The Magician’s Memorial - Chapter 88



Only Krnovel

Episode 88 Big Deal (1)

Grandpa had a really busy day.

Until last year, you spent more time abroad than in Korea.

These days, he couldn’t even go near the airport because he had so much to do in Korea, from meetings of the Federation of Korean Industries to meetings with the government.

“I don’t know why you treat people so poorly. “I’m not even a local drum, but they come from all over to play.”

“What else happened today?”

“The government is telling us to carry out a big deal centered on the Federation of Korean Industries. Do you know what it says there?”

Big deal.

It literally means a huge transaction.

This government was pursuing a big deal through exchanges between affiliates of large corporations to overcome the foreign exchange crisis.

“Has there been any suggestion to exchange Taewoo Electronics and Samjin Motors?”

“How did you know? “With what kind of feelings did I have when I raised Taewoo Electronics, and then they tell me to exchange it for Samjin Motors?”

A situation like this happened in a past life as well.

At that time, Samjin Group actually rejected the big deal.

He gave up after seeing Taewoo Electronics’ huge debt.

But this time the situation was the opposite.

Innophone improved the image of Taewoo Electronics.

Due to the restructuring I had already carried out, much of Taewoo Electronics’ old-fashioned feel has disappeared.

Thanks to that.

Taewoo Electronics’ domestic and overseas market share has risen sharply.

The most important part is that Taewoo Electronics’ debt ratio was 0%.

So it was understandable that my grandfather was upset.

“It is a loss for us to change Taewoo Electronics and Samjin Motors. “If you just look at the debt ratio and the sales and net profit ratio, it is a huge loss for us.”

“Do you think so too? So I turned the tables and came out saying no way!”

“Well done. But weren’t there any other big deals?”

“There was. “They say they are currently pursuing a merger and sale of CL Group Semiconductors to Electronics.”

My mouth watered without even realizing it.

Thinking that he might be my grandfather’s grandson, I also became eager to acquire a company.

“CL Group semiconductors are being transferred to the current group.”

“It looks like you’re feeling sad too. I ran into a lot of trouble when I tried to start a semiconductor business in the 80s. “But I still have a desire for semiconductors.”

“The semiconductor business is a money eater. Of course, once it stabilizes, it will become a more powerful cash cow than any other business, but it costs too much money at the previous stage.”

“Everyone knows this, and that’s why the late chairman of CL Group went on a rampage. They are taking away the semiconductor business that is doing well. “I must have been angry because I had made all the initial investment, which cost a lot of money, and now it was being taken away.”

The relationship between the previous administration and the current group was the worst.

However, this administration was friendly to the Hyunjae Group, and there was a high possibility that it would have pushed CL Semiconductor to the Hyunjae Group.

“Chairman Go must have been very heartbroken.”

“They said they would withdraw from the Federation of Korean Industries. “I managed to stop him, but it looks like he won’t be attending the Federation of Korean Industries meeting for the time being.”

“Chairman Go’s anger will subside in two to three years.”

“Why do you think that? I’m saying this because you don’t know how much of a brat the late Chairman is. “If he does it once, he will do it until the end.”

CL Group was a famous aristocrat.

The characteristic of a nobleman was that he was stubborn, and once he was offended, it lasted his whole life.

“Wouldn’t you feel relieved if the current semiconductor company fails?”

“Hehe, do you think the current semiconductor industry will fail? “The current group’s semiconductor technology is recognized globally.”

“That is possible because Chairman Jang Ju-young is here.”

“I heard that Chairman Jang’s health is getting worse… … .”

The Prince’s Rebellion of the current group.

It was already happening, knowingly or unknowingly, and it would become full-fledged in just 2-3 years.

“It is clear that the current group will be torn apart. “Because there are so many children, the groups are bound to be divided.”

“Chairman Jang was also worried about that. “He wanted to hand over the group to his eldest son as much as possible.”

“Then wouldn’t you at least pass on semiconductors to your children except your eldest son?”

“I think the semiconductor business will become independent from the current group!”

“I’ll say it again, semiconductors are money-eating hippos. In particular, it is a business that has cycles. “In good times, we spend money, but in bad times, we run huge deficits.”

Grandfather focused on what I said.

This was because he brought up semiconductor cycle theory, which I was still unfamiliar with.

“Are you saying that semiconductors have booms and busts at regular intervals? And will there be a recession sooner or later?”

“That’s right. Support from the parent company is essential to overcome a recession. However, if we become independent from the current group, we will no longer be able to receive support, so Hyunjae Semiconductor will be put up for sale again.”

“At that time, did you mean to take over Hyunjae Semiconductor?”

Grandfather’s expression brightened immediately.

He had a bright expression that only appeared when talking about a company acquisition.

“This means that we will acquire CL Semiconductor and Hyunjae Semiconductor at the same time at a cheaper price than now.”

“Hehe, that’s very good. “I really need to have the money to acquire the current semiconductor business.”

“I could be wrong, but do you plan on holding on to the money?”

“When have you ever told a lie? “After the IMF broke up, I decided to believe everything you said.”

Should I like this?

Even though he had changed, my grandfather had changed so dramatically.

It went beyond belief in me and was seen as fanaticism.

“I may make a mistake. “I need your advice.”

“If you feel like you need advice, of course you should give it. But it looks like you don’t need any advice yet. “After taking over SS Oil, I will soon be taking over Kai Motors, so what advice do I need?”

