Most Popular
-
6
Rare mid-May heavy snow warning issued over mountainous areas of Gangwon
-
7
CIO chief nominee to explain allegations at confirmation hearing
-
8
Yoon vows to run country 'rightly' on Buddha's birthday
-
9
[Bridge to Africa] S. Korea-to-Zimbabwe value chains can foster ‘win-win’ cooperation
![[Bridge to Africa] S. Korea-to-Zimbabwe value chains can foster ‘win-win’ cooperation](//res.heraldm.com/phpwas/restmb_idxmake.php?idx=644&simg=/content/image/2024/05/14/20240514050881_0.jpg&u=20240515223025)
-
10
Why Korean crime stories typically feature nameless, faceless perpetrators
![[Bridge to Africa] S. Korea-to-Zimbabwe value chains can foster ‘win-win’ cooperation](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=644&simg=/content/image/2024/05/14/20240514050881_0.jpg&u=20240515223025)
Minor Samsung C&T shareholders to file petition against merger
By KH디지털2Published : June 22, 2015 - 16:38
Small shareholders of Samsung C&T Corp. said Monday they will file a petition with a Seoul court this week against a controversial proposal for its merger with another key unit of Samsung Group, South Korea's top family-controlled conglomerate.
The move came as the construction arm of Samsung Group has been embroiled in a legal battle with U.S. hedge fund Elliott Management since early this month regarding an 8.9 trillion won ($8.09 billion) takeover offer by Cheil Industries Inc., the de facto holding firm of the conglomerate.
Elliott, the third-largest shareholder of Samsung C&T, has opposed the proposed takeover, saying the low-ball deal undermines the interests of C&T shareholders based on the undervalued price of the builder.
An online community site here comprising some 2,500 minor C&T shareholders, said they will submit the petition with the Seoul Central District Court seeking to restrict the voting rights of KCC Corp. at the next shareholder meeting slated for July 17.
KCC, an existing shareholder of C&T, recently raised its stake in the builder to 5.79 percent by acquiring treasury shares, in a move to side with Samsung, which needs as many stakes in support of the merger as possible to push through the deal.
The minor shareholders are estimated to represent about a combined 0.5 percent stake, according to their online site.
The representatives of the small investors said they will vote against the merger at the July shareholder meeting, instead of handing over their voting rights to Elliott by proxy.
They will seek to encourage other minor stakeholders to join the move, in order to raise stakes to as much as 1.92 percent before the shareholder meeting, they said.
They are also considering a class action suit against the National Pension Service, which holds the casting vote for the merger proposal with its 10.15 percent stake in Samsung C&T, if it votes in favor of the takeover bid, they added.
Last Friday, Samsung C&T and Elliott clashed at the first court hearing in Seoul on the two injunctions filed by the hedge fund seeking to block the merger. The court is due to deliver a decision by July 1. (Yonhap)
The move came as the construction arm of Samsung Group has been embroiled in a legal battle with U.S. hedge fund Elliott Management since early this month regarding an 8.9 trillion won ($8.09 billion) takeover offer by Cheil Industries Inc., the de facto holding firm of the conglomerate.
Elliott, the third-largest shareholder of Samsung C&T, has opposed the proposed takeover, saying the low-ball deal undermines the interests of C&T shareholders based on the undervalued price of the builder.
An online community site here comprising some 2,500 minor C&T shareholders, said they will submit the petition with the Seoul Central District Court seeking to restrict the voting rights of KCC Corp. at the next shareholder meeting slated for July 17.
KCC, an existing shareholder of C&T, recently raised its stake in the builder to 5.79 percent by acquiring treasury shares, in a move to side with Samsung, which needs as many stakes in support of the merger as possible to push through the deal.
The minor shareholders are estimated to represent about a combined 0.5 percent stake, according to their online site.
The representatives of the small investors said they will vote against the merger at the July shareholder meeting, instead of handing over their voting rights to Elliott by proxy.
They will seek to encourage other minor stakeholders to join the move, in order to raise stakes to as much as 1.92 percent before the shareholder meeting, they said.
They are also considering a class action suit against the National Pension Service, which holds the casting vote for the merger proposal with its 10.15 percent stake in Samsung C&T, if it votes in favor of the takeover bid, they added.
Last Friday, Samsung C&T and Elliott clashed at the first court hearing in Seoul on the two injunctions filed by the hedge fund seeking to block the merger. The court is due to deliver a decision by July 1. (Yonhap)
