Rebirth Tokyo 1986

Chapter 446 How to Cover Up a Scandal
"Okay, then it's up to you. The company will arrange for you to work at Xinghai Capital afterwards."

Nozawa Shohei's sense of responsibility has once again won over the youth. Xinghai Group desperately needs similar talent to avoid too much upward management.

"Understood, thank you, Chairman!"

Now that he has no more worries, Nozawa Shohei is ready to apologize to shareholders and investors with the most sincere expression.

However, he still has some regrets, namely that he was unable to personally help Shanxi Securities, where he had worked for decades, get back on track.

"No, it's all as it should be."

The young man then looked at the other senior executives of Shan Yi Securities and reiterated his assurances to them.

"Please rest assured, Xinghai Group will never go back on its word. Whatever price we say we'll pay, that's what we'll pay."

"Furthermore, we will not proactively dismiss any employees of Shanyi Securities within the next three years."

Ensuring that employees do not lose their jobs is a key reason why Shanyi Securities agreed to the acquisition by Xinghai Group.

This is also a key reason why the government quickly approved the acquisition.

We can't worry about that now; ensuring employee employment is the most important thing.

If this had happened in the early 1990s, even if the company and the chaebol behind it agreed, such a major acquisition would still require repeated investigations.

It's very common for things to take a year or two to get done.

It's worth noting that even when Microsoft wanted to acquire Activision Blizzard, a large game company that wasn't involved in a monopoly, it took them a year or two of back and forth.

Large financial institutions are far more powerful than game companies, and the process of dealing with them will only take longer.

After the meeting, Masato Takeshita kept Takamasa Kamoto behind.

"Jiaben-san, I'm planning to reorganize Xinghai Investment."

"The group's first-tier subsidiary has changed from Xinghai Capital to Xinghai Financial, which then includes Xinghai Capital, Xinghai Venture Capital, Galaxy Capital, Shanyi Securities, Xinghai Asset Management, and Xinghai Insurance."

"As for everyone's positions, they will remain largely unchanged. The original top leadership will remain the top leadership."

Masato Takeshita had long harbored the idea of ​​reforming the financial department of the Xinghai Group, but it had been delayed due to various factors.

Now that Shan Yi Securities is about to join the company, it will be a good opportunity to complete the restructuring of the financial business.

From now on, Xinghai Financial will play an overall management role, while Xinghai Capital will only manage the company's private equity fund business.

In addition, companies such as Xinghai Venture Capital will maintain their original relationships.

Meanwhile, Shanyi Securities was also brought under the management of Xinghai Financial, becoming a second-tier subsidiary of Xinghai Group.

"Does the chairman mean that I will become the president of Xinghai Financial?"

"Yes, that's what it means."

Masato Takeshita nodded, then added as if he had remembered something.

"I plan to transfer Kikuno-san back to Tokyo to manage Xinghai Capital, and then you will go to reorganize and manage Yamaichi Securities, which you will join soon."

Jia Benlongzheng has a great talent for the securities industry. When he was at Shanxi Securities, he repeatedly achieved the top single-store performance.

This is the biggest reason why he was promoted to a high position even though he was not favored by the highest level.

The young man entrusted Shan Yi Securities to him for restructuring because he recognized Shan Yi's expertise in the securities industry.

Furthermore, his background is also an important factor to consider.

If a financial talent who doesn't come from Yamaichi Securities is parachuted in, employees will unconsciously feel a sense of rejection.

"I'm fine with it, it's my honor."

Kamoto Ryū is full of motivation because he doesn't want the company he's worked for for decades to go bankrupt, nor does he want to disappoint his chairman.

"Then I'll trouble you. Try your best to resolve the matter of Shan Yi Securities as soon as possible, so that you can move forward with a lighter burden."

"Perhaps we can use this opportunity to climb up the ranks and become the second or third largest securities firm in Japan."

The Asian financial crisis naturally hit the financial industry the hardest.

Banks, insurance companies, securities firms, funds, and other financial institutions will soon suffer massive losses, defaults, and even go bankrupt.

Yamaichi Securities must complete its recovery before the crisis spreads to Japan on a large scale, and then take the opportunity to expand and grow.

As for how to achieve the goal, the method is very simple.

From now on, with the backing of Xinghai Group, Shanyi Securities will also have financial resources comparable to Galaxy Capital.

I wouldn't dare say more, but a return of five or six percent per year is definitely achievable.

This performance would be quite average in a normal year, but it was absolutely top-notch during the financial crisis. With just a little packaging, Xinghai Group could easily attract a large number of people to open accounts and trade.

"I think it should be fine."

