42- Yuwon Telecom (10)
#42. Yuwon Telecom (10)
[Yuwon Group Headquarters Large Conference Room]
Exactly one hour after the stock acquisition announcement of Vertical Movement and media interviews were reported.
The presidents of all affiliates of Yuwon Group and key personnel of the group gathered in one place and waited for Chairman Seong-cheol Jin with a firm expression.
– The president has arrived.
“Are you here, Chairman?”
“Are you here, Chairman?”
“Are you here, Chairman?”
All the presidents and key executives stood up in unison and bowed their heads to Chairman Jin Seong-cheol.
Contrary to the concerns of the executives, Chairman Jin Seong-cheol, who had a surprisingly calm expression, opened his mouth in a low voice.
“Everybody sit down.”
Chairman Jin Seong-cheol immediately called the executive responsible for the trend of affiliates.
“Director of Strategic Planning.”
“Yes, Chairman.”
“Come closer.”
“yes?”
“I mean, come and stand in front of me.”
“Ah… yes, Chairman.”
As the head of the Strategic Planning Office approached the table with a slightly flushed face, Chairman Jin Seong-cheol gestured and pulled his face closer.
– Puck!
Chairman Jin Seong-cheol, who kicked the shin as it was, ordered the staff in the secretary’s office to catch the head of the Strategic Planning Office who was stepping back, and then slapped him three times in succession.
– Pair! match! match!
Finally, when the lips burst and blood flowed down, Chairman Jin Seong-cheol’s hand cut was stopped.
Chairman Jin Seong-cheol said.
“The head of the Strategic Planning Office said that more than 10% of the shares in core affiliates were transferred, but he said he didn’t know anything about it.
“I’m sorry, Mr. President. To settle the situation…”
“Shut that mouth.”
Chairman Jin Seong-cheol waved his hand at the secretarial staff and said.
“Take that stuff away, and the head of Team 1 of the Strategic Planning Office comes in.”
“Yes, Chairman. Let’s go, Chief.”
Other executives’ expressions hardened even more as the executive with the position of vice-president was dragged away bleeding, but Chairman Jin Seong-cheol’s expression still looked calm.
Soon after, the head of Team 1 of the Strategic Planning Office came in, and the real meeting began.
Chairman Seong-Cheol Jin nodded to the head of Team 1 of the Strategic Planning Office and said,
“Since there is no one here who does not know the situation, recite the countermeasures first.”
“Yes, Chairman. As you know, hostile mergers and acquisitions are absolutely impossible with only 11.4% of shares held by MoreValue and Vertical Movement. According to the strategic planning office’s judgment, it was judged that M&A was mentioned with the aim of increasing the stock price. In order to comfort shareholders who may be shaken by chance, the staff of the Strategy Office have started contacting major shareholders with a stake of more than 1%.”
“So, do we have to wait until they start messing around with our company and walk out with a bag of money?”
“No, Mr. President. In order to block the opponent’s profit realization, we are preparing a card that can suppress the rise in stock prices. Due to the nature of activist funds, it is believed that in the long run, if the stock price does not rise significantly, it will go out of its way to avoid losses. However, the law on the improvement of the terminal distribution structure, which the chairman has directly promoted so far, must be abolished or the legislation delayed. If the bill is passed, it is expected that the stock price will rise by at least 30%…”
“Nothing to worry about. No matter how fast it will be passed within this year.”
“Ah… yes, Chairman.”
Chairman Seongcheol Jin tapped the table and said.
“by the way. What will happen if these guys really want to die?”
“It’s a slim chance, but we’re assuming that might be the case. If what they really want is to increase shareholder value and participate in management, the easiest way is to give them a seat on the board of directors and have them adjust their stake. However, in this case, it seems that a multilateral discussion is needed because the holding company may try to dilute the dominance of the holding company by canceling treasury stocks and expanding dividends.”
The analysis by the head of Team 1 of the Strategic Planning Office was very sharp.
The countermeasures were also close to perfect.
However, the pride of Chairman Jin Seong-cheol could not tolerate a defensive response.
