When Cai Zhiliang received Zheng Yiming's report on international iron ore trade, after more than two months of confrontation, Tianmen Real Estate and Benda Group formally reached an agreement on the acquisition of Benda International.

In view of Benda Group's poor financial situation, Pang Yalun rejected Zheng Yiming's equity swap proposal and chose a cash transaction. After several rounds of negotiations, Benda International was valued at HK$2.8 billion. For 65% of the shares held by Benda Group

Tianmen Real Estate will issue new shares at a price of 6.5 yuan per share and raise 1 billion to acquire 34.9% of Benda International's shares. The remaining 30% of the shares will be allocated to an independent third party by Gold River Securities.

"Mr. Cai is interested in iron ore trade?" Benda International has already decided. After a few pleasantries, Pang Yalun talked about iron ore trade. With the financial strength of Jinhe Investment, if this cooperation can be reached, this pair

As a local leader, Benda Group is undoubtedly extremely advantageous.

"Steel is the most basic industry, also known as the food of industry. With the rapid development of the global economy, there will be stronger demand." Cai Zhiliang said: "Now is a good opportunity to expand the mining industry. I am very grateful.

interest."

"I wonder how much Jinhe Investment plans to invest?" Pang Yalun asked again.

"100 million US dollars." Cai Zhiliang said a number.

Pang Yalun said: "If Jinhe Investment only has this kind of sincerity, I think there is no need to invest in iron ore. It is better to invest in real estate in Hong Kong, which may have a higher yield."

"Really?" Cai Zhiliang said: "I have done research and found that US$100 million is more than enough to contract a high-quality iron mine in Australia."

All mines have a mining period. Once the mining period is over, the iron mine will be basically useless, so the contracting method is generally adopted.

"If we just contract an iron mine, the various machinery and equipment from excavation to excavation will only cost tens of millions of dollars." Pang Yalun seemed to agree with Cai Zhiliang's investigation and asked: "What transportation method is Mr. Cai planning to use?

?”

"Of course it's sea shipping." Do you still need to ask? Sea shipping is the cheapest.

"You may not know much about the iron ore situation in Australia." Pang Yalun began to popularize science for Cai Zhiliang: "Australia's iron ore is not only rich in reserves, but also has good mining conditions, so it is favored by global investors. But according to the current situation

According to survey data, 90% of iron ore is concentrated in the vast and sparsely populated northwest region. There is no railway, and material transportation can only be carried out by road transportation.

On the road between the mine and the port, even the use of ultra-long trains greatly increases transportation costs and limits the scale of mining. Nowadays, high-quality mines that are convenient for iron ore transportation have been contracted out, and Jinhe Investment Contract Mines

At that time, we could only explore some more remote places. Therefore, if Mr. Cai wants to make a difference in the mining industry, US$100 million is far from enough."

The transportation of iron ore includes not only ocean transportation, but also transportation from the mine to the seaport, which is also the bulk of transportation costs.

Now that the words have been said, Cai Zhiliang nodded and said: "I roughly understand that when contracting a mine, you need to build a road first, and the cost of building the road is even much higher than the cost of mining."

Pang Yalun said: "From a long-term planning perspective, it is best to have a railway."

The transportation volume of railways is naturally much larger than that of roads, but it also means that the scale of investment is required several times. Although Cai Zhiliang feels that the iron ore can be sold, if the cost is too high, the profits of Jinhe Investment will be greatly reduced, or even lose money.

This is not in line with Jinhe’s purpose of investing in iron ore.

"Let's build roads and buy more transport vehicles." Other companies can do this, and so can Gold River Investment.

"The main railway track from the Pilbara to the port is being planned. This is a government infrastructure project. If Jinhe contracts the mine, it only needs to build a small section to connect the railway track to the Pilbara." Pang Yalun gestured and said

: "It's not very long either."

Even if it is not long, it is much more difficult to lay railway tracks among the high mountains, otherwise other investors would have jumped on it long ago.

"First conduct an on-site survey, assess the feasibility, and then estimate the cost." With investments involving hundreds of millions of dollars, there is no turning back. Even if something goes wrong in the middle, you can only bite the bullet and continue investing until the cost is recovered.