Of Japan's four major securities firms, Nomura Securities stands out as being in a league of its own, while the other three are not significantly different.

With the backing of Xinghai Group, it wouldn't be difficult for Shanyi Securities to become the second-ranked company.

After discussing their vision for the future of Shan Yi Securities, the two then talked about how to make reforms.

At this moment, the young man said with a murderous look, "At that time, you can transfer all employees of Shan Yi Securities without any conditions."

"Don't be afraid of wasting money. The group will support your idea unconditionally, even if it means employing staff for three years for nothing."

When a company appoints a leader from outside, only the middle and upper management will try to manipulate him.

And all these people combined don't amount to much.

In addition, the salaries of employees in Japanese companies are relatively average, and the legal income of the management team is at most 30 to 50 million yen a year.

This amount of money is just a drop in the ocean for Xinghai Group.

"Don't worry, President, I understand."

In times of chaos, harsh measures are necessary!

The internal situation at Shan Yi Securities is currently in chaos, so he will naturally not be lenient in his actions.

"Ah That's good."

The young man nodded, then took a sip of tea to moisten his throat before continuing.

"Now that we are in the computer age, Shanyi Securities also needs to improve its level of information technology development."

"And those old-timers, give them at most six months to learn basic computer skills."

The financial industry is highly dependent on information technology, and lagging behind in information technology development also means lagging behind in investment.

If Shanyi Securities is lacking in this area, then it needs a comprehensive upgrade; if it is good in this area, it still needs to be strengthened.

As for those old-fashioned ones, sorry, they'll have to go to the second line of the company.

They can help train new employees for the company or become a consultant.

"Yes, no problem!"

……

Friday arrived before they knew it, and on this day, Nozawa Shohei, president of Genyama Securities, held a public meeting for reporters.

"I'm sorry, I'm so sorry!"

"In order to maintain the company's market value, we concealed 2600 billion yen of debt from the outside world."

“This is a disgrace to me as president, and I will resign from my position as president of Yamaichi Securities.”

Afterwards, Nozawa Shohei, who was crying bitterly, kept bowing at a 90-degree angle to apologize, making the reporters in front of him a little embarrassed.

Because everyone knows that Nozawa Shohei, the president who was temporarily promoted, is just a scapegoat for Yamaichi Securities, and the real culprit is someone else.

However, this is not an issue that the media needs to concern itself with right now.

Everyone started asking questions all at once.

"Did Yamaichi Securities only conceal 2600 billion yen?"

"Is this just the tip of the iceberg? Are you hiding more?"

"Is an apology enough? What's your solution?"

Reporters' eyes lit up, eager to dig up more news.

Some media outlets have even revisited the old topic, trying to revisit how serious the alleged involvement of Yamaichi Securities in organized crime was.

In addition to the media, some shareholders and investors were also present at this public meeting. Their emotions were far stronger than those of the media reporters.

They shouted excitedly.

"How can you face us? How can you face our support?"

"RNM, refund the money!"

"You brain-dead garbage company, you fucking owe me my money right now!"

Nozawa Shohei's ears turned bright red when he heard the foul language on the field.

He took a deep breath and looked at everyone sincerely again.

"I know that our concealment has caused a lot of harm to everyone."

"As a result, the company has reflected a lot."

At this point, a look of relief returned to Nozawa Shohei's face.

"The company's main leaders and shareholders believe that Shanyi Securities is no longer able to adapt to the development of the new era."

"Therefore, we have reached a further initialed cooperation agreement with Xinghai Group this Tuesday."

"Xinghai Group acquired 75% of the company's shares for 750 billion yen and a five-year loan of 1000 billion yen."

At this moment, both media reporters and investors stared in disbelief at Nozawa Masami on the stage.

I never expected there would be such a big new scandal.

Shan Yi Securities is actually trying to sell itself to Xinghai Group?

Nozawa Shohei ignored the shock of the attendees and continued speaking in a calm tone.

"The matter is quite urgent, so the company has decided to hold a shareholders' meeting next Wednesday to determine whether to accept Xinghai Group's conditions."

"I personally tend to accept that Shanxi Securities is no longer in a position to cause trouble."

At this point, Nozawa Shohei's heart was filled with sorrow. The company he had dedicated his entire life to was now asking someone else to acquire it.

Ironically, this year marks the centenary of Shan Yi Securities, while Xinghai Group has only been around for 11 years.

After Nozawa Masahiro finished speaking, the scene remained calm.

To everyone's surprise, Shan Yi Securities has already reached a preliminary agreement with Xinghai Group.

As for shareholders' meetings, those things are basically just for show in Japan.

Soon, Yamaichi Securities will break away from the Fuji Group and join the Seikai Group.

