Chapter 393 Stocks or Debt?
"This is mainly due to the fact that there are no particularly good land suitable for development in England, especially London. Those areas are also undergoing rapid development and have more opportunities..."
It would also be a good choice for Argent Real Estate Group to develop in emerging markets. Speaking of which, the areas he mentioned are considered to have relatively high potential in real estate, so Barron will not interfere too much in this regard.
After talking about the Argent Real Estate Group, Earl Butt talked to Barron about the United Energy Group.
Earlier last year, their family's Stuart Mining Group also successively invested in many mining sites in Colo, including copper mines, iron mines, and a newly mined phosphate mine. Stuart Mining Group also has relatively in-depth cooperation with the West African mining industry.
Therefore, Count Bute will also pay attention to the fact that Colo has discovered offshore oil fields with rich reserves, and seems to be very interested.
During this period, two exploration wells in the Kolo offshore oil field were put into production one after another, and the output was very considerable.
Coupled with the excellent quality of the crude oil produced there, stimulated by these news, the share price of United Energy Group, which holds a 30% stake in Colo Petroleum Company, also rose a lot.
"To be honest, our family also bought some shares of United Energy Group, but the stock price has risen sharply, and the company has too few outstanding shares, so..."
Earl Bute spread his hands and asked:
“Is United Energy Group still accepting investment?”
Regarding the issue of too few outstanding shares of United Energy Group, in fact, in this regard, their company has also been warned by the regulator of the London Stock Exchange regarding the recent abnormal rise in the stock price of United Energy Group.
Normally, the proportion of circulating shares of many listed companies is between 15-30%, and some companies have even achieved full circulation of stocks...
Previously, after Northern Gas was acquired by Caesars Fund, only 12% of the shares were outstanding. After the merger with British Oil and Gas Investment Company, excluding the 5.8% shares held by the Pilot Group during the lock-up period, United Energy Group is now circulating. The proportion of stocks has been reduced to 5.05%...
This also includes the 1.5% inheritance Barron initially received from Lady Emma's Northern Gas Company, which has now become 7.1775 million shares of United Energy Group, accounting for less than 0.63%.
Although the rise in United Energy Group's stock this time was entirely triggered by the good news, the smaller the proportion of circulating shares, the easier it is for the stock price to be artificially manipulated.
Even though this investigation into the rise in shares of United Energy Group found no traces of manipulation, the regulator still issued a "well-intentioned" reminder regarding the small proportion of their shares in circulation.
"We are considering issuing new shares or convertible bonds in the near future, but specific measures are still under discussion."
Barron didn't mind revealing some information to Earl Bute in advance. After all, he estimated that even if they wanted to invest in United Energy Group, the Bute family would only treat it as part of their investment portfolio - after all, this kind of energy company is also an old one. Money likes investment targets, and it is difficult to encounter new potential energy companies like United Energy Group when the global oil and gas landscape is generally fixed.
Even for investment, they will only spend a maximum of three to five billion pounds, and will not risk betting too much money on one company.
Such a radical family has long been educated by the market and will not last for hundreds of years.
"What is the issue price of the new shares?"
It seems that Earl Bute is really concerned about this. He said:
"The share price of United Energy Group is not low now."
"If new shares are issued, the price will definitely be higher than the current stock price..."
Barron smiled and said:
"But if you think that the current stock price of United Energy Group is relatively high, you can also have another choice..."
"You mean...?"
"Convertible bonds, you can choose to buy this kind of convertible bonds issued by United Energy Group. The buyer can not only receive a certain annual interest, but also can choose to buy the convertible bonds at the average price of the day at any time within two years. Talk about converting bonds into common stock.”
Upon hearing Barron's words, Earl Bute's eyes lit up and he began to think.
The current share price of United Energy Group has exceeded 11 pounds, which is an increase of more than 130% compared with the price of Northern Gas Company of approximately 4.75 pounds before the merger of the two!
As Barron said, the current choice between United Energy Group's issuance of new shares and buying convertible bonds is nothing more than whether it is optimistic about the future trend of United Energy Group's stocks.
If you think that the current share price of United Energy Group is still undervalued, you can directly subscribe for new shares.
But if you think that its stock price is relatively high for the time being and is likely to have a lower price in the next two years, you can buy convertible bonds and wait until United Energy Group's stock price falls before converting them into ordinary shares.
Barron naturally knows that the current stock price of United Energy Group has not fully reflected its value when the total reserves of the entire Colo offshore oil field have not yet been announced.
Therefore, he prefers that the other party purchase convertible bonds, and when participating in the acquisition of Unocal in the future, he will try to reduce the proportion of acquisitions in the form of stocks.
…
Of course, with the size of Barron's current property, if he had to care about everything, it would be impossible for him to have any spare time...
"Your Highness, Yingyun Logistics has completed the merger with Speed Logistics Company. After the merger, DS Holdings obtained 5% of the new company's shares..."
"Okay, I understand, what else can I do?"
Yingyun Logistics was acquired by Caesars Fund. After acquiring operational logistics, it cooperated with Argos Retail Group to provide door-to-door delivery for its e-commerce business.
London is currently the city with the highest proportion of Argos retail group's e-commerce business, so they also facilitated the merger of "Speed" and Yingyun Logistics, which was originally developed based on DS Capital's divestment of part of the logistics business from Argos department store. .
In the end, after the merger, Caesars Fund held 95% of the shares of Operation Logistics, while DS Holdings exchanged "Subida" for 5% of the shares of Yingyun Logistics.
This kind of matter only needs to be resolved by DS Holdings and Caesars Fund themselves. Barron only needs to know the result.
"The revenue of Independent Newspapers in the first quarter was basically the same as that in the fourth quarter of last year. They proposed to acquire two local newspapers in Northern Ireland and also expand the local market..."
Although the briefings on these properties were reported to Barron by his personal assistant Wang Wanting, the scale of these properties is now beyond the capabilities of her alone, or even the previous "Secretary's Office".
The office that handles Barron's business information now led by Wang Wanting has more than 5 departments!
Large investment companies or funds, including DS Capital, Caesars Fund, Global Industrial Investment Fund, and Rich23 Capital, all have corresponding departments responsible for screening and organizing information for Barron...
This also allows Barron to focus on more important matters rather than getting wasted on minutiae.
