Minority shareholders of CJ HelloVision, the nation’s largest cable TV operator, on Monday filed a lawsuit, demanding the company adjust the merger-swap ratio for its planned merger with SK Broadband, the IPTV unit of SK Telecom.
A total of 17 shareholders, holding a combined 33,111 shares, sued the company and CEO Kim Jin-seok on Monday.
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CJ HelloVision CEO Kim Jin-seok (Yonhap) |
The lawsuit came after the merger plan, including the swap ratio of 0.476123 CJ share for each SK share, was approved by more than 97 percent of the CJ HelloVision shareholders in February.
But amid fierce resistance from rival companies within the industry, regulators have delayed to approve the plan. The first deadline was April 1.
“The merger-swap ratio was decided in favor of SK Broadband shareholders,” the minority shareholders claimed in their complaint. “Since the merger plan was announced, share prices (of CJ HelloVision) have surged. With the government approval being delayed, the ratio should be readjusted.”
By Lee Ji-yoon (
jylee@heraldcorp.com)
