SEOUL: US hedge fund Elliott ramped up a campaign to block a proposed $8 billion merger of two Samsung Group firms on Thursday, laying out its case online a day before a court hearing on a deal seen key to a leadership succession in the family-run conglomerate.
Escalating what is already a rare case of shareholder activism in South Korea, the fund put online a 27-page paper detailing why shareholders in construction firm Samsung C&T Corp. should reject the all-stock takeover offer from sister company Cheil Industries Inc.
Elliott has already said it believes Cheil's offer is too low, and its opposition could galvanize other investors. On Friday, a South Korean court will hear the fund's injunctions, which seek to block a July 17 C&T shareholder vote on the merger as well as C&T's attempt to sway the vote in the deal's favor
by selling shares to ally KCC Corp.
"They are trying to show they have a strategy that could benefit not only Samsung C&T shareholders but also investors in other Samsung companies," said Kim Sang-jo, economics professor at Hansung University, referring to Elliott's online document.
The merger is critical for Samsung Group's restructuring, which is aimed at cementing a generational leadership succession at South Korea's biggest and most influential chaebol. The deal would combine various stakes in the group held into a firm controlled by the children of founder family patriarch Lee
Kun-hee, who remains hospitalized since a May 2014 heart attack.
Some institutional and local retail investors, also say the deal undervalues C&T and plan to vote against it in the July meeting.
Samsung Group needs the support of least two-thirds of the votes cast at the C&T shareholder meeting for the deal to proceed. In an apparent concession to Elliott, Samsung C&T said
on Thursday its shareholders would vote on the fund's proposal to allow for non-cash dividends at the July 17 meeting.
In a statement, Elliott said it supported the conglomerate's restructuring needs but said the group should "properly recognize" Samsung C&T's value.
C&T said on Thursday it was committed to moving ahead with the merger to "maximize shareholder value". The company has hired Goldman Sachs and Credit Suisse as advisers on the deal, and its top executives have met investors to win support.
Cheil said in a separate filing that South Korea's antitrust regulator has approved the firm's takeover of Samsung C&T, clearing a regulatory hurdle.
Elliott steps up campaign to block $8bn merger of Samsung Group firms
Elliott steps up campaign to block $8bn merger of Samsung Group firms
Closing Bell: Saudi main index closes in red at 10,947
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25.
The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated.
The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71.
The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated.
The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51.
On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39.
National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50.
On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co.
In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.
Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.
Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.
The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said.
The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.
