Chapter 406: Strangling the Lifeline
June 23rd, Saturday, happens to be the Dragon Boat Festival.
The streets are filled with the fragrance of rice dumplings as people celebrate the festival with great joy.
In Mindong City, Fujian Province, Zeng Yuqun, president of CATL, rarely takes a half-day off during the holidays.
While enjoying lunch with his family, he suddenly received a call from his good friend Huang Shilin.
"Old Huang, you called me in the middle of the day, are you trying to treat me to a meal?"
Facing Zeng Yuqun's ridicule, Huang Shilin on the other end of the phone said hurriedly: "Old Zeng, something big has happened!"
Zeng Yuqun's heart tightened when he heard this, thinking that there was a safety problem in the factory, and he quickly asked: "Tell me quickly, what happened to the factory?"
Huang Shilin paused and said, "The factory is fine! I can't explain this matter in a short time. You will understand when you see the top search on Weibo. We will contact each other after you finish reading it."
Upon hearing that everything was fine at the factory, Zeng Yuqun secretly breathed a sigh of relief. Just as he was about to ask for details, he found that the other party had hung up the phone in a hurry.
"What's this mysterious old Huang up to?"
While I was wondering, I still followed his instructions and picked up my phone to open Weibo, only to see that the top of the hot search list was the topic "1. Devon Supply Chain".
"Dewen? I've never heard of it. Is it a foreign company?"
Out of curiosity, he clicked on the link to check out the related topics. After browsing for a while, Zeng Yuqun's pupils suddenly contracted and an expression of incredible shock appeared on his face.
When his family saw his sudden change in expression, they all became concerned.
"It's okay, it's okay." Zeng Yuqun waved his hand, his eyes still fixed on the screen. The report from the Mining News was revealing a piece of heavy news that was enough to shake the global mining industry:
According to people familiar with the matter at the Johannesburg Stock Exchange in South Africa, the mysterious Chinese company Devon Supply Chain offered US$1.5 billion in cash.
It defeated the US$1.32 billion bid from Brazil's Vale and US$1.4 billion bid from China's Jinchuan Group and successfully acquired South Africa's Metorex.
South Africa's Metorex's core assets include the Ruasi copper-cobalt mine in the Democratic Republic of the Congo and the Chibuluma copper mine in Zambia. It is the world's third largest cobalt resource provider.
Reports show that Devon Supply Chain's acquisition advisor for this time is Wall Street giant Goldman Sachs.
Goldman Sachs used the London Metal Exchange's cobalt futures contract as collateral and formed a syndicated loan with Standard Chartered Bank and Barclays Bank within 72 hours.
After Vale reached a preliminary agreement with Metorex management, it launched a mandatory takeover offer at a 32% premium to the closing price of the day.
And through South Africa's BEE (Black Economic Empowerment Act) policy compliance operations, it promised to retain Metorex's Johannesburg headquarters and hire 300 local employees, thus taking the mining giant into its pocket.
After in-depth research by our reporter, it was found that Devon Supply Chain, which acquired South Africa's Metorex, is a wholly-owned subsidiary of Devon Manufacturing.
Its founder is none other than Song Ci, chairman of the world’s Internet giant Tenda Technology Group and the richest man in Asia!
Later, the reporter learned through various channels that Dewen Manufacturing, founded by the richest man, is a cutting-edge industrial technology company mainly engaged in the manufacture of new energy vehicles and drones.
Relevant experts have analyzed and inferred that the richest man's huge investment in the acquisition of Metorex may be an early layout in the global mining industry in order to gain an advantage in the upcoming new energy era.
Zeng Yuqun was still chewing over this blockbuster news and thinking about the impact of the richest man's acquisition of Metorex on the domestic new energy industry when Huang Shilin called again.
"Lao Zeng, have you seen the trending searches?"
Zeng Yuqun looked solemn: "It seems that Mr. Richest Man has big plans!"
As the saying goes, the layman sees the excitement, while the expert sees the details.
Cobalt, as a key component of lithium-ion battery positive electrode materials, can significantly increase battery energy density and enhance power storage performance.
The demand for cobalt in the mainstream smartphone ternary lithium batteries in the current market is extremely strong.
In the field of new energy vehicle batteries, cobalt is directly related to battery performance, service life and safety, and is an indispensable strategic resource.
However, cobalt is a rare metal with limited global reserves and extremely uneven distribution. Resources are highly concentrated in a few countries such as the Democratic Republic of the Congo.
Huang Shilin couldn't help but sigh: "Dewen Manufacturing's acquisition of Metorex is equivalent to blocking the core resource lifeline on the eve of the explosion of new energy electric vehicles."
"You are truly a strategic master! You are so decisive and efficient in your work!" Zeng Yuqun praised sincerely.
Then he changed the subject, "Fortunately, Songci is a shareholder of CATL and our ally. This may be an opportunity for us."
Huang Shilin suggested: "Mr. Zeng, we should go visit Song Ci. Metorex has the world's leading high-pressure acid leaching technology. If we can cooperate with CATL, the cost of ternary precursors can be reduced by at least 15%."
