The investment era of rebirth

Liu Wei hesitated for a while before saying in a deep voice, "It's not that we have plans, but that the situation forces us to seek a breakthrough in our group's development strategy."

"As President Su said..."

"Our group does not have lithium resources, and due to cost considerations, we are overly dependent on a single supplier in terms of raw material suppliers."

"And now this supplier has the most extreme situation."

"Due to the continued downturn in the industry's prosperity and the pessimistic expectations of various investment institutions for this industry, relevant industry chain companies, whether upstream lithium ore resource companies, or manufacturing-end companies like our group, or downstream product terminal manufacturing , sales companies, the past two years have been difficult."

"Through continuous asset weight reduction and cost compression, our group can only maintain the edge of profit and loss."

"And our important supplier of lithium ore resources, that is, 'Australian Talison Mining Company', has been completely in a loss due to the failure of foreign investment, the continuous decline in lithium ore prices, and the rise in labor costs, and 'Telison Mining Co., Ltd.' Sen Mining Company has already made plans to sell its shares."

"I learned about Tellison's situation..."

Liu Wei paused, and continued: "Chairman Jiang sensed the arrival of a strategic opportunity to reverse the group's business environment and gain the right to speak in the industry."

"Do you want to take advantage of the loss of 'Taleson' and the other party's plan to sell equity, and carry out mergers and acquisitions?" Su Yu said, "Good idea, if Tianqi Lithium Industry wants to break the situation and get rid of the current operating difficulties, it can only merge upwards Lithium resource enterprises can open up new space for development, and you, Mr. Jiang, are very visionary and courageous in the future strategic planning of the group."

Liu Wei smiled bitterly, and said: "Mr. Su only talked about good things. In fact, the acquisition of 'Taleson' is not only the only way for us to break the business environment of 'Apocalypse Lithium Industry', but also what we have to do. For one thing."

"Because in terms of global lithium resources..."

"Australia, my country, and Chile are relatively rich in lithium resources."

"But although my country's lithium ore resources are abundant, the grade of lithium ore is indeed low, mining is difficult, and production costs are high!"

"This is why we had to choose to cooperate with 'Taleson', and considering the cost and development considerations of the company, 'Taleson' has gradually become the largest or even the single supplier of our company."

"Now, there's an extreme problem with 'Tellison'."

"As you said, if it is acquired by other lithium ore resource giants, the global lithium ore resources will be further concentrated. In the face of the new successor, if the negotiation fails, the other party will face us on the raw material side. If it is cut off directly, the group's business risk will increase sharply, and it may even become unsustainable, and it will go directly to bankruptcy."

"So, in order to avoid this situation, for the survival of the company."

"We are at this juncture and must initiate the acquisition of 'Taleson'."

"However, the volume of 'Taleson' is far larger than that of our 'Apocalypse Lithium Industry'. If we want to eat it, it is tantamount to swallowing an elephant with a snake."

"According to the current market valuation, what is the volume of 'Taleson'?" Su Yu interrupted and asked.

Liu Wei replied: "After the thunderous performance of 'Talison', although the stock price has dropped a lot, but based on the fair valuation of its shares listed in Australia, in order to achieve a 100% equity acquisition, the required funds should be 40% or more. However, our current total assets of "Tianqi Lithium Industry" are only about 15 billion, and the market value is only about 25 billion, which is basically equivalent to only half of "Taleson". Moreover, the current debt ratio of our group is not low. Under the circumstances... it is extremely risky and extremely difficult to complete the acquisition of Snake Tunxiang."

"But this has to be done."

"Because if we don't do it and lose this strategic opportunity, for us, it's just equivalent to slow suicide."

"With a total asset of 15 billion and a high debt ratio, it would be a suicidal acquisition if you want to swallow a company that is at least twice the size of your own." Su Yu said, "This is a big gamble." , and it is a gamble that puts everything above everything else, regardless of life and death."

"Yeah!" Liu Wei nodded, and replied, "It's indeed a gamble, but in this game, if we don't take part in the table, we will die, but if we do, we have a lot of chances to win."

