the largest acquisition battle in Asian history finally came to an end.
At 3:30 a.m. Hong Kong time on February 29, Yuan Tianfan received a notification from Da Dong: We've done this deal.
Singapore Telecom, which fought to the very last moment, then announced its withdrawal.
From the public declaration of war on the 11th to the resolution of the battle on the 29th, the entire process took no more than 18 days. (End of Chapter)