Chapter 385 Exchange

When Barron returned to London, it was late March.

At this time, O2 Telecom had completed its tender offer for Czech Telecom.

In the previous tender offer vote, more than 85% agreed that O2 Telecom would complete the acquisition of Czech Telecom for a total price of US$6.95 billion. Therefore, O2 Telecom can complete the acquisition with US$3.41 billion in accordance with relevant regulations. Acquisition of remaining 49% shares of Czech Telecom.

Prior to this, O2 Telecom had used Czech Telecom's shares as collateral to obtain a 2 billion pound loan from the Royal Bank of Scotland for this acquisition.

The current exchange rate of GBP/USD is around 1.92, and these 2 billion pounds of funds are equivalent to 3.84 billion U.S. dollars.

After completing the acquisition of the remaining shares of Czech Telecom, more than US$400 million in funds will be available to update Czech Telecom’s original equipment in the Czech Republic.

Of course, it can no longer be called Czech Telecom. After being acquired by O2 Telecom, Czech Telecom will be renamed O2 Telecom Czech Branch.

At present, O2 Telecom has signed an agreement with Huawei. After completing the laying of mobile communications and broadband networks in the current markets including Ireland, England, France and Germany, Huawei will be responsible for upgrading the Czech network.

The reason why this order was handed over to Huawei so happily was because at this time, Huawei had obtained permission from the British Competition and Markets Authority (CMA) to complete the acquisition of Marconi.

This time Huawei completed the acquisition of Marconi by issuing additional shares. After completing the merger, Rich23 Capital, which originally owned Marconi, will obtain 12% of Huawei's shares.

By acquiring Marconi, Huawei also gained access to the British and American markets it owned. Although Marconi's market share in these two markets is no longer high, it is still better than Huawei starting from scratch. better, and with the Marconi brand, it would also be easier for them to grow in these markets.

Not to mention, after acquiring Marconi, Huawei obtained a series of technical patent authorizations for communication equipment and technology.

Therefore, this acquisition can be said to be a happy one for both parties.

Moreover, through this acquisition, Huawei has also strengthened its cooperative relationship with O2 Telecom. If it is added to the list of preferred suppliers of British Telecom's "21st Century Network Plan" and can obtain a large number of orders from O2 Telecom, Huawei will The development in England has been smooth, and we can also use this to enter the market in continental Europe.

…

"Then I won't have to worry about these stocks for the time being?"

"Yes, you can keep them for another two or three years. When I tell you to sell them, you can just go and sell them."

The woman in front of Barron was Catherine... no longer Catherine Hall, but changed back to Catherine Neville.

What they're talking about is Nvidia stock.

After Barron told her last time that she could buy all the 50 million pounds in Nvidia shares, she entrusted Daisy to help her buy about 15 million shares of Nvidia shares. So far, all the purchases have been completed.

At this time, Catherine could already see the bulge in her belly. Barron gently stroked her belly and said to her:

"Didn't I tell you before? Now that your figure is getting more and more obvious, it will gradually become inconvenient to move around. You'd better go live in France after a while."

Catherine's beautiful eyebrows wrinkled slightly, she looked at Barron with her beautiful eyes and said:

"It was so boring there before, but next month, my father and Aunt Vanina will come over here and accompany me to France..."

Since Catherine said this, Barron did not mention this matter again.

Of course, at this time, he naturally cannot easily educate her with sticks. When he came today, he learned that Catherine had returned to London from the manor in the south of France before he returned to London, so he came here specifically to take a look.

Next, Barron will complete the finishing work of another Colo offshore oil field...

He went to meet a vice president of the Pilot Group who came to London, and then signed an agreement with the other party.

Vanguard Group's funds will purchase a 10% stake in British Oil and Gas Investment Company held by Caesars Fund for US$600 million.

According to this purchase price, the market value of British Oil and Gas Investment Company at this time is set at US$6 billion...

If you look at the company that Caesars Fund bought for only 10 million pounds at that time, it can be said that Caesars Fund made a lot of money.

But you must know that the British Oil and Gas Investment Company now owns 30% of the shares of Colo Petroleum Company!

Just make a simple calculation based on the No. 1 block of the Colo offshore oil field they are currently developing, with proven crude oil reserves of more than 500 million tons...

Assuming that all this oil is extracted, it is equivalent to approximately 3.5 billion barrels. Calculated based on the crude oil price of 50 US dollars per barrel at this time, even based on the relatively high cost of offshore oil extraction, the cost per barrel is about 25 US dollars...

After a simple calculation, the oil reserves in Block 1 are worth US$87.5 billion!

The 30% interest owned by British Oil and Gas Investment Company is worth more than 20 billion US dollars after deducting Colo's 20% energy extraction tax...

Of course, it is often impossible to say that the reserves of an oil field are fully exploited, and it often requires multiple rounds of exploitation, leaving many parts that are difficult to exploit in the end...

To put it simply, in an oil field that has not been exploited before, the first round of exploitation is to drill into the oil layer and rely on the power inside the formation to directly determine the oil - such as some oil fields in the Middle East with relatively shallow oil layers. They may be able to drill hundreds of meters and spray oil directly...

After the power inside the formation is exhausted, a second round is needed, often by injecting gas or water into it to push out the crude oil...

In the third round of mining, more technological methods will be used, such as polymers, chemicals, heat, microorganisms, etc. to extract crude oil from the oil layer...

At present, these tertiary oil recovery are often used, but in this process, some crude oil will certainly be lost.

In this way, the valuation of 6 billion US dollars given by the Pilot Group to the British Oil and Gas Investment Company seems to be acceptable...

But you must know that besides Block No. 1, there are more blocks that will be mined later. Looking at it this way, this investment is purely a "profit" to the Pilot Group...

Of course, Linghang Group understands this very well. After all, in addition to this superficial "investment", through this kind of cooperation, American capital is also allowed to participate in the development of the Colo offshore oil field. This adds another layer of protection for their offshore oil fields outside the UK.

And in fact, for Barron's, or Caesars Fund, it may not really be a loss.

Because of this investment, Caesars Fund did not make it in the form of cash, but in exchange for the stocks they held worth 600 million US dollars - it can also be understood that they used 600 million US dollars to purchase Caesars Fund 10 % of the shares of British Oil and Gas Investment Company, Caesar Fund changed hands and used the US$600 million to purchase the stocks they held.

What stock?

Vanguard Group itself is a major shareholder of Nvidia. They hold more than 20% of Nvidia shares. This time they took out 12% of Nvidia shares in exchange for Caesar Fund.

So now, Barron has controlled more than 24% of Nvidia shares, of which Rich23 Capital and Caesars Fund each hold 12%...

If you take into account the future growth of Nvidia's market value, it seems that Vanguard Group has taken a big advantage in this transaction now, but in the future, I'm afraid that may not be the case.