Chapter 272: The Offer Was Too Low

Having made up his mind, Simon asked, "So, Mr. Maekawa, what kind of offer are you thinking of making?"

Maekawa Haruo responded, "Based on the information we've gathered, the net worth of Cersei Capital is currently around $2.5 billion. We are prepared to offer $3 billion."

Simon interrupted Maekawa Haruo before he could continue, "Mr. Maekawa, that offer is seriously lacking in sincerity. You should be able to roughly estimate the scale of Cersei Capital's long positions. I am very optimistic about the Nikkei 225 index surpassing the 40,000 point mark. With such a prediction, as long as I retain my long positions, I should be able to earn at least another $1 billion in the coming months. Moreover, if you expect me to avoid shorting the Tokyo stock market when the trend reverses, then $3 billion is even less conceivable."

"Mr. Westeros, I'm sure you're not a greedy man. What you've described is merely an idealized assumption."

"If my operation in the North American stock market two years ago hadn't already become a reality, probably everyone would think of it as just an idealized assumption as well. Mr. Maekawa, I am very confident in my judgment."

Maekawa Haruo fell silent for a moment, then gestured slightly with his hand and asked, "So, what do you think is a fair price?"

Without hesitation, Simon gave his price: "$5 billion."

Maekawa Haruo exclaimed, "That's too high."

Simon, noticing the obvious pretense in Maekawa Haruo's tone, immediately realized that his asking price might have been too low.

Upon further consideration, just the Japanese stock market alone currently has a total market value of over $7 trillion, not to mention the Japanese real estate market and the entire Japanese economy. Compared to that, paying $5 billion to remove him, a potential 'variable' that could cause a stock market crash, is completely worth it.

Moreover, the Japanese aren't just paying him a large sum of cash for nothing; they would also acquire the entire investment portfolio of Cersei Capital.

The net worth of Cersei Capital's assets is about $2.5 billion, including $500 million in cash reserves and approximately $2 billion in various investment portfolios, with a total holding ratio of 80%.

Based on the data Simon remembers, this investment portfolio, mainly consisting of stocks, bonds, and stock index futures, if held until the peak of Japan's stock market along with the cash, would be worth no less than $3.5 billion. Plus, Simon would also have to give up the opportunity to short the Japanese stock market in the future, making a $5 billion asking price, indeed not high.

It's known that after the Japanese stock market turned, the Nikkei 225 index plummeted by 10,000 points in just four months, a drop of over 25%. If Cersei Capital could establish a short position on the same scale as its current long positions, a 25% drop in four months could bring Simon billions of dollars in profit.

Of course, this time it's really just an idealized assumption.

Japan is actually a very closed market.

From what he remembers, after the crash of the Japanese stock market, the Japanese government adopted a lot of stringent restrictive measures to prevent speculative capital from aggressively shorting. Moreover, stock index futures are a two-way zero-sum game. In the event of a stock market crash, lacking bullish capital to bet against, it would not be easy for Simon to establish a significant short position.

All in all, cashing out all at once during this opportunity is definitely the best choice.

Since Maekawa Haruo, the former governor of the Bank of Japan, personally took the initiative, the transaction must be backed by major Japanese banks and conglomerates.

With the soaring Japanese economy over the years, the world's top ten largest banks are all Japanese, with total assets ranging from hundreds of billions to over a trillion dollars. The economic strength of Japan's major conglomerates is even more formidable.

It would be easy for these capital forces to gather $5 billion just by pooling a little from between their fingers.

However, even though Simon realized his price might have been too low, he had no intention of reneging.

In less than six months, the principal of $1.57 billion surged to $5 billion, not only far exceeding Simon's expectations but also saving him a lot of time.

Cashing out such a massive sum now, Simon could then focus his energies on the North American bond market, oil futures, and many other matters.

"Mr. Maekawa, the price of $5 billion is very reasonable. I believe after you acquire Cersei Capital's investment portfolio, you don't plan to cash out immediately. If we can reach an agreement quickly and you can provide some assurances, Cersei Capital can continue to increase its holdings tomorrow to send a signal that I still am bullish on the Japanese stock market, which could maximize the offset of the risks produced by Friday's sharp decline."

Maekawa Haruo hesitated for a moment but quickly nodded, continuing to discuss Japan's conditions, "Simon, we can accept such a price. However, in addition to the conditions just mentioned, we hope that you will continue to lead the operations of Cersei Capital on the surface. Of course, it's just on the surface; we will remotely control Cersei Capital's operations."

Simon immediately understood Maekawa Haruo's implication.

The Japanese want to maintain investor confidence in the Japanese stock market through Cersei Capital.

If Simon is bearish on the Japanese stock market, the result could be disastrous, as proven by the unexpected sharp decline in the Japanese stock market on Friday. On the contrary, if Simon remains bullish on the Japanese stock market, the large amount of shorting capital eyeing the Japanese stock market wouldn't dare to bet rashly.

