Samsung wins merger fight
According to reports, Samsung, which is a South Korean multinational conglomerate company, has secured shareholder approval on Friday for the important amalgamation of two affiliates, dealing with a tough challenge from investor activists that was led by a US hedge fund.
The victory that has been achieved after a contested proxy fight will be a big sigh of relief to the Lee family that founded Samsung Group because it is looking forward to reorganize the multiple business segments prior to transfer of power from ailing chairman Lee Kun-Hee.
At an emergency meeting on Friday, shareholders of Samsung C&T, construction firm voted in support of a takeover by de facto holding company of the group, Cheil Industries.
The merger was opposed by a large number of C&T investors, brought together by US hedge fund Elliott Associates, which is the company’s second-largest shareholder. Elliott had said that the takeover deliberately underestimated share price of the C&T, at an objectionable value to its shareholders.
Samsung C&T executives said that the deal led to good business sense and would also help increase shareholder value in long term, along with a more competitive merged company that could set a target of sales of 60 trillion won by 2020.
According to C&T chief executive Choi Chi-Hun, “I am grateful for the shareholders who voted for the merger. We will do our utmost to ensure their support is repaid in the form of heightened shareholder value”.