Chapter 121
Chapter 121
Chanyoung Han continued to monitor the stock price of Seoseong SB. However, as the number of foreign buyers has increased recently, the circulation volume has been continuously decreasing.
Naturally, the stock price rose from 170,000 won to 200,000 won.
The current situation of Seoseong SB was not very good to be an expectation for earnings or the industry.
“Is Vice Chairman Im Jin-yong buying to defend management rights?”
Eunsung Motors started to purchase using a borrowed-name account, and the same was true for the National Pension Service.
By the way… … .
[Selling all treasury shares of Seoseong SB!][OTK Company acquires 11% stake in Seoseong SB!]Chan-young Han, who was looking at the article, muttered out of absurdity.
“Are you an OTK company again?”
At this point, it is a bittersweet affair.
He took X-Cop right in front of his eyes, took out team leader Seo Seong-won, and intervened in labor-management issues at subcontractors, causing a commotion.
As a result, Chairman Hong Woo-song was arrested, and Eun Seong-cha had to suffer criticism from public opinion for a while. But, as always, public opinion quickly subsided. The car sales remained the same, and Eunsung Motors still subcontracted parts to a mailing company.
Nothing had changed.
In the meantime, Kang Jin-hoo has built a wall completely against the Korean political and financial circles. He did not appear at events or public events, and all requests to meet were rejected. He did not make friends with the business world or sponsor politicians.
So I thought he hated chaebols and politicians, but he’d probably join hands with a group of people around Seoseong. This was unexpected.
“When did you talk to Vice Chairman Im Jin-yong?”
Judging from the timing of the purchase, it seems that Chairman Lim Il-kwon moved even before his death. So, have you met each other before?
The original plan was to drive out CEO Lee Soo-hak after Im Seung-yong took over as CEO, and sell the treasury stock to Eunsung Motors.
After that, if the National Pension Service bought it when it was sold on the market, it was easy to secure about 10 percent. But suddenly, the OTK Company intervened and things went awry.
The buyback of treasury stock failed, but the plan itself did not fail. First of all, it was important for Im Seung-yong to have the management rights of Seoseong SB.
Chan-young Han called Im Seung-yong to discuss the future.
* * *
Im Seung-yong ended the phone call with Han Chan-young.
The business world didn’t look at Kang Jin-hoo very well, and so was he.
But the successor of Seoseong Group must have asked a financial speculator for help. What are you sad about?
He didn’t understand, but that was the difference between him and his brother.
Im Seung-yong was very dissatisfied with his share.
When Suseong Heavy Industries and Seosung Engineering were combined, the market cap was only 7 trillion won. On the other hand, Seoseong SB is worth more than 20 trillion won when the stock price is at the bottom, and over 40 trillion when the stock price is at the high point.
If her mother hadn’t said she would take her side, she wouldn’t have dared to step over. However, Yeonho Yeon is the largest individual shareholder of Seoseong SB, with a whopping 5.8 percent. Add 4.7 percent of his own stake, and you get 10.5 percent.
Considering the cooperation with Eunsung Motors and the support of the National Pension Service, it was a battle worth fighting for.
The problem is the OTK company… … .
“Are you planning to get involved in the management dispute and take a part?
They are no different from vulture funds in that they do anything that makes money.
Anyway, in the current situation, a difference of 1 or 2 percent in stake is meaningless.
As long as one party does not secure a majority stake, it will be decided by the votes of the other shareholders.
And in that respect, he had an advantage over his older brother, who had the silver car and the government on his back.
* * *
The sale of treasury stock is both good news and bad news.
The market first judged it as a good news.
– What is the reason for the sale of treasury stock?
– Prior to the appointment of the CEO, the purpose seems to be to secure a friendly stake.
-Isn’t that supposed to be Im Jin-yong?
-Your brother Lim Seung-yong is the director, and he is the second largest individual shareholder with a 4.7 percent stake.
-Did OTK Company go out as Im Jin-yong’s White Knight?
-Now both sides seem to be moving to secure a stake, so keep that in mind.
Within a few days, the stock price hit 230,000 won.
