Chapter 46: The Bidding War for Hando Steel

Chairman Jin held up a single sheet of paper, waving it in his hand.

“Are these figures accurate? 2.37 trillion won?”

The Hando Steel acquisition team, gathered in the headquarters conference room, exchanged glances for a fleeting moment before nodding.

“Confirmed.”

Vice-chairman Jin Young-ki affirmed, prompting Chairman Jin to verify the number once more before speaking.

“If Hando Steel is worth this much, Daehyun Group will undoubtedly bid this amount. And since Daehyun already possesses steelmaking know-how, they’ll obviously receive a better evaluation than us. So, what should our bid be?”

No one dared to speak carelessly. The bid amount was proportional to the Chairman’s will to acquire Hando Steel. Everyone knew his determination was strong, but it was impossible to quantify.

Even the Chairman himself likely couldn’t quantify it, so how could they answer?

However, there was someone who couldn’t avoid answering due to Chairman Jin’s gaze.

“Director Jin Young-jun, what are your thoughts?”

“1.8 trillion won.”

The answer came without the slightest hesitation, seemingly surprising even Chairman Jin.

“Why?”

“Because this is the maximum Soonyang can currently offer.”

“Then Daehyun will win without a doubt, won’t they?”

“We cannot acquire it by taking on debt. The value of Hando Steel and our financial capacity are clear. This shouldn’t turn into a bidding war based purely on money.”

“It’s a public auction. What else besides money is there to fight with?”

“We should emphasize that Soonyang is the company where acquiring Hando Steel would generate the most synergy. Daehyun already has steelmaking capabilities, so the effect would be minimal for them.”

He delivered a reasonably plausible argument. And words come with responsibility.

“In that case, Director Jin, create a report outlining this synergy effect you mentioned, assuming we acquire it. Make it so impressive it moves the judging panel. You have one week.”

“…Yes, sir.”

His response lacked confidence but wasn’t entirely weak. Now that he was over thirty, he seemed capable of handling his responsibilities.

The chairman turned his head towards someone else.

“Again? Is 1.8 trillion won all we have? No other opinions?”

“2.5 trillion won.”

Hong Song-cheol, the head of Soonyang Construction, tossed out the number casually. All eyes turned to him, and even Chairman Jin showed curiosity.

“Grounds?”

“In the eyes of the creditor banks, there’s no difference between Daehyun and Soonyang. The government will agree regardless of who acquires it. To avoid any issues of fairness, I believe we inevitably need to submit a higher bid.”

Vice-chairman Jin Young-ki and Jin Young-jun’s faces flushed red.

Director Hong dismissed their painstakingly prepared arguments as ‘ineffective’ with a single statement.

“Where will we get the extra funds?”

“Soonyang Construction has secured apartment sites. We can secure a loan of 700 billion won by using that land as collateral for now.”

They had crossed half of a dangerous bridge. Securing the funds seemed possible.

“Then how will we repay the 700 billion won loan? We can’t build apartments on land with existing loans and expect to sell them.”

“Construction will handle that cleanly. Please don’t worry, Chairman.”

The corners of Chairman Jin’s lips lifted slightly.

It was the most desirable answer.

Solve the immediate problem and omit the process. Even if there are illegal or unlawful activities involved, he takes sole responsibility, ensuring the Chairman remains untainted.

The Chairman doesn’t even need to lie and say he doesn’t know anything. Because it’s the truth.

Truly trustworthy.

“Director Hong must have quite a bit of hidden money. 700 billion won isn’t something you toss around so confidently unless you do. Haha.”

The conference room erupted in laughter, excluding two individuals.

Jin Young-ki and his son couldn’t bring themselves to smile.

They were reminded once again that Director Hong Song-cheol had no intention of siding with the Vice-chairman.

* * *

“As expected, Daehyun is considering 2.3 trillion won.”

“Typical Daehyun. He’s not one for tricks. Chairman Joo…”

Chairman Jin and Lee Hak-jae were in the study, reviewing the letters of intent for the acquisition.