At this moment, there is no possibility of withdrawing investment midway.

Regarding the investigation on the iron ore trade organized by Zheng Yiming, further investigation, demonstration, and evaluation are needed to make it clear.

“How much is Benda Group prepared to invest?”

"Benda Group is not as big as the Jinhe investors." Pang Yalun thought for a moment and said a number: "With the current financial situation, we can only spend up to 50 million US dollars."

"Okay, let's take out the rest of the Jinhe River." Cai Zhiliang didn't care. Pulling Pang Yalun on the boat was nothing more than taking advantage of his status as a local snake. He had dealt with the same institutions and departments in the early days and said: "When the survey results come out, we will

start."

Given Benda's current poor financial situation, Pang Yalun wouldn't mind temporarily tying the company to a ship owned by Jinhe Investment and using the iron ore project to gain the bank's understanding, so naturally he wouldn't have any objections.

"Among Benda International's subsidiaries, there is a Chilean telephone company." Chilean Telephone Company is an overseas company that Cai Zhiliang believes is more valuable and suitable for investment in addition to real estate.

"If you want to sell this company, I can help you get in touch. To be honest, I had a plan to sell this phone company before to raise funds. This company is the largest phone company in Chile, occupying 65% of the market share

, there is no shortage of buyers.”

Pang Yalun thought that Cai Zhiliang wanted to sell the company. Zheng Yiming had also expressed this idea before. After all, Benda International can really be called "international". The land in Italy and the telephone company in Chile are too far away from Hong Kong.

It is remote and inconvenient to manage, and Tianmen Real Estate has no international tendency so far.

But on the other hand, Chile is not a small country, and its economic development is barely acceptable. It can occupy 65% ​​of the market share, but it is not just valued at more than 1 billion. This also shows that Chile’s telephone communication market still has huge potential.

potential can be tapped.

"No, no, you misunderstood. I have no intention of selling." Cai Zhiliang asked: "You should know which company has the highest market value on the Hong Kong Stock Exchange."

"Hong Kong Telecom." After Hong Kong Telecom was reorganized and listed, it became the company with the highest market capitalization on the Hong Kong Stock Exchange, reaching 80 billion. It is currently embarking on equity reform to cope with the upcoming opening up of the telecommunications market, and Gold River Investment is also interested in becoming a shareholder.

"I hope to use the telephone company as an opportunity to monopolize Chile's communications market, and then have a place in the South American communications market." A big reason why Cai Zhiliang is interested is that South American countries represented by Chile have very thorough privatization

, it is easier to form a monopoly industry, and monopoly is undoubtedly the most profitable. This is why South America's economy is not very good, but it can still produce the world's richest man.

"To be honest, capital from Hong Kong does not have this advantage." Pang Yalun said: "What's more, after 17 years of dictatorship in Chile, Pinochet stepped down, and the new president was sworn in in March this year.

This is a democratic fighter who is bound to liquidate the previous military government, especially the neoliberal economic reforms."

"Of course it won't be Hong Kong capital. What will enter Chile will be American capital, which will have absolute say."

As the back garden of the United States, capital from the United States has the greatest say, because the economic development here is closely related to the U.S. economy. Cai Zhiliang plans to have Golden Deer Investment as the major shareholder.

"Pinochet's economic policies have ensured the rapid development of Chile's economy, which is at least prosperous on the surface. The new president's foundation is not stable and he will not be so radical. His predecessors have proven this."

Cai Zhiliang didn't take it seriously and asked: "The current board of directors was sent by Benda Group?"

"That's not true." Pang Yalun shook his head and said: "Kinard Machinery Group, the previous shareholder of Chilean Telephone Company, has been in a bad situation since it encountered the global economic crisis caused by the second oil crisis in 1981.

Heavily in debt, he ended up in copper

The copper mine was chosen between the mine and the telephone company, and the telephone company was sold to Benda Group. I originally planned to replace the CEO, but I never thought about it. Now it belongs to you. In fact, judging from the operating conditions in recent years

Look, this CEO Mr. Peter is quite capable."

"Pide..." Cai Zhiliang remembered the name. Whether his ability is strong or not needs further investigation. It would be best to send someone from Hong Kong to take over.
Chapter completed!