Some institutions judged that the price was too high to sell, but the National Pension Service continued to buy.
Even if stock prices rise and fall temporarily, they will eventually find their intrinsic value. If it skyrocketed because of the management dispute issue, it will plummet as soon as the issue disappears.
“Look at the courage to say it’s not your money.”
“Blind money is such a good thing.”
After all, it’s not their money, it’s the people’s old-age money. So, you can buy it without any burden, whether or not you lose money later.
Thanks to this, the National Pension’s share reached nearly 20 percent. The other side has already secured more than 30 percent of the stake.
On the other hand, if you include the stake in Golden Gate, it was a little less than 30 percent.
Seoseong SB’s general shareholders’ meeting is not far away.
It’s time to take a look at my hand… … .
It was over there that opened the door first.
We purchased Seosung SB’s treasury stock at KRW 210,000 per share, adding a 20% premium to the average of the stock price for the past month. However, after this fact was announced, the buying trend started pouring in, and the current stock price was close to 240,000 won.
The Cho Joong Ilbo raised this issue.
It was said that the company suffered a loss by selling its treasury stock at a discount of more than 10 percent.
In fact, it is very difficult to clearly measure the value of a company. This is because the difference between PBR, PER, and ROE can be as low as several tens of percent or at most more than double depending on which one is used.
The first criterion for valuation of listed companies is, of course, the stock price. This is because the stock price is a price determined by market participants by combining their assets, earnings, and prospects (though that does not necessarily mean that it is reasonable).
There are some cases where the stock price is intentionally kept low for the purpose of giving preferential treatment, and then sold, but anyway, since the stock was sold at a premium on the stock price at the time, at least it is not a breach of duty.
Seoseong SB countered, ‘It’s only a consequential story, and it’s impossible to predict how the stock price will move in the future at the time of the contract’.
Then, the Cho Joong Ilbo fell over, asking why the block deal was made with a target for the acquisition rather than an exchange sale or an open sale. In other words, it gave preferential treatment to the OTK company.
Several conservative groups have filed a complaint with the prosecution against Lee Su-hak, president of SB Suh Seong, for breach of trust.
Taek-gyu said in a strange way.
“Live and live, I see all the conservative groups accusing Seoseong Group. Aren’t they originally on the side of the Seoseong group?”
“That’s it.”
Anyone who sees it would know that an invisible hand was at work.
Whatever the truth, Seosung SB shareholders welcomed the situation.
When an article came out that CEO Lee Soo-hak was being investigated. Seoseong SB’s share price rose 5 percent and now exceeds 250,000 won.
* * *
Media companies were already encamped on the photo line.
When President Lee Soo-hak got out of the car, the reporters all held out their microphones.
“What do you think about the allegation of selling treasury stock at a bargain price?”
“Are you granting preferential treatment?”
“Did you have any other contracts with OTK Company?”
“Tell me something about the purpose of the treasury stock sale!”
President Lee Soo-hak said while looking at the camera.
“I will faithfully participate in the prosecution investigation.
With that one word, he went in to be investigated.
Taek-gyu, who was watching the news, said.
“Isn’t it too late?”
“Well, it’s just a reference investigation.”
I’ll just ask a few useless questions and be done with it.
The reason why he was summoned to the prosecution was to inflate the allegations. The fact that Lee Su-hak, who is separated by the Im Jin-yong line, is accused of breach of trust gives Im Seung-yong an advantage.
“Isn’t this the case with the government and the Seosung group?”
I shook my head.
“The roots of economic collusion are not weak enough to be shaken by a fight like this. Even after arresting the general manager and raiding the headquarters, they are doing well.”
Even if they blush a little now, they will shake hands with each other smiling as if they ever did.
Taehyung nodded his head.
“Actually, the closer the kids are, the more they fight and grow up.”
In this situation, President Park Si-hyeong emphasized the cooperation of large corporations. He openly mentioned the cooperation between automobiles and IT, and ordered large companies to join hands and prepare for the era of the 4th industrial revolution.
That’s right.
