The Magician’s Memorial - Chapter 387



Only Krnovel

387. Timing (2)

After negotiations with the Hess Board of Directors.

Had a small drink with David and Dimon.

“Boss! Thank you for your hard work. Even Hess is part of the Taewoo Group. It was unthinkable even 10 years ago.”

“It’s all thanks to David’s hard work oiling it for 10 years.”

“Although the Taewo Group is certainly a Korean company, some in the U.S. political circles view it as an American company. They have invested a lot in the U.S. and the chairman is an honorary U.S. citizen.”

An astronomical amount of money was being spent every year for relations with the United States.

In addition to political lobbying, a huge amount of money was invested in the United States, including building new factories.

Of course, it was an investment made because there was so much left over, and this acquisition of Hess was only possible because of the investments made so far.

“Now that the negotiations are over, we will launch the consortium. Fintech banks and CITI Group have already prepared funds. We have also received notification from IT companies that all funds are ready.”

“We could acquire Hess and Cheshire Peak within this year.”

“Boss, when do you plan to start acquiring Cheshire Peak? The Cheshire Peak board of directors has also contacted me several times saying they would like to proceed with negotiations with Boss.”

Cheshire Peak was more urgent than Hess.

Still, in the case of Hess, I was able to endure it because he was in a decent weight class.

Cheshire Peak had a short history, so it lacked the stamina to withstand the era of low oil prices.

“Since I’m in the U.S., I guess I’ll have to meet with the Cheshire Peak board of directors.”

“Actually, there is no need for the boss to conduct the negotiation himself. I can negotiate on my own, or it is enough for one boss to conduct the negotiation. Cheshire Peak has no one to lend a hand to except us.”

“Still, you have to give me the last courtesy.”

“Then, I will adjust the conditions on my own before starting negotiations.”

“Please provide generously. We are also providing extra severance pay unofficially. You must provide it so that it does not fall into the ears of the Hess Board of Directors.”

In the case of Cheshire Peak, it was a company that was a partner with us.

And if we had not recommended Texas shale gas development, the situation would not have been this difficult.

That’s why I felt a little sorry.

I was planning to repay my regret with an unofficial severance pay.

“I will take care of you so well that you will not have to worry about old age. However, Cheshire Peak does not have an atmosphere where you resent the boss. Rather, the atmosphere is stronger because you are glad that you have something to do with Taewoo Group.”

“That’s surprising.”

“There is talk going around that if Taewoo Group becomes the parent company, it will be able to develop shale gas not only in Texas but also in other regions.”

“It’s not wrong. I plan to proceed with shale gas development as much as Cheshire Peak wants.”

The era of low oil prices will continue for the next few years.

However, shale gas development could not be stopped.

The era of low oil prices will not last forever, so development should be done now so that large profits can be made when crude oil prices rise.

“I really need to meet with the Cheshire Peak board and tell them that story.”

“Not right now, but in the second half of next year we will be acquiring several more oil companies that are on the verge of bankruptcy. So please be prepared.”

“If the current era of low oil prices continues until the second half of next year, there will be countless companies going bankrupt. I don’t have to worry about taking over without making any preparations, but I will prepare in advance.”

The era of high oil prices will not come as much as before.

But oil prices would rise higher than they are now.

When oil prices entered a stable period, the value of oil companies was bound to rise.

At that time, in order to make a big profit or make a profit by selling the company, you had to take over the oil company next year even if you had to endure losses for about two years.

“Of course, oil prices will rise slightly in the first half of next year. However, they cannot recover as before, so oil companies’ deficits will continue to pile up.”

“It is very disappointing to hear that oil prices will rise starting in the first half of next year. You can make a profit by betting long on crude oil futures, but the profit is not as much as when you short sell.”

“All we have to do is proceed with another short sale.”

“As expected, you have a plan! Where next?”

It was Dimon whose eyes changed dramatically.

He must have been heartbroken to think that he could no longer make such profits after making huge profits due to the drop in oil prices.

“We will make a small profit from rising oil prices until the first half of next year, and target China from the second half of the year.”

“There must be a lot to eat in China!”

“It won’t be easy. It’s not an open market like Japan or the U.S., so access may be difficult.”

“As long as I can clearly know the item and time, I am confident that I can make money even in North Korea, which is more closed than China!”

Dimon shakes his butt.

But since it wasn’t something to start right away, I calmed him down.

“The exact items and timing will be announced soon. So please focus on the consortium and the oil price increase project.”

“I can focus with a happy mind.”

It was Daimon who had regained his composure due to the appearance of a new prey.

I was confident that I would continue to put food in my mouth for at least 10 years, and after 10 years, I was able to build a system that would automatically bring in money without me having to do anything.

* * *

I had a really busy November of 2014.

He stayed in the U.S. and completed negotiations with Cheshire Peak, and has now flown to China to acquire a 20% stake in the Guyana fund held by Chinese oil company CNOOC.

“Chairman Kim, are you here? It’s so nice to see you often.”

“I am also honored to be able to see you often, Mr. Li Kang.”

Li Kang had a bright expression.

I think he finished the homework I assigned neatly.

“We have decided to sell the Guyana fund owned by CNOOC to Taewoo Group.”

“It must have been not easy, but you worked hard.”

“It wasn’t that difficult. Perhaps because it is a company that still has a deep relationship with the Chinese government, we moved at the party level and immediately announced our intention to sell.”

“It’s thanks to Governor Li Kang’s move.”