Yes, at this time, Shan Yi Securities had not yet officially joined Xinghai Group.

Unfortunately, Yamaichi Securities is a Japanese listed company, and major decisions need to be made at a public shareholders' meeting.

It doesn't matter, it's just an extra step, the result won't change.

As for the previous series of discussions, they were all just preliminary preparations.

These plans cannot be delayed until Yamaichi Securities joins the company; that would be too slow.

After all, opportunity favors the prepared mind.

But soon, with a question, the meeting room erupted into a commotion, like a drop of water falling into a hot oil pan.

Whether they were media reporters or investors of all sizes, they were all extremely excited and asked questions loudly.

When did Xinghai Group begin its acquisition of Shanyi Securities?

"It's Xinghai Group. Could you elaborate on the details of the negotiations?"

Do you think Xinghai Group's acquisition of Shanxi Securities is a good thing?

Faced with the barrage of questions from reporters, Nozawa Shohei, an honest man, was truly overwhelmed.

He stammered, "I think it's a good thing. Xinghai Group's strength in the financial field is obvious to all."

"I believe that the addition of Xinghai Group will completely change the company's current difficult operating situation."

The situation at Yamaichi Securities is not good, after all, there is a strong positive correlation between the development of securities companies and the domestic stock market.

While the Japanese stock market has recovered slightly, it is barely holding on.

Even more critically, the Asian financial crisis has arrived, and the Japanese stock market is bound to fall again.

"As for the detailed negotiation content, we will post it on the company's official website tonight, and everyone can read it carefully."

With so many items, it would be too much to ask Nozawa Shohei to only remember a few key points and repeat them all.

The reporter's questions were tricky, while the investor's were simpler.

People are concerned about the stocks they hold and their investments in Shan Yi Securities.

Faced with such problems, Nozawa Masahiro directly brought up the Xinghai Group.

In short, as long as Xinghai Group is involved, Shanyi Securities has a very bright future.

As a result, investors bought into it.

The strength of the financial companies under the Xinghai Group has been recognized throughout Japan and even the world.

Number one in Asia, and among the top five in the world.

Soon, newspapers and television stations began reporting on Xinghai Group's plans to acquire Shanyi Securities.

"Huh, Xinghai Group is actually interested? Does that mean my stock can still be salvaged?"

"Hahaha, that's great! It's actually Xinghai Group that's taking over."

"Since Xinghai Group has taken over Shanyi Securities, I'll keep my funds in Shanyi Securities from now on. It'll be much safer."

The public's opinion and the mainstream media's opinion are basically consistent, and everyone is very optimistic about this acquisition.

Furthermore, with the presence of Xinghai Group, Shanyi Securities will become more standardized, and the unfortunate situation of small clients covering up for large clients will not occur.

However, most are very cautious and plan to wait until Shan Yi Securities is officially merged into Xinghai Group before taking action.

This is the power of word-of-mouth, and it is also the belief that Xinghai Group has always sincerely upheld.

If it were another company making the acquisition, the fact that no one would withdraw funds would indicate that the acquiring party is exceptionally good.

The Japanese stock market reacts faster than the media; capital immediately made large-scale purchases of Yamaichi Securities shares after hearing the news.

"Quickly, buy as much Yamaichi Securities as possible."

"No, I can't sell. The stock price will rise again soon."

"Haha, I made a profit, I made a profit! The key is to find those undervalued stocks."

Every investor who managed to snag shares in Shan Yi Securities has made a fortune today. Some who persevered through the downturn have even seen their net worth multiply several times over.

Subsequently, a strange situation arose at Yamaichi Securities.

Currently, the stock price of Shan Yi Securities is several times higher than the conditions proposed by Xinghai.

Public meetings must be held, and press conferences are also essential.

This time there were no investors, only professional journalists.

However, compared to the previous one, the greetings this time were noticeably more gentle.

Most of the questions were about the management after Yamaichi Securities joined, and how to view the cooperation between the two.

As for the hidden 2600 billion yuan debt, it has long been forgotten.

Xinghai Group, especially Xinghai Capital, is incredibly profitable. 2600 billion yen, less than 26 billion US dollars, is nothing to them.

Of course, it is also related to Xinghai Group's strategy of spending money lavishly.

Shan Yi Securities is currently facing a lot of problems, so asking a slightly tricky question could offend them.

Xinghai Group is different; it spends a lot of money on advertising every year to support various media outlets, so no one dares to really offend the God of Wealth.

If you offend them too much, they might just choose to withdraw their ads.

Well, I'm sorry, the company has no choice but to ask for your forgiveness by having you leave gracefully.

(End of this chapter)