Chapter 1239: Desperate Measures

This is a very heavy problem.

But it has to be faced!

For the Torii family, who regards Suntory as their goal, it is better to invest in their own company than in anything else.

Therefore, the vast majority of the Torii family's assets are concentrated in the shares of Suntory.

If it weren't for this attitude, as a company with a history of more than 80 years, Suntory has been able to stand out by acquiring a large number of companies during this period, the Torii family would not be able to hold the current 21.7% stake, and it would have long since dropped to a single-digit percentage or even a few percent.

In the post-war island country, it is normal for the majority of company shares to be widely dispersed.

In most listed companies, the combined shareholding of the top ten shareholders is only 20% to 30%, and a shareholding of 30% is considered high!

With such a low percentage, the reason why most companies can remain stable is because of the dispersion of shareholding, cross-shareholding between companies, and the separation of shareholding and management.

However, Suntory is not a company affiliated with a financial group, so cross-shareholding is not obvious. The company's shareholding and management rights are directly linked, and most of Suntory's senior management are members of the Torii family.

For example, the president of Suntory is Keizo Torii, the vice president is Nobuyoshi Torii, and Nobutada Torii, Keizo Torii's thirty-year-old son, is already the president of the Osaka branch, which has the most resources...

Destroying the shareholding structure of Suntory will easily impact its management system.

Keizo Torii said with a heavy face, 'I of course know the situation of the family, and that is the best situation I assume for our family.'

'Although the probability of success is very low, we should work tirelessly to achieve it if there is even the slightest hope!'

'Each of you has assets and connections. I hope you can give full play to your energy, whether it is selling assets or borrowing money, to raise as much money as possible to repurchase shares on behalf of the family.'

'In order to acquire as many shares as possible, and to make every yen count ten or even dozens of times, I suggest that we directly entrust the bank to use financial leverage to help us acquire them.'

'Leveraged buyout?'

As soon as Torii Keizo finished speaking, there was a commotion in the council chamber. Everyone looked at each other, as if they wanted to speak, but after looking at each other, no one said a word.

They were all very familiar with leveraged buyouts, which are a common financial tool. It is nothing more than finding a reliable third party such as a bank or fund, and relying on the third party's funds to acquire shares.

In the final analysis, it is playing on the edge of the ball and getting something for nothing!

And banks choose to cooperate for the sake of high interest rates.

The controversial acquisition of Wanjia Culture on the mainland is a typical example.

Mr. and Mrs. Zhao invested 60 million yuan through Longwei Media, a shell company that had been registered for only one month, had not yet commenced actual business activities, and had zero total assets, net assets, operating income, and net profit. Then, they borrowed 1.5 billion yuan from a third party at an annual interest rate of 10%, and used the shares as collateral to raise nearly 1.5 billion yuan in financing, for a total of up to 3.6 billion yuan, with the intention of buying 29% of the shares of the listed company Wanjia Culture, which had a market value of 10 billion yuan!

The financial leverage is as high as 50 times!

If the Torii family can also find a third-party institution willing to play along with them, then the Torii family can raise 2 billion yen and leverage 100 billion yen to increase their stake.

And the collateral is only the acquired equity, and the 21.7% stake currently held by their family does not need to be pledged, so there is no need to worry about being eaten up by financial institutions.

Even if the leverage cannot reach 50 times, but 20 to 30 times, the capital that the Torii family needs to prepare is only 6 to 7 billion yen, which is far less than 100 billion yen, and this is still within the Torii family's capabilities.

'Uncle, so are you planning to approach our domestic banks and capital companies, or foreign ones?'

Torii Shinichiro looked at Torii Keizo with burning eyes and asked.

Torii Keizo immediately replied, 'The first choice is of course a foreign company. Most of the powerful domestic banks and financial companies are related to the six major consortia. Even if they are willing, the risk to us is too great.'

'I believe that as long as we are willing to offer a sufficient interest commitment, European and American financial institutions will not refuse this temptation.'

'After all, our family still has the ability to repay, and our existing assets can support our family's creditworthiness. As long as we can survive this crisis, there is still a year for us to deal with hidden dangers and pay interest. I think this risk is worth taking.'

'Even if the takeover fails, if we can sell the acquired stocks at a high price, we will be able to make a profit, which is somewhat comforting.'

There was once again a silence in the council chamber, and everyone bowed their heads and frowned pensively.

In fact, the pros and cons are very easy to distinguish.

If they don't do it, with the Torii family's situation, it is absolutely impossible to raise more than 100 billion yen on their own.

Without the money to join the takeover of the stock, they can only watch as Mitsui Securities and Kyuden Securities fight recklessly, and in the end one side will win, and Suntory's control will be taken over by one of them, and the Torii family will have to bow their heads and lose all their autonomy, at the mercy of others.

If this succeeds, the Torii family only needs to pay a small amount of money, and the money is paid by a third party. As long as the Torii family does not go bankrupt, the third party does not need to worry about losses and can just lie back and collect high interest.

The Torii family needs to pay interest and repay the loan on schedule. If the stock price of Suntory falls in the future, the Torii family will bear the losses. After all, the amount of the contract signed between the Torii family and the third party remains unchanged.

Given the Torii family's current shareholding in Suntory, the family will only go bankrupt if the share price of Suntory falls to less than a third of its current value, which is highly unlikely.

Even if the takeover fails and they fail to acquire enough shares, there is still a way out. Compared with the previous approach, they may still make some money to replenish the family coffers.

Risk and opportunity go hand in hand!

Do we take the gamble?

Without a doubt, after some thought, everyone in the Torii family present decided to take the gamble!

Let's give it a go!

"Uncle, I agree with your approach!'

'I agree too!'

'Seconded!'

...

With one person agreeing, Keizo Torii let out a long sigh of relief and a smile appeared on his face.

He stood up abruptly and shouted, 'Since everyone has no objections, from now on, we must unite and work together for the family.'

'Keizo and I will be in charge of finding a third party, and we will also help with fundraising, but you all must do your best to raise funds.'

'In addition, don't forget to maintain control of the company. The company must not be thrown into chaos at a critical moment.'

'Please, everyone!'

After saying this, Keizo Torii bowed deeply, making a full gesture.

'Swish~ swish~ swish~'

'Please rest assured, master of the house!'

'The family will definitely be able to overcome the difficulties!'

Everyone present got up one after the other, solemnly vowing.

Then, everyone scattered off with their respective missions, fighting for the fate of the family.

The storm in the shadows grew more and more violent...

Finally, I came up with a way out for the Torii family, without getting myself into trouble.