"Chairman Jiang said 'lithium' is the lightest metal on the periodic table."

"No matter how the industry develops in the future, he firmly believes that the use of this metal element will shine brilliantly, and isn't the current 'lithium battery' technology advancing by leaps and bounds? The concept of 'new energy' has also been mentioned by many organizations And optimistic, I believe Chairman Jiang's judgment."

"And, even without talking about future prospects."

"In terms of the lithium resources owned by 'Taleson' itself, at this time of crisis, it is absolutely cost-effective to purchase it at a price of about 40 billion."

Su Yu thought for a while, then nodded slightly.

Global lithium ore resources are mainly distributed in Australia, Chile and my country at a large scale, but they are mainly in the hands of four lithium mining giants, Thaleson, SQM, Lockwood, and FMC. According to the current global lithium resources The proportion of mining suppliers, these four suppliers together account for more than 90% of the global market share.

Among them, 'Taleson' occupies the world's highest quality and best grade 'spodumene mine' resources, and its mining cost and ore utilization rate are the highest among several.

Only now, the application of 'lithium' in the market is very small, and the overall market size is not large.

Regarding the distribution of lithium ore resources and the market share of major giants, for most investment institutions and operating companies that only use market size and profit as a measure, they don't care who owns how much.

After all, the market is small and the profit is low.

So what if a family monopolizes it?In the case that the market demand cannot rise, it still cannot make much money.

Therefore, for the strategic layout of this industry, at this point in time, few people have such a vision, and even fewer people have the strength of the layout.

"So, you have launched the acquisition plan for 'Taleson'?" Su Yu asked.

Liu Wei nodded and said: "Yes, it started two months ago. Since 'Taleson' is the most important raw material supplier of our 'Apocalypse Lithium Industry', and the two of us have cooperated for many years, the relationship between each other is very important." Good, so when there was a crisis at 'Taleson', we were the first to step in."

"In the past two months, we have established a subsidiary, Wenfield, in Australia."

"And we have acquired 19.99% of the shares of 'Taleson' on the Toronto Stock Exchange through secondary market transactions using Wenfield Investment Company."

"But due to insufficient liquidity within the group."

"After we reached a critical point in increasing our shareholding in the secondary market, even if Chairman Jiang mortgaged all his assets and pledged all his shares, it was still not enough to raise funds to launch a comprehensive tender offer for 'Taleson'."

"Because the group's debt ratio is already high, and the central bank has tightened monetary policy in order to curb this year's market inflation rate, the macro-funding of the entire market is insufficient, and it has also caused banks to be unwilling to pay for this case under the tightening liquidity. M&A, loan us more money.”

"So...you found an agency?" Su Yu asked.

Liu Wei paused for a while, and said: "If that's the case, I wouldn't go around looking for institutions to raise money. After all, Mr. Jiang found the leader of Huajin Company. After all, he finally got together some funds. Basically We can complete the acquisition plan we originally formulated."

"How would you know..."

"We have just raised funds that can basically support the merger and acquisition, and we are preparing to conduct comprehensive negotiations with 'Taleson' to initiate a comprehensive merger and acquisition."

"'Talison' suddenly entered into negotiations with another giant company in the lithium resource industry, that is, Rockwood of the United States."

"And after preliminary negotiations between the two parties, Lockwood is willing to acquire 6.5% of the common shares of 'Taleson' at 100 Canadian dollars per share."

"According to the price per share set by Lockwood, the valuation of 'Taleson' will increase to about 48 billion."

"This represents a 20% premium to market fair value."

"Facing the sudden entry of competitors, if we want to continue to acquire 'Taleson', the acquisition cost will increase by at least 10 billion yuan compared with the original."

"And, with the financial cost of the acquisition, I'm afraid the last 55 billion won't be able to stop."

"No wonder!" Su Yu said, "The sudden entry of competitors has increased your funding gap by at least 15 billion out of thin air, which is equivalent to the value of an 'Apocalypse Lithium Industry'."

"That's right!" Liu Wei said, "But since 'Rockwood' has publicly announced the acquisition of 6.5% of the common shares of 'Taleson' at a price of 100 Canadian dollars, I am afraid that it will never give in. If we want to attack its acquisition , can only be a premium price competition to snatch the control of 'Taleson'."

