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Photo = Yonhap news |
[Alpha Biz= Paul Lee] On May 29, the Seoul High Court’s Civil Division 16 (Presiding Judge Kim In-gyeom) dismissed the appeal filed by the U.S. hedge fund Elliott Management against Samsung C&T Corporation, reaffirming the lower court’s ruling.
Elliott had sued Samsung C&T seeking an additional KRW 26.7 billion in delayed interest payments related to a stock purchase claim dispute stemming from the 2015 merger between Samsung C&T and Cheil Industries.
Elliott opposed the merger at the time, arguing that Samsung C&T’s offered purchase price of KRW 57,234 per share was too low. In March 2016, Elliott withdrew its claim after reaching a confidential agreement with Samsung C&T, which stipulated that if the final judicial valuation of the share price changed in lawsuits involving other shareholders, Samsung C&T would pay the difference.
In April 2022, the Supreme Court set the fair price per share at KRW 66,602, prompting Samsung C&T to pay Elliott the price difference amounting to KRW 72.4 billion.
However, in October last year, Elliott filed a suit demanding additional delayed interest payments of KRW 26.7 billion, citing discrepancies in the delay periods compensated: Samsung C&T paid Elliott delayed interest covering from September 8, 2015 to March 17, 2016, while other shareholders received payments covering until May 12, 2022.
In September 2024, the first-instance court ruled in favor of Samsung C&T, stating that Samsung C&T was only obligated to pay the principal amount of the stock purchase price to Elliott, without the need to pay additional delayed interest.
The appellate court’s recent decision upholds this ruling, marking another legal victory for Samsung C&T in the prolonged dispute.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
