Hong Kong's new giants

Chapter 606 [Vale]

On May 5, CVRD (Vale Vale) was privatized by the Brazilian National Commission for Privatization in the Rio de Janeiro stock market.

Prior to this, large-scale protests broke out in Brazil, including two former presidents of Brazil who also joined the protest team.They believe that CVRD has not brought public deficits to the federal government, and has made outstanding contributions to Brazil's taxation and employment for many years; in addition, CVRD has an average annual income of 55 billion U.S. dollars, and last year's net profit reached 5.96 million U.S. dollars, an increase of 1995% over 76. %.

Those who are in favor of privatization believe that the federal government lacks investment funds, and the reinvestment of CVRD under government control only accounts for 40% of net profits; The position in the economy does not match; freed from the bureaucratic control of the government, VCRD will become more competitive.

After all, since Brazil's new president took office in 1995, he has been a firm believer in privatization.Of course, this is also related to the fact that Brazil has been on the verge of bankruptcy these years. As a result, the Brazilian government has to cash out crazily through the privatization of a large number of state-owned enterprises to ensure that Brazil will not go bankrupt and continue to develop its economy.

On the day of the CVRD auction, Yuan Tianfan led his team to participate, while Lin Zuhui was on vacation at the Langham Hotel in Sao Paulo (the largest city in Brazil), more than 400 kilometers away.

Yuan Tianfan's goal this time is very simple, that is to strive to win the auction of 20% or less of the equity.As for price permissions, contact by phone.

When Yuan Tianfan led people into the auction site, he quickly attracted the attention of other financial groups. After all, who did the Asians represent?

The participation in the bidding this time is not in the name of New Era Group itself, but an investment company established by New Era Group in Brazil; of course, the Brazilian National Committee for Privatization must know that this investment company comes from the consortium of Xiangjiang—New Times Group.

The New Era Group has invested in Brazil for two years, and the relationship here is very good, so it is eligible to participate in this auction.

"Who are those people?" A group of financial groups asked.

Of course, the difficulty of inquiring was not high, and soon everyone knew that Yuan Tianfan represented the largest consortium in Xiangjiang—the Brazilian investment company under the New Era Group—Lancy Investment.

"The company of the world's richest man? My God, Mr. Lin Zuhui is not interested in the 1.04 million shares, right? That's 41% of the shares with voting rights (more than 3.8 million shares in the total share capital, about 2.5 million shares with voting rights) .”

For a while, representatives of the SA consortium headed by Brazil National Steel (which has been privatized), the world's mining giant Anglo-American, and Brazil's largest industrial giant Waterlandim all sank.

The world knows that Lin Zuhui is very rich. Last year it was 260 billion US dollars, 2 billion US dollars more than No.80 Bill Gates.

(PS: Bill Gates should double this year, reaching about 360 billion U.S. dollars; of course, if calculated according to the list in July, Lin Zuhui’s wealth should be more than 400 billion U.S. dollars. So, theoretically, Bill Gates in this life may Only two years for the richest man)

However, people from the Brazilian National Committee for Privatization showed a smile. They only care about how much the privatization premium can reach, and they don't care about who wins the auction.The reason is actually very simple. Although the shares have been auctioned off, the president of CVRD is still appointed by the President of Brazil, and the government still has great decision-making power over CVRD.

Soon, the auction will start, and the first auction will be the highlight, that is, the 1.04 million equity auction, especially this one that only accounts for a little over 27% of the equity, but accounts for 41% of the voting rights. It is undoubtedly the SA consortium, Anglo-American company, Waterlandim Corporation needs.

After the auction started, Yuan Tianfan didn't ask for a price. The boss explained that he wanted to buy the equity, but it was too hot.The best is less than 20% equity, which is most suitable for New Era Group.

After a lengthy auction, SA, a consortium headed by Brazil's National Steel Corporation (with a large proportion of U.S. capital), won it for 33.38 billion reais (31.3 billion U.S. dollars).During the whole process, Yuan Tianfan did not participate in the placard raising.

"Gentlemen and ladies, next is the auction of 16.3% of the shares. There are a total of 6275.5 million shares with 3% voting rights. Now, the auction begins!"

This voting right is better than nothing, so in theory the price is much cheaper than before.

