Reborn as the richest man in India

If there were no competition from CRA and the $2 billion plan they proposed, the price of $1.3 billion would actually be pretty good.

Now that there is a CRA company, and the Northern Mining Company itself has no intention of selling it in a hurry, the possibility of Qiao Ge and others trying to win it is very low.

The main thing depends on whether the selling price can surprise Northern Mining Company. US$1.3 billion is not bad in normal times, but now it cannot make Northern Mining surrender directly.

Even if they surrender, they will choose CRA.

Everything depends on comparison.

"No one knows what the outcome will be until the end." Frist smiled. "After all, there are still risks in three years. Although the returns are higher, it depends on the internal game of Northern Mining Company. I don't think their Those shareholders all chose CRA’s plan.”

"That's true." Qiao Ge smiled and said, "Then we will wait and see."

Two days after Jogo arrived in Sydney, Joseph Clooney arrived with a consulting team.

He came mainly to provide some consulting services in the acquisition process, and also brought news about their investigation.

"Mr. Clooney, do you think the transaction between CRA and Northern Mining Company is unlikely to go smoothly?" Qiaogo asked curiously after hearing what Clooney said.

Even Frist was staring at Clooney, wanting to hear the inside story.

"Yes, Mr. Gupta, since we received the information you provided, we have launched an investigation into CRA Company and Hanbao Steel. After in-depth investigation, CRA Company and Hanbao Steel have reached a new agreement, and both parties will contribute their own funds." Half, that is, US$1 billion per company. CRA’s current cash is only about US$500 million, and Hanbao Steel has even less. They said they have US$400 million, but in fact they can’t even get together US$200 million.” Clooney said.

"The problem is that their plan is to pay in installments, so they only need US$500 million in the early stage, and the rest should be able to be solved by them," Frist said.

"Mr. Forrest, you are right. Under normal circumstances, there is no problem with this payment method." Clooney smiled. "I think CRA has no problem. The problem lies with Hanbao Steel. Their debt is too high. .”

"Please be specific." Qiaogo said.

Of course, he and Frist had some knowledge about the two companies on the other side, but they didn't have enough information now, and they were definitely not as professional as Clooney and others.

Clooney did not hesitate and immediately told both Qiao Ge and Qiao Ge all the news he had received.

Hanbao Steel has encountered a lot of criticism during its rapid expansion in recent years.

For example, in 1991, it was revealed that Hanbao Steel Chairman Zheng Taeshu used huge sums of money to bribe the presidential secretary and five members of Congress in order to obtain huge benefits. In the end, under the protection of President Bangzi, Zheng Taeshu escaped unscathed.

However, this also led to Hanbao Steel becoming known to the public for using various illegal behaviors to profit and expand.

Zheng Taishou's source of funds basically relies on various government and bank relationships, and he borrows a lot from banks.

He delivered huge benefits to relevant senior people, so bank loans continued to flow into Hanbao Steel.

According to Clooney's investigation, Hanbao Steel's current liabilities may be more than 700% higher, that is, the money owed is more than seven times its assets, making it completely insolvent.

There is a saying that if you borrow too little, you will be his grandson; if you borrow too much, he will become your grandson.

Therefore, the banks in Bangzi were tied up by Zheng Taishou, and the banks became Hanbao Steel's cash machines. In order to maintain this situation, the banks could only meet Zheng Taishou's requirements and continue to increase loans.

In 1989, Hanbao Steel invested US$3.2 billion to build what was known as the world's fifth largest steel plant. At that time, the company's capital was only US$100 million, and the rest relied on various bank loans.

During the construction process, various costs soared, and the final cost reached US$6.2 billion, almost double, making Hanbao Steel's debt even more terrible.

The terrible thing is that some of Hanbao Steel's products have no sales due to reasons such as insufficient technology, poor quality, and higher prices than peers. In addition, domestic steel consumption in Bangzi is far lower than Hanbao Steel's expectations, and supply exceeds demand. Not only did the steel plant fail to make a profit, it actually suffered huge operating losses.

Of course, there is no problem with this. With Zheng Taishou here, too many people from the government and banks have been kidnapped by him, and the banks continue to give him loans to extend his life.

In other words, Hanbao Steel currently relies on bank loans to survive, and he cannot repay the money he owes. The extremely high debt ratio is simply outrageous.

In short, it cannot fail, and it maintains its superficial appearance.

"So, I think Hanbao Steel's model will explode sooner or later. They have to spend US$1 billion in three years, which is simply not possible." Clooney said, "Two gentlemen, my suggestion is that you can give up the acquisition for the time being. Northern Mining Company, but if you have sufficient funds, please leave enough funds to acquire them. After the transaction of CRA Company and theirs fails, we still have the opportunity to enter again."

Jogo and Forrist couldn't help but look at each other.

These data are really shocking.

They knew that Hanbao Steel's debt ratio was relatively high, but they were not as detailed as Clooney.

It's terrible that politics and business are collaborating.

Qiao Ge believes that once Hanbao Steel explodes, it will definitely be an earthquake for Bangzi Country.

Hanbao Steel's debts are too high. As these debts get higher and higher, more and more funds will be needed. In the end, even banks cannot satisfy them, and that's when it will be exposed.

At this scale, Qiao Ge thought that they might not be able to hold on for long.

"This is really good news." Jogo laughed and said, "Then, we can temporarily focus on the acquisition of the iron ore company in Brazil."

"That's right, Mr. Gupta, we have enough funds now, we just need to keep a billion dollars temporarily to see what happens." Frist smiled.

As expected, the US$1.3 billion offer from International United Mining Corporation was rejected by Northern Mining.

Northern Mining and CRA reached an agreement to pay US$2 billion in installments.

Qiao Ge and the others soon got more information about the other party's transaction. According to the agreement, CRA Company and Hanbao Company needed to pay the first down payment of US$500 million.

However, they did not pay the money immediately. The problem lay with Hanbao Company, which said it would take some time to raise funds.

Therefore, a deposit of US$300 million was paid in advance, of which US$250 million was contributed by CRA and Hanbao Steel only contributed US$50 million.

The remaining US$200 million was agreed to be paid off within three months, and the monthly installments also officially started in three months.

Northern Mining Company has not actually completed the transaction with CRA Company. After all, the US$500 million has not yet been fully received.

Jogo returned to Mumbai, while Forrest focused on the acquisition of iron ore mines in Brazil.

Of course, we are still paying attention to Northern Mining, but we are not that concerned.

You have to wait during this period. If nothing unexpected happens in the past three months, that will be the time to really give up. Forrest will acquire multiple mining companies to improve the production level of International United Mining Company.

The time soon came two and a half months later, and Frist sent news to Qiaogo, saying that Northern Mining had come to visit.

They terminated the contract with CRA and were willing to sell Northern Mining Company to International Consolidated Mining Company for US$1.3 billion, but Frist refused. (End of chapter)