Go back in time and be a chaebol

Chapter 1426 England's Big Bargain Hunt (rd update, please subscribe)

Take an unusual step.

Sometimes, if you want to succeed, you can't take the usual path. You have to break the rules and think outside the box.

As Li Yian's visit to the UK came to an end, the Borneo Sovereign Fund was negotiating with the British Dogger Oil Company in London.

Dougal Oil is one of the top four oil companies in the UK, but now the company is in serious crisis.

"Your oil fields in Iraq are a thing of the past, and the result of the international court's arbitration is extremely unfavorable to you."

Howard, who was sitting on the other side of the conference room, looked at the gentlemen in front of him. His tone was extremely calm, and he spoke about the future of the company in a light tone.

"Even if the international court of arbitration requires Iraq to compensate you for your losses, how much compensation will they give? 1000 million or 1500 million pounds? And then what? They will have or even years to pay the compensation in installments.

The only question is, can you last that long?"

As Howard finished his words, Sir Anderson, an old-fashioned British man born in the Victorian era, even thought of walking away.

But he finally sat down. He was over 60 years old and had been in the business world for 40 years. He knew very well what was the most important thing in the capital market - capital.

And what does this young man in front of you represent?
It's a sovereign fund!
The world's only sovereign fund!
They invest their national pensions, oil and gas earnings in foreign companies, stocks and bonds as reserves for future generations.

This is a major innovation of theirs. Ten years ago, when they founded this organization, the capital market was still confused, but now, ten years later, they have more than 350 billion US dollars in funds.

The funds they control even exceed the GDP of many countries. For example, Italy only has 380 billion US dollars.

Some countries' GDP is not even that much.

It is also for this reason that this sovereign fund has long become a giant in the world's capital market.

As long as they want, they can wave their checks and stir up waves in the capital market at any time. It would be too easy for them to acquire Dougal Company.

If he refuses now, they will definitely choose to acquire it directly in the capital market. What kind of result will be waiting for him then?

Even without thinking, Sir Anderson knew very well what the other party would do - they would release some information in newspapers and on television, and even ask the Iraqi side to disclose their compensation plan in advance.

What is the result?
The company's stock plummeted and became a pile of waste paper, and they only needed a few million pounds to complete the acquisition.

Just wait for the fate of the company.

"Well, thank you very much for giving me such a fair opportunity, I really appreciate it!"

Although he was reluctant to admit it, Sir Anderson knew that he had no choice.

"So, sir, now I have made you a suitable offer."

Howard wrote his offer directly on the slip of paper, then pushed it forward and said:

"This is our final offer, and I believe it is a very fair offer! I will acquire 55% of your company's shares at this price."

After taking the note and taking a look at the zeros at the end, Sir Anderson realized that the other party's offer was indeed very fair.

"Thank you sir, I don't think I have any reason to refuse!"

While speaking, he passed the note to several colleagues around him. After reading the quotation, they nodded in agreement. This was indeed a very fair quotation, even unimaginably fair.

What comes next is a matter between lawyers. It will only take a few days to complete the acquisition, and there will be no official intervention during the period because this is an internal corporate acquisition between the Commonwealth. If it is a foreign company, the acquisition will require official approval.

After leaving Dougal Company, Howard looked out the window from time to time. He leaned back and lit his first cigar of the day. When the car arrived at Charing Cross Station, the secretary sitting opposite him saw that he was in a good mood and said tentatively:

"Manager, in fact, we can completely adopt a commercial acquisition method to acquire Dougal, and we only need to spend one-fifth of the funds, or even less. From a business perspective, we spent a lot more money on this investment!"

Looking at the young man in front of him, Howard smiled and said:

"Sometimes, business doesn't work that way. Do you remember the shareholder structure of Dougal?"

"In addition to a few major shareholders, there are more than 100 small shareholders. Those shareholders usually do not participate in the company's decision-making, and they don't even care..."

Suddenly, Zhang Qiliang seemed to have figured something out and said:

"They...they don't care because, for them, this is just an investment, right?" Howard nodded and said:

"Dougal was founded in 1912, before the war, when the Anglo-Persian Oil Company was just established. A group of British aristocrats - that was before the war, the last moment of glory for the British aristocracy. Many aristocrats invested in this company, and their investment has reaped rich returns over the past few decades. However... a considerable number of these shareholders, large and small, scattered across the UK, seem to be married women or widows."

