Chapter 401: Total Investment Returns Reach 1.87 Billion USD!
Almost unanimously, the shareholders of Galuminium Group approved Lituo's acquisition bid!
Alba, accompanied by Galuminium Group's board of directors and management team, held a joint press conference.
Standing at the center of the group, Alba drew the attention of everyone present.
Even Richard, who previously stood shoulder-to-shoulder with him, was now forced to step back slightly, signifying his reduced status following the finalized acquisition.
Once the merger review process concludes, Galuminium Group will officially become a subsidiary under Lituo. At that point, Richard will formally become Alba's subordinate.
The sense of accomplishment Alba felt in defeating his rival was indescribably sweet.
"Today, I'm delighted to share an important piece of news with all our media friends: our acquisition of Galuminium Group has succeeded!"
Facing the cameras and journalists, Alba spoke clearly, his voice calm yet authoritative, his smile radiant.
Despite the numerous hardships and significant resistance encountered during the acquisition process, the outcome was exceptionally gratifying.
In essence, they had succeeded.
The announcement sparked a frenzy among reporters. Camera shutters clicked incessantly, flashbulbs illuminating the entire conference hall, and applause roared like thunder.
Everyone from Lituo basked in this moment of supreme glory.
As the applause gradually subsided, Alba continued discussing the acquisition details. "Our offer was approved through voting by Galuminium Group's board and shareholders. To fully complete the acquisition, we still require antitrust clearance from both Galand and the Magnesium country, which will take a few months. However, we are confident in passing these investigations. The combination of Lituo and Galuminium Group will not create any monopolistic conditions in the market. Together, we will deepen our collaboration in the aluminum sector and forge an unprecedented path of development!"
The conference room erupted into applause once again.
The applause wasn't limited to members of Lituo; Galuminium Group's Richard and other board members also enthusiastically supported Alba's speech.
The total offer of $38.1 billion USD had provided all shareholders with significant premium gains.
Every shareholder was thoroughly satisfied, their faces lit with joyous smiles.
A reporter quickly posed a question: "Earlier, Lituo expressed strong indignation towards Li Tang during an interview with Galand Financial Post. Clearly, Li Tang initially opposed this acquisition, and holding over 14% of shares, he had substantial power to influence the outcome. How did you convince Li Tang to agree?"
"Indeed, we met with Li Tang multiple times, engaging in prolonged and difficult negotiations," Alba did not deny this. Successfully persuading Li Tang to approve the merger was itself a notable achievement. "Initially, we had some disagreements with Li Tang, but through persistent efforts, he changed his stance!"
"We've heard rumors that Lituo offered Li Tang enormous benefits, satisfying his demands and leading to his decision reversal. Could you clarify exactly what Lituo provided? Was it perhaps shares in Hamori Iron Ore Company, your core business, or stakes in one of its mines?" asked another journalist, clearly looking to stir controversy.
At the mention of this, Alba's earlier pleasant demeanor vanished, replaced by an icy glare directed toward the provocative journalist. "All official information is contained in our announcements. Please refrain from spreading unfounded rumors! Our negotiations with Li Tang were amicable and didn't involve any alleged transfer of interests!"
The provocative journalist awkwardly sat down.
This press conference was meant to announce good news; the journalist's negative tone clearly disrupted the positive atmosphere.
However, such was the nature of journalism.
Another reporter, friendly towards Lituo, quickly shifted the discussion to a more neutral topic: "In acquiring Galuminium Group, Lituo spent $38.1 billion USD in cash, much of it financed through costly loans. Consequently, Lituo's total debt now exceeds $40 billion USD—a considerable risk for your company. Why did you willingly assume this risk, and how do you plan to integrate and manage Galuminium Group effectively to ensure long-term profitability and recover your investment?"
This question was refreshingly balanced and avoided unnecessary provocation.
"We will maintain Galuminium Group's current governance structure, particularly its management team, which we intend to retain fully," Alba smiled warmly. "However, we plan to integrate resources between Galuminium Group and Lituo's original aluminum division, leveraging complementary advantages for industrial and technological upgrades! Please anticipate that Galuminium Group will continue to shine as Galand's most dazzling corporate star, reaching even greater heights! Our goal is to elevate Galuminium Group into the world's greatest aluminum enterprise!"
...
Lituo's acquisition of Galuminium Group was essentially finalized.
The total purchase price of $38.1 billion USD surpassed the historical mining acquisition record of $26 billion USD set by Freeport Copper & Gold's takeover of Douglas Corporation last year.
In recent years, as the mining industry boomed, numerous companies experienced significant benefits through mergers and acquisitions.
After Freeport Copper & Gold completed its acquisition of Douglas Corporation, it quickly surpassed traditional copper giants like Chile National Copper and BHP, becoming the largest copper enterprise globally.
Additionally, Stranta made an even more remarkable leap through mergers. Originally a minor company from Northern Europe, its market value at the beginning of the century was merely $2 billion USD, possessing negligible industry influence.
Yet, their board and management team possessed extraordinary ambition and courage. They financed significant acquisitions mostly through heavy loans, risking catastrophic debt if any deal went wrong.
Fortunately, the continued robust growth in mining rapidly alleviated their debt pressures. Acquired mining companies became increasingly profitable, allowing Stranta to repay all acquisition-related debts within a few years.
Today, Stranta is a global mining giant with a market value exceeding $40 billion USD. It's now one of the most successfully diversified mining enterprises, second only to BHP.
Yet, their pressures haven't entirely disappeared.
Recently, Stranta acquired Fur Corporation for $16 billion USD, also financed completely by loans—repeating their previous bold strategy.
Essentially, they're betting that global mining will continue its rapid growth.
Similarly, Lituo didn't hesitate to invest huge sums in acquiring Galuminium Group, sharing the same confidence.
Any slight hiccup in profitability or operations could lead to devastating consequences. Yet, opportunities and risks always coexist.
Who knows if tomorrow will bring success or disaster first?
Still, the external consensus among economic and mining analysts was overwhelmingly positive regarding Lituo's bold acquisition. They believed in Lituo's sustained profitability, confident its billions in annual net profits could comfortably absorb the financial pressures from this record-breaking acquisition.
Media coverage was universally complimentary.
Meanwhile, far away in the East, in Huaxia, various economic media outlets eagerly reported on Lituo's acquisition of Galuminium Group.
For a time, the entire domestic mining market, especially the aluminum industry, was abuzz with discussions.
In Yanjing, Lai Xiangrong met with Rong Yijian from Xiangjiang.
"Try this tea from a century-old tree!"
The two men were old acquaintances. Although not extremely close, they had interacted at various business conferences over many years.
Rong Yijian knew Lai Xiangrong was fond of tea, accepting the cup graciously and sipping with a satisfied expression.
His visit to Yanjing primarily concerned investment issues related to the Xinuo magnetite project. Seeking to replicate the successful strategies of Lianying Mining, they were actively securing domestic bank loans and pre-establishing partnerships with numerous steel mills.
Recently, his trips between Yanjing and Haigang had been frequent.
Additionally, Huaxin Taifu and Hualu Group had jointly invested, through Li Tang's company, in Galuminium Group.
Now, with the acquisition complete, this massive investment had generated substantial returns!
Naturally, Rong couldn't remain indifferent upon receiving such exciting news.
Lai Xiangrong, representing Hualu Group, stood to benefit significantly.
As the two met, naturally, the conversation flowed easily, allowing them to share insights freely.
"Did you see the news?" Lai smiled.
"Lv Caiqing already called me before the news broke," Lai set down his tea, preparing for a lengthy discussion. Despite his skepticism about cross-sector financial investments, he closely monitored the project, thoroughly briefed on its developments throughout.
The more you understand it, the clearer it becomes that this project was fraught with immense risks right from the very beginning.
When it reached its critical juncture, it became even more breathtaking.
The entire process could only be described as epic and endlessly fascinating!
Fortunately, the outcome was good!
