World Domination through Planet Development - Chapter 102



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Episode 102. Suspicion of Daehyun Motors Hostile M&A

Economic depression caused by the Chinese Civil War.

After the civil war broke out in China, not only the global economy but also the South Korean economy faltered, and the KOSPI index fell below the 1,000 point low before rising again.

It could be said that this was thanks to the quick conclusion of the Chinese civil war, and this was true for the entire world, including South Korea.

And since the area damaged by the war in China was not that large, economic recovery was also proceeding quickly during this period.

There was a company whose stock price was recovering faster than any other company. In fact, it was even surpassing the pre-war level.

These are the three main companies of the Daewoo Motor Group.

The three companies were Daehyun Motors, Ace Motors, and Daehyun Mobis.

A control structure that creates circular investment.

The governance structure of Daewoo Motor Group takes the form of a ring in which these three companies form a circular investment structure.

Therefore, it is no exaggeration to say that it has a structure that is very vulnerable to hostile takeovers. This is especially true since the stake held by the chairman’s family is not that large.

So what does this circular investment structure have to do with their current rising stock prices?

This is because movements that are presumed to be signs of a hostile takeover were appearing.

To be exact, there is one rumor that is estimating that.

Rumors began to spread through online stock-related communities that stocks were being purchased in the names of about 20 unidentified hedge funds.

Title: Is it true that Daehyun Motors is being acquired by M&A?

I was wondering what was going on because Daehyun Cha’s stock price was skyrocketing all day, so I stopped by after a long time, and someone is trying to buy it. Is this real? Should I buy it now, guys?

-Yeah, that’s right. Buy it quickly.

-Because Mars is so cool~~

-300,000 Daehyun cars, let’s go~

-Isn’t it just that overseas investment companies bought it because it was at a low point? Is that credible?

└You get out.

-Yeah, it’s all already been reflected.

-I’ve pulled the loan all the way to the main branch. You, get on board quickly.

Community users spread rumors that all of these hedge funds were in cahoots, which drove up the stock price of Daewoo Motor Group.

Currently, Daehyun Motors’ stock price is close to 300,000 won.

If you look at it before the civil war, it’s not that it jumped that much, but if you look at the prices that went down because of the civil war, it can be seen that it went up a lot compared to other companies.

Wasn’t it originally a top-tier company in South Korea? So, it was difficult to reach the upper limit, but it was still breaking new records day after day.

* * *

Daehyun Automobile Group Chairman’s Office.

Although there were only two people in the room, the atmosphere was extremely heavy.

Chairman Jang Woo-seon was sitting in his seat.

He was looking at some documents intently, frowning deeply.

Swish.

Chairman Jang Woo-seon roughly hands over documents.

The pupils were moving rapidly.

The document he was currently looking at contained a list of business names written in English, with the shares held by each listed for easy identification.

“So you’re saying that all these companies here could be one company?”

“Yes, that’s right.”

When Chairman Jang asked, the chief secretary standing in front of him answered.

The list of businesses being viewed exceeds 20.

“… 0.18% for Daehyun Mobitz, 0.21% for Daehyun Automobile, 0.115% for Ace Automobile, that’s a lot.”

Jang Woo-seon was checking each and every one of the many companies he owned without even being able to calculate their total stock holdings.

“So, what is the total amount of money these companies currently hold?”

After Chairman Jang Woo-seon read the entire page, he asked.

The final results are listed on the next page, but the chief secretary answered Chairman Jang’s questions faithfully.

“Yes, based on yesterday’s stock price, it is worth about 10 trillion won.”

10 trillion won. It was an amount of money that ordinary people would not dare to mention.

“What do you think the probability is that these companies are hedge funds targeting our company? From what I’ve seen, it looks like some of these companies have been collecting steadily for quite some time.”

The most important thing was whether they were really one company. If not, it was just a laughing matter.

“… Considering that, the chances may not be that high, but I think it can’t hurt to prepare.”

“Don’t you think the amount of money you have to prepare is too large?”

“… … .”

The chief secretary was unable to respond to Chairman Jang’s reprimand. However, Chairman Jang, who had said that, also had an intuition that this was not a normal case.

It is not just a vague guess, but the aftermath of the Chinese civil war has really frozen the whole world. It is not that investment companies are not affected by it.

Rather, they were even more anxious to somehow recover the funds, as it was difficult to guess how long the civil war would last.

But how many people would want to spend cash at such a time? And that money is going to Daehyun Motors? If there were a lot of cash assets at that time, there would have been plenty of companies other than Daehyun that could have picked them up.

This timing is too damn coincidental.

There was one place that came to mind for Chairman Jang Woo-seon, but it was not something he could be certain of.

Chairman Jang Woo-seon stopped doubting and started calculating again.

“10 trillion won… I think my stake was around 15% in Daehyun Mobitz, 7.5% in Daehyun Automobile, and maybe 2% in Ace? How much is it all combined?”

“Based on yesterday’s stock price, it is worth about 11 trillion won. Including the family members’ stake in Daehyun Motors, it is worth 13 trillion won.”

The chief secretary answered right away, as if he had calculated everything in advance.

Chairman Jang thought about the words family share.

I don’t think there’s any need to include the family’s share here at all. I thought that might actually be a bad thing. It’s not like they can’t betray.

Even excluding the family’s money, the difference was about 1 trillion won, but Jang Woo-seon did not think that was a big difference at all.

“Do you know about the American hedge fund Ellison that targeted our Daehyun a few years ago? Do you know how much money they had at that time?”

“… I understand it’s worth about 1 billion dollars.”

It’s an absurdly small amount compared to the current situation.

But even at that time, Daehyun Motor Group was in quite a difficult situation.

“Yes. They hindered us for less than 1 trillion won. But they are saying they are giving us 10 trillion won, which is ten times that amount?”

“… … .”

The chief secretary couldn’t bring himself to answer that question.

“Hmm… .”

A slurred voice flowed from Jang Woo-seon’s mouth.

The failure to reorganize the governance structure by American hedge fund Ellison.

I’m proud to say that I’ve regretted it before, but not as much as I did today.

There is a saying that business should be done with other people’s money.

But now that I think about it, I even feel resentful toward his grandparents for trying to do too much with other people’s money.

If we hadn’t done that in the first place, we wouldn’t have grown into a group like this.

“First of all, let’s start purchasing defensive shares right now. Mobilize all the funds from Daehyun World Biz and my personal investment company.”

“Yes, I understand.”

Daehyun Worldbiz could have been a fund with the clear control of Chairman Jang Woo-sun that was not included in the circular investment structure, and the same was true for private investment companies.

It was obvious that there would be a huge loss since the stock price had risen a lot, but there was nothing I could do.

“And the outside directors… .”

Chairman Jang Woo-seon hesitated to speak.

I tried to order supervision of the outside directors, but there were too many of them for that to be possible.

“First of all, assign supervisors only to members of the Outside Director Candidate Recommendation Committee. In particular, monitor the chairman more thoroughly.”

He boldly carried out orders that could be problematic.

“yes.”

council.

It is the highest decision-making body for corporate management.

The same goes for Daehyun Motors.

The majority of Daewoo Motor Group’s board of directors are outside directors. On the surface, this means that the chairman’s power is not solid.

A compromise that strengthened the board’s powers also played a major role in preventing former US hedge fund manager Ellison from entering the board.

To be precise, it was the power of the outside directors, and because of that, at the time, the chairman himself was an inside director and the position of the outside director candidate recommendation committee chairman, but it got to the point where he had to hand it over to another outside director.

Since that incident actually occurred not that long ago, the chairman of the outside director candidate recommendation committee has been an outside director.

And while board members are elected through a resolution at the general shareholders’ meeting, the outside directors who make up the majority are a little different.

Elected from among candidates recommended by the Outside Director Candidate Recommendation Committee.

Of course, it is true that they also have a very close relationship with Chairman Jang Woo-sun… .

“The human heart is a thousand-mile deep water….”

There was no way that Chairman Jang Woo-seon, who couldn’t even trust his own family, could firmly trust them.

* * *

[This amount of purchase seems sufficient. Any further purchases are expected to be extremely cost-effective.]

Sarah made a decision after recognizing the series of circumstances.

“Really? Then stop it now.”

[all right.]

It was a story about purchasing shares in Daehyun Automobile Group. Sarah was directly controlling the company’s AI, and was using it to contact overseas hedge funds.

Jungwoo also has a basic understanding of things since he had heard a detailed explanation before.

As a matter of course, shares can only be bought if there is someone willing to sell them.

In a situation like now, it is clear that not many people would want to sell their stocks at the current price.

In addition, hedge funds spread overseas were shell companies. Of course, they were clearly operating companies, but they did not have the necessary staff.

Because we are entrusting the management of funds to other overseas investment companies, the costs are doubling depending on the transaction volume.

“I think people have a secret instinct.”

It’s a rumor, but isn’t it true? Right now, he’s targeting Daehyun Motors. To be exact, Ace Motors.

Anyway, despite the growing suspicions online, Daewoo Motor Group has not made any official announcements.

It is natural that they cannot speak about things they are not sure about, but this seems to have raised even greater suspicions among people.

If you look at the stock price continuing to rise.

“Or maybe it’s just a one-time thing.”

[I also think that one is much closer.]

Sarah agreed with the words that were just thrown out there as a gamble.

“okay?”

[Yes.]

Sarah has a view of the whole world, so she won’t talk nonsense.

Of course, you can’t read people’s minds, but you’ll probably lose the mood to some extent.

[And currently, Daehyun Motors is directly preparing countermeasures.]

“That’s right… .”

It didn’t matter.

Anyway, the target is not the entire Daewoo Motor Group. And fortunately, I was able to buy the shares at a lower price than I had originally planned.

It was due to the Chinese Civil War, but it wasn’t intentional.

“Should we call a shareholders’ meeting now?”

The shares already held by Jeong-Woo alone have the authority to convene a shareholders’ meeting.

I don’t know if he’s guessing it, but I’m curious about Chairman Jang Woo-seon’s reaction.