＜ Miracle Investor 14 ＞
＜149＞
Friday, May 31, 2019.
Hyeon-joon took over the stakes from institutional investors who had stakes in Sangmun Construction after signing contracts to acquire them.
Of course, there was another reason why this kind of sudden stake acquisition was possible.
President Yoon Soo-yeon, who has been secretly preparing for a long time through various personal connections. Thanks to her, the pension fund issued a press release and expressed doubts about the current management, and as a result, the tense axis of the equity competition was shaken, and the situation changed to [C&K Investment]’s dominance.
As a result, the institutions that stocked this way and that way came to sign a contract to hand over their respective shares to [C&K Investment], which guarantees a significant sale price.
In particular, in the process of hostile mergers and acquisitions, when a major stake is transferred, significant profits can be obtained.
As Hyun-jun, he had to take over the shares at any cost, and since each institution could reap plentiful market profits, their interests were aligned.
Meanwhile, Seo Seok-kyu, chairman of Sangmoon Group, tried to respond to the attack on management rights by hastily collecting bank loans as well as company funds, but who would dare to follow Hyun-joon’s financial power?
In an instant, the stake in [C&K Investment] increased dramatically, reaching 35.9% of the stake. In addition, when the support of 5.93% of the pension fund was almost certain, Dennis Kim, CEO of [C&K Investment], finally called an extraordinary shareholders’ meeting.
This series of processes itself is such a purpose to secure the structure of control over the entire Sangmoon Group sequentially after going through the immediate takeover process for [Sangmun Construction].
#
“CEO, will it be all right?”
“yes. We already have enough firepower.”
CEO Dennis Kim looks very excited. It has to be. This is because, not long after [C&K Investment] was established, [C&K Investment] acquired a large group in the top 50 in the business world.
“Then, what about the possibility of Chairman Suh Seok-kyu defending his management rights?”
CEO Dennis Kim responded with a powerful voice to Hyeon-jun’s question. Currently, CEO Dennis Kim seems to be very happy with everything.
“Even though there are reports in the media that they are willing to take legal action, the stakes are already over. After all, equity voting rights will represent everything. professor! We will definitely win.”
“Still, it seems that there is still a lot of talk about the shares owned by President Yoon Su-yeon?”
“It would mean nothing at all! The legal battle between President Yoon Soo-yeon and Chairman Seo Seok-gyu has already reached the final trial and has come to a conclusion. Because of that, it is absolutely impossible for President Yoon Soo-yeon to reverse the stake.”
In the end, Chairman Seo Seok-gyu said there was no other way.
“Then… we should now prepare for a new board of directors, right?”
Hyeon-jun asked with a grin, and CEO Dennis Kim nodded.
“yes! So, preparations for recruits are starting right away. In addition, it seems that we need to select executives who can continue to go with us through a more diversified analysis of the current executives. To do that, we need a lot of personnel information…”
But fortunately, isn’t there an incredibly good talent right now? It is Kim Byung-soo, the executive director, who is really good at background investigations and makes the analysis of people staggering.
Because of that, after briefly talking about managing director Kim Byeong-soo, Hyun-joon now asks about other mergers and acquisitions.
“Then, how are the [Rubjin Drug] and [Shinyeong Pharmaceutical] cases going?”
“First of all, in the case of [Pungjin Pharmaceutical], in addition to the urgent purchase of shares on the market, contacts and negotiations began with the institutions holding major stakes. Of course, [Rungjin Pharmaceutical] announced that it would immediately defend management rights, but the current atmosphere is not bad for us. Because, there are already rumors about the process of acquiring shares in [Sangmun Construction], and the institutions holding shares in [Pungjin Pharm] seem to have slightly raised their expectations. In particular, rumors spread that we are working in combination with [Ilshin Pharm], and thanks to our strong financial power, institutions seem to have increased expectations that they will be able to generate significant profits through the sale of their stakes.”
“Then won’t the stake acquisition cost be too high?”
“It is. So, from now on, we also need tactics to change the atmosphere in our favor. As one of them, the attack on the management of [Pungjin Pharmaceutical] must be carried out immediately. In fact, hostile takeovers are far from peaceful ones. So, we need to highlight the net loss of tens of billions of won over the past few years. It is necessary to focus especially on the situation in which operating profit continues to be in the black, but continuous net loss continues. In addition, the pharmaceutical stock itself is currently very boring and does not generate profits because there is no special issue. The institutions that hold a stake in it are also very bored. Because [Pungjin Pharm] ranks high in the pharmaceutical company rankings, but even the annual dividend on its stake is negligible.”
“Then you want to attack the management first?”
“yes. In doing so, while lowering acquisition costs, other strategies are also needed. One of them, in fact, the acquisition of [Pungjin Pharmaceutical] was suddenly announced, but rather, the announcement of this acquisition plan may act as a very advantageous factor, namely, [Shinyeong Pharm] and [Pungjin Pharm] on two axes. Being able to put it on and weigh it is an advantage.”
