Chapter 495: There’s No Room for Negotiation

At the same time that Kim Mu-hyeok was enjoying the pre-party in the UK,

Han Gyeong-yeong was buried under a pile of documents in a hotel in Moscow.

He clutched his tangled hair, flipping through the papers and exhaling deeply again and again.

Just then, his phone rang loudly. Glancing at the name on the screen, Han Gyeong-yeong couldn’t help but chuckle softly.

He turned to the staff members, who were just as frazzled as he was, and spoke up.

“Let’s take a break for now and head to the negotiations.”

Han Gyeong-yeong picked up his phone and stood, walking into his room.

“Aili.”

― “James. Are you busy?”

“No, I can talk. I just sat down on my bed to take a breather.”

― “Charlie arrived and is drinking with Dad. I wish you could have come…”

A hint of disappointment laced Aili’s voice, and Han Gyeong-yeong’s smile brightened even more.

“Missing me, huh? How about you come to Russia after my last match once all my schedule’s wrapped up?”

― “No… it’s not that I miss you. It’d just be nice if you came to the last match.”

“I’ll go next year. I’ll definitely be there for the Champions League finals. Do you think we can make it?”

― “Can I control that? The players have to do well, you know.”

Although Aili’s tone was blunt, Han Gyeong-yeong found her endearing.

― “You mentioned you could take a vacation after this, right?”

“How did you know? I was hoping to surprise you. Ah, I just blurted that out, didn’t I?”

― “Surprise? If Charlie doesn’t give you time off, there won’t be one.”

“Haha, that’s true. Anyway, let’s plan a trip together then.”

― “I’ll be looking forward to it. Oh, I sent you a video. Check your email, James.”

Since they were in a long-distance relationship, Aili often sent him pictures.

But this time, it was a video. Han Gyeong-yeong asked with a puzzled tone.

“What kind of video?”

― “It’s the pre-party, I guess? It’s completely festive here. Fans are dancing and singing in the streets. It feels like Leeds is alive again. I sent it so you can feel the atmosphere too!”

Leeds United was on the verge of winning their first championship since the Premier League began.

It was no surprise everyone was having a great time. Thinking of that, Han Gyeong-yeong readily replied.

“Got it.”

After hanging up with Aili, Han Gyeong-yeong grabbed his laptop and checked his email.

As he downloaded the video file, he read the accompanying message Aili had sent.

The video captured Leeds’ celebration perfectly.

People were marching in the streets, all holding beers and singing their team’s anthem with one heart.

Throughout the video, a smile effortlessly spread across Han Gyeong-yeong’s face.

“Representative James. It’s about time to head out.”

As he watched the video, a staff member knocked and spoke.

Han Gyeong-yeong closed his laptop and opened the door to leave.

“Yes, let’s go.”

Once outside, the smile vanished completely from Han Gyeong-yeong’s face.

He moved toward the Yukos headquarters with his staff.

As they arrived in the meeting room, Yukos executives and officials from the Russian government had already gathered.

“Nice to meet you. I’m James Han, the representative of Dream High Investment.”

One of the executives stood up.

“I’m Steven Tid, CEO of Yukos.”

Tid extended his hand first. Han Gyeong-yeong shook Tid’s hand warmly.

“I’ve heard about Dream High’s legendary investment skills. I didn’t realize you were interested in oil as well.”

While the praise seemed genuine, an edge of sarcasm lay beneath his words.

However, Han Gyeong-yeong maintained his smile.

“We invest wherever there’s an opportunity. That’s the motto of Dream High. Yukos is a good company, but the problem lies with the criminal at its helm.”

“…The verdict isn’t out yet.”

“I know the verdict isn’t out yet. But it’s also true that Yukos isn’t being run properly because of it. That’s why oil prices are going wild.”

Tid merely twitched his lips and didn’t respond with a solid counter.

Han Gyeong-yeong seized the opportunity and pressed on.