“That is not to be said. I’m afraid of the wolves that have invaded my house, so I shouldn’t act like a dog with its tail down. Telecommunications company, tell me if there is a solution.”
President Jin Seo-joon opened his mouth as if he had been waiting.
“You may not have known it because you were at a meeting, but Vertical Movement just declared a tender offer.”
Chairman Seong-Cheol Jin said in amazement.
“Is that true?”
“Yes, Chairman. There are only two ways out of this. Either we lower the stock price sharply, or we risk our lives to buy a stake. Considering the 24.4% stake in the telecommunications company owned by the holding company Yuwon Group, the 22% treasury stock of the telecommunications company, and the 7% owned by the National Pension Service, management will never be transferred if only an additional 5% stake is secured.”
“So what would you like our President Jin to do?”
“First of all, we have to show our momentum. Start buying treasury stocks and raise funds from affiliates. As the president said, can’t we become a dog with a lowered tail?”
Chairman Seong-Cheol Jin looked at the head of Team 1 of the Strategic Planning Office and asked.
“Is there any legal problem?”
“Yes, Chairman. Since the mergers and acquisitions have not been officially declared yet, only the possibility has been reflected, so there is no problem in repurchasing treasury shares. However, mobilizing affiliates may cause cross-investment restrictions.”
Jin Seo-joon said in a confident voice.
“I will take care of that, Chairman.”
Chairman Jin Seong-cheol said after looking around the presidents of affiliates.
“That’s right. You all know that the telecommunications company’s reserves are not long, oil refiners.”
“Yes, Chairman.”
“How much can you make right now?”
“Currently, about 200 billion won is accumulated, but most of it is invested in replacing old facilities…”
“If it’s not urgent, hold it for a while.”
From noble mtl dot com.
“Yes, Chairman.”
“erection.”
“Yes, Chairman.”
It was General Manager Jin Seo-gyeong, who had been silent the entire time.
“What about Do Myung-hwan, are you here?”
“Ah… He was in the hospital due to a chronic illness, so I attended instead.”
“okay? Anyway, make about 300 billion won for construction. Even if you have something to pay, postpone it a little, and if you can afford the loan, try to pull it out as much as possible.”
“Chairman, that amount is unreasonable. If you tie up that amount, it is virtually impossible to match the air. The penalty is…”
– Tak!
Chairman Jin Seong-cheol screamed.
“So, are you going to let the carrier go?”
“I’ll try my best to arrange it, but I can’t guarantee it.”
“done. I won’t talk to the boss about it. The rest of the bosses listen straight up. Thinking that you will repay all the loans given by the telecommunications company, each person must make more than 50 billion won unconditionally.”
As soon as Chairman Jin Seong-cheol finished speaking, close to 20 presidents of affiliates responded loudly.
“Yes, Chairman.”
“Yes, Chairman.”
“Yes, Chairman.”
“Don’t be noisy and go out. President Cha comes up to my room.”
“Yes, Chairman.”
***
[Youwon Group Chairman’s Office]
President Cha Moo-seok, who was called up to the chairman’s office, was quite surprised to hear what Chairman Jin Seong-cheol said.
“Chairman, are you suspicious of General Manager Jin?”
“Didn’t you see that guy got on the wrong side at the meeting earlier? Seo-gyeong must have something else on his mind.”
“Actually, it was a bit cumbersome. Starting with the fact that President Do Myung-hwan was suddenly hospitalized due to a chronic illness…”
“Isn’t that what you mean? The face has a very tense expression. Even if you want to cheat in the first place, you have to become a vessel… tsk tsk.”
“Shall I meet Mr. Baek once?”
“No, just dismiss Do Myung-hwan and take over the construction for a while. Isn’t squeezing money your specialty?”
“I understand, Chairman.”
“It’s a headache to do vertical movement or whatever, but I want my children to be in trouble…”
When the word “vertical movement” came out, President Moo-Seok Cha hesitated for a moment.
“Hey… Chairman, actually, a company called Vertical Movement…”
“what? Do you know the company?”
“I don’t know the details, but I’ve heard the name.”