Compared to foreign companies, it is true that Korean conglomerates have focused on competition rather than cooperation. If shipping and Chosun had worked closely together, the unprecedented situation of national shipping company bankruptcy might have been prevented.
As soon as the president’s words were over, Lim Seung-yong visited the electric vehicle production line of Eunsung Motors, and later had a separate meeting with Han Chan-young.
The Chojung Ilbo published an article that Eunsung Cha and Seoseong SB could cooperate under the leadership of Im Seung-yong.
I talked to Yuri after a long time.
Yuri said in a pleasant voice.
[You said you met my dad at the funeral?]“Huh. We met by chance.”
[Why did you go there?]“Taek-gyu said he wanted to eat Yukgaejang.”
[just joke?]“It’s true.”
The beef stew was quite tasty.
[What happened to Seoseong SB?]“Something happened.”
Yuri heard my story and said as if surprised.
[How do you not wear a senior?]“… … That’s it.”
[Stakeholders seem to be on the side of Im Seung-yong.]“I will.”
Eunsung Cha did not directly say anything, but he mentioned the possibility of cooperation with Seoseong SB, saying that he is discussing battery delivery with several companies.
Naturally, shareholders welcomed this.
[What are you going to do? Is there any way?]“I have an idea.”
[really? Can’t you just tell me?]“Huh. No. It’s insider information.”
[Sheesh!]I laughed bitterly.
“You’ll find out tomorrow anyway.”
[I see.]“Come to think of it, classes will start next month.”
[Yes. Also, young freshmen will come one after another.]“You are too young.”
[Hey, I’m already in 3rd grade.]Still, it doesn’t seem like he hates being young. For reference, I only attended until the first semester of my second year. What year do you want to graduate?
[Let’s see your face before the class starts.]“Okay.”
* * *(Read more @ wuxiax.com)
Unlike Lim Seung-yong, who only cares about Seoseong SB, Im Jin-yong has to take care of the group and the entire affiliate.
The problem is that most of the major shareholders of affiliates are the National Pension Service.
If the group takes action to defend its management rights, the National Pension Service will not stand still. Vice Chairman Im Jin-yong is in a situation where he has to fight with his fists even with a machine gun. So maybe that’s what drew me to this board.
As long as he went out to help, he had no intention of being satisfied with the 11 percent stake.
The better the EVs sell, the better the battery makers. However, it is not possible to continue to buy Seosung SB stocks that have already gone up.
So I made another proposal, and Vice Chairman Im Jin-yong accepted the proposal.
Taegyu said.
“Aren’t you supposed to go soon?”
“Oh, I don’t want to hold a press conference.”
The world is wide and there are many kinds of religion, but I am far from that. I’ve only had one press conference so far. Only when you reveal your identity.
Since then, exposure to the media has been avoided as much as possible.
But in order to reverse public opinion, we need to show something here as well.
I called.
[This is Lee Soo-hak.]Seoseong SB President Lee Soo-hak.
He is a vassal of Chairman Lim Il-kwon since he was young, and he is classified as one of the closest aides to the head of the family along with Kim Myung-soo, who is in charge of the future strategy office.
“Are you ready?”
[Yes. We are going to leave for the Ceylon Hotel now.]“Okay.”
After finishing the call, I got up.
“Let’s go too.”
* * *
The Ceylon Hotel is located at the foot of Namsan Mountain.
A week before the general meeting of shareholders, I met Seoseong SB CEO Lee Soo-hak. In front of the reporters were encamped,
We signed an MOU (Memorandum of Understanding) in front of reporters and shook hands with each other.
“OTK Company and Seoseong SB decided to jointly invest capital to form a joint venture in the United States.”
The unexpected announcement surprised reporters.
“How much is the investment?”
“What is the investment ratio?”
“What is the purpose?”
I answered the reporters’ questions one by one.
“The total investment is $5 billion. OTK Company and Seoseong SB will each invest in a 7 to 3 ratio to establish it. The purpose of the establishment of a joint venture is… … .”
I looked at the camera and spoke.
“It is the construction of a battery factory in the United States.”
