Secretariat of Finance :: Diversification of public holdings

[Serenierre]

THE SECRETARIAT OF FINANCE

The Secretariat of Finance has been charged by Premier Valsanois, following the decisions made by General Secretary Alexandre Renaudière and the esteemed members of the Politburo, to announce to the international business community the new economic opportunities and options that shall be available to them in the immediate future.

As of now, foreign companies are restricted to conduct their operations from the Special Economic Zones set up in the cities of Monseran and Aziéres. The new economic policy, officially termed, “Economic Liberalization Scheme 2011” which can be considered phase two of the original reform policy.

ELS 2011 will stand to allow foreign companies, or individuals, to hold shares of key sections of the national economy, of course all bids shall be reviewed by this department of the government. ELS 2011 ensures that the rights of purchasers of shares are protected, with restrictions on the government from nationalizing private holdings, however the government can exchange private holdings for liquid assets under extraordinary circumstances.

ELS 2011 seeks to privatize some state holdings completely and in other cases 49% to 60% of the shares shall be up for auctioning. Dates for these auctions shall be released at a later date.

As of today, the following state holdings stand for auction, whose date is yet to be decided:

• Hasiérre Steel Mills - 49% of shares to be auctioned
• Mazôrin Iron Works - 49% of shares to be auctioned
• HRT Metal Works - 49% of shares to be auctioned

Furthermore, if potential bidders have any queries they are asked to communicate their concerns with this department of government.

Eric Sant-Pierre
Director for Foreign Economic Involvement Dept.
​

 

[Großlausitz]

Fränkische Rohstoffe AG - FRO
Confidential message

In order to further broaden our holdings in Sernierre we would like to submit a first bid for 49% of Mazôrin Iron Works. However, before we proceed to that step we would like to be granted permission to send a team of accountants and lawyers to perform due diligence with Mazôrin Iron Works. To speed up the process please provide us with these figures of the last four years:

1. Total Returns
2. Total profits
3. Total profit margins
4. Idenfication of the most profitable product of the last four years. Please also add how large the top product's share of the profit margin was.

 

[Serenierre]

Secretariat of Finance
Classified

To answer the query in regards to the Mazôrin Iron & Steel Works. Permission has been granted for Franconian teams to conduct preliminary investigations.

Company details:

Total Returns

2006 : ₮. 4.89 billion
2007 : ₮. 4.92 billion
2008 : ₮. 5.02 billion
2009 : ₮. 5.13 billion
2010 : ₮. 5.28 billion

Total Profits

2006 : ₮. 842.1 million
2007 : ₮. 842.9 million
2008 : ₮. 843.1 million
2009 : ₮. 841.8 million
2010 : ₮. 842.4 million

Total Profit Margins

2006 : 17.2%
2007 : 17.1%
2008 : 16.7%
2009 : 16.4%
2010 : 15.9%

Additional Notes

The company in review is a major supplier of steel to the domestic shippings industry and has as such seen revenue increase during the years where the shipping industry has expanded its scope of operations. Additionally the company is question exports heavily the steel and iron it produces, export markets include Anglyn, Aquitania, Guiana and Radilo, within the EDF Bloc, and Arendaal and Batavië in Scania. The export division of the company accounts for 65.4% of the profit margin and the domestic supply for 33.1%.

Any further information requests that you may have, must be forwarded to us in the same manner.

OOC: I hope this is alright. I have very little experience with economic gameplay so I'm unsure.

 

[Breotonia]

Traxus Heavy Industries - Investment Division
Shaw-Fujikawa Group

The corporation is considering expanding its holdings in raw materials processing operations in light of increased demand internationally and the favorable conditions offered by the Secretariat of Finance. There is interest in purchasing in full or in part the available shares of either Hasiérre Steel Mills or HRT Metal Works. If the Secretariat could provide us with the current revenue, operating income, profit, total equity, and total assets as well as a brief overview of the operations and markets the two corporations are currently involved in we would be very happy to get back to your offices as soon as possible to make arrangements for a possible purchase.

 

[Serenierre]

Secretariat of Finance
Office for Foreign Investment
Classified Document

It is good to hear that a subsidiary of the famed Shaw-Fujikawa group is interested in the resources of the Sereniérrese economy. Considering the role Breotonia has played in advancing the economy of the Sereniérre since the first economic reforms were enacted in 1980, it is heartening to see the trade relationship between our two countries develop further.

To answer the queries of the Traxus Heavy Industries, in regards to the purchase of 49% of stocks of the companies Hasiérre Steel Mills and HRT Metal Works, both of which remain open for bids. And to assist THI in making its final decision we have decided to enclose the information requested for both firms in this document.

Hasiérre Steel Mills
The second-largest steel mill in the country and one of the largest in the world, the Hasiérre Steel Mills (HSM) have a long history of providing quality steel to many industries across the globe. HSM exports its product to Montelimar, Arendaal, Suionia, the Boreatic countries, Frescania, Hajr and Breotonia. It is one of the largest producers of steel in the world, coming in the top ten lists for many successive years in some of the most respected financial journals.