"The night before last, I was soaking my feet in Chinese medicinal herbs, just getting ready for bed when I suddenly received a call from Lü Caiqing."
He thought deeply for a moment before confidently stating, "It was around ten o'clock at night. I've never gotten a call from Lü Caiqing at that hour before. They all know I'm too old to handle sudden shocks, so they wouldn't normally disturb me. But once I saw it was Lü calling, I immediately knew something big must have happened."
"Indeed, it was absolutely huge!" Lai Xiangrong burst out laughing heartily, in excellent spirits.
"Before I picked up the phone, I'd already prepared myself mentally. Even if all three hundred million USD invested by our Hualu Group vanished without a trace, I vowed not to get angry or upset, but remain calm!"
Recalling that moment vividly, Lai Xiangrong said, "I took three deep breaths before speaking to Lü Caiqing. And I must commend Lü Caiqing's remarkable composure; he was so calm and collected, speaking casually as though just having an everyday conversation. He told me that the deal was done—Li Tang had agreed to Lituo's acquisition offer, guaranteeing profits from our investment."
"To be honest, during the previous period, I was genuinely worried Li Tang might oppose the acquisition!"
Rong Yijian also felt lingering fear when recalling that period.
After all, it was a historic acquisition that captured the world's attention. Merely being involved was extraordinary. Moreover, their investment appeared poised to yield enormous returns.
Yet, at that time, Li Tang had directly contacted them through an intermediary, informing both Huaxin Taifu and Hualu Group clearly that he might vote against Lituo's acquisition of Galuminium Group.
What would happen if he voted against?
Li Tang openly warned them that Wall Street financial giants might short-sell Galuminium Group stocks. Predictably, Galuminium Group's stock prices would plummet drastically.
With so many stocks in hand, they would face severe difficulties in liquidating their shares. Even if they found a good opportunity or reliable channels, losses would be inevitable.
They certainly understood Li Tang's implications clearly, but they couldn't fathom his motives.
Because Li Tang never disclosed much about his actual plans!
To this day, they still didn't comprehend why Li Tang was willing to ignore profits exceeding a billion USD, stubbornly opposing Lituo.
Today, Rong Yijian made a special trip to meet Lai Xiangrong, partly hoping to get insight into Li Tang's recent actions in Galand.
"Li Tang really dares to play bold, willing to risk everything!" Lai Xiangrong exclaimed, impressed. "These youngsters today are truly remarkable, vastly superior to us old-timers!"
"But why did Li Tang oppose Lituo's acquisition initially?" asked Rong Yijian curiously.
Lai Xiangrong pondered briefly before shaking his head slightly. "Honestly, I don't know."
"Lü Caiqing didn't tell you?" Rong Yijian was skeptical that Lai knew nothing at all.
"He didn't. Didn't Huaxin Taifu send representatives alongside Li Tang all the way? The information I have is precisely the same as yours."
"That's strange indeed. He kept this a secret even from us—the partners of his two major investment companies."
"I asked Lü Caiqing before. He hesitated, then told me the details must remain secret until everything succeeded."
Lai Xiangrong was slightly irritated by this secrecy.
He was the respected general manager of Hualu Group who invested three hundred million USD, yet he lacked even the basic right to be informed!
Sometimes, he had to concede that Li Tang was genuinely brilliant but also quite aloof!
"Lü Caiqing called me two days ago and still didn't disclose Li Tang's plans. But he mentioned he'd return soon to clarify everything in detail."
"Then we must wait for them to return."
"I understand completely—commanders abroad often need independence. Li Tang is both a frontline general and a supreme commander, competing fiercely abroad against international business elites. This demands courage and strategy unique to our compatriots. Whatever he decides, I'll support him, good or bad."
Lai Xiangrong was generous in his understanding. He suddenly remembered something important. "Lü Caiqing mentioned he had tremendous news to share once he returned. I believe he's returning today—I wonder if he's already back."
The two old men leisurely chatted in the general manager's office, sipping tea and occasionally exchanging remarks.