Cersei Capital is precisely the most direct display of Simon's personal will.

Everyone is clear on how severe the bubble component of the Japanese stock market is. The main purpose of the Japanese doing this now is to buy time to take more measures to promote a soft landing of the Japanese economy.

Therefore, Simon guesses that after the Japanese purchase Cersei Capital's investment portfolio, unless the situation is completely irredeemable, they will not choose to cash out. As long as it can buy more time for the Japanese economy, even if tens of billions of dollars are completely lost, it's worth it. Once a stock disaster occurs, if the Japanese government wants to save the market, even using hundreds of billions of dollars might not be effective.

Understanding these joints and interests, Simon once again felt his initial asking price was low.

However, as Maekawa Haruo just said, Simon is indeed not a greedy person.

Perhaps if he asked for a higher price, the Japanese would still grit their teeth and agree, but the relationship between the two parties wouldn't be as amicable as it is now.

The malicious mergers popular in these years, where the acquired company sends away malicious acquirers by repurchasing stocks, rarely have a premium exceeding 100%. The net worth of Cersei Capital's assets is only $2.5 billion. If Simon's price exceeds $5 billion, this transaction would not be business, but extortion.

$5 billion,

 a 100% premium, is probably the psychological price point that the Japanese can more easily accept.

Although deep down, he has been long influenced by an innate resistance to the Japanese, Simon has no intention of deliberately antagonizing the Japanese.

Having lived two lives, Simon feels no sense of belonging to the United States, nor does he harbor much hatred towards Japan. He is just a soul lucky enough to occupy someone else's body, and the only interests he can maintain are his own and those around him.

Seeing Maekawa Haruo waiting for his response, Simon nodded and added, "Mr. Maekawa, I can agree to you continuing to use Cersei Capital for operations, but I will not publicly express any opinions about the Japanese economy, whether positive or negative. Additionally, Cersei Capital still belongs to me; you can only acquire the ownership of five subsidiary funds, and after this matter, I hope you can return the shells of these five subsidiary funds to me. Of course, it's fine if you don't return them, but they can't hang under Cersei Capital anymore, um, let's limit this to the five years we just agreed on."

"No problem," Maekawa Haruo quickly agreed, reaching out to shake hands with Simon, and the deal was struck. He eagerly discussed Simon's recent proposal, "Mr. Westeros, we can pay a $500 million deposit today and hope you can fulfill your promise to increase Cersei Capital's long positions after the market opens tomorrow."

Simon released Maekawa's hand, nodding, "Of course, in fact, to avoid more unnecessary speculation in the market, I plan to leave Australia this afternoon."

"That would be best," said Maekawa Haruo, who then asked, "What about our trading agreement?"

The two had just agreed on a rough plan, but many details still needed to be carefully considered.

Simon said, "My girlfriend Jenny and Tony can negotiate with you on my behalf."

Maekawa Haruo reminded, "Mr. Westeros, we hope this matter can be kept as confidential as possible, the fewer people know, the better."

"I understand, but I can't always stay in Australia. Besides, Cersei Capital has been managed by Jenny and Tony during this period. If you want to continue operating Cersei Capital, they will definitely need to be involved. Also, we can't hide this from our investors; I can only promise to cooperate as much as possible in controlling the news. If you think it's necessary, we can all sign a confidentiality agreement."

"Then," Maekawa Haruo stood up, bowed slightly, and reached out to Simon again, saying, "I hope we can have a pleasant cooperation this time."

Simon also stood up, shook hands with him, and smiled, "I hope so too."

After the matter was settled, Maekawa Haruo and his party hurriedly left.

Simon introduced the recent transaction to Jenny and Anthony, both of whom were clear on how much Cersei Capital had benefited and naturally did not object. Anthony immediately called Raymond Johnston, who was still in Western Australia, hoping the old man would come back to take charge.

For Cersei Capital's other investors, it was most appropriate for the old man to communicate in person.

Being able to cash out all at once, other investors would likely not object; the key was the matter of confidentiality.

Simon was not too worried about this, as the forces selected to invest in Cersei Capital all had close relationships with the Johnston family. The old man set a high investment threshold initially, and in the end, only nine external capitals, such as the Murdoch family, Fairfax family, and Pike family, participated.

In the 1980s, the Australian economy was highly dependent on Japan, just like the Johnston family, most Australian forces that invested in Cersei Capital had various connections with Japanese capital. Since everyone benefited, perhaps with the addition of confidentiality agreements, there was no need to risk offending the Japanese by exposing their layout.

Even, with proper communication, other investors do not necessarily need to know who bought out Cersei Capital's investment portfolio.

Of course, these details are not Simon's concern.

Raymond Johnston flew back from Perth in Western Australia at two o'clock in the afternoon.

After briefly communicating with the old man, Simon rushed to Melbourne Airport in the western suburbs. Jenny would stay in Melbourne for a while longer.

