My 1999
Chapter 745 Investment
“There is a chance that it can’t be found, but it’s not high.
The reason is very simple. The current big international background is that the price of iron ore is constantly rising.
Under this circumstance, China's private mining companies will need Australia's stable supply of iron ore even more.
Therefore, FMG can continue to receive iron ore futures orders from China.
Against the background of rising iron ore prices, private equity and investment banks will continue to provide financing to FMG.
So Forrester had at least a year or two to prospect.
With Australia’s natural resource endowment, it is highly probable to find iron ore. "
Australia's iron ore reserves are 23 billion tons, and its annual output is hundreds of millions of tons. Its production and reserves rank first in the world.
The probability of finding it is very high.
"Taking a step back, it doesn't matter even if FMG fails in the end. There is no way to make an investment that is 100% profitable.
At least Andrew Forrester showed me the talents that a successful businessman should have, and Fortescue also showed me the hope of success. That was enough. "
Over the years of investing, he has read too much information about start-up companies.
Over time, he also learned how to judge a company's future.
FMG is a company that he thinks will be relatively good in the future.
"Mr. Xu, I'll call him right away."
Xu Liang nodded and said, "Let's meet at the Hanhua Australia office."
"OK."
——
After Andrew got out of the car, he looked at the dazzling Chifley Building in the sun in front of him, with a trace of envy in his eyes.
As the top 5A office building in the Financial City of Sydney, Australia, only top large companies can work here.
Take a deep breath.
"One day, FMG will become such an existence."
After strengthening his confidence, Andrew Forrester, who was wearing a crisp suit, walked in with firm steps.
Because he had made an appointment in advance, he met Xu Liang smoothly.
"Mr. Xu."
Suppressing the anticipation and excitement in his heart, Andrew quickly took two steps forward and stretched out his right hand.
"Mr. Forrester, we meet again."
"It's an honor to meet Mr. Xu again."
Xu Liang smiled and said, "Please sit down."
"Thanks."
After sitting down on the sofa in the reception area.
The secretary served tea.
Andrew picked up the tea cup and said, "Mr. Xu, I like Chinese tea very much. It not only tastes great, but is also very beneficial to health. It is simply a gift from God.
I bought a lot of them during my last business trip to China. "
As he spoke, he opened the briefcase he carried with him and took out a small earthen jar sealed with clay.
"This is the super-grade Dahongpao I bought in China last time. The person who sold it to me said it was the top-notch black tea produced by the second-generation Dahongpao mother tree. I don't know much about it. Today I borrowed flowers to offer to Mr. Xu. "
Xu Liang glanced at the earthen pot.
"Mr. Forrester, thank you very much for your generosity. I accept this jar of Dahongpao."
The smile on Andrew's face grew wider.
Accepting a gift means there is hope for success in the subsequent negotiations.
"Since Mr. Xu likes it, next time I go to China for a business trip, I will definitely look for better tea for you."
Xu Liang smiled, "Then I'll say thank you first."
Waved.
Lu Hui handed over a stack of documents.
Xu Liang took it and took a look at it before placing it in front of Andrew Forrester.
"Mr. Forrester, this is the information you gave me last time."
Forrester picked it up and flipped through it briefly, "Mr. Xu, three days have passed. I believe you have a certain understanding of FMG Company.
I dare say that this is the most worthwhile mining company in Australia to invest in.
You don’t need to spend much money. As long as A$100 million, you can get a tenfold return in the next five years.
And I have obtained iron ore supply agreements for eight steel mills in China for a total of 94 million tons in the next 10 years.
There will be more to come.
The only thing missing now is enough funds to build a 260-kilometer railway connecting the mining area and the port, as well as basic port facilities. As long as the investment is completed, FMG will generate a steady stream of profits.
And you will be rewarded handsomely. "
Looking at Forrester who said so confidently.
Xu Liang smiled and said: "If we want to complete the railway you mentioned, 100 million Australian dollars is far from enough."
"I have received advance payments from many Chinese cooperative customers, and there are also many private equity investors who are willing to invest money to support us. So we only need 100 million Australian dollars to leverage the entire project.
Of course, I can also ask you for more financing.
But I don’t want to be thought of as a liar or a schemer.
AUD 100 million is enough for me to operate FMG's projects. At that time, you can decide whether to invest or not based on the results of our operations. "
Xu Liang looked at the sincere man in front of him.
It is said that a traitor is as good as a traitor, and this guy in front of me is a typical example.
He kept saying that he didn’t want to be misunderstood by others, and for his own sake, he only wanted 100 million Australian dollars in financing.
If I hadn't read FMG's information, it would have been easy for him to get around him.
In this day and age, $100 million is no small sum.
"The current market value of FMG should be 45 million Australian dollars."
"Yes. In less than 5 months, FMG's market value has increased from 20 million Australian dollars to 45 million Australian dollars, more than tripling.
This is the best affirmation of our value. "Forrester said.
"I can give you A$100 million."
