I Am the Third-Generation Heir of a Conglomerate - Chapter 481



Only Noblemtl

481. Expert (1)

Director Haruto’s expression hardened.

The creative accounting was a serious matter. But the negotiations had to continue, so I made a new proposal.

“I will believe you if you say it was not intentional. Then how about this proposal? I will acquire Toshiba Memory for 2.4 trillion yen as you wish.”

“Really?”

“Instead, I would like to add a condition that the contract will be automatically terminated if fraudulent accounting is discovered through an internal audit after the acquisition. Also, in the case of fraudulent accounting, since all responsibility lies with Toshiba, I would like to add a clause that 500 billion yen will be paid as a penalty.”

Creative accounting was a habit and a custom.

It was a way to inflate corporate value without innovative technology or restructuring.

Once you do it, it is an addictive act of cheating that will make you think about it over and over again.

So, there was also a possibility that Toshiba had done creative accounting again.

In addition to the fraudulent accounting that came to light last year, there may have been other mistakes made in the past.

How will it turn out?

In fact, if Taewoo Group accepted this condition, it would be doing business at a somewhat disadvantageous level.

If they were really honest, Toshiba would unconditionally accept the conditions.

But on the other hand, if I reject the condition, the situation turns in my favor.

“… I appreciate your offer, but I cannot accept it. Of course, I am not refusing because of fraudulent accounting.”

“Can’t the Taewoo Group shoulder all the risks? And in order to acquire Toshiba Memory, they formed an alliance by recruiting several companies.”

“Multiple companies? Weren’t you trying to join hands with a fintech bank to make an acquisition?”

Can we call it a union just because two places joined hands?

Moreover, the fintech bank was a financial company that had nothing to do with semiconductors.

In order to avoid antitrust regulations, I had to join hands with related companies, and I brought in several companies.

“Apple, Amazon, and Facebook have also agreed to join the alliance. And the conditions for joining include securing the reliability of Toshiba Memory. So please do not be angry at me for making these conditions.”

“The size of the alliance is considerable.”

“In order to avoid antitrust regulations, we have no choice but to join hands. And since they are all IT companies closely related to semiconductors, they are essential members for the future of Toshiba Memory.”

Although they say they are selling Toshiba Memory.

The company that symbolizes Toshiba is Toshiba Memory.

So, even if it was sold, it was clear that they would be hoping for it to come back to life.

Director Haruto’s worries deepened as there was no better way than to get into the arms of giant IT companies.

“It’s a good offer, but it’s also a risky proposition. So please adjust the terms a little bit.”

“Then how about this? In exchange for acquiring Toshiba Memory for 2.2 trillion yen, we will lend you 2 trillion yen using Toshiba’s shares as collateral.”

Acquiring Toshiba Memory did not mean owning 100% of the shares.

It meant purchasing a 55% stake to secure management rights, with Toshiba still owning the remaining 45%.

Of course, I would have felt more comfortable acquiring 100% of the shares.

The plan was to purchase a 55% stake for over 2 trillion yen, a deal that the Japanese government would never approve.

However, the Japanese government could not stop the gradual acquisition of shares.

The plan was to secure the remaining shares of Toshiba Memory through a loan.

“Are you saying that you can provide support of a total of 4.2 trillion yen?”

“If it’s over 4 trillion yen, wouldn’t it be able to overcome the cash flow crisis that Toshiba is currently experiencing? It would also provide the impetus to pursue new businesses.”

“How does the payment process work?”

If it was 4 trillion yen, it would be an amount exceeding 40 trillion won.

So naturally, it was common to pay over several years.

But Taewoo Group was not that petty, and it had the financial means to pay 4 trillion yen in a lump sum.

“I can sign the contract and deposit 4.2 trillion yen within a month. Shouldn’t we put out the fire first?”

“It’s not just a complaint, it’s enough money to build a new building.”

“There may be other companies that want Toshiba Memory besides Taewoo Group, and they may offer a higher price. However, I am certain that there is no other company that can lend 2 trillion yen more with the remaining shares as collateral.”

Director Haruto’s expression showed determination.

Although he hasn’t said anything yet, it seemed like he was already thinking about what kind of business he would do with the 4 trillion yen he received as an emergency transfusion.

“I accept the conditions.”

“Is it okay for you to make the decision on your own, sir? If you want, I can give you more time. You can go back to Japan, have a meeting with the executives, and sign the contract.”

“No. I will take full responsibility and push through. And I have full authority over this negotiation. There are many different terms than what the executives are thinking of, but I can fully take responsibility.”

Managing Director Haruto is confident.

It was an opportunity to transfuse a huge sum of money, over 4 trillion yen, in a short period of time.

In fact, if you look closely, the contract terms were not detrimental to Toshiba at all.

If we manage the 4 trillion yen well, we can overcome the current crisis and even enjoy a golden age once again.

“Then, let’s sign the contract once the working-level staff finalizes the details.”

“I will step in and help you finish the tuning quickly.”

Because Taewoo Group drafted the contract so meticulously.

It didn’t take long to get things set up, and we were able to sign the contract before nightfall.