“A company with owner risk is the most dangerous. Moreover, the taxes Yukos faces are so substantial it has to be sold, right?”

“…”

At that moment, a man rose from his seat. A large man subtly exuded pressure.

“To have such a tense standoff before we even begin. Today’s negotiations will be tough. Come now, both of you, loosen up a bit.”

Han Gyeong-yeong released Tid’s hand and turned toward the man speaking.

“Minister Viktor, right? Nice to meet you.”

“Haha, you recognize me?”

“Of course. How could I not know the minister while doing business in Russia?”

“Alright, nice to meet you. Let’s sit down and talk.”

Han Gyeong-yeong shook Viktor’s hand and took a seat.

The meeting room was divided into three groups.

One side consisted of Yukos executives, the other side of Russian officials, and the last side was Han Gyeong-yeong and the Dream High staff.

Han Gyeong-yeong and his team began preparing for negotiations by laying all the documents they brought on the table.

“We don’t plan to acquire all of Yukos, as its shareholding structure is complex. First, we’ll acquire its subsidiary, Yuganskneftegaz, and then proceed to take over the subsidiaries one by one.”

“No! What do you mean by that? Do you really think that makes sense?”

“Yukos’s tax burden exceeds its asset value. Do you genuinely believe that’s feasible? No, it’s impossible. We don’t want complicated matters.”

While $3 billion in taxes were levied for tax evasion after Chairman Khodorkovsky’s arrest, that was only the beginning.

The Russian tax authorities imposed a $27 billion tax penalty on Yukos and its three core subsidiaries for three years.

Even if Yukos was sold, it wouldn’t be enough to pay the debt.

“We’ll first acquire Yugansk, and we’ll use the funds from that acquisition to settle the penalties.”

At Han Gyeong-yeong’s words, Tid shook his head violently as if having a seizure.

“Hey! Even so, this is unacceptable.”

Saying that only Yukos will sell subsidiaries it owns 100% means it will go bankrupt.

The implication was that Tid’s shares would be worthless scraps of paper, leading him to reject Han’s remarks outright.

“If you want to acquire it, you must buy all the shares held by the executives of Yukos. What kind of deal is that? We will never sell them that way!”

“Alright then. I’ll buy all your shares for $1. Will you accept that?”

“What?! What kind of nonsense is that?”

Han Gyeong-yeong shot a glance at the staff member beside him. The staff member rose and distributed the prepared documents to each group.

The executives and officials who received them began to check the documents.

The documents were filled with data obtained by Dream High through its own investigation.

For a while, only the sound of turning pages echoed in the meeting room.

Occasionally, one could hear dry gulps, but Han Gyeong-yeong remained silent, waiting for their review to finish.

“How could this all…”

Tid spoke with a trembling voice as he laid down the papers.

“If you look here, Yukos’s total asset value doesn’t even reach $30 billion. But the taxes due are $27 billion. It means that even offering $1 would result in a loss for us. You’ve been trying to inflate the asset value through various tricks; I believe you understand we aren’t that naive. Any companies we’ve dealt with until now were bigger than Yukos, not smaller. Checking the facts was not difficult for us.”

Dream High assessed Yukos’s value at $15 billion.

Yet, the executives claimed Yukos was worth double that.

A valuation of $30 billion was utterly ridiculous, and attempting to start negotiations at that figure was laughable.

“Let me reiterate. Even if we acquire it for $1, we’ll be at a loss. Moreover, you don’t even hold all the shares. Thus, we will initially acquire Yugansk for 100%. There is no room for negotiation here. If you refuse, speak up. I will get up and leave now.”

Han Gyeong-yeong drew a firm line.

He had no intention of acquiring Yukos. There would be no negotiations. If they didn’t like it, they could walk away.

If today’s negotiations ended in failure, the Russian government would ultimately proceed with the sale via auction.

That would be an uncomfortable situation for the Russian government as well. They wouldn’t want the Yukos crisis to drag on.