“So, who is the owner? If that kind of money was mobilized, there wouldn’t be anyone talking about it…”
“Why, isn’t there a friend who helped me buy shares in a semiconductor parts company last time? My name is Kang Ji-hyeok.”
“You know, Kang Jihyuk. Why is he?”
“Vertical Movement was the largest shareholder of the company called Sunghan Paper, which the friend moved at that time.”
Chairman Jin Seong-cheol was surprised and asked back.
“what? Is that true?”
“Yes, Chairman. At that time, the representative director was a foreigner.”
“Why are you talking about that important thing now?”
“I also have vague memories, but I remembered a little while ago. I’m sorry, Chairman.”
“Hey, does Kang Ji-hyeok have his contact information?”
“Yes, Chairman.”
“Call me right now and ask to see me.”
***
[Cheongdam Station]
“I don’t think you came because you wanted to see Saju… It seems that you came because of a Yuwon Telecom problem.”
“I know you well, yes.”
Chairman Jin Seong-cheol, who met Ji-hyeok for the first time, had several corners that he did not like.
The shaman made her come to her directly on the pretext of being close to her daughter and waiting for a reserved guest even though she had asked for a meeting.
In addition, the eyes that seemed to see through him were so unfamiliar that they were even foreign.
“If you have any questions, please ask.”
“Vertical Movement, what does it have to do with you? No, is it related to our Seoyeon?”
“Hmm… you came here without knowing anything.”
“Don’t be shy and tell me. In any case, if you also put money into the Vertical Movement, I won’t let you go.”
“It’s not very threatening because it’s a threat from the chairman who has a fire in his foot.”
At that time, CEO Cha Moo-seok stepped forward.
“Look, President Kang. Be polite to the president.”
“You spoke well, Mr. Cha. I thought I was of great help to the Yuwon group, can you do this to me?”
“What do you mean?”
“Didn’t I tell you to repay CEO Jin Seo-yeon? Out of all the Koreans I met outside the new party, CEO Jin was the most kind to me, so I gave him advice considering family harmony.
Chairman Jin Seong-cheol replied instead of Cha Moo-seok, who did not know why.
“It’s not right for you to talk about our chores. Stop talking nonsense and explain what it has to do with the vertical movement.”
“A while ago, Vertical Movement signed a fairly large investment contract with Yuwon Cosmetics. All the money has already been transferred, and stock redemption is scheduled, so about half of Yu-One Cosmetics can be said to be owned by Vertical Movement.”
“Ummm… for a while… uh, then you guy?!”
Jin Seong-cheol remembered what Seo-yeon had said and realized that the man in front of him was the culprit behind this incident.
‘That person is the one who even invested in my company.’
Chairman Jin Seong-cheol, whose face turned red in an instant, shouted in anger.
“this guy! Are you determined to shake up our family?! Yes… you bastard!”
Cha Mu-seok, who grasped the atmosphere, quickly confirmed with Ji-hyeok.
“So… are you the owner of the vertical movement?”
“you’re right.”
“This… such crazy… Are you insane?”
Chairman Jin Seong-cheol took a moment to catch his breath before speaking.
“Do you think you’ll be okay with this? I will never let you go!”
Jihyuk said in a cold voice.
“Calm down, President. If you keep doing that, you can immerse even the semiconductor.”
“What… What? What kind of madman is this?!”
“Do you think I can’t?”
“You are a total lunatic. So what do you want?”
“Didn’t I tell you? Half of Yuwon Cosmetics is mine.”
“Does it make sense that it’s only because of that?”
“Aren’t Chairman Jin and CEO Jin Seo-joon the ones who caused damage to me, who approached me with good intentions in the first place? Even though I promised to turn a blind eye to it if I returned the amount of embezzlement, you brazenly tried to hand it over?”
Jin Seong-cheol snorted and said.
“Crap. Who doesn’t know your intentions? It’s an ulterior motive to raise the state and take a bite. It’s obvious. Even the Ilsung group said they ate 200 billion won with a handful of land, and the thief of the world was here. Let’s go, Mu-seok. There is nothing more to say.”
