On May 6, CVRD (Danshui Valley) was privatized by the Brazilian National Commission on Privatization at the Rio de Janeiro stock market.
Prior to this, large-scale protests broke out in Brazil, including Brazil's two former presidents who also joined the protest team. They believed that CVRD did not bring public deficits to the federal government and had made outstanding contributions to Brazil's tax revenue and employment for many years;
In addition, CVRD's average annual revenue is US$5.5 billion, and its net profit last year reached US$596 million, an increase of 76% from 1995.
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Those who favor privatization believe that the federal government lacks investment funds, and CVRD’s reinvestment under government control only accounts for 40% of net profits; CVRD’s return on investment in the federal government is lower than that of other private enterprises, providing the company with
The position in the economy does not match its position; freed from the bureaucratic control of the government, vcrd will become more competitive.
After all, the new Brazilian president has been a staunch supporter of privatization since he took office in 1995. Of course, this is also related to the fact that Brazil has been on the verge of bankruptcy in recent years. As a result, the Brazilian government can only guarantee cash through the privatization of a large number of state-owned enterprises.
Brazil will not go bankrupt and continues to develop its economy.
On the day of the cvrd auction, Yuan Tianfan and his people came 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, strive to win the partial auction of 20% and below of the equity. As for the price authority, he will be contacted by phone.
When Yuan Tianfan led people into the auction house, he quickly attracted the attention of other financial groups. After all, who did the Asians represent?
This participation in the bidding 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 on Privatization must know about this investment company, a consortium from Xiangjiang-New Era Group.
Times Group.
New Era Group has invested in Brazil for two years and has a good relationship here, so it is qualified to participate in this auction.
"Who are those people?" A group of financial groups asked one after another.
Of course, it was not difficult to find out, and soon everyone knew that Yuan Tianfan represented the largest consortium in Hong Kong, the Brazilian investment company of New Era Group, Langxi Investment.
"The company of the world's richest man? Oh my god, Mr. Lin Zuhui is interested in 104 million shares, right? That accounts for 41% of the shares with voting rights (the total share capital is more than 380 million shares, and about 250 million shares with voting rights)
.”
For a time, representatives from the SA consortium headed by Brazil's National Steel (which has been privatized), the world's mining giant Anglo-American Company, and Brazil's largest industrial giant Waterlantim all felt their hearts sinking.
The world knows that Lin Zuhui is very rich. Last year, it was 26 billion U.S. dollars, 8 billion U.S. dollars more than the second-place Bill Gates.
(ps: Bill Gates should have doubled this year to about 36 billion U.S. dollars; of course, if calculated according to the July list, Lin Zuhui’s wealth should be more than 40 billion U.S. dollars. Therefore, in theory, Bill Gates may
Only two years to become rich)
However, people from the Brazilian National Committee on Privatization all showed a smile. They only cared about how high the privatization premium could be, and did not care who won the bid. The reason is actually very simple. Although the shares were auctioned, the president of cvrd,
It is still appointed by the President of Brazil, and the government still has great decision-making power over CVRD.
Soon, the auction began, and the first auction was the highlight, which was the auction of 104 million shares, especially this one which only accounted for just over 27% of the shares, but accounted for 41% of the voting rights. It was undoubtedly the SA consortium, an Anglo-American company,
What Waterland Timber Corporation needs.
After the auction started, Yuan Tianfan did not bid. The boss explained that he wanted to buy this equity, but it was too hot. It is best to buy less than 20% of the equity, which is most suitable for New Era Group.
After a long auction, SA, a consortium headed by National Steel of Brazil (with a large proportion of American capital), won the auction for 3.338 billion reais ($3.13 billion). Yuan Tianfan did not participate in the placard-raising process.
"Gentlemen and ladies, next is the auction of 16.3% of the shares, a total of 62.755 million shares, with a voting right of 3%... Now, start the bidding!"
This voting right is better than nothing, so in theory the price is much cheaper than before.
