Having made up his mind, Simon asked, "So, Mr. Maekawa, what kind of price do you intend to offer?"
Haruo Maekawa said, "Based on the information we've gathered, Cersei Capital's current net asset value should be around $2.5 billion. We can offer $3 billion".
Simon didn't wait for Haruo Maekawa to continue and shook his head. "Mr. Maekawa, this offer lacks sincerity. You should be able to roughly judge the scale of Cersei Capital's long positions. I am very optimistic about the Nikkei 225 index hitting a high of over 40,000 points. Based on this prediction, as long as I keep my long positions, I can gain at least another $1 billion in the next few months. Moreover, if you also hope for me to avoid shorting the Tokyo stock market after the market turns, a $3 billion offer is even more impossible".
"Mr. Westeros, I am certain you are not a greedy person. What you've described is just an idealized hypothesis".
"If my operation in the North American stock market two years ago hadn't already become an established fact, everyone would probably think this is just an idealized hypothesis. Mr. Maekawa, I am still very confident in my judgment".
Haruo Maekawa was silent for a moment, then slightly raised his hand in a gesture. "Then, what do you think is appropriate?"
Simon gave an offer without hesitation: "$5 billion".
Haruo Maekawa blurted out, "That's too high".
Simon noticed the obvious posturing in Haruo Maekawa's words and suddenly realized that his asking price might actually be a bit low.
Thinking carefully, the total market value of just the Japanese stock market already exceeded $7 trillion, not to mention the Japanese real estate market or even the entire Japanese economy.
In comparison, being able to invite a 'variable' like him, who could trigger a stock market crash, out of the market for $5 billion was completely worth the price.
What's more, the Japanese weren't just paying him a large sum of cash for nothing; they would also get Cersei Capital's entire investment portfolio.
Out of Cersei Capital's total net asset value of about $2.5 billion, the cash reserve was $500 million, and the value of various investment portfolios was about $2 billion, with a total position ratio of 80%.
Calculating based on the data in Simon's memory, if this portfolio, mainly consisting of financial products like stocks, bonds, and stock index futures, was held until the very peak of the Japanese market, its total value, including cash, would not be less than $3.5 billion. Adding in the fact that Simon would also need to give up the opportunity to short the Japanese stock market in the future, an asking price of $5 billion was indeed not high.
One must know that in his memory, 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 short positions of the same scale as its current long positions, a 25% drop in four months would be enough to bring Simon billions of dollars in profit.
Of course, this time it really was just an idealized hypothesis.
Japan was actually a very closed market.
In his memory, after the Japanese stock market crashed, the Japanese government adopted a large number of harsh restrictive measures to prevent speculative capital from rushing in to short-sell. Moreover, stock index futures are a two-way zero-sum game. In the event of a stock market crash, with a lack of bullish capital to bet against, it wouldn't be that easy for Simon to establish sufficient short positions.
All in all, taking the opportunity to cash out all at once was definitely the best choice.
Since Haruo Maekawa, the former Governor of the Bank of Japan, had personally come forward, the ones footing the bill behind this deal were certainly the major Japanese banks and the big Chaebols.
With the take-off of the Japanese economy over these years, the top ten largest banks in the world were all Japanese banks. The total assets of these banks ranged from hundreds of billions to over a trillion dollars. The economic strength of the well-known Japanese Chaebols was even more formidable.
These capital powers only needed to scrape together a little from between their fingers to come up with $5 billion.
However, although he realized his offer was on the low side, Simon did not intend to go back on his word.
In less than half a year, the principal of $1.57 billion had skyrocketed to $5 billion. This not only far exceeded Simon's expectations but also saved him a lot of time.
By cashing out such a massive amount of capital early, Simon could focus his energy on the North American bond market, oil futures, and many other things.
"Mr. Maekawa, the price of $5 billion is very reasonable. I don't think you intend to cash out immediately after buying out Cersei Capital's investment portfolio. If we reach an agreement as soon as possible and you can provide certain guarantees, Cersei Capital can take the approach of continuing to increase its positions tomorrow to signal to the outside world that I am still optimistic about the Japanese stock market. This can maximize the offset of the risks generated by Friday's sharp drop".
Haruo Maekawa only showed a slightly hesitant expression before quickly nodding and continuing with Japan's conditions: "Simon, we can accept such a price. However, in addition to the conditions just mentioned, we also hope that you will continue to lead Cersei Capital's operations on the surface. Of course, only on the surface; we will remotely control Cersei Capital's trading".
Simon immediately understood Haruo Maekawa's subtext.
The Japanese wanted to rely on Cersei Capital to maintain investor confidence in the Japanese stock market.
If Simon were to turn bearish on the Japanese stock market, the result would likely be catastrophic, as proven by the unexpected sharp drop on Friday. Conversely, if Simon remained bullish, the large amount of shorting capital eyeing the Japanese stock market wouldn't dare to place bets rashly.
Cersei Capital happened to be the most intuitive manifestation.
Everyone knew how serious the bubble in the Japanese stock market was.