“Oil prices continued to fall, and CNOOC’s deficit continued to pile up, so there was no need to use any additional effort.”

“I will purchase the shares at the market price. Instead, can I pay the cost of the premium as a donation to the Prince’s Party rather than CNOOC?”

Why did Li Kang have such a hard time?

In the end, it was to move to the center of power, and although a huge amount of donations had to go to the Prince’s Party, it also benefited Governor Li Kang.

“I would be grateful if you could proceed that way.”

“We will prepare a donation that will not be used in Mr. Li Kang’s name.”

“Hehehe, it’s so nice to talk to Chairman Kim so well.”

“I also feel comfortable with Mr. Lee Kang, as if we have known each other for a long time.”

I could do as much as flattery.

Why would it be difficult to say a few sweet words if you could benefit from flattery that costs nothing?

“If you need my help in the future, please contact me at any time. If it’s from Chairman Kim, I’ll wake up and answer it even if I’m sleeping.”

“Do you have any connections with shipping companies or ship owners?”

“Of course, of course. By the way, are you interested in a shipping company?”

“I’m not interested right now. But I’m telling you this because I think I might become interested soon. When that happens, can I ask you for help?”

Hyunjin Shipping’s bankruptcy is not far away.

If Taewo Group were to acquire Hyunjin Shipping, negotiations with Chinese shipowners were necessary.

Hyunjin Shipping has signed large-scale charter fee contracts not only with European and American shipowners, but also with Chinese shipowners.

In order to conclude a new charter fee contract, it was only possible with support or threats from the Chinese government.

“If it is Chairman Kim’s request, of course we must accommodate it. Please do not feel pressured and contact us. We need to form a strong relationship with the ship owners in advance.”

“Activity expenses will be fully supported by Taewoo Group.”

“Wow, everything seems to be going smoothly after meeting Chairman Kim.”

Li Kang was under the illusion that he was receiving help.

Rather, I was the one receiving help, and more accurately, I was taking advantage of him.

But since the person being used likes it so much, there’s nothing wrong with me.

* * *

After completing my schedule in the US and China, I returned to Korea.

As soon as I returned, I called in a CEO and started a meeting.

“Are you coming straight from the airport? You probably won’t be able to adjust to the jet lag, so it seems like it would be a good idea to get some sleep.”

“I slept a lot on the plane. How is the consortium going?”

“The consortium was launched while the Chairman was in China, and the acquisition agreement can be signed within December.”

Consortium preparations used to take several months or even a year.

However, in the case of this consortium, it was possible in a short period of time because it was carried out with companies that were closely related to Taewo Group.

“Now that the consortium has been launched, I guess I’ll have to get out of short selling.”

“As of this week, Taewoo Securities has stopped short selling. The remaining financial companies in Financial Tower are still conducting short selling.”

“It looks like your stomach hurts.”

“Honestly, it hurts a little. While others are earning money, we are only sucking our fingers, so we end up going to the bathroom more than three times a day.”

“Oil prices will soon enter a stabilization phase. So, it is not a bad choice to sell off all the supplies in advance. Some financial companies that are greedy until the end will not be able to sell all the supplies and will suffer huge losses.”

Gambling and oil futures trading were similar.

There were many cases where we ended up losing while shouting for just one more game.

It was a game in which success could only be achieved if one got out of the game quickly, even if one suffered only a small loss.

“As the Chairman said, we are preparing to invest in the rising oil price market starting next year.”

“Even if you don’t make as much profit as when oil prices fell, you will be able to make a decent profit.”

“And I don’t know if it’s good news or bad news, but there’s a rumor going around on Wall Street.”

“What is this rumor?”

A president was smiling delicately.

When I made a gesture, it was a CEO who scratched his head and started talking.

“It seems like the short sellers have bitten the bait we spread.”

“You can catch fish with bait like that.”

The bait we spread was the acquisition of an oil company.

The rumor that Taewo Group was running out of money due to the acquisition of a large American oil company was created as bait and spread around Wall Street.

“It is said that short-sellers are making a large-scale attack on the affiliates of Taewo Group, which acquired the oil company.”

“Sergeant Taewoo will be the target of the attack.”

“I wouldn’t be worried if it were another affiliate, but I’m worried because it’s Taewoo Trading. All businesses, including rockets and underground resources, are seeing huge losses. If the oil company is added to the mix, the size of the deficit will be even bigger than it is now.”

I could understand President Han’s concerns.

In the case of Rocket, an internet commerce business, it was seeing losses in the hundreds of billions of won.

In the case of underground resources, the company was seeing a deficit in trillions of dollars, so unlike other affiliates, it was under pressure from a huge deficit.

“When did short selling become based on performance? In the end, winning or losing depends on money.”

“That said, the leader of the short sellers is James Carnos.”

“It looks like the king of short selling is very angry.”

James Canos, who attacked Tesla.

However, due to the enormous support of Taewoo Group, they suffered huge losses and had to retreat.

Therefore, he must have been waiting with a grudge against the Taewo Group, and seemed to think that now was the time to attack.

“If the king of short selling moves, several private equity funds will follow suit. Is that okay?”

“It doesn’t matter. This will be a chance to show you what it’s like to press with money.”

If the battlefield was Sergeant Taew, it would have been more advantageous for us.

According to information known to the world, Taewo Group’s stake in Taewo Trading Company was only 40%, but in reality, my stake was more than 70%.

Attacking Taewo with the remaining 30% stake?

I was confident that I would let the king of short selling experience another failure.