“In what sense is that?”
“[Shinyoung Pharm] or [Pungjin Pharm], if we can create an atmosphere where we can possibly give up the acquisition of either one! In the end, regardless of the existing management, each holding institution will be somewhat shaken. The most expensive opportunity to sell, they are never easy to miss. In particular, once the materials for this merger and acquisition disappear, the stock price will fall again immediately unless it is a new drug development due to the nature of conservative pharmaceutical stocks. Smart institutions never miss a moment like this.”
“So anyway, you’re saying that even if you buy a little more expensive, you can lower the purchase price a little more?”
“yes! And that’s what M&A professionals do. So there are some very outstanding people among my juniors, and scouting them will be of great help in many ways.”
“Oh, that’s good. If you send me your resume, I will actively review it.”
“thank you. professor! And, as you well know, these stakes are never just stakes. Originally, when the management premium is attached, the value increases more than the original value. But in that situation, the fortunate thing is that both of these companies are in such a condition that their stakes are very undervalued.”
In other words, since the stock is undervalued, even if it is purchased at a high price, there is a possibility that the total market cap will be raised a little later.
In particular, not only Hyeon-jun but also CEO Dennis Kim are so-called experts in this area.
The two knew very well how to inflate the stock price of pharmaceutical stocks.
“Then keep pushing forward. really! And how is the acquisition of [Shinyoung Pharm] going?”
Hyeon-jun asked that question again, and CEO Dennis Kim explained the current progress in detail.
“As the professor has prepared the draft, we plan to form a consortium with [Ilshin Pharm] and start negotiations step by step. Of course, it seems that the schedule for the first meeting with Vice Chairman Kim Hye-kyung of Shinyoung Group will be scheduled sooner or later in a form similar to a face-to-face meeting.”
“By the way, isn’t Vice Chairman Kim Hye-kyung an informer of Shinyoung Group Chairman Jang Sang-kwon?”
“yes. you’re right. She is the wife of Shinyoung Group Chairman Jang Sang-gwon, and Vice Chairman Kim Hye-kyung is also a real person who directly manages Shinyoung Department Store.”
“Ah, Shinyeong Department Store!”
At this time, Hyeonjun immediately let out a light exclamation. There is a department store that he often goes to. It was Shinyoung Department Store, the department store where he was registered as a VIP member.
Is this also related?
However, before discussing such a relationship, Hyeon-Jun came to think of Jang Tae-Jun, another idiot of the Shinyoung Group.
Jang Tae-joon, a college classmate. He is also the managing director of [Shinyoung Foods], an affiliate of Shinyoung Group, and also the CEO of a venture company with pharmaceutical ventures.
On the other hand, Hyeon-joon, who recalled that, had a bitter smile on his lips.
However, it was only natural that he would meet Vice Chairman Kim Hye-kyung soon, so Hyeon-joon heard various stories about Vice-Chairman Kim Hye-kyung from CEO Dennis Kim step by step.
#
And again, time passed…
Wednesday, June 5, 2019 afternoon.
After Hyeon-jun finished his undergraduate lecture, he immediately headed to Shinyeong Department Store.
It was to hold the first meeting related to the acquisition of [Shinyoung Pharmaceutical] in the boardroom of Shinyoung Department Store.
Of course, at this meeting, we will not discuss the [Shinyoung Pharm] acquisition contract right away.
In fact, this meeting was not even held for that purpose.
It was kind of like a face-to-face meeting.
In other words, it is a type of meeting in which both sides sit face-to-face and talk about various things while getting to know each other’s needs bit by bit.
and after a while
Hyeon-jun entered the conference room with CEO Dennis Kim.
Meanwhile, this morning, Hyeon-jun stopped by the office of the dean of academic affairs at the university, and there he submitted his resignation letter.
Of course, there are still undergraduate lectures and graduate lectures for this semester, so I decided to keep my professorship until the coming August.
Even so, he submitted his resignation letter in advance.
In other words, in such a situation, Hyun-jun no longer clings to the position of professor, and he proudly participates in discussions on mergers and acquisitions.
In other words, Hyun-Jun is not a university professor anymore, but he intends to change his position from [Sangmun Group], where the name of the group will be changed soon, to the group chairman right there.
Is that why?
After a while, while we were greeting each other, Vice Chairman Kim Hye-kyung, who looked very arrogant, was treating Hyun-joon in front of me a little more carefully.
Although, compared to Shinyoung Group, Sangmoon Group’s position is not that great.
However, if the young professor in front of him absorbed [Shinyoung Pharmaceutical] and [Rungjin Pharmaceutical], perhaps the Sangmun Group’s ranking in the business world would rise further, and it might even come close to the top 20.
Because of that, Vice Chairman Kim Hye-kyung seems to treat Hyun-joon more seriously.
In the past, she exclaimed, “What’s the point of being a mere professor?”
At some point, the young professor’s status was changing just like that.
