DCI | Message to Sparrow [SS]

[Vaka]

Classified and Encrypted
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To: Sparrow Safeguards. Hollie

Bonjour,

My name is Monique de Chateaub. I am Head of Acquisitions here at DCI Défense Conseil International. I am contacting you this morning in regards to questions of ownership of French Production designs of military hardware sold to Sparrow Safeguards. While we understand that these transactions took place under another administration and are not disputing your ownership of these designs, we would however ask for a comprehensive listing of French designs you currently hold. We are ever expanding our sales footprint worldwide and would hate to unknowingly list a production that is currently owned by Sparrow. We do not want to step on your toes so to speak. I think that getting a clearer picture on who currently owns what will save on needless courtroom litigation.

Also, as my title implies, I would like to inquire about current low value stocks you might be willing to sell. We are looking to take smaller unutilized brands and give them a new home in some of our prepackaged options. I would also ask if there might be any interest in selling back portions of Direction des Constructions Navales (DCNS) to France. We know that the current stock price isn’t doing as well as you would have hoped. Perhaps there are additional French brands you might want to purchase? We would be willing to sell or maybe even trade certain brands to fill out inadequacies in our respective military offerings. Plainly put, we are looking to expand our global inventory of military hardware. Whilst we may be competitors for global defense spending, I still feel that we can do plenty of good business together. I do hope that you feel the same.

Regards.

Monique de Chateaub
Head of Acquisitions
DCI Défense Conseil International

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[Hollie]

This Response is PRIVATE and ENCRYPTED

I'm responding on behalf of Sparrow Industries to your request for further information concerning our investment in French military hardware. A comprehensive list is below :

• 100% of Airbus Group SE including the following Subsidiaries :
• Airbus S.A.S, Airbus Group Inc, Airbus Corporate Jets, Airbus Operations S.A.S, Navblue, Stelia Aerospace, Airbus Transport International and Testia.

• Please be aware that the property and intellectual rights of the Airbus A400M Atlas Project were sold exclusively to the United Kingdom.​

• We have multiple Joint Ventures within Airbus Group SE including 50% ArianeGroup, 50% ATR and 37.5% MBDA.

• Please be aware that our 46% Stake to Eurofighter GmbH and 42.5% Stake to Panavia Aircraft GmbH were sold exclusively to the United Kingdom.​

• Please be aware that our 10% Stake to Dassault Aviation was sold back to the French Republic when the former Administration was in-charge.​

• 100% of Naval Group — formerly known as Direction des Constructions Navales (DCNS) including the following Subsidiaries :
• Naval Energies, Sirehna and Kership

• 100% of Thales Group including the following Subsidiaries :
• OEMServices, Thales Communications, Thales Air Defence, Thales Underwater Systems, Thales Services, Thales Nederland, Thales Australia, Thales Training & Simulation, Thales Alenia Space, Thales Elektronic Systems GmbH, Edisoft, SYSGO and Vormetric.

• Thales Group has a 33% Stake in a Joint Venture named Telespazio Spa and 33.3% Stake in Eurosam​

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We receive very few requests for Products by Naval Group and in the last twelve months, those sales account for only 6.6% of total orders. You're right that our investment is better served elsewhere, as our main focus is aerospace. We would be happy to negotiate the terms of sale of Naval Group in it's entirety, with the exception that Sparrow is granted a 50% stake in the following products :

• Mistral-class LHD
• FREMM-class Frigates
• And, Horizon-class Frigate

An equal share to these Products means that Sparrow can still sell these Vessels in the future, as we predict these to be fairly popular among our clients. But, the remaining catalogue of equipment would be exclusively owned by DCI Défense Conseil International. We are confident that you'll be satisfied with our proposal and we look forward to hearing from you soon.

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Executive Vice President
Vaka

 

[Vaka]

Classified and Encrypted
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To: Sparrow Safeguards Hollie

I do appreciate your prompt and thorough response. This information paints a much clearer picture for our future military hardware sales. I hope that we can keep this line of communication open for future transparency since Sparrow Safeguards owns such a large amount of French military companies. I am delighted to hear about your interest in the sale of Naval Group. Here at DCI we are extremely interested in acquiring Naval Group as we hope that we can reinvent the brand for the twenty-first century. Your request for a 50% stake in Mistral-class, FREMM-class, and the Horizon-class should not be an issue. It will be sometime before our engineers and ship-building facilities are able to produce either the FREMM-class or Horizon class. We do plan on making the Mistral class front on center of one of our prepackaged products however. With us both having a 50% stake in the Mistral class, we would both agree not to block each other's production of the vessel and simply let the market decide on who has the better price. These are completely understandable terms which we would be willing to agree to before such a stake was sold. Now we come to the negotiation table for the price of Naval Group. I would be interested in hearing an initial offer. I will be contacting our CEO and Minister of Defense Alain Richard informing him of the negotiations. As always, It's a pleasure working with the fine people at Sparrow Safeguards and I hope to hear from you soon.


Monique de Chateaub
Head of Acquisitions
DCI Défense Conseil International

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[Hollie]

This Response is PRIVATE and ENCRYPTED

Sparrow Industries and the French Republic used to have a close and friendly relationship, sharing much of the same values on most international issues. However, this relationship was soured several years ago and disappointingly, an opportunity to correct those wrongs haven't opened until now. We're hoping through the acquisition of Naval Group, it shows our commitment to resolve past misgivings to create more concrete relations, built on strong bilateral dialogue and cooperation. We're pleased that you wish to enter into talks, as we would make firm trading partners in the future.

Our financial director, Ralph Brennan has made a significant contribution in assuring that the company remains profitable and has a current share value of $29,196,106,074.01. This is a 33.07% increase since we acquired Naval Group, despite the dwindling interest in product sales. This is also the Purchase Price that is acceptable for the sale of the business, though we acknowledge this is a notable investment to lay down in one transaction. We're not sure on your financial situation or the funds you have available for immediate use, but we're willing to accept a down payment no smaller than 35% of the value of the business, followed by a payment plan until the amount is paid in full. Each repayment will be exchanged for a portion of shares to Naval Group.

We thank you for your support and encourage you to explore the benefits this acquisition brings to your business.

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Executive Vice President
Vaka