The winning bid price of Leon Group seems to be higher than the US$410 million quoted by the two Chinese companies, but Huaxia Company paid a mining rights purchase fee of US$280 million, and the road construction cost was reduced to US$130 million, and the conditions were actually better.
good.
In other words, the Gabonese government can actually get US$280 million in revenue (50% mining rights) from the Chinese company's offer, but they can only get US$250 million from the Leon Group.
As for the road construction costs paid on behalf of the Gabonese government, they are just passing through the hands of the Gabonese government. Individuals in relevant departments within the Gabonese government may be able to get some benefits, but they are not of great significance to the Gabonese government.
Leon Group did some lobbying work at other levels, so the conditions they offered could only be considered average and were not comparable to Huaxia Company's bid conditions, but in the end they won the bid.
However, in international bidding projects, there are many factors that can affect the winning bid, and it does not entirely depend on the price or the quality of the bidding conditions.
Those who think that as long as they provide the best bidding conditions, they will surely win the bid, they are too naive and should go home and wash themselves off.
The bidding for the Gabon B306 project was held last year. After winning the bid, Leon Group has paid the first payment in accordance with the payment plan in the contract.
However, since they were faced with a hostile takeover by Rede Mining Group shortly after this, the group needed to collect funds and conduct a counter-takeover, so the project has not yet started operation.
Although the mining construction companies under the Leon Group have complete construction qualifications, they are more willing to take over the construction of more profitable mines rather than work as hard-working road builders.
Leon Group originally planned to let its own mining construction company undertake road construction projects and then outsource the work.
But now it seems that this has become a good opportunity.
Richard's assistant proposed whether he could negotiate with Sun Dahai to transfer the project to China Minmetals and China Construction Overseas, and let them settle the settlement with Sun Dahai themselves, and at the same time offset part of the stock return that Leon Group needed to pay to Sun Dahai.
purchase cost.
The fees that need to be paid to the Gabonese government will be paid by Leon Group in installments in accordance with the contract.
In this way, it means that the US$430 million in the repurchase payment that Leon Group originally needed to pay immediately will be paid to the Gabonese government in installments, and at the same time, the B306 project will be transferred to China Minmetals and China Construction Overseas.
China Minmetals and China Construction Overseas settled the costs of the B306 project with Sun Dahai, and Sun Dahai transferred US$430 million worth of stocks to Leon Group.
What was originally a one-to-one stock transfer transaction has turned into a big circle, involving the Gabonese government, the B306 project, China Minmetals and China Construction Overseas, making it countless times more complicated. But this can not only solve the problem of Leon Group’s funds
liquidity issues, and is beneficial to many parties.
Of course, the so-called US$430 million is only the nominal cost paid by Leon Group. Sun Dahai will definitely not agree to it, and China Minmetals and China Construction Overseas may not be able to accept it. The actual settlement price needs to be negotiated and confirmed by the four parties.
.
It is estimated that the final settlement price should be between US$410 million (the bidding price of China Minmetals and China Construction Overseas) to US$430 million. US$420 million is likely to be a price acceptable to several parties.
The main body of the B306 project is a super-large manganese-rich mine. For China, which is relatively short of manganese ore resources, its value is quite high, but Leon Group does not attach much importance to it.
Leon Group is a large French mining company. In many former French colonial countries in Africa, many manganese-rich ore deposits have been discovered, but they are not precious minerals.
Leon Group has many manganese ore projects under mining. If it opens new mines to expand production, the sales of manganese ore will be a problem in the future.
Therefore, the B306 project can only be regarded as a snack for them. If the more than 400 million in funds that need to be paid immediately can be converted into installment payments through the transfer of this project, I believe everyone in the Leon Group will be satisfied.
Even if you need to bear a certain degree of discount loss, it is still lower than the cost of seeking a mortgage.
China Minmetals and China Construction Overseas will be even more satisfied. A project that was once their focus but missed was actually able to be recovered. This should be an unexpected surprise to them.
Moreover, with the influence of the French government on the Gabonese government, the detailed terms that the Leon Group can negotiate are not something that current Chinese companies can obtain.
From this point of view alone, even if they pay an extra ten or twenty million US dollars, it is completely worth it. This is equivalent to them inviting the Leon Group and the French government behind it to provide them with free public relations lobbying.
In fact, Richard and the people from Leon Group have never had formal dealings with Huaxia Company, so they are not aware that domestic companies still have the problem of exchange rate scissors.
If according to Richard's plan, China Minmetals and China Construction Overseas pay the project fees to Sun Dahai, they will definitely not pay foreign exchange, which is equivalent to saving a foreign exchange expenditure of US$280 million.
Sun Dahai will not be greatly affected. He still has many projects in China, and paying in RMB will make no difference.
(When foreign exchange enters the country, it needs to be sold to Huaxia Bank and converted into RMB before it can be invested or used for payment domestically.)
But in this way, the favor owed to him by China Minmetals and China Construction Overseas was too great. Sun Dahai was still thinking happily, should he give a hint and let them raise the level of his father, Sun Weiguo?
As for Sun Dahai, he will suffer some nominal losses in this transaction with the other party.
But firstly, such losses are actually not big. Compared with the huge gains brought to him by Bank of Gaul stocks, Sun Dahai does not care about this drizzle of losses; secondly, Sun Dahai can get some compensation in other aspects.
This is not only due to domestic favors. If the transaction is carried out like this, Leon Group will have to make some compensation to Sun Dahai.
Now that Sun Dahai has solved the financial problem of investing in Banat Football Club by himself, he can only sit on Diaoyutai and wait for the other party to offer conditions.
Richard is telling everyone to keep up their efforts, seize the time, and quickly find a few more projects to offset more of the repurchase funds that need to be paid.
As a result, he accidentally read the news and found out that Sun Dahai was actually in London and had spent a lot of money to acquire an old football club.
As a result, Sun Dahai accidentally made himself and Banat Football Club a hot topic in many media news.
However, after seeing the news, Richard was overjoyed. He slapped his thigh, and it was done. There was no need to look for it anymore. He now had a project in his hand that could be used as a replacement asset, and there was a high probability that Sun would be able to make it.
