Prime Minister Margaret Thatcher has cleared all obstacles to his reforms, and the unions, which are the biggest headaches for politicians, cannot bring this woman to her knees.
However, due to the fact that the UK economy is still sluggish, there are not many foreign capitalists willing to invest in the UK.
So the competition that Seryosha faced came mainly from these British financiers.
Seryosha has his banknotes ready and is ready to start his own procurement in the UK. ishgas。
If you look at the company's current financial situation, there is basically no investment value, not only is it heavily indebted, but because the British government has imposed restrictions on the price of natural gas, the company's profits can be estimated just from the books.
But now that Seryosha is the de facto head of the Soviet Ministry of Foreign Trade and Economic Cooperation, he holds a contract for the supply of natural gas to the UK, and he is confident that the company will be profitable at the current price.
But it was not only Seryosha who had signed up for this company, but also the British company Group C, as well as some of the large banking institutions behind it.
And if Seryosha wants to take this company at a fair price.
The most critical is to buy the company's maturing debt from the company's creditors.
There is a huge difference between acquiring a company's debt and acquiring a company outright.
If Seryosha buys British Gas directly, then the company's existing debts will also be borne by Seryosha.
This would be very much more than worth the cost, because if the British gas company did not repay its debts, then it would not be able to obtain loans from British financial institutions, and Seryosha would have to use his own money to keep the company running.
This is a situation that Seryosha does not want, and Seryosha wants to be able to get a British gas company that is healthy and free of huge debts.
Acquisition debt also carries certain risks, because bonds are not equivalent to equity, and because the company belongs to shareholders, not creditors, there is only a debt relationship between shareholders and creditors.
Moreover, a company can apply for bankruptcy protection, once a company applies for bankruptcy protection, although all the profits of the company during this period will be used to repay the losses of creditors, but the corresponding creditors cannot interfere with the normal operation of the company, and cannot take part or all of the company's assets as their own by driving their own creditor's rights.
Seryosha weighed the benefits and finally took the path of acquiring bonds.
Because it costs less to do so.
As a result of the British gas company's continuous losses, the bank debt and the debt of the British government have reached an astronomical amount, and the total amount is nearly double the company's assets.
Seryosha's main rival, Group C, was willing to take on the debt, but it also imposed new conditions on creditors, namely that the company's debt must be repaid for an extended period of time and that the interest rate be reduced to less than one percent.
As a British company, C is naturally the best place to take over the British gas company, but this harsh condition is unacceptable to the British government, which has been running deficits for many years and is heavily indebted, and the financial institutions dragged down by the British economy.
The British government needs to get rid of the bottomless funds in its own hands, and the banks also hope to use the fastest speed to quickly dispose of this hot potato.
It was at this time that a new consortium based in Switzerland, Bank of Colombia, also got involved, showing its interest in the British gas company.
The Bank of Colombia's plan is to buy out the debts of the British government and British banking institutions that have no hope of being repaid, and then carry out a debt-to-equity swap.
So as to achieve the purpose of acquiring British natural gas companies.
As soon as this plan came out, it immediately aroused the interest of many financial institutions.
Because Bank of Columbia is not a small British company like C, it has operations in the Americas, Europe and the major developed countries in Asia.
He could have come up with real money to buy Gaz UK.
However, it is naturally impossible for Colombia to acquire the debt in full.
If the British gas company has a good ability to repay, then it is entirely possible that the price of the company's bonds will be higher than the sum of its face value and interest.
Unfortunately, the short-term debt credit of this company is C, and the long-term debt credit is C, and the credit rating given by this rating is that the company has a very poor reputation, unreliable solvency, and may default.
Thankfully, this level of debt can be sold at a discount on the open market.
Seryosha gave a price of 20 percent of the face value for these debts.
It is twice the market price, but Seryosha wants to buy all the company's debts and at the same time ask the major shareholders of British Gas's parent company, British Gas Group BGGROU, British Treasury and other companies to agree to the debt-for-equity swap of Bank Colombia.
As soon as Bank of Colombia's plan came out, Company C, which originally thought that the overall situation had been decided, could not sit still.
They began to lobby the British government and banking institutions not to agree to the proposal of the foreign company in Colombia and to leave the British gas company to the British.
However, Group C is really naïve, although their plan will pay all the debt, but the repayment period is as high as decades, the interest rate of one percent per year is not even due to the inflation rate in the United Kingdom, and the most important thing is that the acquisition of Group C requires the British government and financial institutions to provide them with cheap financing and tax support.
The Bank of Colombia is willing to pay all the money in one lump sum, and does not need the British government and the British banks to pay an extra penny to support the acquisition plan of the Columbia Bank.
British financial institutions were the first to side with Bank of Colombia, and they collectively refused to lend to C to buy British Gas, and the British government was unwilling to pay for C for the sake of local feelings, so the Bank of Colombia's plan was finally passed.
British Gas agreed to spin off British Gas from the group and sell it to Bank of Colombia.
British Gas will retain its own gas exploration, production, transportation, distribution and supply operations, and will only sell its domestic gas sales, heating, boilers and gas-fired power generation businesses to Bank of Colombia.
British Gas, which owns these operations, has total assets of $20 billion, but Bank of Colombia paid just over $5 billion to acquire the company, giving Seryosha a head start to his British plans. t1706231537: