Korean TV series: King of Peninsula 1997

Chapter 675 Shareholders Meeting
"If you don't want to stay here and argue with me," Jin Shengjun looked at Jin Xiya expressionlessly, "go and see if all the shareholders are here."

Jin Xiya's expression changed several times, and she turned around and walked out without saying a word.

"Your father does have such a request," Li You looked at Jin Shengjun in front of him, who had bad intentions at first glance.

This guy was just communicating in a friendly manner with Jin Xiya in front of so many executives of Tianxia Group, but his expression changed when he got here.

"It's not that difficult to support your sister to take the position. It's just taking money from others to help them get rid of disasters."

Li You walked leisurely to the French window and found that the scenery of these high-rise buildings in Seoul was almost the same from the inside out. He turned around with a bored look and said, "Since Chairman Jin is willing to sell Tianxia Airlines to me, I will naturally keep my promise."

"Of course, there is another situation," Li You looked at Jin Shengjun meaningfully, almost as if to make it clear, "What if Miss Xiya disobeys her father's order and doesn't want to be the president?"

"It's not convenient for me, an outsider, to say anything more."

He can keep the Tianxia Group or support Jin Xiya to take the position, but the Tianxia Group cannot be a united group, and Jin Xiya cannot get the support of her two brothers. Only in this way can the Tianxia Group be valuable to Li You.

Li You glanced at his watch, then looked up and smiled at Jin Shengjun, "But this is an internal matter of your Tianxia family, so don't involve me anymore."

Jin Shengjun raised his head and tried to hide the joy in his eyes, but he couldn't avoid smiling. "I am sorry, President."

Li You's words seemed ambiguous, but in fact he laid out the matter openly.

In Jin Shengjun's eyes, if Li You could find a reason that Jin Xiya could not refuse and make her give up on her own initiative, then he would not interfere.

As for whether Kim Hee-ah has any reason not to want to do it, Kim Sung-jun feels he has a way.

"It's almost time. Where will you hold your shareholders' meeting?" Li You patted his shoulder. "It can't be held in this office, right?"

"Yes." Jin Shengjun came back to his senses and bowed down, feeling rude. He stretched out his hand and gestured, "President, please follow me."

Kim Sung-jun led the way, taking Lee Woo and Jeon Jae-jun into the large conference room where the meeting was held.

When I entered, the room was already full of people attending the meeting, most of whom were shareholders of Tianxia Group, and a small number were senior management and external directors.

When Li You first came in, the management and shareholders of Tianxia Group were quite embarrassed.

After all, the Tianxia Group and the Kinmen Group are rivals.

Li You's appearance here as the president of Kinmen made them want to maintain good relations but also avoid suspicion, which was naturally awkward.

However, there are still many old hands who shamelessly come over and greet each other, trying to make themselves known to Li You.

After greeting these miscellaneous people, Li You sat down in the audience seat, closed his eyes calmly, and did not interfere with their meeting.

In fact, according to the laws of the Korean Peninsula, meeting notices must be sent to all shareholders fourteen days in advance.

Before the notification, the board of directors had to approve the preliminary proposal for the sale, but this process was skipped by Jin Jianying.

It is obvious that it has not been fourteen days since Jin Jianying decided to sell Tianxia Airlines.

The person who presided over this meeting was Secretary Jin, the head of the secretarial office who came to replace Jin Jianying. He said, "Regarding the proposal of the Kinmen Group to acquire the equity of Tianxia Airlines, a subsidiary of the Tianxia Group, the meeting will now begin. Please take notes of the meeting."

There was a slight discussion below. There were indeed many shareholders who were against selling Tianxia Airlines.

Although Tianxia Airlines is suffering heavy losses, its position in the Tianxia Group on the Korean Peninsula is crucial and cannot be measured by money alone.

What's more, the losses of World Airlines can be made up in the future.

Several shareholders glanced at Li You, who was calm and composed. Since Li You was here, it was not convenient for them to start trouble right away.

