The Chaebol Who Flies From Space - Chapter 16
Only Noblemtl
16. 911
“That guy is real. Where on earth did that guy come from?”
As soon as the adults gave permission, Chairman Cho sighed as he watched Yongwon go out excitedly.
“Isn’t that because you take after your father?”
“Hey, I’m not that kind of evil person.”
“I didn’t know this before, but that guy is really vicious and crazy. How can he eat up a company as big as a toad for free without spending a single penny? If it’s a leveraged buyout (LBO), the collateral for the loan also becomes a toad. Wow! It’s so gross.”
President Cho Dong-won frowned at his younger brother’s words.
No matter what, the father felt bad when he heard his son call him crazy.
“No matter what, is it right to call my nephew crazy or evil?”
“No, it’s okay, hyung. If that guy were my enemy, I’d feel chills all over my spine. If I thought of myself being tricked by that kind of method, I don’t think I’d be able to sleep at night.”
“Don’t say it’s evil, say it’s ingenious.”
“Yes, my little son, it is strange to hear people say that the eldest grandson is evil.”
“No! Father, I really can’t help but speak harshly. You’re taking advantage of a company that makes 1 trillion won in sales and 100 billion won in net profit. And that’s just an ordinary company. If the economy picks up, the company’s value could go up to a certain level.”
Both agreed with that statement.
As long as the market is good, the toad is a goose that lays golden eggs.
“They’ve conquered the ramen market and now the soju market. Aren’t they going to rush in and take over the beer market?”
Chairman Cho burst into a pleasant laugh at his youngest son’s words.
“Haha, how great that would be. It would be nice to be busy in this bitter cold.”
“Because of that guy, I don’t have time to rest. No time to rest. The sales of the flour have increased more than tenfold.”
The younger son, CEO Cho Dong-jin, who holds the milling machine, is also good.
But the best one was his father, CEO Cho Dong-won.
How could I not be happy when my son is doing well and the family business is growing?
So the three rich men sat side by side and quietly drew a picture of a happy future.
***
As soon as the court dismissed the lawsuit to cancel the seizure of shares of major shareholders, the banks quickly acquired the 38% stake in Ddoobee Soju.
In addition, the company was also working on steadily purchasing shares of Dugeobi Soju in the market. The ultimate goal was to increase the share to 60%.
It seemed like it would not be too difficult to achieve, as there were a lot of stocks circulating in the market as the company went bankrupt.
I’ve been a little busy preparing to take over management rights through an extraordinary general meeting of shareholders.
What is important is not the management acquisition itself, but the work that follows. If we push forward like lightning to prevent speculative capital holding corporate bonds from coming to their senses, the aftereffects will be reduced later.
This kind of work is bound to meet with resistance.
The investment company created for the acquisition took up residence on one floor of a building near the KBS annex in Yeouido.
The M&A team has been working through the night for several days to prepare for the takeover.
Time to review the final preparations made so far before the general shareholders’ meeting. The acquisition team gathered for a final meeting.
“Has the company split plan come out?”
Team leader Seo Sang-gil, with a tired look on his face, organized the documents he had prepared one by one and presented them.
“We will split the company into the soju division and other divisions. The soju division, beer division, and liquor division were already divided, but we will completely separate them into separate subsidiaries. We will have to finalize the shareholding structure issue with the creditors later.”
“How much of the total shares have you acquired so far?”
This was the famous manager in charge of the stock team.
“I bought 15% in the market. I am adjusting it because I am afraid the price will go up too much if I try to buy more urgently.”
“If it’s 15%, it’s 53%. Please continue to buy more. If not now, you won’t find this kind of low price again. When the work is done, it will be a very clean company financially.”
“I will do my best to buy. Since most of the individual stocks seem to have been released into the market, I will focus on purchasing major shareholders’ shares over the counter for the time being rather than purchasing them in the market. If they offer a premium, I think I can purchase up to 10% more.”
“Please do your best.”
He was a famous section chief who was full of confidence.
“How much are you planning to buy?”
“I wish I could buy everything, but that’s not possible. Even if I scrape together as much as I can, I’d probably only be able to get about 70%.”
For various reasons, the items that are not on the market and the quantity held by speculative capital cannot be purchased.
The stock price was weak because there was no notice yet that the investment firm would acquire the stake held by the bank.
Once the company’s acquisition planning team enters the bankruptcy receivership appointed by the bank and completes the division of the company, the acquisition will be officially announced.
It would be foolish to just watch the stock price rise because it was obvious. You need to accumulate as many stocks as possible to run the company stably.
“What about Goldman? Are there any special moves?”
If you know what I have prepared, it is normal for you to react.
“There is no big reaction. It seems that they only know that the general shareholders’ meeting will simply divide the company to stabilize it. Everyone is focused on the properties that are pouring in after Daewoo’s bankruptcy.”
This was good. The toads were all treated like fish that had already been caught, and their minds were completely focused on the fresh products that had just come out on the market.
“Director Kim will be the administrator, right? Let’s all finish up. Just proceed as prepared.”
Kim In-young, who was brought in for M&A, was promoted to director. It seems that the administrator should be at the director level to exert his power properly within the company.
As soon as the OK sign was given, the expressions of the people who had been attending the meeting with tense faces relaxed.
“Thank you for your hard work until late. Shall we go out and have a light meal?”
“Okay, no one has eaten properly because of the preparations. Is the boss buying it?”
“Although alcohol is good, let’s go somewhere nice. I’ll buy you an expensive meal.”
As we were tidying up and relieving the accumulated fatigue with a light joke, Manager Jeong Sang-rak of the bond team hurriedly came into the conference room.
“Sir, there’s chaos.”
“What’s the fuss?”
Manager Jeong, who had become lost in thought, hurriedly turned on the TV in the conference room.
“It’s terror. It’s terror! Look here.”
On TV, scenes of giant airplanes crashing into tall buildings one after another were shown over and over again, filling the screen.
“oh my god!”
“···.”
Everyone, without exception, was staring at the screen as if they had lost their minds.
“Isn’t this CG?”
Someone muttered something like this, but no one answered.
The silence that lasted for a long time was soon broken. The sudden shock made it seem unrealistic, but everyone knew that this was not an ordinary thing.
Only the takeover planning team entered the conference room for the final inspection, but the rest of the staff were waiting outside just in case something happened.
I took a moment to sort out what was to come in my head.
“Please have everyone come into the conference room.”
The conference room was filled with people moving around busily. Since there were still few people, it was possible for all employees to gather in one conference room.
As I was about to speak, a huge sigh escaped my mouth without my knowledge.
Due to Ariel’s warning and ominous premonitions, we delayed investing in stocks and bonds as much as possible and only allowed investment in derivatives on a trial basis.
Since the position was also built conservatively, there was little room for major problems to arise.
“I only bought stocks, so there is no problem. I haven’t started buying bonds yet, so there is no problem. What about derivatives? There won’t be any problems. What about the market position?”
Daejin Kim, manager of the derivatives team, scratched his head.
“I have positioned myself with a straddle, so I don’t think I will suffer any losses.”
“Are you long or short?
“Of course it’s long.
Everyone in the conference room sighed. It was obvious that stock prices would plummet when the market shook so drastically.
You can hold on to stocks as long as they don’t go bankrupt, but derivative investments with a fixed time frame can result in huge losses.
If a company is shocked when it is first established, the road ahead will be full of thorns.
Since they were people who had experienced the collapse of their company due to the IMF, they were worried.
“What about the profit range?”
It was Manager Kim Dae-jin who had an awkward expression on his face at my words. When everyone’s attention was focused on him, he opened his mouth as if he had no choice.
“The profit range for a long straddle position is below the KOSPI 500 line and above 520. If the stock index falls below that, you make a profit. This is my first time doing this, so I can’t even calculate how much profit I’ll make. And everyone shouldn’t disclose the company’s investment direction to the outside. Shhh!”
He put his finger to his lips and urged her to keep the secret.
Long straddles generate profits when stock prices plunge or rise sharply. The deeper the decline or rise, the greater the profit.
When the market opens tomorrow, a crash is a given, and while we don’t know how much it will fall, the huge profits are as clear as day.
Looking at the brightening faces of the company employees, I thought of something to say.
When the market opens, everyone will be dying from the stock price crash, but if we go around laughing and saying that we are the only ones benefiting, we will get hit with rocks.
In times like these, the CEO must step in and control the mood of the company.
“As you know, New York is in shambles because of the terrorist attacks. The stock market is likely to fall, so it’s really important to manage your expressions at times like this. If we say that we are the only ones benefiting, we might be mistaken for being associated with terrorists.”
Manager Kim Dae-jin’s expression turned sour.
He seemed unhappy because the position he had worked so hard to create seemed to be being criticized.
“Manager Kim, don’t make that face. It’s against the rules for someone as big as Manager Kim to make that face. Anyway, it’s good that the company is making a profit, but this is a matter of emotions. As they say on TV, the American mainland has been attacked. This is the first time since the bombing of Pearl Harbor. Angry Americans will find a way to deal with them. You know what I mean. Keep your mouth shut. Our company’s investment amount is small, so the profits aren’t enough to be an eyesore, but just in case, let’s all calmly prepare for the toad shareholders’ meeting without getting excited.”
I felt relieved to see that the employees leaving the conference room seemed more calm than before.