Arab Today, arab today 2 samsung units merge for management succession
Last Updated : GMT 21:47:11
Arab Today, arab today
Arab Today, arab today

2 Samsung units merge for management succession

Arab Today, arab today

Arab Today, arab today 2 Samsung units merge for management succession

Samsung Group
Seoul - XINHUA

Two major affiliates of Samsung Group, South Korea's largest family-run conglomerate, successfully merged Friday despite a U.S. hedge fund's opposition, paving a way for management succession from Chairman Lee Kun-hee to his only son Jae-yong.

Cheil Industries and Samsung C&T convened their respective shareholders' meetings to win approval for a merger plan between the affiliates. Cheil shareholders unanimously approved the all- stock deal, and more than two-thirds of C&T shareholders voted in favor of the merger.

The two Samsung units announced the takeover plan on May 26 of Samsung C&T by Cheil Industries, the group's de-facto holding company controlled by Samsung Electronics Vice Chairman Jae-yong, heir apparent to Chairman Lee.

The 8.9 trillion won (7.8 billion U.S. dollars) of all-stock deal hit a snag as U.S.-based hedge fund Elliot Associates, the third-largest shareholder of Samsung C&T, expressed opposition citing the undervaluation of the construction and trade unit. The merger ratio was 0.35 Cheil shares for each C&T share.

Elliot with a 7.12 percent stake in Samsung C&T filed two lawsuits, including one seeking to block the convening of the shareholders' meeting and the other to stop C&T from selling 8.99 million treasury shares, or 5.76 percent stake, to its friendly shareholder KCC Corp.

Courts ruled in favor of Samsung in the two suits, and the appeals courts dismissed Elliot's request in both cases.

Samsung C&T garnered approval from 69.53 percent of shareholders, who attended the shareholders' meeting or delegated their voting rights. The participation rate was 83.57 percent of the total outstanding shares, indicating a 58.91 percent approval from the combined shareholders.

Samsung C&T made all-out efforts to gain approval as the successful merger facilitates the founding Lee family's power transfer from Chairman Lee, who has been bedridden since May last year after heart attack, to his only son Jae-yong.

The construction unit put ads in decades of newspapers, broadcasters and Internet news outlets to gain support from individual shareholders, which had a combined 24.33 percent stake in C&T. The unit is important as it has a 4.1 percent stake in the group's crown jewel Samsung Electronics.

The merger would solidify junior Lee's grip on power as a new entity, set to be launched on Sept. 1, will serve as the group's de-facto holding company. The new entity will use the name of Samsung C&T, in which Jae-yong will have a 16.5 percent stake. His two younger sisters will have a 5.5 percent stake respectively.

The launch of the new holding company is expected to simplify a complex web of the group's cross shareholdings. Cheil Industries, in which Jae-yong was the largest shareholder, has controlled Samsung Life Insurance that had a large stake in Samsung Electronics controlling two major affiliates.

The two affiliates have controlled Samsung C&T, which had a large stake in Samsung Electronics. Such complexity would be simplified to a structure of the new Samsung C&T that would directly control Samsung Electronics and Samsung Life Insurance. Samsung Group launched the father-to-son management succession in mid-2013 by merging, breaking out and listing some the group's affiliates.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today 2 samsung units merge for management succession Arab Today, arab today 2 samsung units merge for management succession

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 11:55 2017 Wednesday ,29 March

Need ‘gymspiration?’ The top fun fitness bloggers

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday