It has been reported that Elliott Management, an American hedge fund that filed lawsuits opposing the merger of Samsung C&T Corporation and Cheil Industries Inc., has returned its stockholder certificates for Samsung C&T Corporation, Samsung SDI and Samsung Fire Insurance to the Korea Securities Depository (KSD). (Image : Yonhap)
Seoul, July 28 (Korea Bizwire) - It has been reported that Elliott Management, an American hedge fund that filed lawsuits opposing the merger of Samsung C&T Corporation and Cheil Industries Inc., has returned its stockholder certificates for Samsung C&T Corporation, Samsung SDI and Samsung Fire Insurance to the Korea Securities Depository (KSD).
Since the proposal to merge Samsung C&T Corporation and Cheil Industries Inc. passed, industry watchers believe Elliott might be making an attempt to withdraw all means after selling all of its shares of Samsung affiliates, deciding that attacking management has become difficult.
Elliott is said to have returned its stockholder certificates for Samsung C&T Corporation (7.12 percent), Samsung SDI (1 percent) and Samsung Fire Insurance (1 percent) to the KSD on July 24.
According to the Korean Capital Market Act, when the KSD issues a stockholder certificate, selling the stocks are restricted during the exercise period of the stockholder’s right. However, the restriction is lifted if the stockholder certificate is returned.
Finance industry analysts believe that Elliott might set out to sell the Samsung shares they currently hold. Elliott now holds 11,120,000 Samsung C&T shares, and the average price is estimated to be 63,000 won per unit. Elliott is staying silent on whether they returned the certificate or not.
The American company publicly announced on June 4 that they had acquired 7.12 percent of Samsung C&T’s shares. They opposed the merger of Samsung C&T Corporation and Cheil Industries Inc., and demanded that the shares be divided in kind and interim closing. They also applied for an injunction of the resolution bans at the shareholders’ meeting and disposition of treasury stock at the court, repeatedly attacking Samsung.
By Francine Jung (francine.jung@kobizmedia.co.kr)
