novelones Chapter 183: Eat more fish, another classic acquisition case
Chapter 183: Eat more fish, another classic acquisition case
Everyone knows how depressed the airline business is.
A speech by the president of Cayman Capital made the deal the headline news the next day.
Thanks to the media hype, Pan Am seemed to be a hot favorite in the stock market.
Some experts also called on investors to stay rational.
We should not follow the trend easily. We also need to see what actions Cayman Capital takes after acquiring Pan American.
Cayman Capital has already responded.
The staff team had already given a plan, and the first thing they did was to sell its fleet to Sanshi Group.
These include 18 Boeing 747s and 7 Boeing 737s.
The price is US$20 billion.
The second thing is to package and sell the InterContinental Hotel to Sakurajima Hoshino Resorts Group.
The price is US$8 billion.
Public opinion was in an uproar, and everyone thought that after Cayman Capital bought these assets, they would lease them to Pan Am for continued management.
But Cayman is determined to squeeze every last bit of value out of Pan Am.
It doesn't look like they're going to run Pan Am well at all.
The stock investors who were waiting and watching were very disappointed and said one after another: "The mouth of capitalists is a liar."
Cayman Capital took the opportunity to repurchase some of Pan American's shares.
Robert saw that the matter was almost fermented and asked his subordinates to hold a press conference.
The reporters bombarded Robert wildly.
Robert, who was holding the microphone, had to raise his voice:
"Everyone, please be quiet. I will answer your questions one by one."
"Sir, would you like to ask if Cayman is cashing in on the large-scale sale of Pan American's heritage?"
You must know that Cayman acquired Pan American for US$35 billion, but sold it for US$28 billion.
It's almost like a white wolf with empty gloves.
"Yes, I am indeed cashing out."
There was an uproar underneath.
"Don't you want to defend yourself?"
If you just admit to liquidating your assets, how do you want us to cooperate with you?
“There’s a reason for the rush to cash out.
We have done market research and found that Pan Am's assets are very bloated.
The fleet is seriously aging and a large number of routes are at a loss.
So the first thing we in Cayman did when we took over Pan Am was to slim it down.
At the same time, we will lend the money from the sales to Pan Am! "
The reporters were very excited when they heard this.
The most important thing for a company is to have sufficient cash flow. As long as the cash flow is sufficient, it can continue to operate no matter how much debt it owes.
The key point is to borrow money.
When there are assets as collateral, banks will naturally open their doors to do business.
The difficulty is that it is difficult to make mortgages without assets, and the capital market has completely closed the door.
Now Cayman Capital has lent US$28 billion to Pan American Airways, which means that the company can regain its vitality and continue to operate.
"I personally found the presidents of Boeing and Airbus and negotiated a new major cooperation. We will purchase Boeing 767 dual-pilot aircraft and participate in the research and development of the Boeing 777.
Similarly, we will complete the order for 5 Airbus A320s. "
The price of the aircraft is kept confidential.
Most airlines, including American Airlines, do not purchase aircraft at the listed price and receive significant discounts from the listed price.
The content of the negotiations is confidential and the agreed price will not be announced to the public.
This leaves a lot of room for maneuver inside.
After hearing this, reporters all felt that Pan American was going to take off under the operation of Cayman Capital.
Both the Boeing 767 and the Airbus A320 were extremely competitive in the early 90s and were the top models of both companies.
The reason why Pan American was eliminated by the market.
A large part of the reason is that the models are aging and the market competitiveness is insufficient.
"We will also streamline the acquired aircraft fleet, and the remaining aircraft will be leased to Pan Am at a preferential price.
Due to Pan Am's bankruptcy and reorganization, we have streamlined our aircraft service personnel and will hire new stewardesses from the public! "
The male reporters all showed expressions that all men understand.
Pan Am used to be a model of civil aviation before the 80s, using its beautiful flight attendants to please its passengers, who at that time were mainly men.
On promotional posters and advertisements, flight attendants often pose in seductive poses to attract passengers with their feminine charms.
Applying for a flight attendant job is like a beauty pageant.
But everything has changed because of female boxing, and flight attendants are not allowed to be fired for improper reasons such as age and body shape.
Young and fresh bodies will eventually grow old, and empty milk has become a major feature of European and American civil aviation.
But Robert said they were recruiting new aircrew on a large scale!
Speaking of this, Robert also showed a smile.
Because of the women's boxing movement, flight attendants have become an older profession. All major civil aviation companies are very troubled by this. This profession is meant to feed young people, but it is occupied by a group of grandmothers.
Then the airlines discovered a bigger problem was coming.
You should know that salaries in most service industries are linked to years of service.
Empty nurses have long working years, and their wages rise with age.
Their salaries naturally increase the airline’s operating costs.
Now that Pan Am is in bankruptcy, many people have become part of the restructuring and optimization of the company.
Reporters present all realized that younger stewardesses would become part of Pan Am's core competitiveness.
A reporter immediately raised his hand and asked:
"Sir, does Cayman Capital have any plans to resume trading of Pan Am?"
Everyone was suffocated. With Cayman Capital’s three moves, Pan Am was on the verge of becoming a phoenix.
This is not good news. What is good news?
As long as Pan Am resumes trading, the stock price will definitely skyrocket!
Robert smiled and responded loudly:
"In fact, Pan American's new management team has submitted a resumption application to the U.S. Securities and Exchange Commission and relevant departments not long ago."
“I believe it won’t be long before Pan Am will be relisted on the New York Stock Exchange!”
The reporters all applauded Mianzi.
Today's press conference was powerful enough to make them go back and do a feature on Pan Am.
Cayman Capital is indeed one of the top ten investment banks.
The dozens of aircraft sold not only greatly optimized the fleet, but also brought sufficient cash flow to Pan American.
Young aviation service personnel significantly reduce the company's payroll expenses and bring competitiveness to Pan Am.
The sale of branded hotels can also be understood as Pan Am's determination to focus on the aviation industry.
Cayman Capital has done a great job in both increasing revenue and reducing expenditure.
The business newspaper reporters present realized that Cayman Capital had made a fortune from this acquisition transaction.
It is equivalent to acquiring an established listed company without spending a penny.
If the good news continues, Pan American's stock price is conservatively estimated to increase by more than ten times!
You must know that Pan Am had a closing price of less than $30 for 1 consecutive days before going bankrupt.
Some people also think that Cayman Capital has a lot of layout in the energy industry, which means that Pan Am Airways, which is also in the same matrix, will get the most favorable oil prices!
While other airlines are working hard to reduce fuel consumption, Pan Am is already winning at the starting line.