The main purpose of the Japanese doing this now was to buy time so they could take more measures to push for a soft landing of the Japanese economy.
Therefore, Simon guessed that after the Japanese bought Cersei Capital's investment portfolio, they wouldn't choose to cash out at all unless the situation became completely irrecoverable.
As long as they could buy more time for the Japanese economy, billions of dollars, even if completely lost, would be worth it. Once a stock market crash occurred, if the Japanese government wanted to rescue the market, even using hundreds of billions of dollars might not necessarily be effective.
Having cleared up these stakes and interests, Simon once again felt that his asking price just now was too low.
However, just as Haruo Maekawa said, Simon was indeed not a greedy person.
Perhaps if his asking price had been higher, the Japanese would have gritted their teeth and agreed, but the relationship between the two sides would not be as peaceful as it was now.
In the hostile takeovers popular these years, where the target company sends away the hostile acquirer by buying back shares, the premium rarely exceeds 100%. Cersei Capital's net asset value was only $2.5 billion. If Simon's offer exceeded $5 billion, this transaction wouldn't be a business deal, but extortion.
$5 billion, a 100% premium, was probably a psychological price point that the Japanese could more easily accept.
Although a kind of instinctive resistance towards the Japanese had been cultivated in his bones over a long period, Simon had no intention of deliberately opposing them.
Having lived two lives, Simon had no sense of belonging to America and not much hatred for Japan. He was just a lonely soul who had luckily occupied someone else's body, and all he could protect were the interests of himself and those around him.
Seeing that Haruo Maekawa was still waiting for his answer, Simon nodded and added: "Mr. Maekawa, I can agree to let you continue using Cersei Capital for operations. However, I will not publicly express any views on the Japanese economy, whether positive or negative. In addition, Cersei Capital still belongs to me; you only get ownership of the five sub-funds. Also, after this matter, I hope you can return the shells of these five sub-funds to me. Of course, it doesn't matter if you don't, but they cannot be under the Cersei Capital umbrella anymore. Hmm, the term will be the five-year limit we just agreed upon".
"No problem", Haruo Maekawa agreed readily, reaching out to shake Simon's hand. With the deal reached, he impatiently brought up Simon's suggestion from just now: "Mr. Westeros, we can pay a deposit of $500 million today, and we also hope you can fulfil your promise to increase Cersei Capital's long positions as scheduled after the market opens tomorrow".
Simon let go of Maekawa's hand and nodded. "Of course. In fact, to avoid more unnecessary speculation in the market, I intend to leave Australia this afternoon".
"That would be best", Haruo Maekawa said, then asked, "But what about our transaction agreement?"
The two had just agreed on a general plan; many details still needed to be carefully considered.
Simon said, "My girlfriend Janette and Tony can negotiate with you on my behalf".
Haruo Maekawa reminded him, "Mr. Westeros, we hope this matter can be kept as confidential as possible; the fewer people who know, the better".
"I understand, but I can't stay in Australia forever. Besides, Janette and Tony have been in charge of Cersei Capital during this period. If you want to continue maintaining Cersei Capital's operations, those two will definitely need to be involved. Furthermore, we cannot hide this from the investors; I can only promise to cooperate as much as possible to control the news. If you feel it's necessary, everyone can also sign a non-disclosure agreement".
"Then", Haruo Maekawa stood up, bowed slightly, and extended his hand to Simon again, saying, "I hope we can have a pleasant cooperation this time".
Simon also stood up, shook the other man's hand, and smiled. "I hope so too".
With the matter settled, Haruo Maekawa and his party left in a hurry.
Simon briefed Janette and Anthony on the transaction. Both of them knew how much Cersei Capital stood to gain, so they naturally didn't object. Anthony immediately called Raymond Johnston, who was still in Western Australia, hoping the Old Man would return to oversee the situation.
It would be safest for the Old Man to personally handle communication with the other investors of Cersei Capital.
Since they could cash out all at once, it was likely that the other investors wouldn't object; the key was still the matter of confidentiality.
Simon wasn't too worried about this. The forces chosen to invest in Cersei Capital were all closely related to the Johnston Family. The investment threshold set by the Old Man back then had been very high, and in the end, only nine external capital groups, including the Murdoch Family, the Fairfax Family, and the Packer Family, had participated.
In the 1980s, the Australian economy was highly dependent on Japan. Like the Johnston Family, most of the Australian forces invested in Cersei Capital had various connections with Japanese capital. Since everyone had benefited, and perhaps with the added constraint of a non-disclosure agreement, there was no need to risk offending the Japanese by exposing their strategy.
In fact, with proper communication, the other investors wouldn't even need to know exactly who had bought out Cersei Capital's investment portfolio.
Of course, these details were not something Simon needed to worry about.
Raymond Johnston flew back from Perth in Western Australia at two o'clock in the afternoon.
Simon met with the Old Man for a brief discussion and then rushed to Melbourne Airport in the western suburbs. Janette would be staying in Melbourne for a while longer.
