On May 6, the CVRD (Shui Valley) was privatized by the Brazilian National Commission for Privatization at the Rio de Janeiro stock market.

This was preceded by massive protests in Brazil, including those of two former presidents. They argue that the CVRD has not created a public deficit for the federal government and has made an outstanding contribution to Brazil's tax revenue and employment for many years; In addition, CVRD's average annual revenue was $5.5 billion, and last year's net profit reached $596 million, an increase of 76% over 1995.

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Proponents of privatization argue that the federal government lacks investment funds, and that the reinvestment of CVRDS under government control accounts for only 40% of net profits; CVRD's return on investment for the federal government is lower than that of other private companies, which is not commensurate with the company's position in the economy; Freed from the bureaucratic control of the government, the VCRD will become more competitive.

After all, Brazil's new president has been a staunch in 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, resulting in the Brazilian government only cashing out frantically through the privatization of a large number of state-owned enterprises to ensure that Brazil will not go bankrupt and continue to develop the economy.

On the day of the CVRD auction, Yuan Tianfan led the people to participate, while Lin Zuhui was vacationing at the Langham Hotel in São Paulo, Brazil's largest city, more than 400 kilometers away.

Yuan Tianfan's goal this time is very simple, that is, for the partial auction of 20% and below, he will strive to win. As for the price authority, it is contacted by phone.

When Yuan Tianfan led people into the auction hall, he quickly attracted the attention of other consortiums, after all, who do 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, Brazil's National Commission for Privatization must have known about this investment company, the New Era Group, a consortium based on Hong Kong.

The New Era Group has been investing in Brazil for two years, and the relationship here is very good, so it is eligible to participate in this auction.

"Who are those people?" A number of consortia inquired.

Of course, it was not difficult to inquire, and soon everyone knew that Yuan Tianfan represented Lancy Investment, the Brazilian investment company under the New Era Group, the largest consortium in Hong Kong.

"The company of the richest man in the world? Oh my God, isn't Mr. Lin Zuhui interested in 104 million shares? That's 41% of the voting equity (more than 380 million shares in total, about 250 million shares with voting rights). ”

For a time, representatives of the SA consortium led by Brazil's national steel (which has been privatized), the world's mining giant Anglo-American, and Brazil's largest industrial giant, Waterlantim, were all heartbroken.

The world knows that Lin Zuhui is very rich, last year it was $26 billion, $8 billion more than the second place Bill Gates.

(PS: Bill Gates should double this year to around $36 billion; Of course, if calculated according to the list in July, Lin Zuhui's wealth should be more than 40 billion US dollars. So, theoretically, Bill Gates may only have two years to be the richest man in this life)

The people of Brazil's National Commission for Privatization, on the other hand, are smiling, and they only care about how much the privatization premium can reach, not who wins it. The reason is actually very simple, although the shares are auctioned off, the president of CVRD is still appointed by the President of Brazil, and the government still has a lot of decision-making power over CVRD.

Soon, the auction began, and the first auction was the highlight, that is, the auction of 104 million shares, especially this one, which only accounted for more than 27% of the shares, but accounted for 41% of the voting rights, which was undoubtedly needed by the SA consortium, Anglo-American, and Waterlandim.

After the auction began, Yuan Tianfan did not ask for a price, and the boss explained that he wanted to buy this equity, but it was too hot. It is best to have less than 20% equity, which is most suitable for New Era Group.

After a lengthy auction, the consortium SA, led by Brazilian National Steel (with a large proportion of US capital), won it for 3.338 billion reais ($3.13 billion). During the whole process, Yuan Tianfan did not participate in the holding of cards.

"Ladies and gentlemen, this is followed by a 16.3% equity auction, a total of 62.755 million shares, with 3% voting rights.... Now, let's start shooting! ”

This voting power is better than nothing, so the price is theoretically much cheaper than the previous one.

At this time, Yuan Tianfan began to raise his cards!