At this time, Yuan Tianfan began to raise his placards!
His idea is very simple, if he takes this part of the equity, the boss will definitely be in a good mood; even if he can't take it, there will be opportunities later, the important thing is that the previous funds will be consumed.

After a while of asking prices, the representative of the national steel company (alone) shouted: "13 billion reais"

Originally, this price was hardly followed by anyone, but Yuan Tianfan still shouted: "13.05 billion reais"

All of a sudden, Langxi Investment finally attracted the attention of all consortiums!

"Japanese consortium?"

"Is it Mitsui & Co.?"

For a while, everyone's first reaction was the Japanese consortium. In Brazil, there are many Japanese expatriates, and Japan prefers to invest in Brazil.

"I heard it's a Xiangjiang consortium!"

"Xiangjiang? The Xiangjiang consortium actually invests in iron ore?"

People were talking about it, Yuan Tianfan wasn't afraid of talking about it, he was the boss if he was rich.If the 16.3% equity can be won, the boss will never blame himself, because the boss said that iron ore will usher in a big explosion in the millennium, especially the strong demand in the mainland.

And Yuan Tianfan also knew how huge the amount of funds of the New Era Group was, so he was very confident in his heart!
In this way, the price began to continue to climb.

"13.95 billion reais." Yuan Tianfan shouted out a 'sky-high price', and he was already preparing to back down. After all, the 16.3% was just a stock with little voting rights, and this price was already very high.

However, the Brazilian national steel representatives on the other side were ashen-faced. It was obvious that the price was already too high.

In fact, Brazil's national steel industry already has a heavy proportion of American capital, and it was privatized as early as 1992.

"Idiots, the group of idiots of the National Committee for Privatization actually let in Xiangjiang Capital. What else do they have besides money, can they find a market for Vale's iron ore?"

"Could it be that the official is interested in the mainland market behind Xiangjiang Capital, and wants to export iron ore to the mainland?"

For a moment, everyone seemed to understand, and couldn't help but gasp.

"Forget it, the price is too high, there are still opportunities in the future!"

"That's right, there's no need to pay too much, and this one doesn't have much voting power, so it's not worth it!"

The auctioneer was also very excited at this time. Thanks to the addition of 'Lancy Investment', this auction will not be so lifeless and become more dynamic!
"13.95 billion reals, the second time, is there anything else to follow?"

"13.95 billion reais, the third time, the transaction. Congratulations to the Lancey consortium for winning!"

Yuan Tianfan did not expect that the auction would be so successful and other financial groups would be so conservative.

In fact, he didn't know that these financial groups were far less optimistic about Vale than Lin Zuhui.

The reason why Lin Zuhui is optimistic is because in the long run, the demand in the mainland is far from beginning.

In the next auction, Yuan Tianfan no longer participated, but because Brazil National Steel lost 16.3% of its shares, he started to work hard later, making this auction much higher than expected.

The auction is about 70% of the equity, and the government has reserved about 30%; of course, because the government still has administrative management rights, it can expand the capital of Vale.

Of course, the expansion of capital is not for the government to take power in Vale, after all, there would be no need for privatization.

The iron ore industry needs huge investment every year. When it was nationalized before, Vale’s annual investment accounted for 40%; and the purpose of privatization is better development, so the annual investment in the future will account for the proportion of profits. It will reach about 70%, which is the ideal state.

Of course, even so, Lin Zuhui guesses that the annual rate of return will not be lower than 30% (calculated in ten years), and this investment is still quite cost-effective.

But when Lin Zuhui learned that Yuan Tianfan had won 13.95% of Vale's equity at 13.08 billion reais (16.3 billion U.S. dollars), he immediately expressed his affirmation on the phone; and he himself was naturally very happy.

He came to Brazil this time and carried out many activities, including meeting with the Brazilian president and dealing with the government here; in addition, he also inspected the investment here.

In fact, his biggest investment in Brazil before was the Langham Hotel in Sao Paulo.

The property of the Langham Hotel in Sao Paulo is a Spanish colonial-style building that was purchased, and then refurbished with huge sums of money. The entire investment is as high as 1.85 million US dollars.

As for other investments, they are all small things. After all, the Asian financial crisis has also had a huge impact on countries such as Brazil, Russia, and Argentina.Therefore, it is not the best time to invest.

(End of this chapter)