Zeng Yuqun nodded in agreement: "He and Liu Shishi's wedding is coming soon, so we can take this opportunity to congratulate them and have a good chat about cooperation!"
Just as Zeng Yuqun and Huang Shilin were discussing giving generous gifts to the richest man and Liu Shishi on their wedding day, Song Ci was holding a cross-border video conference at his home in Jingyuan.
On the screen, Mark Wilson, President of Goldman Sachs Asia, smiled and said, "Congratulations, Song, you have successfully acquired the high-quality asset Metorex."
"Congratulations! Goldman Sachs must have made a lot of money this time, right?" Song Ci smiled indifferently.
Although he had ample funds in his overseas accounts, he had to accept a temporary high-interest loan from Goldman Sachs in order to quickly complete a legal cross-border acquisition.
Adding in various consulting fees, Goldman Sachs made a lot of money. But the success of Metorex made it all worth it.
The current global cobalt price is US$12,500 per ton, which is at a historical level. Buying at the bottom now is equivalent to locking in resource supply for the next 20 years.
Mark Wilson smiled knowingly. He and Song Ci each got what they wanted. This time, Goldman Sachs took advantage of the other party's eagerness to acquire Metorex and made a profit.
"We still have to rely on Goldman Sachs for the follow-up finishing work!"
"Song, please rest assured. Although Goldman Sachs charges a high fee, it is worth it. We guarantee to complete all cross-border acquisition procedures within three months and inject the equity into Hong Kong Dewen International as you requested."
"I believe in the credibility of Goldman Sachs!" Song Ci said politely, but sneered in his heart.
However, he also had to admit that Goldman Sachs' influence in the global financial community cannot be underestimated, and hiring them as financial advisors for cross-border acquisitions did save a lot of trouble.
After that, Song Ci turned his gaze to another screen: “According to the requirements of the South African BEE Act, foreign-invested companies engaged in mining production in South Africa must have a black shareholding ratio of at least 26%.
Sister Ying, I'd like to trouble you to design an employee stock ownership trust to hold these 26% shares on behalf of Dewen, and Dewen can retain the voting and management rights."
Li Ying nodded gently: "I will make proper arrangements to ensure compliance with South African regulations."
"Sister Ying, you must be careful in a foreign country!" Song Ci solemnly reminded, and then looked at his partners, "Goldman Sachs, please cooperate with us in this regard!"
"OK! Leave it to me!" Mark Wilson readily agreed with a smile on his face, "Song, Goldman Sachs CEO Lloyd Blankfein has been looking forward to meeting you!"
Song Ci curled his lips and said perfunctorily: "Next time I go to the United States, I will definitely pay a visit to Mr. Lloyd."
In the past two years, as Tenda has gradually grown into a multinational giant, he is now determined not to go to North America.
The Americans have always acted without moral principles. Who knows if they will detain him? After all, they have a history of detaining people before.
In addition, he shorted the U.S. stock market during the subprime mortgage crisis and made a lot of money from the United States. It is inevitable that he will be hated and suddenly attacked.
After hastily responding to a few words, Song Ci ended the video conference, but did not leave. Instead, he sat quietly in front of the screen with his eyes closed.
Time passed quietly, and after about a quarter of an hour, the bell at noon seemed to be a signal, and the conference system screen lit up again.
Song Ci seemed to sense something, slowly opened his eyes, his eyes were as deep as the abyss, and raised his hand to answer the video request.
In the picture, the figures of a foreign man and Li Ying appeared.
"Mr. Jeff Erwin, I have heard of you for a long time."
Jeff Erwin, the Asia Pacific chief executive of JPMorgan Chase, who had just taken office a week ago, smiled meaningfully and said, "Mr. Song, congratulations in advance. You are about to become a world mining giant."
Song Ci shook his head slightly, and said in a calm tone: "It's too early to talk about this now!"
"Mr. Song, JPMorgan Chase never disappoints its clients! It's only a matter of time before Dewen takes over Talison Mining!"
Jeff Erwin's eyes were burning. He had just taken office and urgently needed a world-shocking acquisition to establish his authority and expand JPMorgan Chase's presence in the entire Asia-Pacific region.
"It is because I believe in the strength of JPMorgan Chase that I did not continue to choose Goldman Sachs. I hope we can have a pleasant cooperation."
Song Ci nodded slightly, "Mr. Jeff, tell me your plan. How can I ensure that I can defeat Lockwood Company and take over Talison Mining?"
After successfully acquiring Metorex, Song Ci's next target is Australia's Talison Mining.
As Australia's largest spodumene mining company, Talison Mining controls 30% of the global lithium mining market and supplies about 80% of China's lithium concentrate.
Its core asset, the Greenbushes spodumene mine, is one of the world's largest and highest-grade solid lithium mines.
Once the acquisition of Talison Mining is completed, Devon will control 65% of the world's high-grade lithium mines. Together with the South African cobalt mines it has already acquired, it will be able to firmly control the "cobalt plus lithium" dual-core supply chain.
