No matter how unwilling the Ning family is, it will no longer be an obstacle—"

Before Sturgeon came over, she had indeed considered the merger plan, but this had to be approved by Cao Mo first.

Although the Draculamore Securities Market is not large in scale, dozens of companies are listed publicly every year.

However, in addition to the fact that Cornero Cement is controlled by overseas capital, its excessive size is also an obstacle to its direct listing in Draculamo.

After the merger of Cornero Cement and West African Cement Group, the scale will be larger, but the force behind its listing will also become stronger. The initial investors who participated in the investment of West African Cement Group were mainly to promote the listing of West African Cement.

Then I cashed out from public securities, but I didn't expect Cornero Cement to suddenly emerge.

At this time of the merger, in addition to the respective valuations of both parties, the more important thing is to adjust the proportion of overseas capital in the newly formed cement group after the merger to a level that meets the legal regulatory requirements of Kanem, that is, Tianyue Investment

As overseas capital, the shareholding in the new cement group cannot exceed 30%.

West African Cement and Cornero Cement have similar production capacity, but their profitability is very different, and there will inevitably be a huge gap in valuation.

"In such a bleak market environment, it is commendable that Cornero Cement can still guarantee an annual net profit of US$200 million. However, after merging with the West African Cement Group, its monopoly advantage in the Gulf of Guinea coast has been determined. Even if profitability will be further improved,

The capital market will not believe that the merged cement group still has much potential that can be tapped. This will also directly limit the imagination of the market value of the merged cement group after its listing. At the same time, the capacity of the Draculamo securities market is too limited.

.I have considered that after the listing, the market value of the assets of Cornero Cement should be between 1.5 billion U.S. dollars, and the market value of the assets of West African Cement should be around 500 million U.S. dollars. The two parties will use the corresponding market value

A proportional merger will be carried out to establish a new cement group. Tianyue Investment will hold 52.5% of the shares of the merged cement group. At this time, 22.5% of the shares will need to be transferred out in order to comply with Kanem's overseas capital shareholding in the company to be listed.

Regulatory requirements. The corresponding market value of this part of the shares is US$450 million. I can persuade investors to form a trust fund to take over this part of the shares, and I can also persuade them to promise not to interfere with the operations of the merged cement group, but they must think

If Tianyue Investment wants to give up more profit space, I estimate that they can offer a price of up to US$300 million..." Sturgeon said.

Sturgeon is now quite clear about the shareholding situation of Ibogu Mining and Cornero Cement. The plan he envisaged is for Tianyue Investment to hold shares in the cement group after the merger and resale of part of the shares. Although according to Kanem’s plan

The regulatory requirements have been reduced to 30%, but the joint management shareholding and the shareholdings of the Felician family, the Sika family, the Rupert family, the Blake family, etc., and the control rights are just right, will not cause the control rights to be lost.

This should be the lower limit of the merger plan that Cao Mo can accept.

"I think your forecast of the global economic situation is a bit pessimistic," Cao Mo said, rubbing his forehead. "China has invested very heavily in the heavy chemical industry this year, and it is likely that it will increase its investment in the global crude oil market next year.

Strong demand - this will have a direct stimulus to the economic recovery of the countries along the Gulf of Guinea, and the demand for building materials market will also recover strongly by then. And even if the market in the coastal areas along the Gulf of Guinea is limited, it will be difficult for us to increase too much.

As for the share, how difficult is it to penetrate the coastal markets of South-West Africa and North-West Africa via sea transportation from Draculamo? I don’t really care whether the West African Cement Group can make a profit, but Cornero Cement has an annual output of two million

The new plant with tons of tons will be laid at any time to meet the new market demand from the expansion of the Gulf of Guinea and its two wings to Southwest Africa and Northwest Africa. I don't care whether cement prices will rebound, but I firmly believe in the profitability of Cornero Cement.

As the market expands, there will definitely be a corresponding increase. Therefore, the valuation of this part of the shares is only US$300 million, which is really too cheap.”

Cao Mo can understand that Sturgeon is trying hard to facilitate this, mainly because he wants to give up his interests so that he can unite more powerful allies in the Gulf of Guinea.

Cao Mo has never been a stingy person, but the question is whether he gained friendship by generously giving up his interests or gained more greedy covetousness. This needs to be carefully weighed.

"The economic situation is so bad, the funds that investors related to the West African Cement Group can put out at this time are very limited - I have estimated it as high as possible, and US$300 million is almost the limit of the funds they can put out at the moment. ." Sturgeon said.
Chapter completed!