Omniscient Investment Point - Chapter 215



Only Noblemtl

215. One more leap – 3

(1)

Generally, cancer is considered cured if there is no recurrence for 5 years after all treatment is completed.

That is, Kim Kyung-jin is not yet fully recovered.

Yet, he looked at me with a healthy face and intense eyes and brought up the award.

“You know that your father is a very cautious person. That’s why he never even thought about listing the company. In fact, it was because he could raise money in the capital market, but he couldn’t run the company as he wanted.”

“But why did you change your mind? Or did you convince me?”

“He’s not the type of person who can be persuaded. Even Good Day Cam took years. And even that, if you and Angel hadn’t invested and the Malaysian sovereign wealth fund hadn’t intervened, he wouldn’t have made the decision. Fortunately, a big opportunity came his way not long ago.”

“A big opportunity?”

“Just because your father is cautious, doesn’t mean he doesn’t have ambitions to grow the company? It’s bigger than anyone else’s. That’s why he’s so great. He’s been able to manage his ambitions and run the company well so far. Then, he happened to have his eye on a company that was up for sale. And you mentioned that name yesterday.”

“Mercury ENC!”

“Yes, that’s right. You know that place is in shambles. They’re saying that it’s not just bankrupt but on the verge of bankruptcy.”

I was a little surprised, so I quickly came to my senses and nodded.

“Yes. I thought that because I was taking too many unnecessary risks, a mid-sized company would go under.”

“They say it’s bankruptcy, but I think it’s better to try court receivership first. Furthermore, it would be good to sell it before that.”

“The sale price is… …?”

“It’s similar to how we acquire a company with a lot of debt. That is, we take on some of the debt.”

“Is there a debt there?”

“When I looked into it this time, it was over 4 trillion won in total.”

“hmm…….”

I let out a sigh.

4 trillion, it was truly a huge debt.

However, it seemed unlikely that my cautious father and cool-headed older brother would have made a decision without any plan.

“Of that, the amount that needs to be repaid in the short term is 1.5 trillion won. As you know, 1 trillion won of that will be returned by next month.”

“Yes, that’s right. Can you prepare that one?”

“Of course we can’t. Our company isn’t that rich.”

“then……?”

“We have to negotiate with the creditors. Of course, we’ll set two conditions. One is an extension of the maturity date, and the other is a haircut.”

“haha…….”

Here, haircut does not mean shaving the head.

It was also a card occasionally used to ask for a reduction in a certain percentage of debt, reflecting the risk of default in the acquired property.

I also used it a lot, especially when I got my hands on Mediaina Togetherwork Korea, and I used it well.

The problem is that there is a possibility that one of the creditors will be me.

If we had acquired the lady’s securities, we might have to immediately reduce this gentleman’s debt.

“Yes, I… Since it’s money that needs to be written off anyway, I can agree to both an extension of the maturity and a haircut.”

Still, it was a lot better than not getting a hundred billion.

“Yes. If the other creditors are like you, our takeover negotiations should be no problem.”

“But how much do you plan on cutting it by… … ?”

“half.”

“1 trillion to 500 billion?”

“No, including long-term bonds, 4 trillion won to 2 trillion won.”

“haha…….”

It was an enormous amount of money.

They plan to cut not only short-term debt but also long-term debt in half.

‘Will the creditors actually accept that?’

If it were the situation I had thought of earlier, that is, the reality facing Mrs. Securities, it would not have been impossible.

“I know you’ll be offended, brother, but you really are a thief.”

“No way… It’s better than going bankrupt and not getting paid a penny. Plus, it’s a construction company of considerable size, so it has subcontractors all over the metropolitan area and the provinces.”

“Instead, the assessed value of land assets across the country will be greater than the liabilities?”

“Well, well…, you’ll have to look into it to find out.”

I chuckled.

It’s obvious from the expression on his face that he’s already investigated everything.

The land in Cheongdam-dong alone is worth 1 trillion won right now.

Even though it was bought at a high price, if it is developed properly and sold well, it will be fine.

‘You might even double your profits.’

With that in mind, I asked again about the award I had mentioned at first.

“So, does the Good Day Group listing you mentioned earlier mean a backdoor listing?”

“Yes, that’s right. Since Suwon ENC has already been listed, our group will be included in it. Including Good Day DM, Good Day Hotel, and Good Day Cam.”

“And someday, the subsidiary will also be split and listed?”

“That’s right. Then, the amount your company invested will be an exit, right?”

I chuckled.

Nam Seung-ryong, whom I met last time, said the same thing, saying that the people I invested in thought a lot about our company.

But the world prioritized self-interest, and they all expressed their thoughts to me after calculating the pros and cons.

‘It would be burdensome if our company’s stake increased too much.’

If you own more than 5% of the shares, you can participate in management.

And they can only see me as one of the boatmen rowing vigorously.

‘I understand.’

Actually, I had a considerable influence on both Dream Farm and Daehyun Technology.

“Well, I understand for now.”

“What do you mean, ‘I understand?’”

“Good Day Group’s acquisition strategy of Suwon ENC, including a backdoor listing. I agree. No matter how I think about it, it doesn’t seem bad to us.”

“Okay. Then I’ll tell Dad that you have a positive opinion.”

“Yes, that’s right.”

Here and there, with the birth of the new government, some big changes are being detected.