“May I speak?”

A man next to Minister Viktor raised his hand and stood up.

Minister Viktor nodded, and the man began to speak.

“I’m Ian Materov, Deputy Minister of Industry and Energy. First, let me address Yukos’s asset value. Our government estimates the price at $15 billion.”

$15 billion matched Dream High’s estimated valuation, which was higher than the $8 billion tax Yukos owed.

“Additionally, we predict the sale price of the subsidiary Yugansk will be $12 billion. However, Dream High has valued Yugansk at $10 billion.”

Han Gyeong-yeong had estimated the 100% stake of Yugansk at $10 billion.

Nodding, Han Gyeong-yeong said,

“$10 billion is already an inflated figure.”

“$10 billion… If it goes to auction, it could fetch a higher price. Yugansk is a core subsidiary responsible for more than 60% of Yukos’s oil production.”

“That’s why I established the acquisition fund at $10 billion.”

From then on, an intense back-and-forth debate ensued between Han Gyeong-yeong and Deputy Minister Materov.

Minister Viktor stayed neutral, while CEO Tid didn’t even get a chance to speak.

This alone made it clear that the center of this sale was not the executives but rather the bureaucrats present.

The disagreement between Han Gyeong-yeong and Materov didn’t narrow.

Materov insisted on a sale price of at least $12 billion, while Han Gyeong-yeong refused to go beyond $10 billion.

Then, the meeting room door swung open, and Medvedev entered with his aides.

The presence of Medvedev—the second-in-command of Russia—caused everyone except the Dream High group to rise from their seats.

Viktor was the first to question Medvedev.

“Director Medvedev, what brings you here…”

Medvedev casually replied to Viktor’s inquiry.

“Haha, Minister Viktor. Why so flustered? You do know the Kremlin is overseeing the sale of Yukos, right? That’s why I’m here. I wanted to see how things were developing firsthand.”

Medvedev smiled warmly, surveying the room.

“Don’t mind me. Continue on with your discussions as if I’m not here.”

Seating himself next to Viktor, Medvedev appeared quite friendly, yet no one dared to speak.

As the silence stretched on, Medvedev broke it.

“What’s the matter? Weren’t you negotiating? How far has it progressed?”

In response to Medvedev’s question, Materov answered.

“We were discussing the sale of Yugansk. Currently, we were debating the sale price, which is different from what we expected.”

“Oh? Deputy Minister Materov, what price did you have in mind?”

“We believe we should be receiving at least $12 billion.”

“$12 billion, huh… What about the acquisition amount proposed by Dream High?”

This time, it was Han Gyeong-yeong who answered instead of Materov.

“$10 billion.”

Medvedev’s aides displayed their discomfort.

“$10 billion…”

The $2 billion gap was a significant sum and not easily bridged.

“Representative James.”

One of Medvedev’s aides spoke up.

“$12 billion is already a bargain. And you’re offering $10 billion? Are you playing with our Russian government?”

“Do you not understand the meaning of bargain? And who are you? You should probably introduce yourself first. I don’t know everyone here.”

“I’m Andrei Illarionov, one of the President’s economic advisors.”

“Ah… I didn’t realize you were an economic advisor. My apologies for not recognizing you. I made quite the misstep.”

Although his tone was polite, a smirk lingered on Han Gyeong-yeong’s face.

Seeing that smile, Andrei’s face flushed red, and he shouted.

“Hey, Representative James! What’s the meaning of that smile? Are you mocking me right now?”

Han Gyeong-yeong shrugged, the corners of his mouth curling up further.

“I’m not mocking you. It’s just laughable. Had it not been for CEO Kim Mu-hyeok’s orders, I wouldn’t even be sitting here. If you don’t like the figure we offered, feel free to look elsewhere. We have no attachment here.”

Han Gyeong-yeong’s words served as an ultimatum.

He was issuing one last warning to everyone gathered.