Kirilenko rushed to London and signed the acquisition agreement with Skinner, the Chairman of Rito Tinto, and held a press conference.
At the same time, Kirilenko announced that Rito Tinto's shares may be delisted temporarily and will consider listing after the company's operations are consolidated.
In fact, Kirilenko does not want to be listed in Australia. The financial market there is too weak, and it cannot be compared to New York and London. It is not even comparable to emerging markets like Hua Xia and Russia.
Listing a company's shares in two places can reduce the stock market's risk and expand the company's influence. But there is no need for the company to be listed in three places, especially in Australia, which is an underdeveloped market.
Furthermore, the market value of the shares is lower than the real value. This is the best time to be delisted and buy back the shares. After the consolidation of the business, the company's profits will increase to a certain extent.
In the future, if the company's funds run into difficulties, they can just sell some of their shares. They do not need to be listed to raise funds, and they do not intend to sell a large amount of shares.
After Polar Bear Mining Group and Rito Tinto signed the acquisition agreement, it caused a huge commotion in the industry. Many people who do not know the truth are complaining about shady deals. Last year, BHP Billiton offered 170 billion USD, and Rito Tinto refused to sell their shares. Now, they sold their shares for more than 140 billion USD.
In fact, this matter is easy to understand. BHP Billiton offered 150 billion USD based on the share price, and then increased the price. But it is a leveraged buyout, and many of the buyouts are using BHP Billiton's shares as collateral. BHP Billiton's share price has fallen by almost 40% compared to its peak.
Rito Tinto is the same. Their share price has fallen by a lot, and the initial price is higher than the actual value.
If they had accepted the acquisition, then the shareholders of Rito Tinto would have received less than half of the cash. The rest would be BHP Billiton shares, and the value of these shares would have fallen. The real amount of money they would have received would be about 130 billion USD, which is not as high as it is now.
Furthermore, they had been operating for more than a year, and their turnover is tens of billions of USD, and their profits are in the tens of billions of USD.
< Forbes > reported on this news and mentioned the benefits of this acquisition. Of course, they deliberately avoided mentioning the disadvantages to other companies.
For example, Rito Tinto used to be one of the three mining giants. However, after the acquisition, the Polar Bear Mining Group would become the leader of the three mining giants.
Everyone is still in a tripartite balance. However, previously, I was the weakest Dong Yue Wu. Now, I am the strongest Northern Wei.
In the past, Rito Group didn't have much say in the industry, but after merging with the Polar Bear Mining Group, the Polar Bear Mining Group's say would greatly increase.
Although they still could not compete with Vale of Vale in terms of iron ore, their position in aluminum, gold, nickel, and copper had risen sharply. After that, he cooperated with Hua Xia Aluminum, which was the strongest voice in the aluminum industry.
BHP Billiton would still cooperate with the Polar Bear Mining Group. In terms of iron ore, it would not be inferior to Vale. In terms of other minerals, it could also become an influential giant in the world.
However, < Forbes > didn't mention any of this. It only mentioned how well Polar Bear Mining Group protected its employees and how lucky Polar Bear Mining Group's employees were.
After all, the Polar Bear Mining Group was the only large mining company that did not have any worker fatalities.
This made all the employees of Rito Tinto very excited. They did not object to the change of boss. In fact, they welcomed it.
Especially when they heard that the benefits of Feng Yu's subsidiaries are top-notch. The major shareholder of this Polar Bear Mining Group is Wind and Rain Holdings. Isn't that Feng Yu?
…
At the board of directors of Vale of Vale, some of the directors were smoking their cigars. At first, they thought that by contacting some small mining companies and pretending to acquire Rito Tinto, they would be able to mess up this matter.
Of course, they knew that this kind of acquisition will never succeed. Rito Tinto's mines are worth one grade when put together, and if they are split up, their value will drop by a grade. Only with more would they have more say.
Also, Rito Tinto will not be willing to negotiate with so many companies at the same time. If one or two companies fail, the whole matter will be affected.
If more than half of the mines are sold, what about the remaining half? Become a small mining company and continue operating? It was also very hard, but they wouldn't be able to earn much in a year, and their value would even fall. Why would they bother?
But Vale of Vale thought this will affect Rito Tinto's decision, and Rito Tinto will surely use their offer to negotiate with Polar Bear Mining Group. The shareholders will also request the board of directors to do the same.
Their final offer is 50% higher, and the Polar Bear Mining Group bought the mines at a 30% premium. In fact, the Polar Bear Mining Group had already acquired some of Rito Tinto's shares, and the final premium is less than 30%!
"What do you all think about the Polar Bear Mining Group? Should we contact the Polar Bear Mining Group and seek some cooperation? "
"No. Why should we cooperate? Our main business is the iron ore business, and we own more than one-third of the world's iron ore deposits. We have the final say, and Polar Bear Mining Group should be the one to negotiate with us. " Some of the directors heard what the other directors said and still retained their pride as the world's top mining company.
"But have you all thought that if the acquisition is successful, Polar Bear Mining Group will be the world's largest mining company? Their turnover and profits will surpass us and become the industry's number one. Also, BHP Billiton did not stop us this time. Don't you all think it's strange? "
"So what if they have the highest market value and the highest turnover? Iron ore is the world's most demanded metal ore deposit, surpassing copper and other metals. We don't need to compromise! I think BHP Billiton must be thinking of using the higher-ups to stop this acquisition from the European Union and other organizations. "
"Is there another possibility? Polar Bear Mining Group and BHP Billiton reached an agreement privately. For example, their mines will form a joint venture?"
The rest of the directors were shocked. This possibility is too scary. If Polar Bear Mining Group forms a joint venture with BHP Billiton, they will be able to compete with them in the iron ore industry. Vale of Vale's status will plummet!
No wonder BHP Billiton did not stop them from bidding. Is it because they want to form a joint venture? This way, Polar Bear Mining Group's throne as the industry's number one mining company will never be shaken!
Vale of Vale can only watch Polar Bear Mining Group become stronger and can't do anything about it? No. If you can acquire iron ore companies, we can also acquire other mines. The number one position in the industry might not be yours!
… …
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