In mid-September, Lin Zhichao came to Nova Corp in Canada.

Nova Corp is a chemical and gas transportation group with a significant asset, Husky Oil.

Headquartered in Calgary, Alberta, Canada, Husky is one of Canada's leading independent energy companies, owning more than 5,000 oil and natural gas production wells in Canada, as well as a 26.67% stake in a heavy oil refinery and 343 gasoline stations.

And this meeting is naturally for the acquisition of Husky by Hutchison Whampoa.

Generally speaking, if someone else (Lee Kar-shing) buys Husky, it usually takes years of investigation before they dare to make a real decision. For Lin Zhichao, Husky decided to buy it almost without thinking.

Of course, he also pretended to visit more than two years in advance, and got acquainted with Blair, the president of Husky Corporation, and had a good personal relationship. In this acquisition, it was Husky President Blair who took the initiative to invite Lin Zhichao to acquire, not the guidance of Canadian Imperial Bank of Commerce and Nova Corp.

One of the advantages of this kind of acquisition is that there is no turmoil in the management, and there is a clear advantage of 'local people managing local people'.

For Lin Zhichao, he knows that Husky is not only the proud work of Li Jiacheng in his previous life, but also knows one thing - oil will go through a cold winter period that lasts for several years, and this cold winter period will not be the life of Hutchison Whampoa, but will bring great development prospects. Taking advantage of this cold winter, Husky needs to do mergers and acquisitions to expand its oil reserves and scale.

"Mr. Lin, welcome to Nova Corp!"

"Mr. Thomson, it's a pleasure to see you again!"

At Nova Corp, everyone greeted them warmly. The talks were attended by the Canadian Imperial Bank of Commerce, Hutchison Whampoa, and Nova Corp, so it was a tripartite meeting.

The Canadian Imperial Bank of Commerce is a loyal partner of the Lin Zhichao family, and Lin Ruihuan also holds a 9% stake in the company and serves as a director (with voting rights). This time, the Canadian Imperial Bank of Commerce also intends to purchase a 5% stake in Husky Oil, which is a strategic investment.

After the group came to the conference room, the representatives of the three parties had a business negotiation, of course, the team had communicated in advance, and today it is to finalize the final resolution.

Thomson, president of Nova Corp, a family-owned company, said, "Mr. Lin's way of doing business is also respected by many people in the West, and Husky has great opportunities to develop if you have your leadership!" ”

Henrik also jokingly said: "Mr. Lin is also very keen, in the London oil futures market, but he defeated the local consortium!" ”

That battle, it was indeed a cow!

Originally, according to the strength of the Rothschild family, if it did not coincide with the results of the OPEC meeting, I am afraid that the Rothschild family would be able to make London Bren oil futures skyrocket for a while, and Lin Zhichao's funds would be very passive at that time. After all, it is just a small Bren oil futures, and a short-term surge is nothing, but as long as there is a sharp rise, Lin Zhichao's investment will be easy to blow up, and it may not be too late to make up the position.

Lin Zhichao said modestly: "It's over!" Personally, I don't think oil will improve in the short term, so after the acquisition of Husky Oil, the real feasible way is to use Husky Oil Company to continue to buy oil reserves, expand the scale, and wait for oil to pick up. ”

Thomson nodded, this time Nova Corp sold its shares, not all of them, but only 57% of the shares.

It was agreed that Hutchison Whampoa would acquire 43%, Lin Ruihuan would acquire 9%, and Canadian Imperial Bank of Commerce would acquire 5%, and the remaining 43% would continue to be held by Nova Corp.

In this way, Nova Corp and Hutchison Whampoa's holdings can reduce their risk (sell their shares for a profit) and continue to invest in Husky (they don't know they can wait for the dawn).

"The acquisition of oil reserves will continue to increase Husky's debt risk, how does Mr. Lin plan to deal with it?" Thomson asked.

Lin Zhichao signaled to Ma Shimin that Nova Corp still holds 43% of the shares, and although it has ceded leadership to Hutchison Whampoa, it must care about its own vital interests and hopes that Hutchison Whampoa can lead Husky to find a way to break through.

Ma Shimin nodded, and then said seriously: "The purchase of oil reserves is to recover oil in the future and increase the company's assets." In fact, we have analyzed that oil will not improve for a short period of time, and it may be as long as several years. Therefore, in order to deal with the debt, we can probably do the following: 1. Order the mining equipment of the trap, strengthen the amount of oil extracted, and reduce the debt after selling; 2. The development of our subsidiary, Hong Kong Electric, has a great relationship with oil, and we will strengthen the cooperation with Husky in the future."

The presentation of the future policy address is to reassure the partners that Hutchison Whampoa is capable of leading the company through difficult times.

Thomson is pleased that Hutchison Whampoa's strategy is still feasible, buying oil reserves at a low price, increasing extraction efficiency and production, and HK Electric's cooperation (demand).

"Well, I have a lot of trust in Mr. Lin's team and am willing to work together."

Then, it's time to talk.

Husky's assets are valued at US$788 million, or HK$6.15 billion.