When Secretary Kim clarified the terms of Kinmen Group's acquisition of Tian Xia Airlines, including the transaction amount, equity ratio, expected synergies and risk warnings, he disclosed everything.

The key point is the transaction amount. The payment plan of 1.5 trillion won to be paid in three years really shocked the wealthy people on the Korean Peninsula.

"This is the audit report, valuation documents and specific transaction terms of Tianxia Airlines, which include the balance sheet and income statement for the past three years, as well as the independent valuation report issued by a third-party agency requested by shareholders."

The independent valuation report is intended to avoid a hostile takeover and ensure that Kinmen Group pays a reasonable price to buy Tianxia Airlines.

However, this independent report is not really independent. It was obtained by Cui Dou Ri and his men from that top institution last night.

After the document was distributed, shareholders read it carefully, but Tianxia Group's executives and external directors took a cursory look. They were more interested in figuring out what today's meeting was about.

"Originally, the president should have explained the reason for the sale himself," the secretary who presided over the meeting bowed his head slightly in apology, "but the president still needs to rest, so I will explain on his behalf."

“The core business of Tianxia Group at present.”

After talking for a long time, the secretary took a sip of water and said, "To reduce the group's debt and ease financial pressure."

While speaking, he also demonstrated a model of the transaction's impact on Tianxia Group's cash flow and earnings per share.

But to be frank
These so-called reasons for selling may seem grand, but in fact they are all templated reasons.

The value of World Airlines lies in its strategic significance. The minor liabilities are nothing at all.

What's more, there is no company today that is not in debt. If these reasons are applied to any company on the Korean Peninsula, you will find that these companies should be sold.

So when he finished speaking, a shareholder immediately raised an objection, "We expected what Secretary Jin said. Why don't you focus on the use of capital after the sale of Tian Xia Airlines?"

Hearing the shareholder's question, Secretary Jin stopped what he was saying.

Shareholders, especially those who hold a larger proportion of shares in the group, pay the most attention to two points.

One of them is the use of capital after the sale. They certainly hope that the money can be used for dividends and new investments, allowing the group to hold new companies again and bring new benefits to these shareholders.

With a cash flow of 1.5 trillion won, the benefits that can be brought by investing are enormous.

If Tianxia Group is the main body using this money, the shareholders will be the ones who benefit the most.

Secretary Kim certainly couldn't tell the shareholders in front of him that the bulk of the money from the sale of World Airlines would go into the Kim Family Foundation.

After all, the majority of Tianxia Airlines' shares are still in Jin Jianying's hands.

"Regarding the use of capital after the sale of World Airlines, we"

After a long speech, the shareholders felt that they heard nothing.

Many shareholders came to their senses and realized that this was just a perfunctory response. With so much money, as much as 1.5 trillion won, it was very likely that Kim Jae-young had already made arrangements but just didn't tell them.

Because of the presence of Li You who was "listening in", they did not attack immediately, but instead asked about the next aspect.

"As for the change of control, has President Jin done any research on this?"

Changes in control are another key concern for the group's shareholders.

They are shareholders of Tianxia Group, but since most of the group's subsidiaries adopt cross-holdings, and Tianxia Airlines is the node of cross-holdings, any move will affect the entire group.

The sale of World Airlines will undoubtedly affect the voice of many shareholders within the group.

"Don't worry about this."

"Why don't we have to worry?" The shareholder asked subconsciously, and then he realized that Secretary Jin didn't say anything.

He turned his head and saw Li You smiling at him kindly.

The shareholder coughed and said, "Chairman Li, why do you say that?"

"What you are all worried about are nothing more than the two words money and power," Li You stood up and took two steps, patted the shoulder of Jin Shengjun in front of him. The second young master of Tianxia Group stood up obediently, gave up his seat, and even pulled a chair for Li You.

"Thank you, Mr. Jin," Li You thanked him with a smile and sat down without any hesitation. "To all of you, especially the shareholders with a large shareholding ratio, I believe that everyone hopes the best for Tianxia Group."

