Entertainment mogul: Starting his business with the internet

Chapter 406 Seizing the Lifeline
June 23rd, Saturday, coincides with the Dragon Boat Festival.

The streets and alleys are filled with the aroma of zongzi leaves, and people across the country are joyfully celebrating the festival.

In Mindong City, Fujian Province, Zeng Yuqun, president of CATL, managed to steal a rare half-day of leisure during a holiday.

While having lunch with his family, he suddenly received a call from his friend Huang Shilin.

"Old Huang, calling me in the middle of the day, are you trying to invite me out to a restaurant?"

Faced with Zeng Yuqun's teasing, Huang Shilin on the other end of the phone said urgently, "Old Zeng, something big has happened!"

Upon hearing this, Zeng Yuqun's heart tightened, thinking that there had been a safety issue at the factory. She quickly asked, "Tell me, what happened to the factory?"

Huang Shilin paused for a moment: "The factory is fine! I can't explain this in a short time. You'll understand once you see the top trending topic on Weibo. We'll contact you again after you've seen it."

Upon hearing that the factory was alright, Zeng Yuqun secretly breathed a sigh of relief. Just as she was about to ask for more details, she discovered that the other party had already hung up the phone in a hurry.

"What's Old Huang up to all this time, acting so mysteriously?"

While wondering what was going on, I still picked up my phone and opened Weibo as instructed, only to see the topic "1. Devon Supply Chain" prominently displayed at the top of the trending list.

"DEWEN? Never heard of it. Is it a foreign company?"

Out of curiosity, Zeng Yuqun clicked on the link to check out the related topics. After browsing for a while, her pupils suddenly contracted, and an expression of disbelief and shock appeared on her face.

His family members noticed his sudden change in expression and became concerned.

"It's nothing, it's nothing." Zeng Yuqun waved his hand, his gaze still fixed on the screen. The report from the Mining News was revealing a bombshell that could shake the global mining industry:
According to sources at the Johannesburg Stock Exchange in South Africa, the mysterious Chinese company Devon Supply Chain has offered $15 billion in cash.

Beating bids of $13.2 billion from Brazil's Vale and $14 billion from China's Jinchuan Group, they successfully acquired South Africa's Metorex.

Metorex, a South African company, has core assets including the Ruasi copper-cobalt mine in the Democratic Republic of Congo and the Chibuluma copper mine in Zambia, and is the world's third-largest cobalt resource provider.

Reports indicate that Goldman Sachs, a Wall Street giant, served as the advisor for Devon Supply Chain's acquisition.

Goldman Sachs used cobalt futures contracts on the London Metal Exchange as collateral to form a syndicated loan with Standard Chartered Bank and Barclays Bank within 72 hours.

After Vale reached a preliminary agreement with Metorex management, it launched a mandatory takeover bid at a 32% premium to the closing price that day.

By complying with South Africa's BEE (Black Economic Empowerment Act) policy, and promising to retain Metorex's Johannesburg headquarters and hire 300 local employees, the mining giant was brought into the fold.

According to in-depth investigations by our reporters, Devon Supply Chain, which acquired South African company Metorex, is a wholly-owned subsidiary of Devon Manufacturing.

Its founder is none other than Song Ci, chairman of Tenda Technology Group, a global internet giant, and Asia's richest man!
Subsequently, through various channels, reporters learned that Devon Manufacturing, founded by the richest man, is a cutting-edge industrial technology company mainly engaged in the manufacturing of new energy vehicles and drones.

Experts have analyzed and speculated that the richest man's huge investment in Metorex may be a strategic move to make early moves in the global mining industry, aiming to gain an advantage in the upcoming new energy era.

While Zeng Yuqun was still pondering the impact of the richest man's acquisition of Metorex on the domestic new energy industry, Huang Shilin called again.

"Old Zeng, have you seen the trending topics?"

Zeng Yuqun said solemnly, "It seems that the richest man's ambitions are far from small!"

As the saying goes, laymen watch the excitement, while insiders watch the door.

Cobalt, as a key component of the cathode material of lithium-ion batteries, can significantly improve battery energy density and enhance energy storage performance.

The demand for cobalt in mainstream smartphone ternary lithium batteries is currently extremely high.

In the field of new energy vehicle batteries, cobalt is directly related to battery performance, lifespan, and safety, and is an indispensable strategic resource.

However, cobalt is a rare metal with limited global reserves and an extremely uneven distribution, with resources highly concentrated in a few countries such as the Democratic Republic of Congo.
Huang Shih-lin couldn't help but sigh: "Derwin Manufacturing's acquisition of Metorex is tantamount to seizing the most crucial resource lifeline on the eve of the new energy electric vehicle boom."

"Truly a master strategist! He acts with swift and decisive efficiency!" Zeng Yuqun exclaimed sincerely.

Then, changing the subject, he said, "Fortunately, Songci is a shareholder of CATL and an ally of ours, so this may be an opportunity for us."

Huang Shilin suggested, "Old Zeng, we should visit Song Ci. Metorex has world-leading high-pressure acid leaching technology. If we can cooperate with CATL, the cost of ternary precursors can be reduced by at least 15%."

Zeng Yuqun nodded in agreement: "His wedding with Liu Shishi is approaching, so this is a good opportunity to congratulate him and have a good talk about cooperation!"

Just as Zeng Yuqun and Huang Shilin were discussing sending a generous gift to the richest man and Liu Shishi on their wedding day, Song Ci was holding a transnational video conference at her home in Jingyuan.

On the screen, Goldman Sachs Asia President Mark Wilson smiled broadly: "Congratulations, Song, you have successfully acquired this high-quality asset, Metorex."

"Same to you! Goldman Sachs must have made a lot of money this time too, right?" Song Ci smiled calmly.

Despite having ample funds in his overseas accounts, he had to accept a temporary high-interest loan from Goldman Sachs in order to quickly complete the legal cross-border acquisition.

Including consulting fees, Goldman Sachs made a considerable profit. However, successfully acquiring Metorex made it all worthwhile.

The current global cobalt price is $12500 per ton, which is at a historical low. Buying at this low price is equivalent to locking in resource supply for the next 20 years.

Mark Wilson smiled knowingly. He and Song Ci each got what they wanted. This time, Goldman Sachs took advantage of Song Ci's eagerness to acquire Metorex and ripped him off.

"We will continue to rely on Goldman Sachs for the follow-up work!"

"Song, please rest assured. Although Goldman Sachs charges high fees, it is worth it. We guarantee to complete all cross-border acquisition procedures within three months and inject the equity into Hong Kong Devon International as you requested."

"I trust Goldman Sachs' reputation!" Song Ci said politely, but secretly sneered.

However, he also had to admit that Goldman Sachs' influence in the global financial world was indeed not to be underestimated, and hiring them as financial advisors for cross-border acquisitions certainly saved a lot of trouble.

After saying that, Song Ci turned his gaze to another screen: "According to the South African BEE Act, black shareholders must hold at least 26% of the shares in foreign-invested mining companies in South Africa."

"Sister Ying, I'll also need your help to design an employee stock ownership trust to hold these 26% of the shares on their behalf. Dewen just needs to retain voting rights."

Li Ying nodded gently: "I will make proper arrangements to ensure compliance with South African regulations."

"Sister Ying, please be careful while you're in a foreign country!" Song Ci solemnly instructed, then looked at her partner, "We'll need Goldman Sachs' cooperation in this regard!"

“OK! Leave it to me!” Mark Wilson readily agreed, a broad smile on his face. “Song, Goldman Sachs CEO Lloyd Blankfein has been looking forward to meeting you!”

Song Ci pursed her lips and said perfunctorily, "Next time I go to America, I will definitely pay a visit to Mr. Lloyd."

In the past two years, as Tenda has gradually grown into a multinational giant, he is now determined not to go to North America.

Americans are known for their lack of sportsmanship; who knows if they'll detain him, given their history of detaining people.

In addition, he shorted US stocks during the subprime crisis and made a lot of money from the US, which inevitably aroused resentment and led to a sudden attack on him.

After a few perfunctory words, Song Ci ended the video conference but did not leave. Instead, she sat quietly in front of the screen, closing her eyes to rest. Time passed quietly, and about fifteen minutes later, the clock struck noon, as if signaling the start of the conference system. The screen lit up again.

As if sensing something, Song Ci slowly opened her eyes, her gaze deep and unfathomable, and raised her hand to answer the video call request.

In the scene, the figures of a foreign man and Li Ying then appear.

“Mr. Jeff Orwin, I’ve long admired your name.”

Jeff O'Leary, who had just taken office as the chief executive officer of JPMorgan Chase Asia Pacific a week earlier, smiled meaningfully and said, "Mr. Song, congratulations in advance on becoming a world mining giant."

Song Ci shook his head slightly, his tone steady: "It's too early to talk about this now!"

"Mr. Song, JPMorgan Chase never disappoints its clients! Devon's acquisition of Talison Mining is only a matter of time!"

Jeff Orwin's eyes burned with fervor. He had only recently taken office and desperately needed a world-shaking acquisition to establish his authority and open up JPMorgan Chase's presence throughout the Asia-Pacific region.

"It was precisely because I believed in JPMorgan Chase's capabilities that I did not continue to choose Goldman Sachs. I hope we can have a pleasant cooperation."

Song Ci nodded slightly. "Mr. Jeff, tell me your plan. How can you guarantee that I can defeat Lockwood Corporation and take over Talison Mining?"

After successfully acquiring Metorex, Song Ci's next target is Talison Mining in Australia.

As Australia's largest lithium spodumene mining company, Talison Minerals controls 30% of the global lithium market and supplies approximately 80% of China's lithium concentrate.

Its core asset, the Greenbushes spodumene mine, is one of the world's largest and highest-grade solid lithium mines.

Once the acquisition of Talison Minerals is completed, Devon will control 65% of the world's high-grade lithium mines. Combined with the South African cobalt mines it already has, it will be able to firmly control the "cobalt plus lithium" dual-core supply chain.

Jeff Orwin, already confident, spoke with a smile: "Mr. Song, we have registered a wholly-owned shell company, Winfield, for Devon Supply Chain in Perth."

A standby letter of credit of US$2.5 million was then provided by JPMorgan Chase's Zurich trust account. The purchases were made through sub-accounts at Scotiabank (Canada) and Westpac (Australia).

They secretly acquired a 19.9% ​​stake in Talison Mining within five days through a surprise secondary market raid and off-exchange transfer.

Li Ying suddenly asked, "Mr. Jeff, how can JPMorgan Chase ensure that Lockwood doesn't notice such a large share acquisition?"

Jeff Orwin smiled confidently, his eyes resolute: "Beautiful lady, JPMorgan Chase has its ways. As long as the daily trading volume is less than 5%."

This allows them to use the TSX over-the-counter trading system to circumvent the disclosure of large transactions and avoid reporting to regulators.

Once Talison acquires 19.9% ​​of the shares, according to its articles of association, anyone holding more than 15% of the shares can launch a full takeover bid.

The rest of the process is simple. As long as Mr. Song is willing to spend the money and his offer exceeds Lockwood's, Thales Mining will be easily secured.

Song Ci smiled slightly, her tone carrying a hint of seduction: "Then I'll await Mr. Jeff's good news! If this collaboration goes smoothly, there will likely be many more opportunities to cooperate with JPMorgan Chase in the future."

“Mr. Song, just wait and see.” Jeff Orvin’s eyes flashed, his words carrying a hidden meaning. “On Wall Street, JPMorgan Chase’s ability to handle large IPO projects is in no way inferior to Goldman Sachs’s.”

“Mr. Jeff, this is our first time working together, so let me see the strength of JPMorgan Chase!” Song Ci knew perfectly well that the world’s top investment banks were waiting for Tengda Group to go public, wanting to participate in this capital feast.

After exchanging pleasantries, the video conference ended. Song Ci breathed a sigh of relief. Dealing with these greedy capitalists required utmost carelessness; a slight misstep could lead to falling into a trap.

"Boom boom boom!"

A knock came at the door, which was slowly pushed open. Liu Shishi peeked halfway out and looked into the room: "Honey, is the meeting over?"

"Yes, it just finished," Song Ci replied softly.

Liu Shishi quickly stepped forward and gently took her husband's hand: "It's already past 12 o'clock, come downstairs for dinner, the elders are waiting for you."

"it is good."

The couple entered the living room and saw Song Zhang and Liu Xiaoxian chatting and laughing with their uncle's family.

Upon seeing Song Ci, Liu Yuqing said sweetly, "Brother, you've finally arrived! I'm starving!"

Song Ci couldn't help but chuckle: "Dinner's ready!"

Everyone sat around the dining table, enjoying the food and chatting casually.

Liu Xiaochen exclaimed, "On New Year's Day, I saw the news today. A lightning acquisition of $15 billion, that's a really big deal!"

However, I heard that Jinchuan Group and Huaguo Bank have quite a few complaints, feeling that you've interfered.

"Uncle, don't worry, I know what I'm doing. As long as the mines in South Africa are acquired by Chinese capital, other issues are nothing to worry about."

"When does Tenda plan to go public on New Year's Day?"

At the dinner table, the whole family's attention was focused on Song Ci.

Currently, Tenda Group is valued at over US$1500 billion. According to securities analysts, once Tenda goes public, its market capitalization is expected to rank among the top ten global listed companies.

Song Ci's net worth will also skyrocket, potentially making him the world's richest person.

Facing his closest relatives, Song Ci did not hide anything: "The listing process is expected to begin in the second half of 2014."

He had long planned that by then, WeChat Pay would have a clear advantage over Alipay, making it the perfect time to go public.

After a moment's hesitation, Liu Xiaochen couldn't help but ask the question that was on her mind: "Does ICBC have a chance to become an underwriter for Tenda's IPO?"

Last year, due to his lack of seniority, he was not promoted to vice president of the head office. If he can help ICBC win the IPO underwriting project of Tengda Group, it will undoubtedly be a significant achievement in his resume.

Song Ci frankly admitted, "I am still considering this matter, but I will definitely choose from the major investment banks on Wall Street."

Liu Xiaochen could not hide her disappointment.

Song Ci understood her uncle's thoughts and comforted him with a smile: "Uncle, Tengda has a business deal coming up that might be able to be done with ICBC. As long as the interest rate is right, a large sum of money will be deposited into ICBC."

"A large sum? How much exactly?" Liu Xiaochen immediately became interested, as deposit-taking was the cornerstone business of banks.

The Song Dynasty poem, seemingly casual, contained a startling statement: "Several hundred billion!"

"How much!" Liu Xiaochen was so shocked that her hand trembled, and her chopsticks fell to the ground with a "clatter." She asked incredulously, "Where did Tengda get such a huge amount of funds?"

Amidst the shocked expressions of her family, Song Ci smiled mysteriously and kept them in suspense: "Trade secret!"

(End of this chapter)