I Picked Up a Dimensional Travel Machine: Wizard - Chapter 71

“Are you sure?”

“Yes. We have verified this fact by mobilizing our connections as much as possible. It is indeed Lore who is blocking our funds.”

“Is it because of the Shapremin drink?”

“Yes. This is a business where you can make money sitting on the ground. Since it is obvious that they will give up the top spot in the beverage market, they are going to block it from the beginning. The contract was made with the Gaya Consortium, so they can just take over the food and distribution and take over the management rights. From the perspective of MF Pharmaceuticals, an American company, they won’t care whether the management of the company they are dealing with has changed or not.”

“Hmm… It won’t end with just threats, right?”

“Yes. The atmosphere is not good right now. It’s not just about Shapremin beverages. Right now, our Gaya is going through the worst situation since its founding. Of course, in the long run, it’s not a big problem. We just had to tighten our belts and hold out for a little while. The problem is that the attack came at this very moment when our cash is almost dry. The funds we had were used to expand Shapremin’s bid and distribution. Right now, we don’t have any bullets to stop Lore’s attack. It still takes about a month before Shapremin sales begin.”

“The government and banks are still unmoved?”

“Yes. Lore’s power is greater than you might think. It seems that it is not only Lore but also the Chinese government’s influence. In the free market economy, it seems that they are pressuring the government to leave it alone in the market, in the form of not allowing certain companies’ support to have a negative impact on companies that are related to their country. Lore is the financial sector. China is the government…”

“This is really messed up. First, everyone should do their best to find a way to secure funds. What is the current stock price and equity ratio of Gaya Foods?”

“The stock price, which was initially 5,000 won per share, has now already exceeded 20,000 won. Our stake is only 23% when combined with the stakes held by affiliates such as construction and chemicals. And the stakes held by other affiliates of Food are 12% for Gaya Distribution, 2.1% for Gaya Petrochemical, 3.3% for Korea NCC, 19.6% for Polyfuture, and 0.8% for Gaya Tourism.”

“Chief Lee. If Gaya Foods is taken over, what will happen to Gaya’s governance structure?”

“First of all, food has a high stake in distribution and polyfuture. This is the biggest problem. Before this incident, the market capitalization was 500 billion won when the stock price was around 5,000 won per share. Of that 500 billion won, more than 50% was the value of the stocks of other affiliates.

Petrochemicals 54.6 billion won, Korea NCC 66 billion won, Polyfuture 117.6 billion won, distribution 48 billion won, and tourism 11.2 billion won, a total of 297.4 billion won.

Other things are not a big problem, but the 12% distribution stake is the biggest threat. Distribution has a market capitalization of 400 billion won, but it owns a 20% stake in Gaya Tourism. Tourism is the largest shareholder in Construction.

“If food goes over, distribution is at risk, and if distribution goes over, tourism, and ultimately, even our mainstay construction, is at risk.”

“At this point, what can we do to prevent it with minimal damage?”

“If it were as it was, we would have to throw away the food. In the meantime, we would have to sell the shares of Polyfuture and Distribution to other affiliates. According to current calculations, Polyfuture can maintain management rights by transferring only 15%. Distribution must be transferred entirely. If we secure at least 140 billion won and protect those two shares, we will be able to maintain the control structure of Gaya Group.

The problem is that we can’t throw away food now. Food can last 5-6 times longer than it is now in just a few months. Gaya Food’s main product was not beverages. The beverage market share was less than 1%.

However, with Shapremin beverages, you can monopolize at least 20%, or as much as 40%, of the domestic beverage market worth over 3 trillion won. This time, President Jeong received excellent contract terms, so the margin rate is high. This means you have to give this up.

However, if we try to protect food and distribution, our mainstays such as construction and petrochemicals could be at risk. Even if the value of food skyrockets, it will only be a company worth about 2 trillion won. In addition, the distribution rights for Shapremin beverages are not infinite. They are limited to 3 years. So if we think about it objectively, it is right to abandon food now.

Loredo must have sensed our situation, even if not exactly. That’s why he’s going for M&A. Our shareholding ratio is relatively clear, unlike Seongsam or other companies, so it’s easy to understand. You can review it at any time with your shareholder rights.”

“Hmm. Will throwing away food solve the problem?”

“Well, I don’t know if their goal is really the distribution rights for Shapremin beverages. Or if they’re being greedy about Gaya at this point. If they say, ‘I tried stabbing them, but it was easier than I thought?’, they might go into full-scale war. So my analysis is that we have to protect Gaya even if it means giving up ‘food.’ Our current situation is the worst. If we try to protect everyone, Gaya might really fall apart.”

The face of President Jeong Jin-yeong, who is in charge of Gaya Foods, frowns at the conversation between Chairman Choi Gap-moon and Chief Secretary Lee Seok-gi.

But President Jeong cannot participate in that conversation right now.