"So I would like to take this opportunity to express my personal opinion," Li You looked around at the shareholders, "I wonder if it complies with your rules?"

The shareholders just stared at Li You, and no one dared to ask Li You, an outsider, to leave the meeting.

"Thank you for giving me this opportunity to speak," Li You smiled at them. "President Li, you are too polite..."

"After the acquisition of Tian Xia Airlines, you are welcome to reinvest in Tian Xia Airlines. The investment ratio can be negotiated separately. If the shareholders have their own businesses, cross-holding is also possible."

Li You said in a deep voice: "As for the 1.5 trillion won we will pay to Tianxia Group over three years after the sale of Tianxia Airlines, part of which will be paid to the account designated by Tianxia Group according to the share sales ratio, and the other part will be invested in the Kim Family Foundation in batches according to the payment method required by Chairman Kim."

"How does this work?"

One shareholder said with a gloomy face: "As a subsidiary of Tianxia Group, Tianxia Airlines will also invest the proceeds from the sale into the Jin Family Foundation?"

"What is President Jin's intention?"

It is true that Jin Jianying is the president.

Li You knocked on the table lightly, and the scene became quiet for a while. "Listen to me, it's not too late to express your opinion then."

"As a cross-shareholding node of Tianxia Group, I remember the publicly disclosed shareholding ratio of Tianxia Airlines quite clearly."

"World Heavy Industries holds 25% of World Airlines, World Airlines holds 18% of World Auto, and World Auto holds 15% of World Heavy Industries."

“Almost all of Tianxia Group’s subsidiaries are like this.”

Jin Jianying holds 18% of the shares of Tianxia Heavy Industries, other subsidiaries hold shares of Tianxia Heavy Industries, and Tianxia Group headquarters holds shares of Tianxia Heavy Industries.

Jin Jianying also holds shares in other subsidiaries and the headquarters of Tianxia Group. He can control the entire Tianxia Heavy Industry through this one-link approach.

This kind of interconnected shareholding method can be applied to every subsidiary of Tianxia Group, and even to the headquarters of Tianxia Group.

These subsidiaries hold shares in each other, forming a circular shareholding. Jin Jianying controls the entire Tianxia Group in this way.

Many shareholders are smaller versions of Jin Jianying, so after Tianxia Airlines was acquired and the cycle was disrupted, it was not just Tianxia Airlines that suffered losses.

"Since Chairman Li knows about this, he must be well aware that the change of ownership of Tianxia Airlines will have a huge impact on both us and Chairman Jin," said a shareholder. "Once Tianxia Airlines is sold, Tianxia Heavy Industries will lose control of 25% of Tianxia Group's shares, and will no longer be able to indirectly influence Tianxia Auto through Tianxia Airlines. If this cycle continues, we will be secondary, and I'm afraid the Jin family's control over Tianxia Group will further decline."

"In order to resolve all this, Chairman Jin has also made arrangements," Li You said slowly, "After Tianxia Airlines is sold, the Jin family's trust fund will use the money to continue holding shares in those subsidiaries."

As they spoke, the shareholders' expressions changed.

With everyone holding shares in a circular manner, the Kim family's trust fund can replace Tianxia Airlines in Kim Jae-young's shareholding cycle, but what will they use to replace it?

They didn't believe that Jin Jianying would let them get their hands on the Jin Trust Fund.

"Then we are the only ones who will suffer, right?"

They are not happy, and the only ones who suffer are the shareholders who learn from Jin Jianying.
In other words, the only ones who suffer are these ambitious shareholders.

But even if the shareholders came to their senses, there was nothing they could do. "Why did Chairman Li openly reveal your and Chairman Jin's conspiracy here?"

"Nothing, I just promised Chairman Jin that after acquiring Tianxia Airlines, I would not let outsiders control Tianxia Group. I would let members of the Jin family come."