Inside Melbourne Airport, watching a tug tow a Boeing 767 towards the runway, Simon said to Jenny beside him, "Just right, we can buy a Boeing 767 first. I don't like always renting like this. I'll place an order when I get back, and you can come back in a while to personally design the interior. Then we can travel to and from Australia more conveniently."

Jenny, holding Simon's arm, hummed in agreement, then said, "Aunt has already helped you buy the remaining buildings on that Manhattan lot."

Simon nodded, "I know."

Although it was handled by a shell company established with Veronica's help, the funds still had to be transferred from Westeros Corporation, so Simon was naturally aware of it.

Due to the continuous downturn in the North American real estate market, Simon's action to purchase properties between 59th and 60th Streets east of Madison Avenue in Manhattan for the construction of Westeros Tower went very smoothly.

The total expenditure for all six buildings, including the land, was $173 million, much higher than Simon's initial estimate.

Moreover, to build a tower resembling the Avengers Tower and become Manhattan's tallest building, the cost is also very high. Simon privately commissioned a real estate design company for a rough estimate, and just the main building would cost no less than $500 million. If Simon demands high standards for the building materials, design details, and security protection, the cost is limitless.

Furthermore, building such a tower requires solving the user problem first. Otherwise, a tower with over 100 floors left empty would also be a disaster.

Westeros Tower is like a personal dream for Simon. Even if he temporarily ignores the user issue, he has no intention of compromising on low standards; he wants everything to be built to the highest standards. This way, the cost of Westeros Tower would rise to the billion-dollar level.

$1 billion, which might not seem like much twenty or thirty years later, is astronomical at this time.

Although Simon's profits from the Japanese financial market are enough to cover the construction of Westeros Tower, he still has many more pressing matters to attend to, so he must delay this plan for now. The recent idea of first purchasing a Boeing 767 is also a compromise.

The three wishes he casually mentioned to Jenny one night, Simon indeed wants to achieve them all at once, but reality is hard to comply with. If he is too eager to fulfill his desires, the result might be lacking sufficient capital to protect those things.

After all, he is still not wealthy enough.

Seeing Simon merely responding and then falling silent, Jenny suddenly chuckled, leaned her head on Simon's shoulder, and said, "Are you very disappointed this time?"

Simon puzzled, "Hmm?"

"Aunt has been in Singapore these past few days."

Simon decisively played dumb, "What about your aunt?"

"Humph humph," Jenny glanced at Simon and hummed twice, saying, "Someone was drunk last night, sniffing around someone's neck like a little dog."

Simon didn't take the bait, shaking his head, "I wasn't drunk, and besides,

 you fell asleep before me."

"I woke up in the middle of the night."

"I have good sleeping habits; I don't do strange things in my dreams."

"How do you know what you're like after you fall asleep?"

"You snore when you're asleep."

"I do not!!!"

"How do you know?"

"You little rascal, you almost diverted the topic," Jenny hugged Simon's arm tighter, accusing him, yet her tone softened again, softly saying, "This isn't right, Simon."

Simon has always known that Jenny is an extremely smart woman. Moreover, having been together for so long, probably no one else in the world understands him better than she does. And since Catherine, it has been difficult for him to hide certain attributes of his.

After a pause, Simon still hummed almost inaudibly.

The two fell silent for a moment, and Jenny leaned her head on Simon's shoulder, saying, "Actually, you can find some girls younger than you, they would be more suitable for you. Hmm, not too young, otherwise it would be very troublesome."

Simon asked with a smile, "What about you?"

"Of course, I'll be your girlfriend, and eventually your wife," Jenny said matter-of-factly, "It's common for men to cheat outside, but they always come back home in the end. Dad used to do this a lot, and he and Mom have been getting along very well for many years."

Simon pretended to be interested, "Tell me more, maybe I can find an opportunity to blackmail your old man."

"How would you blackmail him, more like get beaten," Jenny hit Simon lightly, saying, "Mom told me this. She used to love watching Dad make up lies to deceive her when he came home late at night. Dad has settled down over the years as he got older. You little rascal, we will also stay together till we're old, right?"

Simon nodded without hesitation, sensing the slight melancholy in Jenny's tone, and hugged her tighter into his arms.

Due to the matter with Cersei Capital, reporters were still arranged around, capturing the warm scene of the two leaning on each other under the setting sun.

The Boeing 767 entered the runway, ready for takeoff, and Neil Bennett signaled from afar that Simon could board the plane.

After saying a few last words, Simon was about to leave but was pulled back by Jenny, who looked worried and asked, "Little rascal, do I really snore when I sleep?"

Simon smiled, lowered his head to kiss Jenny on the lips, and said, "Of course not, I was just teasing you."

"Really?"

"Really."

Jenny was still not reassured and warned, "You better not lie to me, oh, I'll go to sleep when I get back and have Mom check for me."

A casual joke seemed to have serious consequences.

Simon didn't tease her anymore, hugged Jenny one last time, and then walked towards the private plane on the runway.

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