The company produces Hot and cold rolled coils and sheets, wire and rods, construction bars, Pipes, Structurals and forging quality steel.

Data & Statistics

• Current Revenue: BR£. 13.912 billion ⬇
  
• Operating Income: BR£. 12.911 billion
  
• Profit: BR£. 1.001 billion ⬆
  
• Total Profit Margin: 7.1%
  
• Total Equity: BR£. 3.109 billion.
  
• Total Assets: BR£. 14.995 billion ⬆

HRT Metal Works
Originally part of the Mazôrin Iron & Steel Works, the Government formed HRT from the southern assets of MISW, which focused primarily in specialized tasks, in an effort to increase efficiency of the metal sector. The company was formed in 1995. Since 2000, it has scaled down its operations and focuses on building components for automobiles, airplanes and trains.

The company exports its products to Breotonia, Montelimar, Lorraine, Anglyn, Eiffelland.

Data & Statistics

• Current Revenue: BR£. 5.208 billion ⬆
• Operating Income: BR£. 5.099 billion ⬆
• Profit: BR£. 109 million ⬇
• Total Profit Margin: 2.09%
  
• Total Equity: BR£. 889 million.
  
• Total Assets: BR£. 4.56 billion ⬆

​

 

[Breotonia]

Traxus Heavy Industries - Investment Division
Shaw-Fujikawa Group

In light of the positive economic data regarding Hasiérre Steel Mills and HRT Metal Works we feel that the purchase of shares in these corporations would be a very wise investment. We are prepared to make the following bids and, upon approval from the Office for Foreign Investment we will begin gathering funds to be allocated to the purchase. We will be making an offer to buy at current market price 15% of the shares for Hasiérre Steel Mills and 40% of those for HRT Metal Works.

We hope our bid is agreeable and we look forward to continued business and investment in the Sereniérrese economy.

 

[Serenierre]

Secretariat of Finance
Office for Foreign Investment​

Classified Document​

The THI involvement with Hasiérre and HRT have been approved. Once the appropriate payments have been made THI shall be in ownership of 15% of Hasiérre Steel Mills and 40% of HRT Metal Works, thus becoming the first multinational corporation to own a domestic corporation within Sereniérre. The Secretariat of Finance would like to inform THI that if any problem occurs during their stay in Sereniérre, to report it immediately with the Office for Foreign Investment. Additionally, we would advise THI to form a local subdivision and look to take part in the economy, utilizing domestic talent for greater economic output.

Rafael Renault
Undersecretary of Finance

 

[Großlausitz]

Fränkische Rohstoffe AG - FRO
Confidential message


Following the review of the submitted data we hereby confirm our bid for 49% of the shares of Mazôrin Iron & Steel Works. We intend to buy them at the current market price.

Secretariat of Finance
Classified

To answer the query in regards to the Mazôrin Iron & Steel Works. Permission has been granted for Franconian teams to conduct preliminary investigations.

Company details:

Total Returns

2006 : ₮. 4.89 billion
2007 : ₮. 4.92 billion
2008 : ₮. 5.02 billion
2009 : ₮. 5.13 billion
2010 : ₮. 5.28 billion

Total Profits

2006 : ₮. 842.1 million
2007 : ₮. 842.9 million
2008 : ₮. 843.1 million
2009 : ₮. 841.8 million
2010 : ₮. 842.4 million

Total Profit Margins

2006 : 17.2%
2007 : 17.1%
2008 : 16.7%
2009 : 16.4%
2010 : 15.9%

Additional Notes

The company in review is a major supplier of steel to the domestic shippings industry and has as such seen revenue increase during the years where the shipping industry has expanded its scope of operations. Additionally the company is question exports heavily the steel and iron it produces, export markets include Anglyn, Aquitania, Guiana and Radilo, within the EDF Bloc, and Arendaal and Batavië in Scania. The export division of the company accounts for 65.4% of the profit margin and the domestic supply for 33.1%.

Any further information requests that you may have, must be forwarded to us in the same manner.

OOC: I hope this is alright. I have very little experience with economic gameplay so I'm unsure.

 

[Montelimar]

Société d'Acier de Vendôme

After much consideration, SAV will take advantage of the business opertunity and make an offer to buy, at current market price, the remaining 24% of the shares for Hasiérre Steel Mills and the 9% of the shares of HRT Metal Works.

 

[Serenierre]

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The Secretariat of Finance​

Fränkische Rohstoffe AG - FRO
Confidential message


Following the review of the submitted data we hereby confirm our bid for 49% of the shares of Mazôrin Iron & Steel Works. We intend to buy them at the current market price.

Société d'Acier de Vendôme

After much consideration, SAV will take advantage of the business opertunity and make an offer to buy, at current market price, the remaining 24% of the shares for Hasiérre Steel Mills and the 9% of the shares of HRT Metal Works.​

Both bids have been approved by the Government.



Raphael Renault
Undersecretary of Finance
​