Chapter 200: Chaebol
Why was Dai-Ichi Kangyo Bank willing to lend a huge one-time loan of 6 billion yen to Shirakawa Electric and undertake the construction of its headquarters?
In addition to learning about Shirakawa Electric's turnover, Ichiro Watanabe is optimistic about its future development prospects.
Of course, they also want to bring such a potential company into their own interest group.
Ichiro Watanabe had some guesses about what Shirakawa Kaede was thinking, but he did not directly put forward any specific conditions.
Instead, he asked a question that Shirakawa Kaede had not expected, "Have you ever considered listing Shirakawa Electric in the future?"
"Huh?" Baichuan Feng raised his head in surprise.
"Shirakawa-san," said Ichiro Watanabe, leaning forward slightly, "Listing the company can provide Shirakawa Electric with the most effective financing environment.
It can also help maximize the company's value, and I'm sure Mr. Shirakawa knows that.
After a company goes public, its market value is generally much higher than its net assets. The stock price is greatly overvalued, and as a shareholder of the company, the wealth brought by the listing is self-evident.
In addition, going public can also enhance Shirakawa Electric's credit and debt financing capabilities.
Banks are more willing to lend to listed companies, and the government will also support companies to go public and provide certain listing subsidies.
Moreover, after going public, Shirakawa Electric will be able to obtain a better social status and even be recognized by international capital.”
Ichiro Watanabe spoke eloquently and analyzed clearly the various benefits of going public.
“So, if Shirakawa-san has plans to list Shirakawa Electric.
Dai-ichi Kangyo Bank is willing to handle the entire listing process for your company and become one of its underwriters ."
This is the purpose of Ichiro Watanabe offering such favorable conditions.
Although lending money to Shirakawa Electric and undertaking the construction of its headquarters was already a good deal.
But there is no one who can make more money by operating the IPO and underwriting the stocks.
Moreover, when Shirakawa Electric goes public, Dai-ichi Kangyo Bank can naturally become one of its major shareholders.
In this way, Dai-ichi Kangyo Bank gained another member, and the consortium became even stronger.
Ichiro Watanabe kept his eyes on Shirakawa Kaede, waiting for his reply.
"Watanabe-san, if I remember correctly, a company must be established for at least three years before it can go public.
And Shirakawa Electric has only been established for a year and a half, so..."
Baichuan Feng’s meaning is very clear. Baichuan Electric does not yet meet the conditions for listing.
Moreover, he has not yet considered whether Shirakawa Electric should go public.
Going public will indeed lead to a huge increase in your net worth and wealth.
But the subsequent bubble era is no joke, and almost all industries will be affected.
Of course, there is a way to avoid the domestic bubble, which is to go public in the United States like Sony.
But if that happens, the risk of being ripped off in the future will increase exponentially.
However, it is still too early for Shirakawa Electric to do this, and whether to go public also needs to consider the opinions of the company's old employees.
Everyone is accompanying you to conquer the world, isn't it just in the hope that one day the company will go public and realize a wave of wealth increase?
Taking all the factors together, it is quite complicated and it is not something that can be decided casually.
Ichiro Watanabe understood what Shirakawa Kaede meant, so he nodded slowly.
“Of course, there is no rush to go public.
However, if Shirakawa Electric plans to go public in the future, please consider cooperating with Dai-ichi Kangyo Bank."
Dai-ichi Kangyo Bank has enough patience to wait for the day when Shirakawa Electric goes public.
and……
"If Shirakawa Electric has financing needs at this time, Dai-ichi Kangyo Bank can definitely provide sufficient funds."
If necessary, there will be no problem in raising funds before going public.
However, Baichuan Feng shook his head and said, "Thank you for your support, Baichuan Electric has no financing needs for the time being.
Of course, if there is a need later, Dai-ichi Kangyo Bank will be given priority.”
Are you kidding? Shirakawa Electric has already achieved profitability and has no need for financing at all.
Financing is a means to alleviate the company's financial pressure and strive to achieve profitability.
For Shirakawa Electric now, unless it goes public, it will not consider the need for financing.
Ichiro Watanabe was not surprised by Shirakawa Kaede's answer. Based on the other party's revenue situation just now, he could conclude that Shirakawa Electric had already entered the profit-making stage.
Shirakawa Electric will not go public for the time being and has no need for financing.
So are the preferential loan terms just given by Dai-ichi Kangyo Bank still valid?
"Mr. Shirakawa, Dai-ichi Kangyo Bank's loan policy for Shirakawa Electric remains unchanged.
The only condition is..." Watanabe Ichiro stretched out his finger, "if Shirakawa Electric goes public in the future.
Dai-ichi Kangyo Bank will be responsible for the operation and will underwrite a certain proportion of the shares.”
Dai-ichi Kangyo Bank is not so short-sighted as to withdraw its preferential loan policy if Shirakawa Electric does not go public.
As a company with hundreds of years of history, they have enough patience and long-term vision.
Only by giving each other a good start in cooperation now will there be the possibility of further progress in the future.
"Okay, if Shirakawa Electric considers going public, Dai-ichi Kangyo Bank will be our first choice."
Naturally, Shirakawa Kaede had no reason to object to Watanabe Ichiro's conditions.
Although the other party wanted to become one of the shareholders of Shirakawa Electric, it had already gone public at that time, so why would they care who would become a shareholder?
“In that case, Daiichi Kangyin looks forward to your visit.
The loan terms for this time remain unchanged as previously discussed. If the subsequent review by our department is correct, the loan process will be formally initiated.
Regarding the future construction of Shirakawa Electric's headquarters, Shimizu Corporation will be responsible for coordinating with you.
Mr. Shirakawa, please believe that Dai-ichi Kangyo Bank is different from other financial groups.
It is even very different from the traditional chaebol, so please consider this.”
After saying that, Watanabe Ichiro stood up, bowed to Shirakawa Kaede, and left.
This was the first time that Shirakawa Feng heard the word "chaebol" from the other person's mouth.
These two words also made him extremely fearful. Looking at the other party's leaving figure, Baichuan Feng fell into silence for a long time.
Since the establishment of Shirakawa Electric, Shirakawa Kaede has always avoided having any connection with the chaebol.
Because he knew what "zaibatsu" meant in Japan.
Its ancient history can be traced back to the last century. Also associated with the "chaebol" is the special group called "family".
Most of the major chaebols today have the shadow of their respective families behind them.
The traditional chaebol system basically draws on the principles of the family system.
Structurally, the chaebol is a clan group centered on the "family" based on the series of main families and branch families in the family system.
The companies belonging to the chaebol family are regarded as direct subsidiaries, while the collateral subsidiaries are branches formed through share purchases to simulate family relationships.
The president of the chaebol headquarters is the head of the group.
Secondly, in terms of capital form, chaebol capital is almost entirely owned by chaebol families, and the chaebol family’s assets are the material basis of the chaebol.
Traditional chaebols, without exception, practice family-style management or patriarchal dictatorship where the capital owner and operator holds overall control.
Or they may have a steward who has served the chaebol family loyally for many years to exercise management rights, and formulate family rules and constitutions as the code of conduct for chaebol family members.
Under this pyramid-like, hierarchical structure, the status of the party whose shares are absorbed and acquired can be imagined.
Shirakawa Feng, a latecomer in the previous life, could not imagine what the situation would be like if Shirakawa Electric became a branch company of a traditional family one day.
In a traditional Japanese-style room, on the tatami, you need to kneel down and bow to the so-called host? Or do you sit in the dogeza?
No! Never!
The concept of equality, or so-called dignity, rooted in his bones made it impossible for him to face all this calmly.
What's worse, he would rather others be the one kneeling on the ground and paying homage to him than be the one bowing down.
I would rather let the world down than have the world let me down?
Maybe, but it doesn’t work in Neon anyway.
And because of the existence of chaebols and families, there is almost no soil for investment companies to survive in Japan.
The chaebols almost monopolize more than 60% of the local industries, and most of the rest have government backgrounds.
Venture capitalists? Sorry, Neon doesn’t need any.
All emerging industries or companies with potential have been touched by the chaebols before they have grown up.
Just like Shirakawa Electric today, it has already caught the attention of certain entities before it even made its mark.
Similar scenes happen countless times every day.
Therefore, investment companies have limited prospects in Japan. Later, most of the famous investment companies achieved success after investing overseas.
For example, SoftBank.
At this time, Neon’s first investment company was just established a few years ago.
Can you imagine that in Neon, whose economy was already quite developed, the first investment company was only established around 1975?
All this is because, in Japan, chaebols, to some extent, play the role of investment companies.
It’s just that the influence of tradition is too strong, even if there are good ideas or new creativity.
In the end, under the influence of conservatives within the chaebol, they will become mediocre or become corrupt.
This is also the reason why Japan’s performance in the Internet and smart industries has been mediocre in later generations.
What kind of soil environment will produce what kind of fruit, everything is already determined.
Therefore, this is also the reason why Baichuan Feng did not look for venture capital during the early stages of Baichuan Electric, even though funds were tight.
Because there were very few venture capital firms at that time, so how could they find a consortium to trick investors into investing?
I'm afraid the bottom of Tokyo Bay would be his best destination.
Therefore, for being able to run Shirakawa Electric to this scale today, Shirakawa Feng feels both proud and cherishes the current achievements.
However, even though it has tried hard to reduce its presence, Shirakawa Electric has still attracted the attention of the chaebols.
Baichuan Feng tapped the table lightly with his fingers, not knowing what he was thinking.
Arai Yu sat beside him, hesitant to speak. Thinking of his old friend's care, he finally made a decision.
"Senior Arai, could you please introduce the Dai-ichi Kangyo Bank Group to me?"
Arai Yu was stunned. The topic he was about to talk about was brought up by him first.
Sure enough, those who have achieved such success at such a young age will surely achieve even more extraordinary things in the future.
Arai Yu pondered for a while before speaking slowly.
"The Dai-ichi Kangyo Bank Group, without a doubt, has its headquarters at Dai-ichi Kangyo Bank.
Although the predecessor of Dai-ichi Kangyo Bank is one of the oldest banks in Japan.
But the Dai-ichi Kangyo Bank Group has two "most" statements. "
"Hmm?" Baichuan Feng perked up.
