Samsung C&T Corp. began an emergency shareholder meeting Friday to vote on a proposed merger with another key unit of Samsung Group, a move seen as aiming to smoothen a leadership change in South Korea's richest family.

The two Samsung units announced the plan for a merger on May 26, claiming the proposed all-stock deal worth 8.9 trillion won ($7.8 billion) will create synergy for the new entity.

Earlier in the day, shareholders of Cheil Industries unanimously approved the merger plan.

The proposed merger is required to win approval from shareholders with two-thirds of the voting rights and a third of outstanding shares. Participants will cast votes through Optical Mark Reader cards.

Before the start of its emergency shareholder meeting, a Samsung C&T executive said the company is awaiting the outcome of the vote with modesty.

"I am grateful that many shareholders from home and abroad lent support. More retail shareholders than expected voiced support," said Kim Shin, who heads Samsung C&T's trade division.

Samsung officials said the results of the meetings were due out after noon.

The merger has been challenged by the U.S. hedge fund Elliott Associates, Samsung C&T's third-largest shareholder, which claimed that the merger ratio -- 0.35 Cheil share for 1 C&T share -- is disadvantageous for Samsung C&T shareholders.

In a bid to stop the move, Elliott asked a Seoul court to block the Samsung C&T shareholders' meeting and Samsung C&T's sale of treasury shares to KCC Corp., a friendly shareholder.

Last week, the Seoul Central District Court threw down Elliot's requests and the Seoul High Court rejected appeals on both cases Thursday.

The merger is also widely seen as aimed at paving the way for the transfer of power from hospitalized tycoon Lee Kun-hee, South Korea's richest man, to his only son, Jay-yong.

If the merger is completed, Jay-yong will emerge as the biggest shareholder of the merged entity with a 16.5 percent stake, strengthening his grip on the sprawling business empire. (Yonhap)