The Mech Touch - Chapter 5708

5708 Gloriana’s Brilliant Proposal

As elite young mech designers who were expected to lead the Eternal Vulcan Empire’s mech industry a century later, all 10 Novice Mech Designers were excellent in their own right.

Perhaps their thoughts and cultural sensibilities may not completely align with that of the Larkinson Clan, but they showed very little of it when they talked and worked alongside human mech designers.

One of the issues that prevented the new dwarves from developing a close relationship with the Larkinson mech designers was the fact that the former was not connected to the Larkinson Network.

The recent recruits had all spent enough time with a permanent connection to the Golden Cat to completely integrate it into their lives.

Every member of the Larkinson Clan was instinctually able to identify other members. The encouraging glow radiated by Goldie inspired so much love and affection that it was difficult to imagine how people lived all this time without access to this incredibly useful benefit.

Despite this difference, the Novices settled in Diandi Base decently enough. Neither side was stupid or irrational enough to provoke any incidents and displease their superiors.

Even Gloriana cleaned up her act and treated the Vulcanites cordially, though he was pretty sure she felt disgusted by their shorter and much stockier bodies.

The dwarves resembled humans so much, yet deviated in a few clear ways that offended Gloriana’s perfectionist tendencies.

"The following three years shall be tiresome." She complained to her husband after they completed another day at work. "Please do not make similar promises again. The Design Department is the most important institution of our clan. Having guests work alongside our own mech designers adds too many complications and makes it difficult to exert total control over every variable."

Ves leaned over and embraced his exhausted spouse. "I can’t guarantee anything, but I will try my best to avoid this in the future. Believe me, I am not too enthused about this either, but the Vulcanites may very well be the only ones who are willing to give us an actual first-class fleet carrier. You should know as well as I do how incredibly scarce and valuable they are. Everyone else who has the capacity to construct fleet carriers have outright stopped their sales. They would rather keep the powerful vessels for themselves so that they can ensure they remain at the forefront of changing times."

"If that is the case, why not start our own first-class shipbuilding operation? Do not tell me that our clan is not familiar or proficient in this industry. Our shipwrights have already accrued more than enough experience with producing our own combat carriers over at the Diligent Ovenbird. We have also cooperated with the Murphy Family for numerous years. We are no longer as ignorant about the complexities related to shipbuilding as before."

Ves frowned. "That may be true, but we are talking about constructing first-

class starships here. Do you know how many requirements we have to meet to make that possible? First, we need to acquire a modern first-class shipyard. The insane amount of tech and materials that is needed to construct this orbital facility are so high that it can cost at least 10 trillion MTA credits or something to build one. Our clan may have grown a lot wealthier since we have acquired a 20 percent stake in Isthmus Manufacturing, but even that is not enough for us to order the construction of a first-class shipyard. Do keep in mind that their price has inflated by a lot due to obvious reasons."

Even with his improved connections and reputation, Ves would find it difficult to find qualified construction companies that were willing to accept and prioritize his order. Their waiting lists have already stretched on for decades!

Gloriana frowned. "Can we take over an existing shipyard or shipbuilding company instead? We do not necessarily have to acquire it by paying cash. You can trade favors or offer other valuable services such as accepting mech commissions."

"That sounds like a more realistic idea, but no one is stupid enough to trade away one of their top strategic assets so easily. A first-class fleet carrier is hard currency in this day and age. A shipyard that can pump them out on a regular basis is an inexhaustible mine. The concessions I need to make in order to match or exceed the value of this asset is insanely high. That is not the kind of thing that I can fool other people into giving up in exchange for a few fancy living mech designs."

His wife clearly did not like the sound of that. She wanted to reduce the Larkinson Clan’s dependence on external parties when it came to acquiring first-class starships.

"You are not going far enough with exhausting your options. There is one asset that you can readily exchange for a first-class shipyard. It will be painful on our part, but it is only by making a sacrifice that is almost equivalent to the value of the shipbuilding facility that we can complete this trade."

Ves looked confused. "What are you talking about? Are you suggesting that we should sell our stake in Isthmus Manufacturing?"

"No. It would be foolish for us to let go of these shares. You are close to the correct answer. What I want to propose is that you agree to sell a part of your shares in the Living Mech Corporation. Our mech company has been growing at a meteoric rate, especially due to the release of our most recent commercial mech lines. Its valuation has grown higher than ever due to its amazing future potential. I can tell you that there are many eager groups that want to purchase a stake in the LMC while it is still possible. As long as you are willing to give up a sufficient degree of ownership, I think that you will be able to tempt at least one interested party into giving up a first-class shipyard."