Li You laughed and tapped Jin Shengjun's laptop in front of him. "In addition, I have made things clear and explained so much. I have to tell you one thing. At this shareholders' meeting, the number of votes not only determines whether the equity transfer agreement of Tianxia Airlines is passed, but also determines your fate."

Li You glanced at Quan Zaijun and leaned back comfortably. "When voting, I hope all shareholders can cooperate and not do anything that makes everyone uncomfortable."

This is a naked threat.

"How can President Li act like this? This is Tianxia Group!"

"Tianxia Group?" This shareholders' meeting was not in compliance with the rules, and even Li You was not allowed to exert influence present. Now they told him that this was Tianxia Group. Li You sneered and was too lazy to pay attention to them.

Jin Xiya, who was on the other side of "Chairman Li", stood up and walked to Li You to persuade him, "What are you doing?"

"Ms. Xiya, what's the matter?" Li You glanced over there.

"Can we adopt a gentler approach?" Jin Xiya said earnestly, "I will persuade all shareholders to cooperate and try to end the meeting as soon as possible."

"Ms. Xiya," Li You laughed, "This is helping your Jin family control the Tianxia Group."

"And some things can't be helped by persuasion."

"." Jin Xiya sighed, "After all, they are shareholders of Tianxia Group. What if..."

"Nothing could happen," Li You shook his head.

"I want to help these shareholders recognize the facts," Li You put away his smile and said calmly, "The fact is... when I came here, their votes were no longer under their control."

As Li You spoke, the door of the conference room was opened by Jeon Jae-joon, and the security personnel of Tianxia Group who followed Li You came in. This time, Jeon Jae-joon who had just opened the door came in.

"Jaejun," Lee You called out to Jeon Jaejun, "Be polite."

Jeon Jae-jun bowed his head slightly, "Yes."

He turned to the shareholder sitting at the head of the conference table and pulled out a document from his suit like a magic trick.

"Name, Jin."

"Home address, Jiangnan."

“Family member.”

Quan Jae-jun reported the names and home addresses one by one in front of the shareholders themselves.

Every time a person's information was read out, a shareholder would lower his head in fear.

They were so emotional just now that they somewhat ignored who was in front of them.

When Li You is not prepared to abide by the rules, investors and businessmen like them still have to bow their heads.

By the time Jeon Jae-joon finished reading everyone's information and stood behind Li You, the entire conference room fell silent.

It is now clear that whoever casts a veto will bear the consequences at his own risk.

Li You didn't even need to ask Quan Zaijun to really take action, he just read out the information of these people.

"In fact, there is more information on the document," Li You lit a cigarette but did not smoke it. He just put the cigarette on the ashtray. "There is more accurate information on it, but there are too many words. I won't let him read it out."

"Okay," Li You tilted his head and looked at Secretary Jin who was chairing the meeting, "What is the next procedure for the meeting?"

"Vote," Secretary Jin said, standing in the chairman's position. "For resolutions, more than two-thirds of the voting rights held by shareholders present must agree."

"Regarding the proposal by Kinmen Group to acquire the equity of Tian Xia Airlines, a subsidiary of Tian Xia Group, the voting on the equity transfer agreement has now begun."

“The voting method will be paper ballot.”

Secretary Jin personally distributed these slips of paper with "agree" and "disagree" printed on them. All you had to do was tick the box.

After the shareholders filled out the paper ballots, Secretary Jin did not go out to collect them.

After Li You waved his hand, Quan Jae-jun started again, looking at the pictures one by one while collecting them.

All the rules were thrown out the window.

An independent accounting firm should have supervised the vote counting to ensure there was no manipulation.

But now there is no trace of those people from the accounting firm.

After Jeon Jae-joon performed some simple elementary school addition and subtraction, he told Lee Woo the results.

After hearing the results reported by Jeon Jae-jun, Li Youcai nodded slightly to Secretary Jin.

Secretary Jin, who was observing the situation, breathed a sigh of relief. After bowing to Li You, he looked at the shareholders again and announced, "The meeting is over."

(End of this chapter)