After lunch, they returned to the office, and soon enough, Lü Caiqing appeared as anticipated.
"Where's Li Tang?" Lai Xiangrong immediately asked about Li Tang's whereabouts.
"He's still in Galand handling some follow-up matters." Lü Caiqing had rushed back, expecting a greeting or encouragement from Lai.
Unexpectedly, the general manager was most concerned about an outsider!
Though slightly startled, Lü Caiqing wasn't offended—just a little surprised.
"Li Tang is still busy abroad. Why did you rush back first?" Lai Xiangrong's tone contained a slight reproach.
"I'm not a permanent member of the investment team. My role was purely observational and informational this time around," Lü explained respectfully. "I sought Li Tang's permission before returning, primarily to report directly to you in person."
"You could have reported via phone!" Lai pointed at Lü, expressing mild dissatisfaction. "You're behaving like a deserter!"
"It's an important matter; I felt a face-to-face report would be best."
Lü frowned slightly but didn't dare argue back.
Noticing Rong Yijian seated nearby, Lü quickly shifted topics, respectfully bowing, "Chairman Rong, you're also here—excellent! I can brief both of you simultaneously."
Rong Yijian, eager to hear the latest developments, cheerfully invited him, patting the sofa. "Come sit, have some tea—you must be exhausted from the long flight."
Lü sat, drank some tea, and briefly shared anecdotes of his recent business trip to Toronto.
However, neither Rong nor Lai was interested in trivialities, prompting Lü to quickly transition to essential matters. "Only upon arriving in Toronto did I grasp Li Tang's full plan. I didn't discuss this over the phone previously at Li Tang's request—to prevent hotel phone taps and leaks."
"Caution while traveling abroad is prudent," Lai agreed wholeheartedly. "You both did well."
"When I called you two nights ago, Lai, Li Tang's plan had already succeeded—I could have explained fully. However, negotiations with Lituo went late into the night, followed by immediate drafting and signing of contracts by legal teams. None of us had dinner; we only ate very late at night. The next day was busy again with voting and finalizing arrangements. It wasn't until noon that I managed to call."
Lü quickly added apologetically, "I forgot the time difference—when I called, it must have been late. Sorry to disturb your rest."
"I was awake, no worries," Lai dismissed casually, urging impatiently, "Now, focus on the important parts!"
"Alright, let's discuss the investment."
Lü pulled out financial sheets provided by Alice. "Our investment in Galuminium stocks can be described as unprecedented, astounding the global financial community! Li Tang spearheaded this significant investment and managed all operations. As the second-largest shareholder, our Hualu Group unfortunately didn't participate extensively—a true missed opportunity for our team's growth."
"Get to the point!" Lai urged, somewhat anxiously.
Lü then began presenting key financials. "This investment has yielded substantial returns."
"Exactly how much?" Rong asked, smiling.
"From late last year to now—nearly half a year—we invested approximately 3.9 billion USD in total. Our original principal was 1.05 billion USD: Li Tang contributed 650 million, Hualu Group 300 million, and Huaxin Taifu 100 million. Following Li Tang's aggressive strategy, we leveraged heavily."
Lü paused briefly, scanning dense data sheets. "This landmark international investment proceeded in three stages. First, we borrowed one billion USD for a total of 2.05 billion USD, primarily acquiring Sanjing's 5% stake in Galuminium at roughly $58 per share."
"Yes, we're aware," Rong nodded attentively.
"In the second stage, Li Tang insisted on increasing investment, borrowing another billion USD from Jiangda Securities, buying at around $75 per share—considerably higher."
"We approved that as well," Rong replied. "Risky—but Li Tang's judgment proved world-class."
"The subsequent investments were incomprehensible to us," Lai sighed, reflecting on Li Tang's daring decisions made at peak prices.
Such bold moves exemplified Li Tang's courage, leaving them amazed yet completely bewildered by his strategies.
"Supposedly, Li Tang initially planned to play it conservatively, intending to invest about 2 billion USD. But later, perhaps provoked by Lituo's aggressive moves, he became determined to go head-to-head against them."
