Chapter83: < A Cruel Winter (3) >
Four days later, in the 15th-floor conference room.
[Hyunjin Corporation to Give Up on Proxia Acquisition?]
[Rumors are circulating through the stock market that Hyunjin Corporation will abandon its bid for Proxia, an Australian cobalt mining company. With Sewon International and the Golden Bridge consortium making a surprise entry into the bidding, the acquisition price is likely to be higher than expected, lending considerable credibility to the story that Hyunjin has given up. A Hyunjin Corporation official dismissed the rumor as tabloid gossip, stating that employees preparing the bid are still on-site in Australia...]
Yeonghun checked the morning article on his phone and spoke to Managing Director Go.
“It came out later than I expected.”
He had thought the rumors would start circulating as soon as the Vice President spread the word, but they only began to swirl now, just a few days before the bid.
“They probably didn't feel the need to spread it. Right now, they're likely just putting out feelers to see what our situation is.”
“How’s the Vice President?”
At Yeonghun’s question, Chief of Staff Kang tilted his head for a moment before answering.
“Yesterday, he went straight to the sauna after coming to work, then came up in the afternoon and just killed time. It seems like he’s lost all his motivation.”
Yeonghun shook his head.
“He hasn’t lost his motivation.”
“Then?”
“He’s conserving his energy because there’s nothing for him to do right now. They say that as you get older, even focusing on something consumes a great deal of mental energy. So he’s preparing to pour all of it in at the moment he needs to make his move. He's not the type of person to give up his position over something like this.”
Chief of Staff Kang No-sik looked like he didn't understand.
“How do you know him so well? I’ve known the Vice President for nearly twenty years, and I never thought of him that way. Hasn't Manager Choi only met him for a few hours?”
“Even a brief encounter can be enough to understand someone deeply. We shouldn't let our guard down.”
“Don’t worry about secrecy.”
Only a few days ago, Chief of Staff Kang No-sik had learned what the Bongseon-dong TFT was created for.
The surprise he felt at that moment was probably the biggest shock he’d had since joining the company.
He would have been even more astonished if he’d heard that they had also offered up the construction rights to the Bongseon-dong apartment, which was supposed to be just for show for Congressman Jo Jae-min, but that fact was unrelated to the current acquisition battle and was left unsaid.
Thus, Chief of Staff Kang still believed the Bongseon-dong TFT was a team created purely for appearances.
“You just have to bear with it for a few more days.”
“Well, I’m only handling the AMA system investment anyway, so I just have to watch how the rest unfolds.”
“That’s because you handled the bituminous coal mine so well.”
“Did I handle it? Manager Choi did all the work, and I just did the cleanup.”
Less than a week after his business trip to China, the bituminous coal mine had resumed normal operations.
He had thought it would take until at least early next year for things to get back on track, but thankfully, operations normalized, and the stock price, which had fallen, quickly recovered.
“The sales team went through a lot. I wonder if we should treat them to a company dinner.”
The bituminous coal that was supposed to arrive at Incheon Port had been blocked, but the sales team had hustled and managed to secure a supply, narrowly averting a crisis.
“They haven't even had a company dinner since Managing Director Park was appointed, because they were so busy with the coal issue. Now that it’s resolved, they’ll probably have one to celebrate his promotion. I understand you want to take care of them, but this Hyunjin Tourism acquisition is right around the corner, so let’s just focus on our own work.”
Yeonghun thought he was right.
“Understood. Let’s do that.”
“How’s the President?”
“She seems to have a lot on her mind. She doesn’t look too bright.”
“Hmm... I suppose so. If it were me, I wouldn’t be able to sleep at night.”
“Still, she’s holding up surprisingly well.”
“That’s what’s strange. I never knew the President was such a resolute person. To think she'd dare to backstab the Chairman and try to swallow up a subsidiary.”
Managing Director Go Seung-hyeon spoke up.
“What are we going to do about the employees on-site?”
“If we recall them just a few days before the bid, they’ll catch on quickly. Just tell them to take it easy and do some sightseeing. Have a few employees go to the bidding site and just observe.”
“That makes sense.”
