Well.

Tang Bao, who came to his senses, also nodded understandingly, obviously, even if the background of Mosaco Consulting Services was extraordinary, it could not be compared to Vale.

"I believe that the news of the private ownership of the national ferrous metallurgical company will soon spread. Vale intends to form a consortium to bid for the National Ferrous Metallurgical Corporation, and I sincerely invite Mr. Tang to join! Arnold said.

Call.

Tang Bao took a deep breath and did not eagerly give a clear reply. Brazil's second-largest steel mill is indeed a tempting piece of cake.

"Isn't the state of the National Ferrous Metallurgical Company wonderful?" After a moment of silence, Tang Bao asked. Previously, Morais said that Brazil's private-ownership has only been carried out for a long time, and it is all testing the waters of small and medium-sized enterprises. This is also consistent with the intelligence information he has gathered on his own.

But.

There must be an extraordinary reason why the Brazilian government suddenly rushed to put the country's second-largest steel plant on the path of privatization, not long after the privitization process was underway.

"Yes. The state ferrous metallurgical company is in a very bad situation, facing very difficult problems such as equipment upgrades and mass layoffs. It is also burdened with nearly $300 million in debt. Especially in the context of the sharp depreciation of Cruzeiro, this batch of dollar debt is a catastrophic burden. Arnold didn't hide the situation and told the truth.

Bidding for a national ferrous metallurgical company may involve a billion dollars of funds, and with such a large-scale investment, Tang Bao will definitely investigate, and it is impossible to hide it.

"According to what I have received, part of the $300 million debt has recently reached its maturity, and if it is not sold successfully, the National Ferrous Metallurgical Company may default on its debt. The National Ferrous Metallurgical Company is Brazil's state-owned state, and a default on its debt could jeopardize the government's credibility. This would be a devastating blow to the Brazilian government, which had managed to reach a debt restructuring arrangement with international bankers and get out of the abyss of default. So the Brazilian government desperately wants the national ferrous metallurgical company to become a private company before it defaults on its debts! ”

"I see."

Tang Bao finally understood the hidden meaning.

Let's be honest.

Investing in such a company will definitely face huge losses in the initial stage, but considering the prosperity of the entire steel industry in the future, it will be a sure investment.

Immediately.

Tang Bao agreed to Arnold's invitation and agreed to enter the consortium formed by Vale to participate in the bidding for the National Ferrous Metallurgical Company.

I have to say.

What a bonus!

Originally, Tang Bao came to meet with Arnold in the hope of jointly bidding for Pat Mining Company. But now compared with the national ferrous metallurgical company, Pat Mining Company is simply not worth mentioning.

"President Arnold, how long will it take for the National Ferrous Metallurgical Company to be privatized?" Tang Bao asked. His trip to Brazil is expected to last around five days, and he will change his itinerary if the privatization of the national ferrous metallurgical company starts in the near future. If it was too long, he couldn't delay here forever, so he could only send someone.

"This ...... The short is more than a month, and the longest cannot be more than three months. A dollar debt of the National Ferrous Metallurgical Corporation matures in three months. Arnold said.

"Oh."

Tang Bao nodded.

"Maybe Mr. Tang doesn't know much about the situation of the national ferrous metallurgical company, so let me give you a general introduction. The steelmaking scale of the National Ferrous Metallurgical Corporation is about 20 million tons per year. Nearly 100,000 employees. It not only has steel mills, but also iron ore, coal mines, logistics and other assets. But the equipment is outdated and the production efficiency is very low, and I estimate that this one-billion dollar bid should be possible. However, this is only the initial investment, after winning the national ferrous metallurgical company, we need to invest a large amount of money in its equipment upgrading and staff retraining, layoff compensation, etc., this part of the investment may be about 1.5 billion to 2 billion US dollars. So the total investment in the national ferrous metallurgical company could be as high as three billion dollars. Of course, equipment upgrades and staff training can't happen overnight. It will last for three to five years. Arnold said.

Then.

Without waiting for Tang Bao to respond, he looked at Tang Bao and emphasized. "So, in the first few years of the acquisition of the National Ferrous Metallurgical Company, it will probably be operating at a loss. For this point, I hope that Mr. Tang will be mentally prepared in advance, so as not to cause unpleasant things to happen in the future. ”

"Ha, please rest assured, President Yannuo. I will be patient enough. I know that investment in the real economy cannot have the same fast returns as financial investment. Tang Bao said with a smile.

"It's best if Mr. Tang can understand that!" Arno also smiled. "Of course, this is the worst-case scenario I expected, and the real situation may be slightly better."

Well.

Tang Bao looked at Arno's performance and nodded his head secretly, thinking that although Arno relied on his father to enter Vale, judging from his performance today. It's not like a mediocrity.