Although Lü Caiqing spoke casually, having personally experienced the entire ordeal, he had felt an emotional rollercoaster so intense that it still made his heart race today. "Li Tang's later intention became extremely clear. After thoroughly examining Galuminium Group's corporate governance rules, his goal was simply to increase our stake to above 14%. By then, his intention had become crystal clear—to strongly intervene in Galuminium Group's acquisition!"
"But why did he insist on intervening in the acquisition process and outcome?" Rong Yijian found this aspect the most perplexing. "This was a thankless task. If it went wrong, not only could we have lost money already within our grasp, but we could also have incurred significant resentment, leaving a bad reputation internationally."
"I will answer this question later," Lü Caiqing responded carefully.
Lü knew precisely why he had hurried back to deliver this report. This very question was at the heart of his mission. Nevertheless, certain investment details had yet to be fully presented, and it was impossible to stop halfway through.
Shaking the papers in his hand, he continued his detailed account: "All the Galuminium Group shares we hold will be acquired entirely by Lituo at a cash price of 101 USD per share. Our first-stage investment of 2.05 billion USD achieved the highest return, approximately 74%, generating total profits of roughly 1.52 billion USD!"
"What an incredible figure!" Rong Yijian exclaimed, astonished. "A return rate so high, and such substantial profits, many world-renowned financial operators might never experience such a dazzling achievement in their entire careers!"
Lai Xiangrong was equally shocked upon hearing the number.
An astounding 1.52 billion USD!
This was truly a breathtaking figure!
The entire annual net profit of Hualu Group was merely about one-tenth of what they had earned from this single investment!
No wonder many industrial entrepreneurs eventually abandoned their industries to enter the financial sector.
This was easy money—flowing in faster than running water, quicker than printing money itself!
"I truly never expected returns this high!" Lai Xiangrong admitted sincerely.
"And that's just the first stage of returns," Lü Caiqing said, noting the shock evident in the expressions of Lai Xiangrong and Rong Yijian.
Indeed, such extraordinary investment returns seemed almost unrealistically high.
"In the second stage, we invested another 1 billion USD. The return rate was approximately 35%, yielding about 350 million USD."
"Even if considered separately, this amount alone would be a significant return!" Rong Yijian marveled aloud.
"Combined, these two stages of profit amount to approximately 1.87 billion USD!" Lai Xiangrong repeated, clearly overwhelmed.
When converted into domestic currency, that would exceed ten billion yuan!
Currently, no domestic enterprise could achieve such profits within a single year.
Such straightforward and seemingly effortless investing had yielded astonishing results!
Lü Caiqing then continued discussing the final investment phase: "By the third stage, Galuminium Group's acquisition was openly known, causing the circulation of Galuminium shares in global markets to become extremely scarce. We undertook this investment with specific strategic objectives, which meant buying at relatively high prices—ranging roughly from 80 to 85 USD per share, sometimes even surpassing 90 USD. Ultimately, unable to fully achieve our target through regular market means, we were forced to purchase an additional 1.1% stake from a sovereign wealth fund at an inflated price of 110 USD per share. This final investment resulted in losses, thus balancing out our gains for the third stage. Overall, the third stage broke even, without significant profits or losses."
"The third stage wasn't entirely without benefit," Rong Yijian remarked optimistically. "At least Li Tang achieved his objective of surpassing 14% ownership."
"Yes," Lü Caiqing nodded affirmatively. "Therefore, our total realized cash profit stands at approximately 1.87 billion USD. Of this total, Li Tang initially invested 650 million USD, thus personally earning about 1.156 billion USD. Hualu Group invested 300 million USD, holding around 28% ownership in the investment company, yielding approximately 534 million USD. Huaxin Taifu's initial investment of 100 million USD generated roughly 180 million USD in returns."
With just three partners, calculating the profit distribution was straightforward.
Once each shareholder's respective investment proportion was outlined, the situation became instantly clear.
Naturally, larger investments garnered greater returns. Conversely, smaller investments minimized risk but consequently yielded smaller profits.