“How is the stock acquisition going?”
“Assuming Shinyoung Financial completes their purchase as expected, and including the additional shares we bought from the Hyunjin Tourism shareholders we know, it looks like we can just barely reach 50%. Exchanging 200 billion for Hyunjin Tourism stock was a big move.”
“Are the shareholders maintaining confidentiality?”
“We promised to pay three times the market price. The transaction will be done through an after-hours block trade on a designated day, so if they don’t keep it secret until then, they can’t just sit back and pocket a threefold profit. For now, we’ve secured 3% from Goseong Savings Bank, 1.5% from Dowon Cement, and 2% from a Ms. Yu Ji-ran, who is a famous big hand in the Myeongdong private loan market. Besides them, we’ve promised to buy from others at three to as much as five times the price.”
“That’s great.”
“Ms. Yu Ji-ran was a bit difficult. She was much more particular and no ordinary person than I expected.”
“Even when you offered three times the price?”
“It wasn’t about the price. The problem was the strange condition she set.”
“A strange condition?”
“She wanted to meet the President. She said she wanted to meet her and hear what she was thinking.”
“And?”
“I told her it was difficult right now. I said I’d arrange a meeting after everything is over, and she readily agreed.”
“I’m curious.”
“Me too. When I reported it to the President, she just said she understood. I’m also curious what those two powerful women will talk about when they meet.”
“In any case, things worked out well.”
“All that’s left is the 2.3% stake held by Fidelity Asset Management... The CEO of Fidelity’s Asia branch happens to be in Japan, so I’m planning to go there tomorrow. If that goes well, we should be able to secure 50% without any issues.”
“Will they sell?”
“Even if they don’t sell, all we need is for them to write a letter of proxy supporting our side. But if we offer three times the price, I think they’ll probably sell.”
“We’ll know when you meet them.”
He wanted to go with them and help, but he knew he couldn't handle everything himself, nor should he.
Besides, the people here were far more capable and intelligent than he was. They would do well.
*
The President’s office at Hyunjin Tourism.
President Im Ji-eun was leisurely enjoying black tea while watching the economic news.
In truth, President Im didn’t find economic news particularly interesting, but she forced herself to watch it, knowing she couldn’t be ignorant of the economy as a president.
Still, if there was one segment on the economic channels she found entertaining, it was the program where viewers with questions about real estate or stocks could call in and consult with an expert directly.
Stories like someone who took out a large loan to buy an apartment only for the price to stagnate, or someone who was worried because they were underwater on a stock they'd bought... watching them, she would lose track of time.
Today was no different, with one unfortunate story after another.
[Our next caller sent in the question, “My money is tied up in Hyunjin Tourism stock. Should I sell now?” Hello~]
Seeing that the topic was her own company, President Im leaned forward with an interested expression.
The stock price, which had been sluggish for the past few years, had been gradually rising for a few weeks, and President Im was enjoying the taste of a rising stock. This was perfect timing.
[Hello. This is Kim Sun-ok, a housewife from Jungnang District.]
[So your stock is tied up in Hyunjin Tourism? How long have you been invested?]
[Three years ago, someone recommended hotel stocks to me. They said they aren't very affected by the economy, have steady sales... and that the dividend income is a nice little bonus. So when I had some extra money, I decided to invest.]
[Three years ago, that would have been around 20,000 to 25,000 won per share. Is that correct?]
[That’s right. I bought it at 22,000 won.]
[Then you’re close to breaking even now.]
[That’s why I’m torn. Now that Hyunjin Tourism stock is rebounding, I’m wondering if I should sell now that I’m close to breaking even, just to get my principal back, or if I should keep holding on. I think I'd be so~ upset if I sold it and the price kept going up.]
[I understand. When you buy, it falls, and then when you sell at your break-even point, the stock just keeps shooting up. It's re~ally upsetting.]
The expert brought up the Hyunjin Tourism stock chart and continued his explanation.
[Looking at the chart, Hyunjin Tourism's stock, which had been trading in a range between 17,000 and 21,000 won, broke its 17,000 won support line about two months ago and showed a sharp decline. Up to that point, analysts were predicting another step down for the stock. But then, on November 24th, a massive trading volume exploded, and it began a V-shaped rebound. And today, it’s showing powerful momentum, breaking through the 21,000 won resistance line.]