Jeff Erwin had already made up his mind and spoke with a smile: "Mr. Song, we have registered a wholly-owned shell company, Wenfield, for Devon Supply Chain Company in Perth.
The JPMorgan Chase Zurich Trust Account provided a standby letter of credit of US$250 million. The shares were purchased through Scotiabank of Canada and Westpac Bank of Australia.
Through secondary market raids and off-market transfers, they secretly acquired 19.9% of Talison Mining’s equity within five days.”
Li Ying suddenly asked, "Mr. Jeff, how can JPMorgan Chase ensure that Lockwood will not notice such a large-scale acquisition of shares?"
Jeff Erwin smiled confidently, his eyes determined: "Beautiful lady, JPMorgan Chase has its own way. As long as the daily trading volume is less than 5%.
You can use the TSX over-the-counter trading system to avoid disclosing large transactions and avoid reporting to regulators.
Once the 19.9% stake is acquired, according to the company's articles of association, anyone holding more than 15% of the shares can launch a general offer.
The subsequent process is simple. As long as Mr. Song is willing to spend money and his bid exceeds Lockwood's, Thales Mining will be easily acquired."
Song Ci smiled slightly, with a hint of temptation in his tone: "Then I will wait for good news from Mr. Jeff! If this cooperation goes well, there will be many opportunities for cooperation with JPMorgan Chase in the future."
"Mr. Song, just wait and see." Jeff Erwin's eyes flickered, hinting, "On Wall Street, JPMorgan Chase's ability to operate large IPO projects is not inferior to Goldman Sachs in the slightest."
"Mr. Jeff, this is our first time working together. Let me see the strength of JPMorgan Chase!" Song Ci knew clearly in his heart that the top investment banks in the world were waiting for Tengda Group to go public and wanted to participate in this capital feast.
After some pleasantries, the video conference ended and Song Ci breathed a sigh of relief. Dealing with these greedy capital giants did not allow for the slightest negligence, as one would fall into a trap if not careful.
“Boom boom boom!”
There was a knock on the door, and it was slowly pushed open. Liu Shishi leaned out half of her body and looked into the room: "Honey, is the meeting over?"
"Yeah, it just ended." Song Ci responded softly.
Liu Shishi walked up quickly and gently took her husband's hand: "It's past 12 o'clock, come downstairs to eat, the elders are waiting for you."
"good."
The couple came to the living room and saw Song Zhang, Liu Xiaoxian and his wife chatting and laughing with their uncle's family.
When Liu Yuqing saw Song Ci, she said sweetly, "Brother, you're finally here. I'm starving."
Song Ci couldn't help laughing: "Let's eat!"
Everyone sat around the dining table, enjoying the food and chatting.
Liu Xiaochen exclaimed: "New Year's Day, I saw the news today, a lightning acquisition of 1.5 billion US dollars, it's really a big deal.
But I heard that Jinchuan Group and Huaguo Bank have complaints and feel that you are interfering."
"Don't worry, uncle. I know what's going on. As long as the mine in South Africa is acquired by Chinese capital, there is no need to worry about other problems."
"New Year's Day, when does Tengda plan to go public?"
At the dinner table, the family's eyes were focused on Song Ci.
Currently, the valuation of Tenda Group has exceeded 150 billion US dollars. According to brokerage analysts, once Tenda goes public, its market value is expected to rank among the top ten global listed companies.
Song Ci's wealth will also skyrocket, and he will strive to become the world's richest man.
Facing his loved ones, Song Ci did not hide the truth: "It is expected that the listing process will be launched in the second half of 2014."
He had already made up his mind that by then WeChat Pay would have competed with Alipay and it would be a perfect time to go public.
Liu Xiaochen hesitated for a moment, but couldn't help asking what was on his mind: "Does ICBC have a chance to become the underwriter of Tengda's IPO?"
Last year, he failed to be promoted to deputy president of the head office due to his lack of experience. If he can help ICBC win the Tengda Group IPO underwriting project, it will undoubtedly add a highlight to his resume.
Song Ci admitted: "I am still considering this matter, but I will definitely choose from large Wall Street investment banks."
Liu Xiaochen couldn't hide his disappointment.
Song Ci understood his uncle's thoughts and comforted him with a smile: "Uncle, Tengda has a business recently, and perhaps it can cooperate with ICBC. As long as the interest rate is suitable, a large amount of funds will be deposited in ICBC."
"A large amount? How much exactly?" Liu Xiaochen immediately became interested, as attracting deposits is the cornerstone business of a bank.
Song Ci was lighthearted, but his words were shocking: "Hundreds of billions!"
"How much!" Liu Xiaochen was so shocked that his hands trembled and his chopsticks fell to the ground. He asked in disbelief, "Where did Tengda get such a huge amount of funds?"
Amid the shocked looks of his family, Song Ci smiled mysteriously and kept the secret: "It's a trade secret!"
(End of this chapter)
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