"..."

The mention of trading away his shares violated one of Ves’ taboos.

He still felt really bad about the past instances where different people forcibly demanded a share of his pie. His shares fell into the hands of different people and government institutions who did not deserve to profit from his success.

The reminder from his wife threw him in a pit of dark memories. His mood instantly deflated and he could no longer treat this topic as lightly as before.

Gloriana did not let his reaction stop her from pressing her argument.

"You are being too sensitive about this subject. You are no longer the third-

class mech designer of before. You are a tier 3 galactic citizen and an honorary member of the Red Association. No one will try to exploit you as badly as your enemies have done in the past. What is the current ownership structure of the LMC? How have the shares that used to belong to Master Carmin Olson and Master Toqueman Huran been dealt with? Have they been invalidated?"

Ves shook his head. "Not precisely. When the Great Severing occurred, a huge financial mess fell onto the laps of red humanity. Ownership in many big companies and organizations rested in the big players that were overwhelmingly based in the Milky Way Galaxy. Freeing up all of this owned property at once might sound nice to many people, but it would have caused an economic upheaval that our society absolutely did not need at the time. The Red Two instituted a lot of policies to fix this mess. In our case, the Red Association basically swooped in and claimed the orphaned shares in the LMC. It doesn’t really matter what justification the mechers have used. I think they just wanted to plant their flag in my mech company."

"Oh. That still leaves you with 72 percent ownership in your mech company, but that is a deceptive figure."

"How so?" Ves raised his eyebrow.

"The Larkinson Clan owns the remaining 24 percent stake in the LMC. This effectively means you are in control of it as well, though you are not able to dispense with them as freely as your own shares. The fact of the matter is that if you want to maintain absolute control over your own company, you must merely ensure that you hold on to 50 percent ownership. Any shares beyond this threshold should be treated as tradable assets as far as I am concerned. Yes, they can supply you with a large amount of dividends, but do you really need the extra money at this point? Unless they can supply you with a much larger income, the additional wealth is dispensable."

Ves did not entirely agree with that, but he understood her meaning.

"So are you saying I am stupid for holding on to so many shares and that I should get rid of them as soon as possible?"

His wife sighed. "I am not belittling you, Ves. I am trying to help you treat your assets in a more rational manner. There are many more logical arguments in favor of trading away your shares as opposed to hoarding them as if you are a frightened squirrel. You can exchange up to 46 percent ownership of the LMC that is currently in your name and still retain majority control over your precious company. Think of how much wealth and assets we can raise with that many shares. The Terrans, Rubarthans and many other wealthy groups will frantically try to buy into your bright and prosperous future. If we can organize an auction and have all of the interested parties bid against each other, then obtaining a first-class shipyard is a foregone conclusion. You may be able to gain an additional one if the valuation of your stock is high enough!"

As much as Ves wanted to feature her argument, he had to admit that she made a powerful and compelling argument.

Auctioning out a large chunk of his shares would enable him to get many of the items on his wish list that he had always dreamed about but never managed to obtain through his existing channels.

Perhaps it might not be the best long-term decision for him to give up so many shares for a mech company that was continuing to grow like an ascending shuttle.

Yet Ves knew extremely well that investing too much in the long-term might not pay off due to all of the calamities that would befall red humanity in the coming decades.

It had become a lot more important for him to invest in the short and medium term prospects of his clan and his people.

Acquiring a first-class shipyard meant that his clan would be able to pump out first-class starships on a regular basis. This would not only relieve the needs of the Premier Branch, but also ensure that his clan would be able to build up a powerful first-class fighting force that could confront or deter some of the most powerful human and alien enemies in the Red Ocean!

If a scenario like the Black Tide ever took place where every human survivor sought to board the Whale Ark that could bring them away from the Red Ocean, then all of the shares in the Living Mech Corporation no longer held any value anymore.

The complete breakdown of human civilization and order would revert society to a much more primitive stage where the value of those shares could not exceed the value of a single combat capable mech!

"I’ll think about it." Ves eventually decided. "This is not a decision that I can make in an instant. I will weigh it properly and decide to go forward if it truly makes sense for us at this time."

"Please do." Gloriana leaned in and kissed his cheek in an affectionate manner. "I am not the only person in our family that is concerned about our safety and the safety of our children. The second-class starships of the expeditionary fleet are no longer enough to protect us against the enemies that we have attracted as of late. Only the superior defenses and mobility of proper first-class vessels can meet our needs."