[Exactly. But what I’m curious about is, why is the stock rising?]
The expert explained with a troubled look.
[To be honest, Hyunjin Tourism’s rebound isn’t due to any particular momentum. It’s because it’s a representative defensive stock and is also undervalued. Its performance is steady, and after paying off the debt from its recent acquisition of the Payment Hotel, its financials have become quite sound. It seems that institutional investors are viewing Hyunjin Tourism relatively positively because of this.]
It was a long-winded explanation, but the conclusion was that he didn't really know the reason either.
[So, will the stock continue to rise?]
[Current brokerage reports all suggest a target price of 21,000 won for Hyunjin Tourism. However, since it has broken out of its trading range, it might not be a bad idea to watch it a little longer. It still seems to have momentum.]
[Then what should I set as a target price?]
[If it were me, I'd set the target price around 23,000 won. It showed strong momentum by breaking out of its range, but it will likely take a breather at some point. Selling off a portion then to realize some profit would be the proper way to trade.]
Just then, someone knocked on the door.
“President. I’m coming in.”
The Chief of Staff entered, looking inexplicably urgent.
“What is it?”
“President, our stock is still rising.”
“How much?”
“I just saw it break past 8% before I came in.”
“8%? Really?”
President Im Ji-eun asked, her face brightening.
In all her time as president, the stock had rarely risen more than 8% in a single day.
After years of languishing in a tedious trading range, the stock had recently started to show a noticeable climb. So, seeing it jump over 8% today, she couldn't help but be delighted.
A CEO, after all, must demonstrate their competence to the shareholders through a rising stock price.
Of course, her position as president wasn't in jeopardy even if her performance was lacking, but a rising stock would undoubtedly change the public's perception of her completely.
“But it’s strange. No matter how I think about it, there’s no reason for the stock to rise this much.”
“Who’s buying the stock?”
“It appears to be domestic institutions, but to be precise...”
“Then what’s the worry? Is there any reason to be concerned?”
The Chief of Staff started to say something, then closed his mouth.
He considered bringing up the possibility of a hostile M&A, but there wasn't much precedent for such an attempt against the affiliate of a major conglomerate.
Successful hostile takeovers were also extremely rare in the history of the domestic stock market.
Besides, he wondered if there was any need for caution when the buyers were domestic institutions, not foreign investors.
“Still, for the stock to rise without any particular reason is unprecedented...”
“The economy is so difficult these days, so defensive stocks are probably drawing attention. And we just paid off the Shinyoung Bank loan, didn't we? We've become financially sound.”
President Im Ji-eun repeated the words the expert had just told her.
Despite her rebuttal, the Chief of Staff tilted his head and shared his own thoughts.
“I understand it's attracting attention as a defensive stock, but if that were the case, it should be rising gradually. This surge is so powerful, it looks like a manipulated stock that's been accumulated before being pumped. The trading volume this morning alone exceeded ten billion won. And while we did pay off 200 billion won, a significant amount of debt still remains. We've only put out the most urgent fire, so to speak...”
“How would stock investors think about all that?”
Just then, an urgent voice came from the TV.
[Oh my! Hyunjin Tourism's stock is still rising! What should I do?]
[Is it because we're talking about Hyunjin Tourism today? It's showing considerable strength... Huh? It's already up over 10%.]
[Sir, it's already approaching the target price. Should I place a sell order for now?]
[Ah, yes. For now, just a portion...]
A few seconds after the expert spoke, wiping away sweat, the caller’s voice, nearly a scream, rang out.
[Good heavens! It sold in an instant! It's still going up!]
President Im Ji-eun rushed back to her desk and pulled up the stock chart.
Hyunjin Tourism's stock was devouring sell orders like a mad beast, instantly breaking past 16%.
On the trading platforms of every securities firm, Hyunjin Tourism was flagged as a stock to watch, and trading volume began to explode.
The stock was going berserk.
< A Cruel Winter (3) > End
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