Retracting his gaze, Howard continued:

"Their husbands or sons died in World War I or World War II. However, this is not important. What is important is the identities of these shareholders. A considerable number of them are hereditary aristocrats and members of the House of Lords. Even Churchill holds shares in this company!"

For a moment, Zhang Qiliang was stunned.

"Ah! There's still him!"

"You can think of everything. Before World War I, the British aristocracy was willing to invest. At that time, they had money and status. But later, the two world wars changed everything. But no matter what, a lean camel is bigger than a horse. Their influence is beyond the reach of ordinary people."

"So, that's why we want to acquire this company at a premium?"

"It's not a premium, but a normal acquisition. We can definitely use ordinary business methods to acquire it, but cutting off someone's financial resources is like killing their parents. Why should we offend them?"

Howard smiled and said:
"Instead of offending them, we need to let them understand that under our management, Dougal Oil Company will become a hen that lays golden eggs. Then, they will do everything they can to protect us!"

“Manager, are we asking the Iraqis to negotiate?”

Zhang Qiliang said subconsciously:
"Reclaiming the company's assets?"

"Can you spit out the meat you have already eaten? Besides, those oil fields have long been the property of other oil companies, and even part of them are ours. How can we cut off our own flesh?"

Howard took a look at the guy in front of him and said:

"Dougal has the right to explore for oil on the continental shelf near the North Sea. They obtained the exploration rights a few years ago, but because their oil fields were nationalized by Iraq at that time, their investment in oil field exploration has been very limited, which has directly led to their lack of new discoveries until now."

Sometimes, that's just the way it is, only if you invest enough money can you get a return, otherwise everything is empty talk.

In fact, the company went bankrupt just a few years later. After all, without the support of oil profits from Iraq, it would be difficult for an oil company without oil fields to maintain operations relying solely on petrochemical plants.

However, no one realized at that time or now that the company's most valuable asset is its offshore oil exploration rights.

After all, in the past few years, no company has discovered oil in the North Sea, which means that the so-called exploration rights are worthless, at least before oil is discovered.

Oil exploration is so mysterious.

“So, will there be oil there?”

Zhang Qiliang asked with some curiosity.

"Who knows?"

Howard shrugged his shoulders and said:

“If so, with their support, we can keep that oil field in our hands forever.

Of course, oil exploration depends more on luck. Maybe luck is on our side. Who can say for sure? Just like the Persian Gulf oil fields."

When riding to the Persian Gulf oil field, Howard's words were full of admiration. After all, the exploration rights of that oil field were purchased at your instruction.

In fact, the same is true here, not only here, but also in Libya, where the oil fields have been put into production. Facing the success of the two oil fields, although the top executives of the oil companies are very curious about the basis of your judgment to determine that there are oil fields there, they are more in awe.

After all, those are two big oil fields!
And they are all world-class. It was thanks to your foresight that they were able to pick up bargains from Western oil companies. With such success in the past, who would doubt your judgment on oil investment now?
That is why, after Your Excellency instructed the acquisition of Dougal Company, they immediately implemented the plan, which was carried out at the same time as Your Excellency's visit to the UK. This can be regarded as a gift from Your Excellency to the British people!
Of course, this is a gift for everyone!
Now, just those two oil fields can bring more than one billion dollars in revenue to the national pension and the foundation every year. Because of this, everyone there can get a certain amount of dividends every year, ranging from a few dollars to dozens of dollars. Although it is not much, for most ordinary people, it is an extra income. Whenever they receive this check, they will use the money for daily consumption - watch a few movies, go out for a few meals, and sometimes they even choose to travel, which of course requires additional expenses.

But what is certain is that everyone will be very happy when they receive that check, because they know that they, all of them, are sharing the dividends of development, and that is why everyone there is willing to contribute.

Because they are not paying for others, but for themselves, for themselves and their descendants.

Howard couldn't help muttering to himself as he thought of the excitement he felt when he first received that check.

“In fact, that’s the life we ​​want!”

(End of this chapter)