Chapter 523

Prime Minister Thatcher has cleared all the obstacles for her reform, and the union, which is the most troublesome for politicians, can't let this woman give in. However, as the UK economy is still in the doldrums, few foreign capital are willing to invest in the UK. So the competition that Mr. shagliaosha faces is mainly from the local financiers in the UK. He is ready to start his own purchasing operation in the UK. And the first person that shagliaosha valued was British gas.

If we look at the company's current financial situation, it has little investment value. It is not only heavily in debt, but also because the British government restricts the price of natural gas, so the company's profit can be estimated only from the book.

But now, as the actual leader of the Soviet Ministry of foreign trade and economic cooperation, he has the natural gas supply contract of the United Kingdom, and he is confident that he will realize the company's profit on the basis of the existing price. But the people who signed up for this company were not only shaeliosha, but also PLC group, a British company, and some large banking institutions behind it. If Xie liaosha wants to win the company at a fair price. The key is to buy the company's maturing debt from its creditors.

There is a huge difference between the debt of the acquiring company and that of the direct acquiring company. If Mr. shagliaosha pays for BG directly, the company's existing debt will be borne by Mr. shagliaosha. In fact, this is not worth the loss, because if the British natural gas company does not repay its debts, it will not be able to obtain loans from the British financial institutions, so seliosha can only use his own money to maintain the company. This is a situation that shagliaosha does not want to see. Shagliaosha hopes to get a healthy British Gas Company without huge debts.

The acquisition of debt also has a certain risk, because bonds are not equal to equity, and because the company belongs to shareholders, not creditors, so there is only a debt relationship between shareholders and creditors. And the company can apply for bankruptcy protection. Once a company applies for bankruptcy protection, although all the profits of the company during this period will be used to repay the losses of the creditors, the corresponding creditors can not interfere with the normal operation of the company, and can not take part or all of the assets of the company as their own by using their own creditor's rights.

After weighing the interests, Xie liaosha finally took the road of purchasing bonds. Because it costs less. As the British natural gas company has been losing money year after year, its bank debt and British government debt have reached an astronomical figure, which is close to twice of the company's assets. Xie liaosha's main rival PLC group is willing to bear the debt, but they also put forward new conditions to the creditors, that is, the company's debt repayment time must be extended, and the interest must be reduced to less than 1%. As a British company, PLC is naturally the best destination to take over the British natural gas company. However, the harsh conditions make the British government, which is heavily in debt for years, and the financial institutions which are dragged down by the British economy, unacceptable. The British government needs to get rid of the bottomless hole of its own funds, and the banks also hope to use the fastest speed to deal with this hot potato.

Just then, a new Swiss based consortium, Bank of Columbia, joined in to show its interest in working with BG. The plan given by Columbia bank is to buy the debts of the British government and British banking institutions that are no longer expected to be paid off, and then carry out debt to equity swap. So as to achieve the purpose of acquiring British natural gas company. As soon as the plan came out, it immediately aroused the interest of many financial institutions. Because Columbia bank is not a small British company like PLC, which wants to swallow elephants. The company's business covers the major developed countries in America, Europe and Asia. He can buy BG with real money.

However, it is impossible for Colombia to buy all of its debt. If British natural gas company has excellent repayment ability, then the bond price of the company is likely to be higher than the sum of its face value and interest. Unfortunately, the company's short-term debt credit is C, and its long-term debt credit is CCC. The credit rating given by this rating is that the company has poor reputation, unreliable solvency and may default. This level of debt can be sold in the open market at a discount, which is a great thank you.

The price he offered for the debts was 20% of the face value. It's twice the market price, but the corresponding sheriosha wants to buy all the debts of the company and ask the major shareholders of BG Group, the parent company of British natural gas, and the British Treasury to agree to the debt to equity swap plan of Columbia bank.

As soon as Columbia bank's plan came out, PLC company, which had thought the overall situation had been decided, could not sit still. They began to lobby the British government and banking institutions not to agree to the plan of the foreign company in Colombia and leave the British Gas Company to the British. However, PLC group is a bit naive. Although their plan will pay all the debts, the repayment cycle is as high as several decades, and the interest rate of 1% per year is even uncertain due to the inflation rate in Britain. Moreover, the most important thing is that the acquisition of PLC group requires the British government and financial institutions to provide them with cheap financing and tax support. The Bank of Columbia, on the other hand, is willing to pay all the money in one lump sum. It does not need the British government and local banks to pay an extra penny to support the acquisition plan of the Bank of Colombia. Although the Bank of Columbia has picked up a big bargain, it knows which side to choose by foot.

British financial institutions first stood on the side of the Bank of Columbia. They collectively refused to provide loans to PLC to acquire British natural gas company, and the British government was not willing to pay to support PLC for the sake of local feelings. Therefore, the plan of the Bank of Columbia was finally passed. BG agreed to divest BG from the group and sell it to Bank of Columbia. BG will retain its natural gas exploration, production, transportation, distribution and supply business and only sell its local natural gas sales, heating, boilers and natural gas power generation business to CBC. The total assets of the British natural gas company with these businesses are as high as 20 billion US dollars, but the Bank of Columbia only paid about 5 billion US dollars to win the company, which has won a good start for the British plan of Mr. seliosha.