[046] The Hunt Begins, Part 2
Chairman Jin waved a sheet of paper in his hand.
“Are these numbers accurate? 2.37 trillion won?”
The acquisition team for Hando Steel, gathered in the headquarters’ conference room, exchanged brief glances before nodding.
“Yes, sir. They’re accurate.”
Vice Chairman Jin Young-gi answered on behalf of the team. Chairman Jin double-checked the figures before speaking again.
“If Hando Steel is valued at this amount, Daehyeon Group will definitely bid that much. And since Daehyeon already has expertise in steel, they’ll likely score better than us. So, what should our bid be?”
No one dared to speak. The bid amount was directly tied to the chairman’s determination to acquire Hando Steel. They knew he was determined, but translating that into a number was another matter.
Even the chairman himself seemed unsure of how to quantify it, so how could they answer?
Yet, there was someone who couldn’t avoid the chairman’s gaze.
“Manager Jin Young-jun, what do you think?”
“1.8 trillion won.”
The answer came without hesitation, surprising Chairman Jin a little.
“Why?”
“That’s the maximum our company, Sunyang, can offer right now.”
“Then Daehyeon will win for sure, won’t they?”
“We can’t afford to take on debt for this acquisition. We know Hando Steel’s value and our financial capacity. It shouldn’t turn into a money fight.”
“It’s a public auction. What else is there to fight with besides money?”
“We should emphasize that Sunyang will create the most synergy by acquiring Hando Steel. Daehyeon already has a steel division, so their synergy would be minimal.”
It was a convincing argument, and words come with responsibility.
“Then prepare a report on the synergy effects you mentioned if we acquire Hando Steel. Make it impressive enough to move the evaluation committee. You have a week.”
”…Yes.”
The response was uncertain, but not without substance. He seemed capable of handling his share of the work now that he was over thirty.
The chairman turned to others in the room.
“Is 1.8 trillion all we have? No other suggestions?”
“2.5 trillion.”
Hong Song-chul, the head of construction, casually tossed out the figure. All eyes turned to him, and Chairman Jin showed interest.
“What’s your reasoning?”
“To the creditors, there’s no difference between Daehyeon and Sunyang. The government will accept either. To avoid any noise about fairness, we need to submit a higher bid.”
Vice Chairman Jin Young-gi and Manager Jin Young-jun’s faces turned red.
Hong had dismissed their hard-prepared arguments as ineffective.
“Where will you get the extra money?”
“We have land secured by Sunyang Construction for apartments. We can use it as collateral for a 700 billion won loan.”
They had crossed half the dangerous bridge. The money could be arranged.
“How will you repay the 700 billion loan? You can’t just build and sell apartments on land that’s fully mortgaged.”
“Construction will handle that cleanly. Don’t worry, Chairman.”
Chairman Jin’s lips curled into a slight smile.
It was the most desirable answer.
Solve the immediate problem and skip the process. Even if something illegal or unethical happens, the responsibility falls on someone else, not the chairman.
He wouldn’t even need to lie about not knowing. It was the truth.
Trustworthy indeed.
“Seems like President Hong has quite a stash hidden away. To speak so confidently about 700 billion, it’s not just a dog’s name, is it? Haha.”
The room erupted in laughter, except for the two Jin family members.
Vice Chairman Jin Young-gi realized once again that President Hong had no intention of siding with him.
“As expected, Daehyeon is considering 2.3 trillion.”
“That’s typical of Daehyeon. Chairman Joo doesn’t play tricks.”
Chairman Jin and Lee Hak-jae were reviewing the letter of intent in the study.
“But Chairman, are you really thinking of investing 2.5 trillion?”
“Why? Does it make you uneasy?”
“The group’s finances will be shaky for a while.”
“Don’t scare me. I’ve thought it through.”
Lee Hak-jae’s expression didn’t brighten despite Chairman Jin’s relaxed demeanor.
“So, Do-jun, what do you think? Is there really no way besides money?”
I couldn’t meet the expectation in my grandfather’s eyes. Who could know what he was really thinking?
“Could you give me a hint? I really don’t know.”
When I voiced what Lee Hak-jae wanted to say, my grandfather looked between us and laughed.
“When selling a tree, you’d rather sell it to someone who’ll nurture it well, not someone who’ll chop it down for firewood.”
Both Lee Hak-jae and I widened our eyes.
“Chairman, do you think Daehyeon will resell Hando Steel?”
“What does it matter what Chairman Joo of Daehyeon thinks? As long as the one selling the tree thinks that way, isn’t that enough?”
“Ah.”
Lee Hak-jae finally understood Chairman Jin’s plan. This was why he had been asked to arrange a meal with the evaluation committee.
“Do-jun, was that enough of a hint?”
“Yes. If Daehyeon acquires it, they’ll build apartments on Hando Steel’s land and sell the steel plant equipment overseas. Hando Steel will disappear without a trace. But if Sunyang, new to steel, acquires it, we’ll do our best to restore Hando Steel. Isn’t that it?”
“Exactly. I gave too many hints, didn’t I?”
Will this strategy work?
Daehyeon also had powerful connections. Even if their goal was to resell, they would have plenty of supporters.
“So, how much are you thinking of for the acquisition fund, Grandfather?”
“Me? 1 trillion won plus 1 billion dollars. Even if I wanted to spend more, I don’t have the money. Haha.”
“Chairman, the gap is too big. A whole 500 billion…!”
Lee Hak-jae was pale, but my grandfather remained calm.
“Just spread the bait well. I’ll handle the fishing.”
The best tool for spreading bait widely is the media. Newspapers and broadcasts will pressure the evaluation committee by emphasizing the importance of saving the steel industry, the backbone of industry.
But…
Oh, my stingy old man. A 500 billion difference is risky…
Seeing my tense face, my grandfather chuckled.
“Do-jun, watch closely how your grandfather handles this. See how I use the government officials I’ve nurtured over the decades.”
I can’t just watch. Sunyang Group must win. So, I’ll have to break open my piggy bank. It would be even better to take on some debt.
When the foreign exchange crisis hits and cash flow dries up, my dollars will shine even brighter.
“Do-jun, you should head out. Isn’t your entrance ceremony tomorrow?”
“Oh, yes.”
“I’ve already called the president and dean. Occasionally, go to school and treat promising students to a drink. Make sure they’ll help you when you need it.”
“Yes, Grandfather.”
“By the way, there’s someone waiting outside to run errands for you. I picked a smart one, so he should be useful.”
Already? I was a bit surprised but accepted it naturally. I’ll need many people to act as my hands and feet in the future.
“Thank you, Grandfather.”
As I left the study, a young man bowed and handed me his business card.
“I’m Kim Yoon-seok from the Group Strategy Office. I look forward to working with you.”
“Hello. How many years have you been here?”
“Excuse me? Oh, four years.”
If he’s lasted four years, he’s endured quite a bit. He must either have strong patience or live without much thought—likely the former, since my grandfather chose him.
“You’re heading home, right?”
Kim ran to open the back door of a mid-sized car waiting at the entrance.
I hesitated briefly but got into the back seat.
I still didn’t know whose man Kim Yoon-seok was. It was time to act naturally. For now.
“Mr. Kim.”
“Yes.”
As the car entered the city, I spoke first.
“Who assigned you to me? Was it the Vice Chairman?”
“No, it was Director Lee Hak-jae.”
Director Lee, huh…
“Who do you report to? The strategy team leader? Or…?”
He glanced at me in the rearview mirror, surprised by my question.
“Aren’t you going to report everything I do? It’s no secret, so why are you surprised?”
“I’m sorry. It’s just that no one’s ever asked me that before…”
“Who did you handle before?”
“I was in charge of the guesthouse. This is my first time serving a family member of the chairman.”
Kim cautiously spoke, watching my reaction in the mirror.
“Director Lee instructed me to report directly. Is there anything I should be careful about?”
He’s quick-witted. Even though he’ll report everything, that question alone makes me lower my guard.
“No, just report the truth. It’s your job, but Director Lee is your superior, so you should follow his instructions.”
He seemed surprised by my unexpected answer and glanced at me again. I’ll know what kind of man he is by his choices.
When we arrived home, I gave him my phone number.
“I’ll use public transport to school, so you don’t need to come every day. I’ll contact you if I need anything.”
Ignoring Kim’s flustered expression, I went inside. It’s best to keep some distance for now.
“Uncle, should we join the Hando Steel acquisition race too?”
“Forget it. That’s not our league.”
Oh Se-hyun dismissed the idea without even looking up.
“Don’t be so quick to cut me off. I haven’t finished.”
“Are you going to manage it if we acquire it? No, right? We’d have to break it up and sell it, and there’s no time. The bidding will start soon, and finding buyers will take at least a year. There’s no guarantee we can resell it either.”
“Uncle, you’re absolutely right. What I’m suggesting is that we heat things up a bit in the acquisition race.”
At last, he met my gaze and took off his glasses.
“What scheme are you cooking up now? Isn’t it already a showdown between Sunyang and Daehyun?”
“I want to lend Grandfather a hand. I really want Sunyang to acquire Hando Steel.”
Oh Se-hyun let out a short breath and shrugged.
“Well, if that’s what the shareholder wants, the salaried CEO has no choice but to follow. So, what’s your plan?”
“First, we’ll submit a letter of intent and show what corporate raiders are really about. We need to make people see selling off a company to foreign interests as an act of betrayal.”
“And this will help Sunyang Group?”
“Yes, it’s part of Grandfather’s strategy.”
“What’s the acquisition price?”
“2.5 trillion won.”
“That sounds like it might be the highest bid.”
He doesn’t even flinch, knowing full well we have no intention of actually buying it.
“Just in case, we’ll add a condition to write off all debts. That way, there’s no chance we’ll accidentally end up as the buyers. If things go south, you’ll end up sinking all your money into this. Haha.”
“Miracle Investment, an American investment firm, has entered the race to acquire Hando Steel. They’ve boldly announced an acquisition price of 2.5 trillion won, showing strong confidence. Let’s hear from Oh Se-hyun, the CEO of Miracle Investment.”
”…Many companies come and go. Hando Steel is just one of them. We have no obligation to preserve it forever. We’ve accurately assessed Hando Steel’s value and are confident in our bid.”
“If selected as the acquirer, what are your plans for Hando Steel?”
“We’re merely investors, not managers. We’ll sell the steel plant to interested companies and the land owned by the company to construction firms.”
“That sounds like you’re admitting to being a speculative fund.”
“I find the term ‘speculative’ uncomfortable. What’s important is that the banks, as Hando Steel’s creditors, must choose the highest bidder. They need to reduce bad debts. Aren’t the banks at risk too?”
Chairman Jin, watching TV, threw the remote in anger and shouted.
“Get that bastard here immediately. How dare he try to take a seat at the table I’ve set!”
Chief Lee Hak-jae hurriedly rushed to Yeouido.