Although there is no change in the number of shares that Hanhwa Chemical will acquire, Samsung SDI will be preserving some of its shares in Samsung General Chemicals. (image: Yonhap)
SEOUL, April 1 (Korea Bizwire) — Samsung C&T Corporation and Samsung SDI have changed their conditions for selling their shares in Samsung General Chemicals to Hanhwa Chemical in a bid to reduce any related risks.
The three companies have confirmed the changes through a corrective disclosure on March 31. Initially, Samsung C&T Corporation and Samsung SDI were to sell off 11,020,000 shares and 7,473,000 shares respectively to Hanhwa Chemical.
However, with the changes to the terms of the deal, Samsung C&T will sell 12,750,000 shares, while Samsung SDI is set to sell off only 5,752,000 shares. Although there is no change in the number of shares that Hanhwa Chemical will acquire, Samsung SDI will be preserving some of its shares in Samsung General Chemicals. Upon the completion of the deal, Samsung C&T Corporation and Samsung SDI will still hold 8,520,000 shares and 1,720,000 shares respectively.
Under the terms of the deal, Samsung C&T and Samsung SDI also retain the right to sell their remaining shares to Hanhwa Chemical within 6 years of the completion of the deal, as long as Samsung General Chemicals remains unlisted.
Hanhwa Chemical will also have the right of first refusal when the two companies sell off their remaining shares. The two companies are also bound to sell their shares when Hanhwa Chemical sells its own shares.
Although the three companies originally planned to trade the shares on April 3, it remains to be seen if the deal will go through on time.
By M. H. Lee (mhlee@koreabizwire.com)