His idea is very simple, if he wins this part of the equity, the boss will definitely be in a good mood; Even if you can't get it, then there is still a chance in the back, and the important thing is to consume the funds in front.

After a burst of bidding, representatives of the National Steel Company (separately) shouted: "1.3 billion reais"

Originally, almost no one followed this price, but Yuan Tianfan still shouted: "1.305 billion reais"

For a while, Rancy Investment finally attracted the attention of all consortia!

"Nippon Foundation?"

"Is it Mitsui & Co.?"

For a while, everyone's first reaction was the Japanese foundation, in Brazil, there are already many Japanese expatriates, and Japan also likes to invest in Brazil.

"I heard that it is a Xiangjiang consortium!"

"Xiangjiang? Will the Heung Kong consortium invest in iron ore? ”

People are talking about it, but Yuan Tianfan is not afraid of talking about it, rich is the boss. If the 16.3% stake can be won, the boss will never blame himself, because the boss has said that iron ore will usher in a big explosion in the millennium, especially in the mainland.

And Yuan Tianfan also knows how huge the amount of funds of the New Era Group is, so he is very good at heart!

And just like that, the price began to climb further.

"1.395 billion reais" Yuan Tianfan shouted a 'sky-high price', and he was already ready to retreat, after all, this 16.3% is just a stock without many voting rights, and this price is already very high.

However, on the other side, the Brazilian national steel representatives were pale-faced, and it was obvious that the price was too high.

In fact, Brazil's national steel is already a very heavy proportion of U.S. capital, and it was privatized as early as 1992.

"Fools, the group of fools of the National Committee for Privatization, actually put in a Xiangjiang capital, what else do they have besides money, can they find a market for the iron ore in the Shanshui River Valley?"

"Could it be that the official is taking a fancy to the mainland market behind Heung Kong Capital and wants to export iron ore to the mainland?"

For a while, everyone seemed to understand and couldn't help but gasp.

"Forget it, this price is too high, there is still a chance later!"

"Yes, there's no need to be too high, this one doesn't have much voting power, it's not worth it!"

The auctioneer is also very excited at this time, because of the addition of 'Rancy Investment', this auction will be less lifeless and more energetic!

"R$1.395 billion, the second time, is there anything else to follow?"

.....

"R$1.395 billion, for the third time, deal. Congratulations to the Rancy Consortium for their victory! ”

Yuan Tianfan also didn't expect that the auction would be so successful, and other consortia would be so conservative.

In fact, he didn't know that these consortiums were far less optimistic about the Tanshui River Valley than Lin Zuhui.

The reason why Lin Zuhui is optimistic is because he has a long-term view, and the demand in the mainland is far from beginning.

In the next auction, Yuan Tianfan no longer participated, but because Brazil National Steel lost 16.3% of its equity, it began to exert efforts later, making this auction much higher than expected.

The auction is about 70% of the shares, and the government has reserved about 30%; Of course, since the government also has administrative powers, he can expand his capital in the Shui Valley.

Of course, the expansion of capital is not for the sake of the government taking power in the Shui Valley, after all, there is no need for privatization.

The iron ore industry requires huge investment every year, with 40% of the annual investment in the Lishui Valley at the time of nationalization. The purpose of privatization is better development, so the proportion of investment in profits will reach about 70% in the future, 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 won a 16.3% stake in the Shanshui River Valley for 1.395 billion reais ($1.308 billion), he immediately expressed his affirmation on the phone; And his own mood is naturally very happy.

He came to Brazil and did a lot of activities, including meeting with the president of Brazil and dealing with the government here; In addition, he also inspected the investment here.

In fact, his biggest investment in Brazil was the Langham Hotel in São Paulo.

The property of the Langham Hotel São Paulo is a Spanish colonial style building purchased and renovated with a huge investment of up to $185 million.

As for other investments, they are all petty fights, after all, the Asian financial crisis has also had a huge impact on countries such as Brazil, Russia, and Argentina. So, it's not the best time to invest yet.