In any case, it is true that in difficult circumstances, they used up all of Gaya’s funds to make a deposit of 100 billion won and a distribution expansion fund of 50 billion won.

Gaya Foods became the starting point of the Gaya Group’s crisis.

There was silence for a moment.

Everyone is thinking about the pros and cons.

Emotionally, it is right to call for a final fight.

But everyone sitting here knows Gaya’s situation now.

We’ve been going through a very dark and long tunnel these past few years.

What I had risked my life for ended up coming back to bite me.

“Everyone, let’s empty out your personal belongings. How much can you save? I can make about 70 billion won, excluding the company shares. What about Choi Hyung-cheol, the president of Construction?” Chairman Choi Gap-moon makes a sudden statement.

“Huh? Private property?”

“Yes. But how can we throw away food? Let’s stop it for now. But we can’t sell off the group’s shares to get the money. Like hidden emergency funds or slush funds. Let’s be honest.”

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“I….. um…..”

“I’ll give it back to you later. When the situation gets better, I’ll turn a blind eye to it. Then I’ll create a slush fund and such again. For now, let’s all be honest. If we break everything down and still don’t get an estimate, we’ll really have to give up on a few.”

“I can make about 20 billion won.”

“Professional managers are out. What about Choi Hyung-min, the president of Gaya Petrochemical?”

“I have about 12 billion won.”

“What about President Park Moon-yeol of Polyfuture?”

……

……

“Even if we do everything, it’s only about 200 billion won. Hmm… Director, will this amount be of any help?”

“No way.”

“Really? Right? Hmm… Okay, I understand. Everyone, go out. First, each of you calculate how much bullets you can make by squeezing the company’s funds as much as possible. Director Lee and I will calculate the line that can protect Gaja, and calculate what to throw away and what to keep. Report the bullets as soon as you calculate them. Okay? President Choi Hyung-cheol, stay for a moment.”

“yes…”

“Okay, move quickly!”

The Gaya Group raised funds and defended the area, even contributing its own resources.

However, the attack by the Lore Group, worth over 100 trillion won, was fierce.

The funds mobilized by Lore exceeded 5 trillion won.

Gaya’s total assets amount to only 20 trillion won.

Attacking food and then turning it into distribution.

Focused on chemistry and then on construction.

From construction to tourism.

The attack continued in this way across all fronts.

Although the company raised as much money as possible, Gaya was only able to raise about 1 trillion won.

Gaya believed that there was no way to win through a simple financial battle and appealed to existing shareholders for their maximum ‘support’.

But the media was on the side of the powerful, and the weight was increasingly tilted toward Lore.

< >

“Mr. Chairman! We’re in big trouble.”

“What? Why? What’s going on?”

“There is currently a hostile M&A attempt being made against our group.”

“What? Why? Who? Where??”

“This is MF Invest from the US. They have just purchased a 5% stake in us and have made a public announcement.”

“What? Where is that?”

“MF Pharmaceuticals is the parent company of Shapremin beverage.”

“Why are you picking on us??”

“I don’t know about that. MF Invest is originally an investment company, so we came in at the right time when we were wasting our bullets by merging with Gaya.”

“Damn it. If I just worked a few more days, I could have gulped down Gaya. Why of all people? What about the government? What about the bank notes?”

“For now, the government has not responded at all.”

“What? Your country’s company could be acquired by a foreign company, and you’re just sucking your thumb? Is that what you’re talking about?”

“That’s… Didn’t we preach about the ‘free market economy’ while suppressing the Gaya? That’s why the atmosphere is a bit cold when I talk to officials from the Financial Supervisory Service or the Ministry of Strategy and Finance.”

“But, M&A between domestic companies and foreign companies is the same?? You crazy guys. Okay, I’ll call you. Go out for a bit.”

“Yes. I will look into the situation further and report back in 30 minutes.”

“Yeah. Shit~~!!! The table is set now. This is the best opportunity. Shit. F@#$#dog@!!!!”

The Lore Group is in chaos. Even though the Lore Group has total assets of over 100 trillion won, its cash is limited.

You can’t dispose of your assets in an instant.

It would be impossible to mobilize trillions of won without the help of banks.

However, about 5 trillion won worth of bullets have already been used.

Through normal means, only about 2 to 3 trillion won in additional funds can be raised.

However, the amount of bullets mobilized by the MF Group exceeds 30 trillion won.

To be exact, it is 30 billion dollars (33 trillion won).

The Korean stock market was surprised by MF’s enormous cash mobilization power.

Given time, any decent group could make $30 billion.

But this only lasted a few days.

Thanks to this, the stock price of Lore Group started to go crazy.

The merger and acquisition of Gaya Group has stalled.

Now is not the time to rob other people’s houses and just stand by and watch your own house be robbed.

We’ve crossed the 8th ridge, and now we just need to go a little further, just a few steps.

It just stopped there.

The 5 trillion won that had been mobilized was returned in the same condition.

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