Lin Ruihuan and Hutchison Whampoa acquired a total of 52% of the shares, that is, 3.2 billion Hong Kong dollars.

Hutchison Whampoa will spend 2.65 billion yuan this time, of course, this money is nothing, this year (1986) Hutchison Whampoa's profit will exceed 2 billion.

During the period of 1985~1989 alone, the 'Whampoa Garden' alone can bring more than 5 billion Hong Kong dollars of profit to Hutchison Whampoa, which is equivalent to bringing 1 billion Hong Kong dollars of profit to Hutchison Whampoa every year. Of course, the profits in 1985~1986 are still relatively small, the first is that Lin Zhichao controls the number of sales, and the second is that the price is not high, and it is expected that next year's Hutchison Whampoa's profits will exceed 3 billion.

So, money is not a problem for Hutchison Whampoa!

The news of Hutchison Whampoa's acquisition of Canada's Husky was quickly reported by media in Canada, the United States, and Hong Kong, and it shocked everyone for a while.

Under Canadian policy, foreigners are not allowed to buy 'financially sound' energy companies, but Lin circumvented this restriction and gained control of Husky on the basis that his eldest son, Lin Ruihuan, had Canadian citizenship.

After signing a contract in Canada, Lin Zhichao also accepted an exclusive interview with the monthly magazine "Canadian Business".

The interview is to avoid some people making a fuss about this matter, and he needs to show an attitude of investment.

The reporter in charge of interviewing him was a 40-year-old reporter Richard, although he was experienced, he could see that he admired Lin Zhichao more, and the whole interview scene revealed more 'respect'.

"Mr. Lin, do you need to prepare?"

"Do you need it? I'm always available on my side! ”

"Okay, let's get started!"

Richard first asked, "Mr. Lin, take the liberty of asking Ling's age?" ”

Lin Zhichao said: "I was born in 1928 and is 58 years old this year! ”

Richard was surprised and said, "I can't believe it! You look so young, and as far as I know, you've been in business for over thirty years, and you're still self-made. ”

Even some of the staff next to him couldn't help but be surprised.

Lin Zhichao said with a smile: "I am an optimist, so a good mood will make you younger, and it can also make your thinking more useful - to solve some work and life things." ”

Richard said: "A very philosophical sentence, I will write it down, as far as I know, you are a self-made rich man, and wealth is not inherited from his father, is that right?" ”

"My father was a teacher, but I died when I was 14 years old, and then I dropped out of school to help my mother farm because I couldn't afford to study, and then I went to Hong Kong at the age of 18. Of course, I can't say that I am 'self-made', many people have helped me, otherwise I would not be where I am today! ”

Richard said, "You're too modest! ”

Next, let's get down to business.

Richard said: "Your acquisition of Husky comes at a time when world oil prices are low, so what do you think? ”

林志超 says:

"World oil prices won't rise much in the short term, but in the long run, it's bullish, and the development of the Hong Kong Electric Company has a lot to do with oil (Hong Kong has eliminated coal power), so this investment is good for Hong Kong."

"I have spent several years in Europe and the United States in search of suitable energy investment opportunities, and there are two main reasons why I am interested in Husky, one is that I have a special personal affection for Canada, and the other is that I have a good personal relationship with Mr. Blair, the president of Husky, and I trust his guidance."

The interview went well, and the acquisition did not cause much public outcry, after all, it was at a low ebb in oil.

The city of Calgary, also known as 'Card City', is the fourth largest city in Canada. In 1941, an abundance of oil and gas was discovered here, and since then the city has grown rapidly. Many energy companies have their Canadian headquarters here, making Calgary Canada's energy hub and the second largest in North America.

This is where Husky's headquarters is located!

Calgary is the "foot mountain" zone of the Rocky Mountains, with the magnificent snow-capped mountains as the background of the city, and the city has been rated as the fifth most livable city in the world all year round. With plenty of sunshine and no rainy season, it's the third most comfortable city in Canada after Victoria and Vancouver.

Lin Zhichao and others stayed at Husky's headquarters for a period of time, mainly reaching some development plans with Husky management. Hutchison Whampoa has control, so it's not about letting Husky's management decide on its own.

What's more, without the support of major shareholders, how can Husky's management have the courage to grow!

Lin Zhichao and Blair can be regarded as old friends for two or three years, so everyone talked happily.

For the management led by Blair, they are happy to see that the new owner intends to take advantage of the oil downturn to buy oil wells (production rights) in Canada at a low price.

Of course, if you buy oil wells, it will inevitably increase Husky's debt ratio, so you have to increase the production of mining and pay off the debt after selling, so we have planned to buy a full set of mining equipment, gradually increase the production of mining, and sell it to Hong Kong, mainly to HK Electric.

In fact, in Lin Zhichao's heart, there is another idea, that is, to take advantage of the low price of oil in recent years and buy it aggressively, even if Husky's debt is high, it will not hurt; The point is to make Nova Corp feel that I can't bear it anymore and want to sell all the remaining shares to Lin Zhichao.

At that time, Lin Zhichao will have mastered all Husky!

