Chapter 541 - A Group’s Secret Proposal (2) – Part 2
“So, how many product orders are you thinking of offering to us, and how many shares do you want me to release?”
“As a start, we will place product orders worth more than 100 billion won within a year. The volume of our product orders will increase every year.”
“Whoa! Did you say 100 billion won worth of product orders?”
“You will have to make sure that you are providing us quality products though. The deal can be well broken if we get defective products.”
“What about stocks? I’m sure that you are not asking me to give 100% of the company’s shares.”
“Hahaha. I know that I can’t ask you for that. If I ask you to give us even 50% of the company’s shares, you would walk away. I know you want to stay in control of your company by keeping more than 50% of the shares. I want 15% of the ownership.”
“What? 15% of the company’s shares?”
“An auto parts manufacturing company is in the smokestack industry, meaning that it won’t be able to make a dramatic growth in its sales revenue. You will succeed in going public since you are trying hard to fulfill the requirements. Once you do, you will be able to use some funds from the stock market to expand your company, so you could have a few branch offices overseas. Even if you do all those, your company will make a little over 100 million won annually.”
“Hmm.”
“What do you think? Would you like to have a company that you own 100% with 100 million won of sales revenue? Or, would you like to own 85% of your company which generates 1 trillion won of sales revenue?”
“Hmm…”
It was a huge proposal to Gun-Ho. Gun-Ho couldn’t give his response right away, but he let out a groan.
A Electronics CEO Park finished his canned coffee. He verified if there was anything more left in his can by shaking it. There was none left.
“You don’t just transfer 15% of the company’s shares, but we will increase capital stock. That way, you can justify your decision to give some portion of the ownership to someone. You can tell others that you choose to increase capital in order to lower the debt ratio, so you can successfully register the company with KOSDAQ. People will think that makes sense.”
“If I just want to give the shares, I can transfer a part of the shares that I have, but in order to increase the capital, I need to bring funds into the company.”
“Of course, you will bring in the funds of 15%.”
‘What am I going to do? GH Mobile is a second vendor company in the automobile parts manufacturing industry. This is an opportunity to become a first vendor company in the home appliance manufacturing industry. Maybe I should go for it. I don’t want to give 15% of my company’s shares, but I can make way more money by doing this. We will add 750 million won to the capital, but once the company is registered with KOSDAQ, its value will jump to 7.5 billion won.
I will have to give at least 3% of the shares to President Jang-Hwan Song. I have to compensate for his hard work in increasing the sales revenue and building up our current management system. That is what I promised him when he joined this company anyway.
After giving 15% to Mr. Minister Jin-Woo Lee’s father and 3% to President Song, I will be left with 82%. I haven’t recovered any investment funds that I had put into GH Mobile yet. Should I go for it? Or not? Should I?’
Gun-Ho continued walking around in his office for quite a while.