“But Chairman, are you truly considering investing 2.5 trillion won?”

“Why? Are you reluctant?”

“The group’s finances will be strained for a while.”

“Don’t be so alarming. I have my reasons.”

Lee Hak-jae’s expression didn’t brighten, seemingly uneasy with Chairman Jin’s relaxed demeanor.

“Now, what do you think, our Do-jun? Is there truly no other way besides money?”

I couldn’t fulfill the expectations in my grandfather’s eyes as he looked at me. Who could fathom his devious intentions?

“Could you give me a hint? I really don’t know.”

As I voiced what Chief of staff Lee Hak-jae wanted to say, my grandfather chuckled, looking back and forth between us.

“When selling a tree, wouldn’t you rather sell it to someone who will nurture it, rather than someone who will chop it down for firewood? That’s human nature.”

Lee Hak-jae and I both widened our eyes.

“Chairman, do you believe Daehyun will resell Hando Steel?”

“What does it matter what Daehyun’s Chairman Joo thinks? The only thing that matters is what the person selling the tree thinks. Don’t you agree?”

“Ah.”

Only then did Lee Hak-jae understand Chairman Jin’s plan. The reason for arranging a dinner with the judging panel was precisely this.

“Do-jun, is this enough of a hint?”

“Yes. If Daehyun acquires it, they’ll build apartments on Hando Steel’s land and sell the steel mill equipment overseas. Hando Steel will disappear without a trace. But Soonyang, entering the steel industry for the first time, will do its best to normalize Hando Steel. Isn’t that it?”

“That’s right. Looks like I gave too much of a hint.”

Would this approach really work?

Daehyun also had powerful connections. Even if their goal was to resell it, there would be plenty of people supporting them.

“Then how much acquisition capital are you considering, Grandfather?”

“Me? 1 trillion won plus 1 billion dollars. I wouldn’t be able to spend more even if I wanted to. Hehe.”

“Ch, Chairman! The difference is too big. 500 billion won…!”

Lee Hak-jae turned pale, but my grandfather remained composed.

“Just spread the bait well. I’ll do the fishing.”

The best tool for spreading bait widely was the media. Newspapers and broadcasts would clamor about the necessity of saving the steel industry, the ‘rice of industry,’ putting pressure on the judging panel.

However…

Aigo, you stingy old man. A 500 billion won difference is a bit risky…

Seeing my hardened expression, my grandfather chuckled.

“Do-jun, keep your eyes wide open and watch how this old man does things. See how I use the government officials I’ve cultivated over the past few decades.”

I couldn’t just watch passively. Soonyang Group had to win. That’s why I needed to break open my piggy bank. Taking on debt on top of that would be even better.

When cash liquidity hits rock bottom, and the tsunami of the financial crisis hits, the dollars I hold will shine even brighter.

“Do-jun, you can go now. Isn’t it your entrance ceremony tomorrow?”

“Ah, yes.”

“I’ve already called the university president and the dean. Go to school occasionally and buy some promising fellows soju. Make them indebted to you for when you need help.”

“Yes, Grandfather.”

“Oh, and there’s someone waiting outside to run errands for you. I picked a bright one, so he should be useful.”

Already? I was a little surprised, but I had to accept it naturally. I would need many people to act as my hands and feet in the future.

“Thank you, Grandfather.”

As I exited the study, a young man bowed deeply and politely presented his business card.

“I’m Kim Yoon-suk from the Group’s Strategic Planning Office. I look forward to working with you.”

“Yes, hello. How many years have you been with the company?”

“Pardon? Ah, this is my fourth year.”

Four years was quite a while to have lasted. Either he had strong endurance, or he was simply thoughtless. Since Grandfather had personally chosen him, the former was more likely.

“You’re heading home, right?”

Director Kim hurried towards the mid-sized car parked near the entrance and opened the back door.

I hesitated for a moment but simply got into the back seat.

I didn’t know whose man Kim Yoon-suk was yet. It was time to act naturally. For now.

“Director Kim.”

“Yes?”

When the car entered the city, I spoke first.