There was a reason to believe in me.

Because we are acquiring affiliates rather than selling them.

My grandfather was showing his fanaticism toward me as he was acquiring several companies without increasing his debt.

“And was there anything else that came out of the meeting?”

“There was talk about reforming the governance structure of conglomerates. “They told us to increase internal ownership and create a board of directors to manage the company.”

“It would mean creating a system like the United States. “I think we should do that by purchasing our own shares and increasing our stake.”

“I was already thinking of doing that. Why did Taewoo Shipbuilding move to Hyunjae Group? After all, isn’t it because the stake I hold is small? “If you don’t want something like that to happen again, you have to hold on tight.”

After the foreign exchange crisis, the governance structure of conglomerates changed significantly.

The era of wielding imperial power with a small stake was over.

Of course I thought my grandfather would oppose this policy, but instead he came out in favor.

I never thought that robbing Taewo Shipbuilding to lower the debt ratio would help in this way.

“ah! “We are also planning to acquire several music distribution companies through Taewoo Electronics.”

“Are you trying to get into the music business?”

“We are planning to run a music distribution business through the Internet. “I plan to list Taewoo Electronics’ IT department as an affiliate in the near future and proceed with Internet-related business.”

“Do whatever you want. “I think it would be okay to move the movie theater and multiplex sectors there as well.”

As expected, he was an infinitely benevolent grandfather when it came to acquiring companies.

If you want to be loved more by your grandfather, you have to succeed in acquiring Kai Motors, right?

I’m going to go see if Dimon is doing a good job.

* * *

It was Dimon, who was working in Captain Kang’s office.

When I arrived at the office, he gave me a thumbs up, indicating that something good was happening.

“Kai Motors has decided to submit to international bidding.”

“How many bids have been made? Of course Hyunjae Motors jumped in, right?”

“Hyundai Motors is a natural choice, and Samjin Motors joined hands with GM and entered the acquisition race.”

what?

The history I knew has changed.

Samjin Motors should have joined hands with Ford and entered into the takeover battle, not GM.

But in this life, I joined hands with GM.

Is it because of me?

Taewoo Motors formed a joint venture with Ford.

Samjin Motors would have been reluctant to join hands with Ford, and seemed to have joined hands with GM as the next best option.

“Samjin Group took a gamble. If they stay like this, Samjin Motors will be taken over by someone else due to the government’s big deal policy, so they are trying to take over Kai Motors. “It won’t be easy.”

“So SAVE Investment Company and Ford decided to join hands and jump into the takeover battle.”

“Why Ford? “Are you trying to sabotage GM so that he can’t eat it?”

“I gently seduced him. “GM was going to play a prank to keep Kai Motors out of business, so I reached out to him asking if he wanted to join me, and he quickly grabbed my hand.”

As expected, it was a good idea to entrust the work to Dimon.

I can’t believe you’re trying to drag Ford into the wind.

“Make other companies pay a lot of attention to Kai Motors.”

“We have prepared Kai Automobile’s accounting fraud data. And even if I don’t shake it, it seems like it will shake on its own because the Kai Automobile union is continuing to strike.”

I left everything to Dimon.

He has made and shown solid results.

In the first bid, they showed accounting fraud data and strong labor union data to induce a rejection.

In the second round of bidding, the company went to the extent of fighting with the creditors.

* * *

The third round of bidding for Kai Automobile was conducted.

The creditors’ expressions were very dark as SAVE Investment Company and Ford gave up the bid by pouring harsh words at Kai Motors in the second round of bidding.

In that situation, my grandfather and I stepped forward.

Kai Auto’s creditors were happy to meet the new Taewoo Group in the third bidding, as if they had met Dong-A Jul.

“Since everyone is busy, I will explain the conditions briefly. “If you forgive KRW 5 trillion in debt, we will acquire Kai Motors for KRW 3 trillion.”

My grandfather came out strong from the beginning.

The creditors swallowed their saliva and spoke quietly.

“5 trillion in debt forgiveness is too much.”

“I roughly know the conditions presented by the current car. They decided to give 1.2 trillion won in cash and 2.5 trillion won through equity-to-equity conversion, right? “Wouldn’t 3 trillion won in cash be better than an investment-for-equity conversion where you don’t know when you’ll receive the money?”

In the current situation, the most likely buyer was Hyunjae Motors.

However, Hyunjae Motors was short of cash, and attempted to convert debt into stock through an equity-to-equity conversion method.

“Hmm, since you already know, we’ll talk comfortably. There will be no cash coming in right away, but if Hyeonjae Motors acquires it, won’t the stock price of Kai Motors also rise? In the long run, equity-to-equity conversion may actually save more money.”

“I’m not finished talking yet. They give 3 trillion won in dollars, not won. I know that banks are in trouble these days because they don’t have enough dollars. “Wouldn’t 3 trillion won of dollars be helpful?”

“Yes, but that is too much of a condition.”

A tense tug-of-war continued.

My grandfather treated the creditors like children.

In the end, negotiations were concluded with both sides making concessions.

“Then let’s say we pay 3.5 trillion won in dollars. This would be a much better condition than other companies. “If there is a company that offers better terms than these, I will give up.”

“I will contact you after the creditors’ meeting.”

Is it necessary to hold a creditors’ meeting?

Samjin Motors and Ford offered an amount that was far below the conditions we had offered.

It was obvious that Hyunjae Motors would not be able to offer better terms due to lack of money.