Omniscient Investment Point - Chapter 235



Only Noblemtl

235. Buy Japan – 6

(1)

For reference, this was a conference room at a luxury hotel in Nagoya.

At the center left of the table sat H2K Partners Chairman Hyun Ki-hyuk, myself, and our respective staff members, while across from us sat Japan’s Minister of Education, Culture, Sports, Science and Technology, Aoi Sato, and other high-ranking officials.

First of all, did you think I was pushing Sato Aoi too hard?

Slowly, the H2K Partners staff came forward.

“Here are Magnetic’s financial statements. And here is the takeover proposal designed based on them. Please read them.”

Sato Aoi was not part of Magnetic’s management.

But why did the staff hand him the documents?

It seemed like the conversation had already begun.

Maybe that’s why, Sato Aoi glances at the documents.

To be exact, it seemed like they only checked the acquisition price at the end.

“Well, the acquisition prices you proposed in both places are much lower than we thought.”

I knew you’d say that.

This is because the price written in the acquisition proposal is 400 billion yen, which is written assuming that Magnetic is a bad debt.

“Considering the technology and know-how that Magnetic has accumulated over the years, this price is too cheap.”

There was a look of disbelief and a hint of anger in his voice.

So Hyun Ki-hyuk and I looked at each other and communicated through eye contact.

‘I’m mentally shaken.’

‘Did you do well?’

Putting aside the Japanese honne, the top leaders in charge of the nation’s science and technology must remain calm in such negotiations.

But, by showing emotions like this, the negotiations were bound to be advantageous.

But that doesn’t mean we should shake things up any further.

Because you might end up getting up from your seat.

At this, the staff laughed again and spoke in a soft voice.

“Of course, we also fully understand the value of Magnetic. However, Magnetic is currently on the verge of bankruptcy, and it is difficult to pay a high price in this situation.”

“Still, that’s true.”

“Please also look at what happens if we spend more money on the acquisition price. Our goal is to acquire Magnetic and revive it. Naturally, we have to reinvest, and it is no exaggeration to say that the amount depends on the acquisition price.”

“hmm……·.”

Sato Aoi bursts into laughter at the fairly logical rebuttal.

At this time, Hyun Ki-hyuk opened his mouth while handing over another piece of data.

“The price we just proposed is calculated by taking into account Magnetic’s current financial status and future growth potential. I believe that price is enough to revive Magnetic, but if you think it is not reasonable, please check the reinvestment amount I have provided.”

This also didn’t take long, and Sato Aoi’s expression became serious.

That would be the case, because he couldn’t say with his own mouth that he would reduce the investment amount and move it to the acquisition price.

“Oh, that’s difficult. If I agree to this price, public opinion will turn against me. Even now, the media is writing articles every day saying that we shouldn’t sell it for cheap. As you know, Magnetic is one of the important companies in Japan… … .”

Seeing him doing his best in his own way, I stepped forward again.

“I know. We also know that Magnetic is an important Japanese company. But in the current situation, that proposal is the best. I wonder if you don’t consider the possibility of Magnetic going bankrupt. The controversy over the low price could be seen as the incompetence of the Japanese government.”

“That, that kind of thing!”

I know, I know, I’ve crossed the line.

But, because there was a villain like me, Hyun Ki-hyuk could handle things like a gentleman.

In fact, Hyun Ki-hyuk steps forward once again.

“Well, there’s no need to jump to conclusions. In fact, there may be opportunities for Magnetic to negotiate with other places.”

Sato Aoi nodded with a worried expression.

Whether you agree to a quick conclusion or whether there are other negotiating partners.

This time I couldn’t figure it out.

“Anyway, I have heard both proposals. However, this is not an issue that we can easily decide on, so please give us more time. We also need to review it internally.”

I meant to stop here for today.

Hyun Ki-hyuk and I nodded in agreement, stood up from our seats, and extended our hands to the people across from us.

“Well, I look forward to seeing you again soon.”

“Yes, me too… … .”

Sato Aoi glances at me, her words trailing off.

There was a hint of slight weariness in his eyes.

At that, I throw another word into my head.

‘It’s no use wasting time, so raise it a little. Okay?’

I really don’t think I can buy it for 400 billion yen.

However, spending too much money was not included in our scenario.

A reasonable compromise was needed.

For this, I hope the Japanese government will make a bold decision.

I look again.

(2)

Sato Aoi has a bad expression as she leaves the negotiation room.

There were a lot of reporters gathered in front of the hotel, so I forced myself to smile.

‘It’s hard.’

That didn’t work out well.

In particular, in response to a reporter’s question,

“Your Majesty, how much do you think an electric car parts company with sales of 1.8 trillion yen is worth?”

I started having trouble controlling my facial expressions.

“Negotiations between Magnetic’s management and potential investors have not even begun. I think it would be inappropriate for me to discuss value at this point.”

“There was an outlook that it would be sold at a bargain price?”

“Do you think that the accumulated deficit was due to the incompetence of the management?”