“Oh, I didn’t tell you this. For reference, minority shareholders who hold 0.1% or more have already been delegated their voting rights. Right now, we have about 21% of the voting rights, so you should be a little nervous.”
“This… profit…”
Chairman Jin Seong-cheol bit his teeth and turned around.
Sensing intuition that now is not the time to get excited, but the time to take measures, Chairman Jin Seong-cheol recalled the list of major shareholders and realized that he had to step forward himself.
***
3 days before the shotgun.
In the meantime, Chairman Jin Seong-cheol has devoted himself to defending management rights by meeting the major shareholders in person and receiving the entrustment of voting rights.
It acquired 27.4% of the voting rights by acquiring an additional 3% stake by mobilizing all affiliate funds, and acquired additional voting rights with 2% borrowed-name stock by pouring bloody slush funds.
In the meantime, the stock price more than doubled, exceeding the market cap of 30 trillion won.
Including the voting rights delegated to several major shareholders, the total is 33%.
Excluding the 22% of treasury stocks with no voting rights, 39% of the voting rights were required to pass the majority.
The 7% stake owned by the National Pension Fund is desperately needed.
Chairman Jin Seong-cheol asked the head of Team 1 of the Power Planning Office in an urgent voice.
“How is it?”
“I’m sorry, Chairman. The pension fund says it is still difficult to clarify its exact position…”
“what? Are you saying you’re going to wait and see if management passes over?”
“For now, it seems that they have taken the lead in not exercising their voting rights.”
“Are you sure? Can you be sure of this?”
Team 1 had no choice but to keep his head down.
“I’m sorry, Chairman.”
It was the biggest crisis of the Yuwon Group, which had climbed to the 5th place in the business world with oil refining and telecommunications companies on its back.
“Are the minority shareholders meeting? Why are you all on their side?”
“Anyway, the other side’s argument is to increase the dividend…”
“We say we will increase it too.”
“And one more thing… This is actually more of a rumor.”
Chairman Jin Seong-cheol frowned and said.
“What is it, tell me.”
“Vertical Movement sent a shareholder letter to minority shareholders, and it is said that there was this content there. Vertical Movement will make the passage of the Terminal Distribution Structure Act (DanTong Act) to increase the net profit of telecommunications companies…”
“Huh… they’re just crazy people. Do you think my bastards can pull it off? Is Ilsung with his eyes wide open?”
“It seems to be true that minority shareholders who do not know the reality were shaken by that part. If you don’t know, I think you’d better do it yourself. In any case, if the pension fund abstains and some major shareholders turn around, the situation can really get out of hand.”
“Use it, try collecting stocks as much as possible.”
“That’s it… Our funds are now at the bottom.”
– Bang!
“Give me all the bills for materials from the construction company.”
“President, you need to calm down. The other party has applied for a public offer as proof of balance in trillions. You can’t win a fight over money.”
Chairman Jin Seong-cheol slumped down on the sofa as if he was a bit lethargic.
Clearly, their stake is still far superior.
As expected, Vertical Movement secured about 28% of the voting rights, while they secured 33%.
However, there were too many variables.
Not only pension funds, but even major shareholders and minority shareholders who are weighing their shares without selling their shares even though the stock price has doubled.
Chairman Jin Seong-cheol, sweeping away his heated face, spoke in a firm voice.
“Put a text from the chief of economics. If you don’t answer the phone this time, say you’ll go to the Blue House.”
“Yes, Chairman.”
***
As if Chairman Jin Seong-cheol’s threat worked, even 10 minutes later, a call came from Lee Jung-won, senior secretary for economic affairs at the Blue House.
– Chairman, why do you keep bothering me at a sensitive time? Tomorrow is the vote, don’t you know that if you keep doing this, it could become a problem later?
“Look, Chief Lee. What does that mean now?”
– Didn’t you contact me because of the Dantong Act? A dramatic agreement was reached with the opposition this morning. It has been slightly modified to appease Il-sung electrons, but the gist will remain the same.
“Ah… that doesn’t work. It shouldn’t have passed now.”
– No, he said that he would always let me pass unconditionally. It’s out of my hands now.