Andrew Forrester was overjoyed, "Mr. Xu, don't worry. FMG will definitely have the highest rate of return among all your investments..."
Xu Liang smiled and waved to interrupt his subsequent words.
"Listen to me first. I want 49% of the equity of FMG for this 100 million Australian dollars.
I will serve as the chairman of the company's board of directors, and you will continue to serve as the company's CEO, fully responsible for the management of FMG. "
In the Western corporate world, company ownership and management are separate.
The board of directors has no power to interfere with the company's operations.
The core of a company is the CEO, who determines the management and operations of the company.
In the East, it's just the opposite. The chairman is the core of the company's management, and the CEO just works.
After thinking for a moment, Forrester shook his head.
"Mr. Xu, 100 million Australian dollars is too little. Although FMG's market value is only 45 million Australian dollars, we have an advance payment of 39 million Australian dollars on our account, and we have also received 30 million Australian dollars in financing from ANZ and PEP.
We have enough funds to operate FMG's projects. "
Xu Liang smiled and said: "As you said, the 39 million Australian dollars is an advance payment for the steel plant, and the 30 million Australian dollars is project financing, and they will all have to be repaid in the future.
The AUD 100 million I invested can be used as capital reserve of FMG Company and used directly for investment without the need to bear debt pressure.
The nature is different. "
"It's too low. If Mr. Xu wants 49% of FMG's equity, it must be A$200 million."
For Andrew Forrester, Fortescue is not for sale. As long as the price is right, he will sell it, let alone 49% of the shares, 60%, 70%, or even higher.
At the beginning, he only held 12% of the shares in Anaconda Nickel, and the rest was used for financing.
So as long as the price is right, the equity can be sold.
"Greed is a good quality, but excessive greed is not a good thing. A$200 million?"
Xu Liang smiled and shook his head.
"Mr. Xu, Fortescue can pay more shares."
Xu Liang still refused.
Although he judged that FMG had great potential, it was not without the possibility of failure.
Therefore, 100 million Australian dollars is the limit of his investment, and 200 million Australian dollars is too much.
"Mr. Forrester, I have a certain status in the global financial venture capital industry. With my endorsement, it will be easier for FMG to raise funds and promote iron ore in China."
"Mr. Xu..."
After some pulling and pulling, both sides took a step back.
Xu Liang increased the financing amount to 120 million Australian dollars, and FMG paid 55% of the equity.
Both parties hired lawyers and signed a contract.
FMG also formally submitted a notice of major equity changes to the Australian Securities Commission and applied for temporary delisting.
Xu Liang’s investment in FMG successfully passed the review of the Australian Securities Exchange.
After all, it is just a small company with less than 100 million Australian dollars, not a giant like BHP Billiton and Rio Tinto, so there is really no reason to stop it.
However, after Xu Liang's investment, FMG opened sharply.
The company's stock price has surged nearly ten times from 0.45 Australian dollars per share to 3.8 Australian dollars per share. Based on FMG's total share capital of 100 million Australian dollars, the market value has reached 380 million Australian dollars.
It can be said that Xu Liang, who holds 55% of the shares, has made money.
But he has no intention of selling shares.
FMG still has huge room for exploration.
One week before the Chinese New Year, Xu Liang flew back to China on the Kunpeng.
"Brother, you're sticking it crookedly. Move it a little further to the right."
"so?"
"More, more, a little to the left."
Under the command of his precious sister, Xu Liang posted the Spring Festival couplets.
Jumped off the bench and took a look.
"Everything prospers when the family is harmonious, and the family is filled with blessings. Not bad."
Under Xu Meng's command, he pasted all the pairs, carrot money, etc., and then took the paste home.
"Liangzi, come here."
"What's wrong, Dad?"
"Will you go back to your hometown to celebrate the New Year this year?"
"Xiaoyang is still in confinement, how can I return to my hometown?"
Seeing his father's rather serious expression, Xu's conscience moved.
"Did the village call you?"
Xu Yongpei nodded, "The village wants to rebuild the family tree and restore the ancestral home of our old Xu family."
"The ancestral home of the Xu family?"
"yes."
There was a hint of memory in Xu Yongpei's eyes.
"Our ancestors of the Xu family were the most prominent family of officials in Qingzhou. They owned nearly 10,000 acres of land in our local area before liberation. Many of the descendants of the family also served as high-ranking officials in the Red and White parties."
Xu Liang had heard his father talk about the ancestors of the Xu family before.
As a top big family, hedging your bets is a basic operation.
Therefore, many people in the Xu family joined the White Party, and many people joined the Red Party.
The Red Party's side has had people up to the level of division commander, and the White Party's side has served as senior Qilu officials.
Later, before liberation, people from the White Party flew directly to Wanwan.
When Xu Liang was in elementary school, he came back to look for relatives.
Donated a lot of money to the village.
The Red Party promptly conveyed some policies from above.
Therefore, the head of the Xu family sold part of the family's land before the division was divided, and distributed the remaining land and houses equally to all Xu's children.
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