"Will there be a potential competitor that will be difficult to deal with this time?" Tang Bao asked.

"Truth be told, there will be fierce competition in every private-owned auction, and it is almost impossible to auction without competition. However, with the scale of the national ferrous metallurgical company, ordinary investors are not eligible to participate. There is no one who dares to fight for it that is not difficult. Domestic companies such as Gerdau, São Paulo Waterlandim Group, United Mining Company, foreign steel giants are difficult to determine which steel giants will participate in the auction, the United States, Germany, Japan steel companies are very strong, and there is strong capital support behind them. ”

"That's right." Tang Bao nodded solemnly.

Then.

The atmosphere was a little depressing, and Arnold hurriedly broke the gloom and said: "Although the international steel giants are very powerful, we have a unique advantage. Not to mention the thorny issues of up to $300 million in debt and layoffs, which can deter some potential competitors. ”

"It would be a disaster if we couldn't effectively handle the layoffs and placements in the steel mills!" Arno said with a smile.

Well.

Tang Bao nodded in agreement, there are countless trade union organizations in Brazil, and if you are not careful, you may face the embarrassment of a workers' strike.

Then he asked, "Can you solve this problem?" ”

"Hmm. I can't guarantee 100% certainty, but there are some similar experiences. In addition, Vale will receive assistance from the government. Arnold said confidently.

As for what the solution was, Arno did not elaborate, and Tang Bao did not ask.

When listening to Arnold's introduction that the National Ferrous Metallurgical Company has iron ore resources, Tang Bao instantly understood why Arnold attached so much importance to the National Ferrous Metallurgical Company.

Undoubtedly.

Vale has taken a fancy to the iron ore resources of the National Ferrous Metallurgical Corporation!

So.

The acquisition will certainly be led by Vale, which may choose the right time to swallow up the iron ore assets of the National Ferrous Metallurgical Corporation.

"Hmm. How should the funds for the acquisition of the National Ferrous Metallurgical Company be apportioned? Tang Bao asked, of course, the underlying meaning is also how to distribute equity.

Arnold was slightly stunned, then smiled knowingly and explained: "In addition to inviting Mr. Tang to join the joint bidding consortium this time, Vale will also invite several other partners to join. However, Mr. Tang, please rest assured that the issue of equity distribution is easy to discuss. ”

"Multi-party cooperation?"

Tang Bao looked at Arno in surprise and said.

"Yes. That's right, it's a multi-party collaboration. Arnold replied with a smile.

Soon.

Arnold explained, "Mr. Tang, inviting other partners to join is not to doubt your strength, but to have other considerations. On the one hand, the other parties are long-term partners of Vale, and on the other hand, the other side is very strong, and pulling them into our camp is equivalent to indirectly weakening the strength of potential competitors. If they are allowed to join the opponent's camp, it can cause us a lot of trouble. ”

Hear this.

Tang Bao was a little surprised, he was a little curious about the partner that Arno was talking about, who could make Vale so scrupled.

"President Arnold, who are you talking about?" Tang Bao asked.

"Previ Fund and Bradesco Bank. I wonder if Mr. Tang knows about these two institutions? Arnold asked with a light smile after reporting his name.

Tang Bao shook his head.

Although he had done his homework before coming to Brazil, he remained ignorant of the two institutions that Arnold had mentioned. It's no wonder that Tang Bao, the Previ Fund and the Bradesco Bank are obviously two financial institutions, and most of the information collected by Tang Bao is intelligence information about mineral resources, and he has never investigated financial institutions in Brazil, and he has never thought of engaging in financial investment in Brazil!

The full name of the Previ Fund is the Bank of Brazil Staff Social Security Fund, which is the largest social security fund in South America. Bradesco Bank, on the other hand, is a government-controlled commercial savings bank and a stable lender to Vale. Arnold explained briefly.

Well.

Tang Bao nodded quietly.

"Both the Previ Fund and Bradesco Bank are financial institutions, and it is unlikely that they will directly intervene in the business decisions of the National Ferrous Metallurgical Company. And what I do is also equity investment, and the national ferrous metallurgical company after the acquisition is not directly said by Vale! ”

Tang Bao quickly figured out the key to this, and immediately understood that Vale Company was wishful thinking, which was to rely on the strong capital strength of him and the two financial institutions to assist them in controlling the National Ferrous Metallurgical Company.

understood and understood, but Tang Bao did not point it out directly. As things stand, it would be wise to run the deep-rooted Vale.

"The joint bidding consortium will be formed by the four of us. Mr. Tang, no problem, right? Arnold asked.

Hear the words.

Tang Bao smiled and said, "I naturally have no opinion." Just the Previ Fund and Bradesco Bank ......"

"I will personally coordinate the Previ Fund and Bradesco Bank, and we have already carried out similar cooperation many times before." (To be continued.) )