***

4.55 trillion yen.

It was the total amount of the contract signed with Toshiba.

It was able to acquire Toshiba Memory, a NAND flash manufacturer, and Westinghouse, a nuclear power company.

“We are getting a very positive response from Taewoo Semiconductor. They are happy that we can strengthen the relatively weak NAND flash sector.”

“Vice Chairman Han’s expression doesn’t look very good.”

Vice President Han slightly turned his head away, as if he didn’t even want to look at the contract.

The contract size, which was originally planned to be resolved at 25 trillion won, increased to over 45 trillion won, so his shoulders became heavier.

“Honestly, I am worried. Can Toshiba afford 2 trillion yen?”

“Are you worried that you won’t be able to repay the loan on time?”

“There is even talk of delisting the Toshiba Group. It is said that an astronomical sum of 4 trillion yen has been injected into it, but it does not seem like it will be managed properly.”

He was a vice president who doubted the direction of the Toshiba Group.

It was natural to have such doubts, as the Toshiba Group, with its history and tradition, had come to the point of being delisted.

And my thoughts were not much different from those of Vice President Han.

Money transfused into companies that were headed in the wrong direction was no different from poison.

“Do you remember the IMF era? Several groups, including Taewoo Group, almost collapsed after receiving massive loans from Japan.”

“Thanks to the chairman stepping forward and resolving the debt problem, Taewoo Group is what it is today.”

“The debt is a double-edged sword. But that’s Toshiba’s position. We don’t care how Toshiba uses the debt. If it goes well, we just get the principal back with interest. If not, we just get the remaining shares of Toshiba Memory.”

The latter was probably more likely.

In fact, Toshiba’s massive debt may have accelerated its decline.

“Thinking about it that way makes me feel a little better.”

“Taewoo Semiconductor may have responded positively to this acquisition, but I don’t think Taewoo Construction would have responded in the same way.”

“… … Yes. There is a response that the outlook for the nuclear power plant business is so poor that we are taking on a huge deficit.”

It was a nuclear power plant project that was expected to run at a loss for at least three years.

However, only by consistently developing and maintaining nuclear power technology could we seize the opportunity three years later.

“Please do not hand it over to Taewoo Construction for three years and manage it at the headquarters level. That way, we can reduce the burden even a little.”

“Or how about creating a separate nuclear power plant subsidiary? We can create a nuclear power plant specialized subsidiary by combining Taewoo Construction’s nuclear power plant division and Westinghouse.”

“It sounds like we should concentrate all the bad news in one place. It’s not a bad idea, but I don’t want to do that.”

It was Taewoo Construction that had been carrying the burden of the nuclear power plant business division for 10 years.

But if I just endured for 5 more years, I would be able to see the light, so I didn’t want to become independent now.

The nuclear power plant had to be a success for Taewoo Construction, and it was better for the company to maintain its current structure for the sake of its future.

“Then, I will manage Taewoo Construction’s nuclear power plant division and Westinghouse separately. I don’t think there is any other group with two nuclear power plant subsidiaries other than Taewoo Group.”

“We have secured a certain level of nuclear power plant business and technology. Now we just need to secure one more thing.”

“Are you considering acquiring another company?”

Vice Chairman Han’s eyes seemed to tremble slightly.

Taewoo Securities had to fill all the funds needed for the large-scale acquisition.

So, Vice President Han couldn’t help but overreact.

“It’s not a corporate takeover. What would be most important in the nuclear power business?”

“Isn’t it stability and profitability?”

“We’re not talking about economics. You need uranium to run a nuclear power plant.”

“Uranium is currently in surplus. I understand that uranium inventories are piling up due to the phase-out of nuclear power plants, and mining volumes have been drastically reduced.”

After the Great East Japan Earthquake, the era of nuclear phase-out began.

This resulted in a 75% price drop compared to 2012.

The value of uranium has been falling, especially this year, to an all-time low.

“It looks like it’s at its lowest point. If you buy now, you won’t lose any money.”

“Do you want to mine uranium? Unlike other minerals, uranium mining is heavily regulated.”

“I don’t want to go as far as a mine. I just want to secure uranium through Taewoo Corporation and be satisfied with securing shares in existing uranium production companies in advance.”

“That’s certainly possible! I’ll secure as much uranium production company share as you want. Just say the word!”

It was a vice president who spoke at a rapid pace.

When I told him that I was only acquiring shares and not acquiring the company, his face brightened up right away.

“The number one uranium producing company is Cameco, located in Canada.”

“It’s a company I know well. Before the Great East Japan Earthquake, the stock price was over $50, but now it’s only $9.”

“You don’t have to buy all the stocks on the market right now. Just buy them gradually over a three-year period. Build them up slowly enough that the market doesn’t react.”

“Thank you for your kind words. We will mobilize our professional manpower to acquire shares very slowly!”

The moment Russia started the war.

The nuclear power plant business was bound to be revived.

Naturally, then, the price of uranium will also rise.

In order to enjoy the coming era of nuclear power, not only nuclear power companies but also uranium had to be prepared.