Because the profits weren't evenly divided, the final amounts each partner received differed significantly.
When Rong Yijian heard the profits each partner had gained, he couldn't help but feel a tinge of envy.
Li Tang had made nearly 1.2 billion USD!
In contrast, Huaxin Taifu had earned just 180 million USD.
This disparity felt immense!
However, he knew there was no alternative: Li Tang had invested the largest amount and led every aspect of the investment operation. His efforts and contributions justified the larger share of profits.
Even if Li Tang had insisted on equity without investing, neither Rong nor Lai would have objected.
Yet, inevitably, people felt jealousy and regret when comparing their returns.
Why hadn't he invested more at the outset?
Perhaps investing 500 million USD, which would now have earned him close to a billion dollars in pure profits!
A missed opportunity!
Regret always came too late!
Who could have imagined Li Tang, an expert originally known for mining exploration and development, would also master the art of financial investing?
In the international capital markets, Li Tang moved like a magician, effortlessly controlling outcomes to his advantage!
With skills approaching the divine, he was practically a financial deity within the country!
"Well, everyone gained substantial profits," Rong Yijian managed to say, attempting to conceal his internal disappointment.
"Personally, I never dared to dream we could earn so much simply by following Li Tang!" Lai Xiangrong, by contrast, expressed deep satisfaction with the results. "Initially, I had thought that preserving our principal would be satisfactory enough, viewing this primarily as an opportunity to develop our team's experience. Never in my wildest dreams did I expect Li Tang to possess such extraordinary investment skills, turning what seemed impossible into incredible success!"
"Foreign media have now given Li Tang numerous nicknames," Lü Caiqing said with a smile. "Some call him a god of securities investing, others label him a devil, and some even refer to him as Huaxia's God of Wealth!"
Mentioning these amusing nicknames, Lü chuckled openly. "These nicknames are actually quite fitting. Throughout my time accompanying Li Tang, observing his moves firsthand, I can only say he possesses extraordinary boldness combined with exceptional attention to detail, consistently achieving victories against the odds!"
Rong Yijian, although he had earned substantially less than the other two partners, quickly adjusted his mood, jokingly adding, "Li Tang's astonishing investment success is likely to become legendary soon, spreading widely across the country, eventually being featured as a classic example in investment textbooks! I wouldn't be surprised if many retail investors soon begin placing Li Tang's portrait on shrines, worshipping him daily!"
"It's truly astonishing, perhaps even miraculous!" Lai Xiangrong remarked emotionally.
Indeed, it was likely the first time someone from their country had achieved such phenomenal success on the international investment stage.
It was practically robbery!
With such immense profits, everyone was overjoyed, unable to stop smiling.
However, Rong Yijian hadn't forgotten the core question: "Mr. Lü, earlier you didn't answer our most pressing question. Why did Li Tang insist, regardless of cost, on increasing his holdings beyond 14%, strongly intervening in Galuminium Group's acquisition?"
"The answer to that question, in my view, is far more exciting and practically meaningful than earning 1.87 billion USD in cash profits!" Lü Caiqing met the curious gazes of the two senior leaders, raising a thumb unconsciously. "I can only say, I'm genuinely and profoundly impressed by Li Tang! Never in my life have I respected someone this deeply. Li Tang's vision and strategic genius are unparalleled in today's world!"
As someone soon to succeed Lai Xiangrong and take command of the massive Huaxin Group state-owned enterprise, Lü's own capabilities were formidable.
His recognition from senior leaders further confirmed his distinctiveness. People familiar with him knew he possessed grand ambitions, strong capabilities, and immense self-confidence. Such people rarely respected others easily.
Yet despite limited interactions, he deeply admired Li Tang. Clearly, Li Tang's actions during the Galuminium investment profoundly impacted him.
By openly admitting this admiration, Lü implicitly accepted his abilities were inferior to Li Tang's, at least regarding securities investment and the strategic rivalry with Lituo.
His many emotions ultimately coalesced into profound respect.
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