PFC Chapter 152 International Acquisition Consortium, A Huge Pit
Chapter 152 International Acquisition Consortium, A Huge Pit
"He didn't want to go out and beg, so he had no idea."
After learning the details, Sheng Aiyi was even more disappointed and frustrated.
He speaks very bluntly.
I just don't understand, how come Sheng Chengze didn't realize there was such a big hole before?!
What's most infuriating is that there's not a sound from outside, which is clearly not right.
She knew that Sheng Chengze was concerned about his image and wouldn't talk about the loan to outsiders.
But the fact that the Japanese are making such a large-scale investment while keeping it secret clearly indicates they have ulterior motives.
They've been sold out, and they're still counting the money for the seller!
Although these words were harsh, Sheng Lao Si dared not speak again at this moment.
The Fenghua Special Steel incident was his last remaining hope for a comeback.
I did contact Fan Zhongxu before.
However, the issue of technology transfer was not discussed.
Now that Lin Yi has admitted to being a shareholder, there seems to be a key problem.
This effectively extinguished his last remaining hope.
With no way to turn things around, the only thing he could rely on was for Sheng Aiyi to step in and smooth things over for him.
At this point, I really didn't dare to say a word.
As for the lawsuit to fight for the family property... let's not even talk about whether he can win, he can't afford to drag it out for too long.
Such a large loan, the daily interest alone could be deadly.
Seeing that he remained silent, looking like a wilted eggplant, Lin Yi finally spoke up: "If Mr. Sheng has no other ideas, then this matter will be easy to handle."
As he spoke, Lin Yi began to inquire in detail.
From the equity structure of the various factories and mines of Hanyeping, to the cooperation terms between the various shareholders.
And the approximate purpose of the nearly 200 million yuan loan.
I asked about everything I could think of in detail.
This time, Sheng Laosi didn't hold back and confessed everything clearly.
To be honest, the root of this matter can be traced back more than 20 years.
At that time, the Hanyang Ironworks suffered losses year after year, and was transformed from a government-run enterprise to a government-supervised, privately-run enterprise.
Sheng Xingsun invested a huge sum of money and became the largest shareholder of Hanyang Ironworks.
Then came sweeping reforms.
One of the most important aspects is the introduction of technology.
The technology introduced was provided by Mitsui Steel Corporation of Japan.
A sum of money, plus technology.
Mitsui Steel acquired a 25% stake in Hanyang Ironworks.
In addition to equity investment, the agreement signed at the time also included various preemptive rights and management rights.
Production and sales were entirely controlled by the Japanese.
And it just so happened that it coincided with the first European war.
As a result, the Hanyang Ironworks prospered and expanded its production capacity again and again.
The Sheng family later invested in the Daye Ironworks, which, along with the Hanyang Ironworks, the Daye Iron Mine, and the Pingxiang Coal Mine, led to the establishment of the Hanyeping Company.
Annual output once reached 180,000 tons of pig iron and 40,000 tons of steel.
However, after the end of the European war, the export market quickly declined.
Meanwhile, China was also constantly at war, and various construction projects were severely delayed, resulting in weak domestic demand.
In addition, the ore from the Daye Iron Mine is of low grade.
Due to outdated smelting technology, the company quickly turned to losses.
Despite a series of cost-cutting measures, including shutting down furnaces, reducing production, and laying off employees, the company is still operating at a loss.
Then came the technological upgrades.
Given the previous priority and the current situation, we have no choice but to continue importing Japanese technology.
I've been investing in this on and off for years.
But ending the iteration is one aspect.
Another factor contributing to the continuous decline in international market prices is the rapid recovery of European steel production capacity.
Caught between two pressures, the money poured in, one after another, barely made a ripple.
“This is our family business. My father put a lot of effort into it back then. As his son, I can’t just stand by and watch this business go to waste in my hands, can I?”
As he spoke, Sheng Lao Si looked at Sheng Ai Yi with a wronged expression.
Over the years, who knows how hard it has been for me?
Although he squandered some of the borrowed money, it was only a small amount.
Less than one-tenth.
At this point, Sheng Aiyi didn't know what to say, so she could only look at Lin Yi and ask, "What should we do?"
"Of course, it's selling shares."
Lin Yi chuckled: "However, we can't sell it at the current price."
"Leaving aside the entire Hanyeping, the scale of just the two ironworks alone, as long as the valuation is accurate and the premium after full capacity is taken into account, is enough to fill this hole."
"But the people in charge of management are Japanese, and they have all sorts of privileges."
"Now, not to mention the Hanyang Ironworks, the Daye Ironworks is also barely alive."
"If you let the Japanese appraise it, how could they possibly give you a premium?"
Sheng Aiyi looked worried.
Just considering the priority right alone, during the last European war, although Hanyeping also made money, the lion's share of the profits fell into the hands of the Japanese.
Now that it involves something as fundamental as equity, how could they possibly suffer a loss?
"How could we possibly let them appraise something like this?"
"Of course, we can't either; we can't get past the Nationalist government."
"They can't withstand the threat from the Japanese now."
Lin Yi chuckled: "So, the only way to break this deadlock is to borrow strength and rely on the Westerners."
"Priority is just priority; in business, the highest bidder wins."
“As long as Westerners get involved, the valuation can be raised.”
Hearing Lin Yi say this, Sheng Lao Si shook his head instead: "Brother Lin, Mitsui Steel has a lot of influence in Japan."
"The Japanese government will definitely step in at that time. This is not something that ordinary foreign companies can easily interfere with."
"Furthermore, Westerners aren't stupid; they wouldn't carry our sedan chair for us."
"Simple, just find some unusual foreign businessmen."
With the Rothschild family involved, he was confident he could assemble an international acquisition consortium.
If several great powers formed an alliance, would the Japanese dare to act or be moved?
"As for the premium, it certainly won't be too high, but our ultimate goal is simply to make up for this debt."
"The controlling stake in Hanyeping's two factories and one mine is still worth the price."
"Two factories and two mines, right? And the railway company too."
Sheng Laosi offered a reminder.
"I won't sell the iron ore... no, that's not right either. I want the shares in the iron ore and the railway company, and I'll give Mr. Sheng a satisfactory price."
He must have gotten something out of all this, right?
The steel plant in Qu County has been completed.
However, it is mainly used to smelt special steels and produce weapons.
His next step is to start production at his car factory, which will require ordinary steel.
Therefore, it is imperative to build another ironworks in Sichuan Province.
Moreover, to save trouble, he planned to directly invest in Liu Yuanfu's Pingdu Ironworks.
We can expand the scale when the time comes.
The Daye Iron Mine, a mature mine, perfectly fills the gap in the raw material supply chain.
The main focus is efficiency.
Even the best-case scenario is that the two ironworks still fall into the hands of the Japanese.
He'll cut off the iron ore supply then, and see how the Japanese react!
Shutting it down directly would result in serious losses.
However, if iron ore were to be transported from elsewhere, the cost, while not exorbitant, would certainly be painful.
In particular, most of the pig iron smelted by the two factories in recent years has been sold to Japan.
The raw material market and the sales market are completely unrelated; falling into such a huge pit could be half-dead...