"But in this way..."

"In the grab for control, the share price premium will only continue to soar."

"The capital cost we need to acquire 'Taleson' will also skyrocket, and no one knows where it will end up."

"Originally, Chairman Jiang and I thought that if there were no other strong competitors to intervene in the short term."

"We can also raise funds through private placements in the secondary market."

"But now that Lockwood is strongly intervening, the reaction time given to us is quite limited. Even if we want to raise funds through private placement in the secondary market, under the long review mechanism in the market, even if the final private placement plan, It is too late to get approval from the regulatory authorities.”

"so……"

Liu Wei paused for a moment, took a sip of coffee, and continued: "I just came to Yuhang, and I want to ask Qiuyue for help. After all, the 'Anzhao Fund' she is in charge of, and Dongfang Group is backed by it. It can be regarded as a powerful institution, but... Chairman Wu of the Eastern Group also said that there is nothing he can do to help."

"Just when I feel hopeless..."

"Qiuyue recommended you, Mr. Su, to me."

"That's why I said that I originally wanted to visit you, Mr. Su, but I just didn't expect to meet you here by chance today."

"So that's the case!" Su Yu was very emotional after hearing the whole story.

"Boss Su thinks..." Liu Wei stared at Su Yu seriously, carefully observed the expression changes on his face, and after deliberating for a while, she continued, "What you think is a big gamble, we' Tianqi Li Karma' has a chance?"

Su Yu thought for a while, but did not answer directly, but said: "If Lockwood successfully acquires 'Taleson', will the global lithium resources be further concentrated? And if our country wants to break this resource monopoly in the future, will it Will it become more difficult?"

"That's for sure." Liu Wei replied.

"It is so difficult for you to raise funds. It seems that the vast majority of people in the country have not suffered enough from 'iron ore'!" Su Yu said with emotion, "As Mr. Jiang said, 'lithium' as the periodic table of elements The lightest metal in the world, no matter which direction the industry breaks through in the future, it will definitely shine, and I firmly believe in this.”

"Tell you President Jiang..."

Su Yu paused for a while, and said without hesitation: "This is not a business war of his own, nor is it the life and death of a company in Tianqi Lithium Industry, but a fight for the right to speak in my country's future lithium resources. I don't want the tragedy of 'iron ore' in the steel industry to be staged again, to be stuck by the throat, and to take away the industry's big profits for no reason."

"Since you Mr. Jiang think that the element 'lithium' is very important in the future, then... let's do it boldly. Our 'Yuhang Investment' company can bear the funding gap of less than 30 billion. If 30 billion is not enough, more funds are needed, and I can help to find a way.”

According to his historical memory.

Apocalypse Lithium's cross-border M&A of "snake swallowing elephant" is not optimistic. Despite the difficulties in the early stage, the group and its controllers have tried everything and gambled everything, but they have not been able to fully raise enough funds to compete with the powerful company. 'Norkwood' fought for funds, but in the end, at the last moment, with the full support of Chinese Merchant Bank and Huajin Company, they still snatched the control of 'Taleson' in the comprehensive acquisition plan of 'Norkwood', The successful attack on 'Nockwood' laid the foundation and foundation for Huaguo's fight for the right to speak in global lithium resources and the development of the 'new energy' grand strategy in the future.

So, when the opportunity came to you.

Whether it is out of consideration of self-interest or national interest, he has no reason not to support it.

And at the time of Su Yu's generous speech.

When Liu Wei heard Su Yu's words, she was so excited that she couldn't restrain herself. She couldn't help standing up, and stretched out her hand to Su Yu with a little trembling. Her gratitude and admiration were beyond words.

Qin Qiuyue stared blankly at Su Yu, the coffee cup in her hand was frozen in mid-air, her eyes were full of shock.

She never expected that after listening to Liu Wei's brief introduction, Su Yu called out an investment quota of 30 billion without any hesitation.

You know, with 30 billion, you can directly buy Tianqi Lithium Industry!