Chapter 32 Li Jianxi watching the show
No one could have imagined that this large steel company, which was thriving just two years ago, would collapse so suddenly?
In order to ensure that the collapse of Hanbao Steel would not cause a huge impact (once Hanbao Steel was allowed to go bankrupt, tens of thousands of employees under the company would face unemployment, which would be another heavy blow to Mr. Yongsan, who claimed to be a "civilian government"), at the instruction of Mr. Yongsan, representatives of the Blue House met with several large domestic companies for negotiations, intending to find a strong target to take over Hanbao Steel.
The only companies that can take on such a huge hot potato are a few large companies that are ranked high, such as Daewoo Group, Hyundai Group, and Five Star Group.
However, representatives of several companies are quite cautious about the Blue House's proposal. The actual financial situation of Hanbao Steel is really shocking. The debt is more than three times the company's market value. Buying Hanbao Steel while assuming sky-high debts is simply a bottomless pit that is difficult to fill. It is a definite money-losing product!
Among the companies present, the most excited person was Park Tae-jun, the chairman of Posco! As the largest steel producer in Korea, Posco's steel products have a smaller market share in the country than Hanbo Steel. Their largest product markets are Southeast Asia, Europe and the United States, and they earn a lot of foreign exchange.
The collapse of Hanbo Steel also means that the domestic steel market will soon enter a situation where one company dominates. As long as Posco Steel seizes this "god-given opportunity", it can completely monopolize the entire steel market in Korea! ...
After some discussion, the three top-ranked companies, namely Daewoo Group, Hyundai Group and Five Star Group, were willing and able to take over Hanbao Steel.
The chairman of Daewoo Group, Kim Woo-jung, looked a little unhappy. Daewoo Group is now prosperous, with a market value of 60 billion US dollars! Daewoo Group's business scope includes foreign trade, shipbuilding, heavy equipment, automobiles, electronics, communications, construction, chemicals, finance, etc. It has 29 series companies and more than 30 overseas branches, ranking only below Hyundai Group. (Note: Hyundai Group here refers to the group before it was split)
But behind this false prosperity is a huge debt that is even more exaggerated than Hanbo Steel! The large-scale expansion of overseas markets and the construction of factories and offices have caused this second largest Korean enterprise to have a debt of more than 70 trillion won. In other words, it relies on extremely exaggerated sales and huge profits to maintain an unstable debt relationship.
Now he is asked to let Daewoo Group take out a huge amount of money to take over a "money-losing product", he is not very willing!
Li Jianxi saw that things were developing just as expected, and the smile on his face remained unchanged. He looked at Hyundai Group Chairman Chung Ju-yung beside him jokingly, "The cars produced by Hyundai Group are the pride of our Goryeo country! Now that Hanbo Steel has gone bankrupt, I'm afraid we have to ask Pohang Steel for a solution to fill the steel shortage!"
Hearing his old rival Li Jianxi's blatant mockery of him, Zheng Zhouyong's face turned pale and he said in a tough attitude, "Chairman Li doesn't need to worry about the situation of our Hyundai Group! The demand for steel by the industries under the Five Star Group is not much smaller than that of our Hyundai Group, right? You should think more about the problems of your own company!"
Seeing that Chung Ju-yung responded to him so toughly, Li Jianxi still smiled, as if he didn't take the other person's words to heart.
…
After coming out of the Blue House meeting room, Li Zairong and Director Yin, who were waiting outside, hurriedly followed. As the car drove away from the Blue House, Li Jianxi, who had been resting with his eyes closed, spoke up, "It was just as we expected. The Blue House called us over because they hoped that one of our companies could acquire Hanbao Steel..."
At this point, Li Jianxi glanced at Li Zairong and asked calmly, "What did Pohang Iron and Steel, which I asked you to contact before, say?"
Li Zairong paused, looking a little unnatural, "Posco doesn't seem to be very interested in our cooperation invitation..."
"According to the current situation, they are obviously waiting for a higher price! Once the news about Hanbao Steel is confirmed, Pohang Steel will naturally become the most powerful steel production company in the country, and it is reasonable for them to raise the price..."
After hearing the news from Pohang Iron and Steel, Li Jianxi showed no sign of being angry. Instead, he asked Director Yin, who was driving, how the contact with the steel production company in Longguo was going. Director Yin answered while driving, "The representatives we sent to Longguo have already given us some feedback! Baowu Steel, the largest steel production company in Longguo, is very interested in our cooperation invitation and is willing to discuss the specific details of the cooperation with us!"
"In addition, the representative also found out that Longguo's steel production has been rising year by year in recent years, and its production technology and quality have also been greatly improved compared to before. The steel produced by Longguo can completely replace the products of Hanbao Steel, and the price is even 10% cheaper than that of Hanbao Steel!"
Upon hearing such good news, Li Jianxi showed a satisfied smile on his face. At the same time, he urged Director Yin to let the company representatives go to Longguo to promote this cooperation as soon as possible and completely make up for the company's shortage of raw materials.
"Fuzhen has good vision. The husband she chooses has outstanding vision and strategy! When he and Fuzhen finish their studies and return to China next year, you, as their elder brother, should get closer to them. The management of the company will depend on young people like you in the future!" Li Jianxi glanced at Li Zairong beside him and said earnestly.
"Okay, I will!" Li Zairong agreed with a smile, showing no sign of the disagreement he had with Zhang Junfeng a few days ago.
…
If the biggest winner of Hanbo Steel's complete collapse may be Posco Steel, then the one who has benefited the most is definitely Zhang Junfeng!
As the news of the bankruptcy spread, the stock price of Hanbao Steel fell sharply. From its peak, the stock price has fallen by as much as 80%. It is only a matter of time before it is delisted.
There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!
Inside Mingren Law Firm, Wu Mingxi was editing an email with great interest, intending to report the "good news" happening in the country to Zhang Junfeng, his big boss who had already gone abroad, as soon as possible.
According to the Hanbao Steel Company stocks that Zhang Junfeng had borrowed from two banks before, he could make at least 1 billion US dollars from this short selling. Such an amazing profit is almost catching up with the top companies in Korea, right?
(End of this chapter)