Korean luxury brands are born, investment companies are expanding beyond Asia to bigger stages, and conservative companies are transforming into listed companies…

Perhaps, in the future, there may be a huge tectonic shift in the economic world.

(2)

Everything we are working on is a project that takes time.

Basically, I met with Taesu Lee, the CEO of Buin Securities, and verbally agreed to the acquisition and sale.

“You know that we need to do some due diligence, right?”

After conducting due diligence, which could take an unknown amount of time, the acquisition and sale contract had to be stamped.

But one thing was certain.

“I have rarely made the CEOs of the companies I have acquired or invested in step down. I hope you will keep this in mind.”

“Ah… yes yes, I understand.”

Lee Tae-soo’s eyes sparkle with anticipation and hope.

It didn’t seem like it was simply because he could keep his place.

I think it was a good response because I was able to join JTS Partners.

This allows me to achieve two positive effects:

First, Lee Tae-soo’s cooperation, which is essential during the acquisition and sale process, and his efforts and passion to do his best until the sale to secure the position in the future.

‘Well, I don’t think he’s incompetent.’

I had already received a report from Tak Jun-seok about Lee Tae-su.

The Suwon ENC loan issue was more related to the construction market than a mistake, so it would be unreasonable to link it to his management skills.

Instead, I wanted to give high marks to the fact that they have been diligently preparing for the STO.

So, unless something unexpected happens, I wanted to keep Lee Tae-soo in charge of the women’s securities business.

‘Now, all I have to do is wait.’

(3)

The investigation into Mrs. Securities was entrusted to Sang-soo Choi, an auditor who was formerly an accountant at Angel.

A few days later, I got a call from him.

– Sir, I think it will take about two months.

It took longer than I expected.

This is how financial companies are originally.

‘Then, it must be after the maturity of the Mercury ENC.’

The PF for the Cheongdam-dong paper matures next month.

Mercury ENC will probably feel like it’s walking on thin ice until then.

Of course, there will be changes in the meantime, and it is certain that the acquisition promoted by Kim Kyung-jin will be made known through the media.

First of all, the situation at Suwon ENC was made known.

『Susung ENC to go bankrupt if unable to repay 1 trillion won in debt by next month』

The stock price fell to the lower limit that day.

The next day was the same.

Rumors of Suwon ENC’s bankruptcy had already spread secretly, and even though the stock price was on a downward slope, there was no bottom in sight.

At this point, the article is reproduced in an expanded form.

『Susung ENC, considering selling its subsidiary amid rumors of bankruptcy!』

“Mercury, there is no way to get rid of 1 trillion won in debt by selling its subsidiaries!”

『What should we do about the mid-sized construction company bankruptcy crisis that occurred during the government change?』

『Mercury Group, Possibility of Bankruptcy After Insolvency… … .』

From this time on, not only Susung E&C but also other large, solid construction companies began to see their stock prices fall.

But then, a dramatic rebound occurred thanks to an article that suddenly appeared.

『Mid-sized construction materials group G intends to acquire Susung ENC』

It seemed like everyone, not just me, knew where Company G was.

It is a building materials group, and its name starts with G. Is there anyone who doesn’t know that it is called Good Day Group?

The number of shareholders mentioning Good Day in the Suwon ENC Jongtobang has increased in an instant.

– Good day? Is there that much money there?

– It’s not well known, but it’s a very solid company.

– The domestic window market share is probably number one?

– It’s not like it’s number one, but it’s a place where they compete for first place.

– But isn’t the affiliate company that is more serious than windows and building materials Good Day Cam?

– Yeah, people who know know, but Good Day Cam is a company that makes secondary battery materials.

– A person who goes there says that Good Day Cam has already turned a profit.

– To that extent, it’s a place that has both the present and the future. So what’s the regret for taking over Susung ENC?

It’s not that there’s anything regrettable, it’s because of the synergy effect.

I looked at the content posted on Jongtobang and answered in my mind like this.

If a building materials company acquires a construction company, it can immediately reap the benefits of vertical integration and value chain effects.

Good Day DM produces building materials, and Susung ENC builds and sells buildings.

In particular, several development zones owned by Suwon ENC have been secured.

‘Even if there is a tourist complex inside, you can build a hotel… … .’

As I was thinking this far, a lightning bolt suddenly struck my head.

“uh?”

As Good Day took a leap forward, Kim Kyung-soo’s dream of becoming the king of hotels also had to take a leap forward.

Right now, the development of the Jeju Island tourism complex that I mentioned last time could have gained momentum.

Although they say it is because of the collection of opinions from residents and environmental impact assessment, in reality, Jeju Island is more concerned about real estate PF insolvency.

Thinking about it the other way around, if a solid construction company bids as a developer, there is no reason for Jeju Island to delay accepting development.

‘If Good Day acquires Suwon ENC, he could benefit the most… … .’

No. If we look into it more closely, is it the company that invested in Good Day Camp and Good Day Hotel that has the greatest benefit?

But was this why I thought of him like this?

Suddenly my smartphone rang and I couldn’t help but laugh when I saw the name on the screen.

This is Kim Kyung-soo.

I quickly pressed the call button and answered.

“hello?”

– Hey buddy, let’s meet up!

“Good!”

– Tonight?

“call!”

Tonight, I felt like I could draw a happy future with the guy.