“I won’t take any more questions today. I’ll hold a separate press conference, and we’ll discuss the magnetics issue together then.”

And then a while later, as soon as I got in the car, I called someone.

“It’s me. Sato.”

– Ah, Your Majesty.

He is Makoto Koji, the CEO of Magnetic.

He was the one who caused the current situation.

– How much did they offer you?

“It’s just as bad debt. It’s hard to even look into it.”

– ah…….

“It seems like the creditors want to deal with it quickly, so it’ll probably be between 400 billion and 500 billion yen.”

– Public opinion must be no joke. A company worth 1.8 trillion yen, and a future industry at that… They’re selling it too cheap.

Even though he was the CEO, Makoto Koji had no power.

It also brought about Magnetic’s accumulated deficit, and basically, the company on the verge of bankruptcy had the power over the creditors.

That means Japanese banks will soon be at the negotiating table.

But the reason Koji asks Sato for this is because he treasures the magnets that much.

“I looked at Magnetic’s financial statements. They were miserable. What if they have 1.8 trillion yen in sales? Looking at the projections for this year and next year, the deficit is expected to get worse… … .”

– That’s because domestic automakers are slow to switch to electric vehicles. Don’t you know that?

“Then, shouldn’t we have expanded globally?”

– … … .

There was no answer as to whether the mistake was acknowledged or not.

Koji doesn’t know anything about business because he’s an engineer.

‘Hey, if you’re not good at managing, you should have quickly raised or brought in someone else.’

Koji couldn’t openly criticize her, so he kept thinking like this to himself.

“Anyway, the Prime Minister wants this sale to be concluded quickly. Do you know that?”

– yes…….

Sato’s face crumples as he hangs up the phone.

“phew…….”

Now it is time to report to the Prime Minister.

I have to let you know that the results of today’s negotiations are not very good, but I’m already worried that I’ll be criticized.

‘Hey, I don’t know.’

Anyway, he was a prime minister whose approval rating was not good.

Now, there is no reason to look good to him, so Sato’s heart is filled with thoughts like, “Let it be.”

Meanwhile, Jang Su-myeong and Hyun Ki-hyeok arrive at Magnetic to look around the company.

(3)

“welcome.”

The voice welcoming me and Hyun Ki-hyuk was Makoto Koji, the CEO of Magnetic.

Known for being incompetent, he was an engineer by training.

So I heard that they were making the highest quality electric car parts, but they had nowhere to sell them, so they were sitting in inventory.

Naturally, our questions as we exchanged greetings and headed toward the factory were related to inventory.

“By the way, how much stuff do you have in the warehouse?”

“Fortunately, Doiota Automobile will be coming to see the items next month.”

This is close to a double standard.

Without giving any figures, he replied that he would show the goods to a major Japanese automobile company.

‘It seems like you’re in quite a hurry.’

So this time, I stepped in instead of Hyun Ki-hyuk and stabbed him hard.

“You don’t have so much inventory that you can’t even put anything in the warehouse, do you?”

“If we negotiate well with Doiota, I think we can reduce some of the costs.”

“The factory isn’t shutting down in the meantime, right? Since some of the production has been cut down, wouldn’t it produce more?”

“So, so… we are negotiating with other automakers.”

“Where else?”

“There’s Naisan, and there’s Honda… … .”

“They are all Japanese automakers.”

Just like before, I was so direct that the person in charge of the interpretation was flustered.

“As time goes by, inventory will pile up, and then the deficit will get worse. Hmm, there may not be a solution right away, but why was the Minister of Education, Culture, Sports, Science and Technology so relaxed? Are there any other places that are willing to take over?”

“I’m also good at that… … .”

Koji was bad at lying.

‘There isn’t any. You can tell just by looking at it… ‘

Compared to this person, Sato felt more experienced earlier.

It was the same when I toured the factory a while later.

Although there is a lot of specialized knowledge,

“This is a heating component, and our magnetic products have the highest power efficiency in the world. This is because we also produce the reactor, which is a key component for power conversion… .”

Clearly, the intention is to add a premium to the selling price.

‘Isn’t it too obvious?’

The problem was that no matter how good a product was made, there were only a limited number of places to sell it.

Some may ask why we couldn’t go global now, but it’s not easy to break into the market because it’s already dominated by Korean companies.

Because when you look at quality alone, it doesn’t have an absolute advantage.

So when we got to the warehouse a while later, we looked at the inventory and shook our heads.

‘Tsk tsk tsk.’

‘There’s so much inventory that we have to put it outside the warehouse.’

Shouldn’t we dispose of it quickly at this point?

After a while, after looking around the company, we came to the following conclusion on our way back to our accommodations.

“There’s no need for us to rush.”

“That’s right. I feel like postponing the meeting with the creditors tomorrow.”

But there was no need for that.

The next day, the creditors… … .

“I think the amount has been roughly decided, but I wish the timing could be expedited.”

From the beginning, I came out with a white flag.

Could it be that the pressure from the day before had an effect?

‘Whatever, I wonder if we can get it done faster than expected?’