At this time, Yuan Tianfan started to raise his cards!
His idea is very simple. If he can win this part of the equity, the boss will be in a good mood; even if he can't win it, there will still be opportunities later. The important thing is that the previous funds have been consumed.
After a period of bidding, the representative of National Steel Company (alone) shouted: "1.3 billion reais"
Originally, almost no one followed this price, but Yuan Tianfan still shouted: "1.305 billion reais"
For a time, Langxi Investment finally attracted the attention of all financial groups!
"The Nippon Foundation?"
"Is it Mitsui & Co.?"
For a time, everyone's first reaction was the Japanese consortium. There are already many Japanese expatriates in Brazil, and Japan also prefers to invest in Brazil.
"I heard it's a Xiangjiang consortium!"
"Xiangjiang? Xiangjiang Consortium actually invests in iron ore?"
People are talking a lot, and Yuan Tianfan is not afraid of the discussion at all. If he has money, he is the boss. If he can win this 16.3% stake, the boss will never blame himself, because the boss said that iron ore will usher in a big explosion in the millennium.
In particular, demand from the mainland is strong.
And Yuan Tianfan also knows how huge the amount of funds New Era Group has, so he is very confident!
Just like that, the price started to continue to climb.
"1.395 billion reais" Yuan Tianfan shouted a "sky-high price", and he was already preparing to retreat. After all, these 16.3% are just stocks with few voting rights, and this price is already very high.
However, the Brazilian steel representatives on the other side were livid, as it was clear that the price was already too high.
In fact, Brazil's national steel industry already has a heavy proportion of U.S. capital, and it was privatized as early as 1992.
"Idiots, those idiots from the National Committee for Privatization actually brought in Xiangjiang Capital. Besides having money, what else do they have? How can they find a market for the iron ore in the Danshui River Valley?"
"Could it be that the authorities are interested in the mainland market behind Xiangjiang Capital and want to use this to export iron ore to the mainland?"
For a moment, everyone seemed to understand and couldn't help but gasp.
"Forget it, this price is too high, there will be opportunities later!"
"That's right. There's no need to pay too much. This doesn't have much voting rights, so it's not worth it!"
The auctioneer was also very excited at this time. Thanks to the addition of 'Lancy Investment', the auction was less lifeless and more dynamic!
"1.395 billion reais, the second time, is there anyone else you want to follow?"
.....
"1.395 billion reais, the third transaction. Congratulations to the Lancy Consortium for winning!"
Yuan Tianfan also did not expect that the auction would be so successful and other consortiums would be so conservative.
In fact, he didn't know that these financial groups were far less optimistic about the Danshui River Valley than Lin Zuhui.
The reason why Lin Zuhui is optimistic is that from a long-term perspective, the demand from the mainland is far from beginning.
Yuan Tianfan no longer participated in the next auction, but because Brazil National Steel lost 16.3% of its shares, it started to exert efforts 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 rights, it can expand capital in the Danshui River Valley.
Of course, the expansion of capital is not for the government to take control of the Danshui River Valley. After all, there would be no need for privatization.
The iron ore industry requires huge investment every year. When it was nationalized before, annual investment in Danshui River Valley accounted for 40%; and the purpose of privatization is better development, so in the future, annual investment will account for 40% of profits.
, will reach about 70%, which is the ideal state.
Of course, even so, Lin Zuhui guesses that the annual return will not be less than 30% (calculated in ten years), and this investment is still quite cost-effective.
.......
But when Lin Zuhui learned that Yuan Tianfan had acquired 16.3% of the Danshui River Valley equity for 1.395 billion reais (US$1.308 billion), 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 investments here.
In fact, his previous largest investment in Brazil 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 renovated with a huge investment. The entire investment was as high as 185 million US dollars.
As for other investments, they are all small investments. After all, the Asian financial crisis also had a huge impact on countries such as Brazil, Russia, and Argentina. Therefore, it is not the best time to invest.