Samsung C&T headquarters (Image courtesy of Yonhap)
SEOUL, May 29 (Korea Bizwire) — An appellate court on Thursday upheld a lower court’s verdict that Samsung C&T has no obligation to pay U.S.-based hedge fund Elliott some 26.7 billion won (US$19.3 million) in delayed interests over the 2015 merger of two Samsung units.
The Seoul High Court dismissed an appeal filed by the American hedge fund, saying there were no errors in the district court’s ruling in September.
Elliott, which owned a 7 percent stake in Samsung C&T, led a proxy fight against the firm’s merger with Cheil Industries Inc. in 2015, citing unfair terms that it said greatly undervalued the company and investors’ interest.
When Samsung C&T went ahead with the controversial merger, the American hedge fund exercised appraisal rights, demanding the firm buy its stake back.
It withdrew the rights after securing a secret deal with Samsung C&T in 2016 that guaranteed the payment of the difference in the event the price per share changed in trials involving other shareholders.
The hedge fund later received 72.4 billion won as the balance following a Supreme Court ruling that set 66,602 won as the appropriate price per share of Samsung C&T.
However, Elliott filed a suit last year seeking an additional 26.7 billion won in delayed interest, claiming other shareholders received a larger payment corresponding to a longer period of time.
(Yonhap)