Therefore, it is expected that it will take at least six or seven years to see hope for this investment, and I believe that Nova Corp will not be able to wait for that time.

In the office, Lin Zhichao and others sat together and talked, including Lin Ruihuan, Ma Shimin, and Blair.

"President Blair, it's up to your management next! I have only one request, and that is to suck in reserve assets at a low price! However, considering that oil has only hit a low ebb this year, there is no need to rush too much. ”

Blair nodded and said, "I understand what Mr. Lin means!" ”

Lin Zhichao continued: "Next year, I may send a professional financial master to Husky to see if I can help. ”

Lin Ruihuan and Ma Shimin knew that they were talking about Huo Jianning.

Blair said curiously: "If you can trust Mr. Lin so much, then you must have a great record, right?" ”

Lin Zhichao smiled: "Yes." This management is our Cheung Kong and Hutchison director, called Huo Jianning's main merit, is our Cheung Kong investment in Japan, since 1983, we Cheung Kong began to invest in real estate in Japan, at its peak, we used 1 billion US dollars of principal, leveraged 4 billion US dollars of real estate investment, with the appreciation of the yen, the bank exchange rate decreased, our investment there has begun to show results; In addition, since the second half of this year, the Japanese real estate stock market has begun to rise sharply."

He personally introduced Huo Jianning's exploits, and did not hesitate to put his own credit on Huo Jianning, and won Blair's trust for a while.

In this way, this Mr. Huo Jianning must be very suitable for joining Husky. After all, next, we have also begun to acquire large debts, and it is very necessary to have a master of financial skills! ”

Lin Zhichao nodded, in fact, he did not let Huo Jianning stay in Canada, but let Huo Jianning take charge of Husky. After all, Ma Shimin is the president of Hutchison Whampoa, and it is impossible to put too much energy into a project.

Therefore, whether it is Husky's energy investment or the subsequent telecommunications investment, Huo Jianning is the direct manager.

After the Husky incident, Lin Zhichao flew back to Hong Kong.

On the plane, Ma Shimin also followed him back to Hong Kong, as for Lin Ruihuan, he flew to Hong Kong alone, but Lin Zhichao still insisted that 'father and son are not on the same plane'.

"The major shareholder of Pearson Group opposes our further cooperation, which I have long expected!" On the first floor of the plane, Lin Zhichao said to Ma Shimin.

Ma Shimin was stunned, since the boss is so confident, why not stop it!

However, he quickly understood and said, "What the boss means is to find a suitable opportunity to sell Pearson's stock and make a profit!" ”

Lin Zhichao nodded and said, "Wait another year!" ”

Pearson is an education group that owns world-renowned brands such as Longman, Financial Times, and The Economist. To put it bluntly, it is a cultural publishing group, a symbol of British culture. Although it is a diversified group, it is not something that Hutchison Whampoa can take, so Ma Shimin is a little too optimistic!

But Lin Zhichao didn't stop it, to put it bluntly, he felt that this investment was not a loss, and it could also signal that he would invest in the UK, so there was nothing inappropriate.

Ma Shimin continued: "Although we have not made much progress in investing in Pearson, we have a firm foothold in the UK. In the next step, I plan to seek breakthroughs in telecommunications, such as the acquisition of a stake in Daito Telegraph. ”

Lin Zhichao immediately said: "Don't buy it now, wait for the opportunity, at least wait for the stock of Pearson to sell off." It is right to invest in overseas telecommunications, but it needs to wait for the right time. ”

Ma Shimin nodded and said: "The acquisition of Husky, Hutchison Whampoa has been a big step into the overseas market, and it is also very good to take a full year off. ”

Comparatively speaking, Ma Shimin completely admired Lin Zhichao, and he may not have been very convinced of Li Jiacheng in his previous life, after all, the height is different.

The reason why Lin Zhichao asked Ma Shimin and others to invest in Dadong Telegraph was because he knew that it was also difficult for Hutchison Whampoa to enter its board of directors, so it could only be used as a strategic investment of 4.99%. However, the best time is of course after the 87 stock market crash.

Pearson and Dadong are all investment ideas from Ma Shimin and other management, Lin Zhichao will not deny it, but he will let them sell at a greater profit and when to buy at the least cost.

But then, Lin Zhichao said: "The development of Watsons Group is definitely the most advantageous weapon of Hutchison Whampoa, it has retail (Watsons, Parknshop and other brands), manufacturing (pharmaceutical, cosmetics, etc.), food (all kinds of soft drinks, Wan Chai Pier, etc.) and other industries, with annual sales of 6 billion Hong Kong dollars. So, I think we should continue to strengthen the scale of its development, especially in the Southeast Asian market."

It is necessary to let Ma Shimin calm and calm!

Moreover, Watsons Group is an underestimated company by everyone, and Lin Zhichao knows very well that it is very necessary to develop Watsons, and there are only more than 200 stores in Watsons at present, which is very far from the tens of thousands at the peak of the previous life.

Therefore, it is necessary to speed up the layout of Southeast Asia, especially in the next time, the economy of Southeast Asia will grow rapidly.

"Okay, I get my boss's thoughts!"

(End of chapter)