Inside Melbourne Airport, watching a tractor tow a Boeing 767 toward the runway, Simon said to Janette, who was seeing him off, "It just so happens that this time I can buy a Boeing 767. I don't really like always renting like this. I'll place an order when I get back. You can personally design the interior when you return later. In the future, it will be more convenient for us to travel back and forth to Australia".
Janette took Simon's arm, gave an affirmative hum, and then said, "Auntie has already helped you buy the remaining buildings on that Manhattan site".
Simon nodded. "I know".
Although the operation was handed over to a shell company Veronica helped establish, the funds still had to be allocated from Westeros Company, so Simon was naturally aware of it.
Due to the continued decline of the North American real estate market, Simon's move to acquire the properties between 59th and 60th Streets east of Madison Avenue in Manhattan to build the Westeros Tower had gone very smoothly.
The purchase of all six buildings, including the land, cost a total of $173 million. This price was much higher than Simon's initial estimate.
Moreover, wanting to build the tallest building in Manhattan modelled after the Avengers Tower meant the construction costs would also be very expensive. Simon had privately commissioned a real estate design firm to do a rough estimate; the main structure alone would cost no less than $500 million. If Simon had high requirements for building materials, design details, and security, there would be no upper limit to the cost.
Furthermore, to build such a skyscraper, the issue of tenants had to be resolved first. Otherwise, if a building with over 100 floors sat empty, the result would be disastrous.
Westeros Tower was something of a personal dream for Simon. Even if he didn't consider the tenant issue for the time being, he had no intention of settling for low standards; he wanted everything built to the highest specifications. This would push the cost of Westeros Tower into the $1 billion range.
$1 billion might not be much in twenty or thirty years, but in this era, it was an astronomical price.
Although Simon's profits from the Japanese financial market this time were enough to pay for the construction of Westeros Tower, he had many more urgent things to do and had to postpone the plan. The thought of buying a Boeing 767 first was also a form of compromise.
Simon wanted to achieve the three wishes he had mentioned to Janette that night in one go, but reality made it difficult to have everything one's way. If he were too eager to fulfil his wishes, the result might be that he wouldn't have enough capital to protect those things.
In the end, he still wasn't rich enough.
Seeing that Simon only responded and then stopped talking, Janette suddenly gave a light laugh, tilted her head, and rubbed it against Simon's shoulder. "Are you very disappointed this time?"
Simon was puzzled. "Hmm?"
"Auntie has been in Singapore the last few days".
Simon decisively played dumb. "What about your aunt?"
"Hmph", Janette glanced at Simon and snorted twice. "Last night, someone got drunk and leaned into someone's neck, sniffing around like a little puppy".
Simon didn't fall for it at all and shook his head. "I wasn't drunk. Besides, you fell asleep before I did".
"I woke up in the middle of the night".
"I'm a good sleeper; I don't do strange things in my dreams".
"How do you know what you're like after you fall asleep?"
"You snore after you fall asleep".
"I do not!!!"
"How do you know?"
"Little Bastard, you almost made me lose the subject", Janette hugged Simon's arm tightly and scolded him, but her tone softened again as she whispered, "This isn't right, Simon".
Simon had always known Janette was an extremely intelligent woman; moreover, they had been together for so long that there was probably no one else in the world who understood him better than she did. Furthermore, ever since Kathryn, a certain attribute of his had become difficult to hide.
After a pause, Simon gave a barely audible hum of acknowledgment.
The two were silent for a moment before Janette leaned her head on Simon's shoulder and said, "Actually, you can find some girls younger than you; they're more suitable for you. Well, not too young, or it will be a lot of trouble".
Simon smiled and asked, "Then what about you?"
"I'm your girlfriend, of course, and I'll be your wife in the future", Janette said as if it were a matter of course. "Men might stray outside, but they always have to come home. Dad used to be like that often; he and Mom have still lived well together all these years".
Simon pretended to be interested. "Tell me more; maybe I can find an opportunity to blackmail your Old Man".
"How could you blackmail him? You'd more likely get a beating", Janette patted Simon and said, "Mom was the one who told me this. She used to love watching the way the Old Man would make up lies to deceive her after staying out all night. Now that Dad is older, he's settled down. Little Bastard, we'll grow old together just like Mom and Dad, right?"
Simon nodded without hesitation. Feeling the faint melancholy in Janette's voice, he reached out and pulled the woman closer into his arms.
Because of the Cersei Capital matter, there were still reporters arranged nearby, and they happened to capture the warm image of the two leaning against each other under the setting sun.
The Boeing 767 entered the runway, and everything was ready. Neil Bennett signalled from not far away that Simon could board.
After a few final words of farewell, Simon was about to leave when Janette pulled him back and asked with a worried look, "Little Bastard, do I really snore when I sleep?"
Simon smiled, leaned down, and kissed Janette on the lips. "Of course not. I was teasing you".
"Really?"
"Really".
Janette was still not quite at ease and warned, "You're not allowed to lie to me. I'm going to go back and take a nap, and let Mom help me check".
A casual little joke seemed to have serious consequences.
Simon stopped teasing, gave Janette one last hug, and walked toward the private plane on the runway.