“Who assigned you to me? Was it the Vice-chairman?”

“No, sir. It was Chief of staff Lee Hak-jae.”

Chief of staff…

“Who do you submit your reports to? The head of the strategy team? Or…”

He seemed a bit surprised by my question, glancing at me in the rearview mirror.

“You’ll be reporting my every move, won’t you? Why are you so surprised when it’s a known fact?”

“My, my apologies. It’s just that no one has asked such a question before…”

“Who were you assigned to previously?”

“I was in charge of the Yeongbin Gwan. This is my first time serving a member of the Chairman’s family.”

Director Kim cautiously opened his mouth, subtly observing my reaction in the rearview mirror.

“Chief of staff Lee specifically instructed me to report to him. Is there anything I should be particularly aware of?”

He was quick-witted. He would report everything anyway, but that question was meant to make me lower my guard.

“No. Report the facts. You work for me, but Chief of staff Lee is your superior, so you should follow his instructions.”

My answer seemed unexpected, as he glanced at my face once more. His choice would reveal what kind of man he was.

When we arrived home, I gave him my cell phone number.

“I’ll be using public transport to get to school, so there’s no need for you to come every day. I’ll contact you if I need anything.”

I pretended not to notice Director Kim’s bewildered expression and went inside. I needed to keep my distance for now.

***

“Uncle, should we also jump into the acquisition of Hando Steel?”

“Don’t even think about it. That’s not our playing field.”

Oh Se-hyun didn’t even bother to look at me, dismissing the idea as unworthy of consideration.

“Don’t be so quick to dismiss it. I haven’t finished speaking yet.”

“Are you going to manage it if we acquire it? No, you’re not. We’d have to tear it apart and sell it, but we don’t have the time. The bidding process will start soon, and it will take at least a year just to find buyers. Of course, there’s no guarantee we’ll even be able to sell it.”

“Everything you said is correct, Uncle. What I’m suggesting is that we stir up the acquisition battle a bit.”

Only then did he meet my gaze, taking off his glasses.

“What scheme are you cooking up now? Isn’t it already a two-way fight between Soonyang and Daehyun?”

“I want to help Grandfather. I really want Soonyang to acquire Hando Steel.”

Oh Se-hyun let out a short breath and shrugged.

“If the shareholder wishes it, a mere salaryman president has no choice but to comply. What do you want to do?”

“First, we submit a letter of intent and show everyone what corporate raiders are. We make them think that dismantling a company and selling it off to foreign interests is an act of treason.”

“And that will help Soonyang Group?”

“Yes. It’s Grandfather’s strategy.”

“What’s the bid amount?”

“2.5 trillion won.”

“That seems like it will be the highest bid?”

He wasn’t surprised, knowing I had no intention of actually acquiring it.

“Just in case, let’s add a condition of full debt forgiveness. That way, there’s no chance we’ll actually end up as the acquirer. If things go wrong, all your money will be tied up here. Heh.”

* * *

『Miracle Investment, a US-based investment firm, has entered the bidding war for Hando Steel. They are showing strong confidence by announcing a bid of 2.5 trillion won. Let’s hear from CEO Oh Se-hyun of Miracle Investment.』

“…Numerous companies emerge and disappear. Hando Steel is simply one of them. There’s no obligation to protect it forever. We have assessed Hando Steel’s accurate value and are confident in our acquisition.”

“If you are selected as the acquirer, what are your plans for Hando Steel?”

“We are merely investors, not managers. The steel mill will be sold to interested companies, and the land owned by the company will be resold to construction companies.”

“Does that mean you are a speculative investor?”

“I dislike the term ‘speculation.’ The important thing is that the banks, Hando Steel’s creditors, must choose the highest bidder. They need to reduce their non-performing loans. Aren’t they in a potentially risky situation?”

Chairman Jin, watching TV, threw the remote down and shouted.

“Bring that bastard here right now! How dare he try to grab a spoon at the table I’ve set!”

Chief of staff Lee Hak-jae hurriedly headed to Yeouido.