YM778.TV Chapter 891 - Big Deal (1) – Part 2
“Even if we assume that the current market capitalization is more than what the company is actually worth right now, when you evaluate a company’s value, you have to take into account its future business value as well. The price that you offered is solely based on the company’s current value. It didn’t consider its potentials at all, which is certainly not ignorable.”
“Hmm.”
Gun-Ho asked, “Is A Electronics seriously intending to acquire Dyeon Korea?”
CEO Park replied, “It’s actually not us that wants Dyeon Korea, but, there is a company that is interested in acquiring Dyeon Korea. I’m just trying to make a bridge between the two.”
“Which company is that?”
“I can’t tell you that now. I can tell you though that the company that is interested in buying Dyeon Korea also owns a chemical manufacturing facility. And, they expect that they could create the synergy if they acquire Dyeon Korea.”
It suddenly occurred to Gun-Ho, at that moment, how much slush money that Party Leader Jin-Woo Lee was in need for his next move in politics.
‘Party Leader Jin-Woo Lee’s father— Mr. Beom-Sik Lee— owns 15% of GH Mobile’s ownership interest. His father could receive only 1.5 billion won as dividends this time. Even though GH Mobile is doing great, its net earnings after tax will be around 10 billion won.
The amount of money that Dyeon Korea could distribute to its shareholders as dividends will not exceed 10 billion won either. GH Mobile owns 32.7% of Dyeon Korea, so even if Dyeon Korea’s 10 billion is distributed among its shareholders, GH Mobile will only receive 3.27 billion won. Out of 32.7 billion won, Mr. Beom-Sik Lee’s portion will be only a few hundred million won. That’s not enough at all to use for someone who is running for President. That’s right. He is running for President, not for Congressman.
In addition, I can’t just make a decision about what to do with the fund that Dyeon Korea made by selling the major shareholders’ stock. I will have to discuss it with Lymondell Dyeon. If Lymondell Dyeon strongly insists on using the fund in extending our current manufacturing facility or acquiring another company by M&A, nothing much I can do about it either. If that happens, Party Leader Jin-Woo Lee would experience an acute deficit in his slush money. It is true that Jin-Woo Lee has a rich father-in-law, but since his father-in-law hates politics and hates his son-in-law being in politics, his chance to get some financial support from his father-in-law looks very slim if now zero. I am probably his only chance in creating his slush funds.
By pushing his brother into Dyeon Korea, how much money did he make? I wonder how much Dyeon Korea’s stock his little brother— Senior Director Hyeong-Woo Lee— successfully bought and sold. Was it 100,000 shares? Or 1 million shares? Since he joined later in time, maybe he couldn’t buy as many as he wanted or planned. Maybe that’s why they are asking me to sell my ownership in Dyeon Korea claiming that the company’s current value is high enough. They can get dividends from it anyway.’
As Gun-Ho was being quiet, busy in thinking of various matters, CEO Park laughed and said, “I guess you have a lot to think about. I understand that my offer was so sudden and unexpected. I will talk to the chemical company that is interested in acquiring Dyeon Korea, and tell them that you want to include the company’s future business value to its sales price.”
“It sounds like that chemical company is a large company. Its owner president can make a decision to buy another company on his own, but I believe that their planning and coordination department will probably conduct a thorough research and investigation about the target company, so its president could make an informed decision. I wonder if they would be able to fully understand the value of Dyeon Korea’s future business and its potentials”
“I personally think that it is not a bad idea at all for that chemical company to acquire Dyeon Korea. Once they acquire Dyeon Korea, they will have full access to its technology and know-hows on its chemical compounds. You have excellent skills in business, Mr. President Goo. I’m sure that you can start a new business or expand your other companies with 170 billion won.”
“Well, I won’t sell Dyeon Korea if the price doesn’t reflect the company’s future business value.”
“How much more do you want to ask for its future business value?”
“Umm, well, I don’t know yet. I will have to analyze data.”
“I see. I will relay the message to the owner president of the chemical company. In the meanwhile, I want you to think more about the offer as well, Mr. President Goo. I will be in touch with you within a few days.”
“Sounds good. It’s almost lunchtime, and I would like to ask you to have lunch with you, but it’s probably not a good idea for us to be in the public eye together. I will just head to my office in Sinsa Town from here.”
“I have another appointment. I will stay here for a while before leaving. Thank you for coming today, President Goo.”
It was almost noon when Gun-Ho headed out from Grand Hyatt Seoul Hotel.
Chan-Ho Eom asked Gun-Ho while looking at him through the rear-view mirror in the car, “Where would you like to go, sir?”
“Let’s have lunch first. Let’s have a bowl of hot soup with rice in the Samgakji area.”
“Are you thinking about the restaurant— Pyeong-Yangjib, sir?”
“Yeah, that is it. Let’s go there. I prefer food in a restaurant like that than the ones in a hotel.”
“Haha, I do fancy food like it too, sir.”
On the way to the restaurant in the Samgakji area, in his car, Gun-Ho leaned back on the rear seat and closed his eyes.
‘If I decide to sell Dyeon Korea for 170 billion won, that amount will be brought into GH Mobile. If that happens, how much Mr. Beom-Sik Lee would be able to receive? If I don’t take tax into account for now to make the calculation simple, it would be about 25.5 billion won. That’s a good amount for his son’s slush funds.’
Gun-Ho suddenly felt goosebumps on his skin.
‘They are indeed scary people. They must have thought about it this far. I guess that they couldn’t make as much money as they wanted, as they put Director Hyeong-Woo Lee in Dyeon Korea. That’s how they came up with this idea. Well, I am a businessman. If I can make good money, I can sell the company, of course.
I wonder which chemical company wants to buy Dyeon Korea. Is it really part of a large company? Or, maybe they decided to buy Dyeon Korea under the pressure made by someone in politics, someone who knows the weak point of that chemical company’s owner president. If that’s the case, I wouldn’t be safe either. If I resist selling my ownership portion of Dyeon Korea, they could do the same thing to me. They will look for weakness in me. I’d better be very careful.’
At the moment, what Chairman Lee from Cheongdam Town had told him before crossed Gun-Ho’s mind.
He said, “In doing your business, you shouldn’t have a close or distant relationship with politicians. If you stay too distant from politicians, it will be hard for you to make good money. On the other hand, if you stay too close to politicians, you will suffer from their never-ending constant requests. You should keep this in mind. Be careful.”
‘But, 170 billion won is a good amount. It’s certainly tempting. If 170 billion won comes into GH Mobile, I can do a lot of things with it. As I told him that I need to add the company’s future business value to the price, they will pay me more than 170 billion won, at least.’