Samsung C&T CEOs have no plan to visit ISS

Group reaffirms swap ratio has been set legitimately

Published : Jun 24, 2015 - 16:59 Updated : Jun 24, 2015 - 20:21

Samsung C&T dismissed as untrue reports that its co-CEOs planned to visit the Institutional Shareholder Services, an investment advisory service, to further explain about the legitimacy of its planned merger with Cheil Industries.

A high-ranking Samsung C&T official was quoted by a Korean news outlet as saying, “The chief executives and top executives of C&T and Cheil Industries have no plan to visit the ISS.”

Choi Chi-hun, co-CEO of Samsung C&T.Samsung C&T

It had been reported that Choi Chi-hoon and Kim Shin, co-CEOs of the construction and trading firm, were planning to visit the New York-headquarters of ISS before the investment advisory service firm releases its assessment reports on the proposed merger in July.

Since the reports could exert a great deal of influence on the investment decisions of around 1,700 global investors, it has been forecast that the Samsung business arms would make all-out efforts to persuade the ISS to give a favorable recommendation.

The Samsung C&T official said, “The company has already given a thorough explanation on the merger plan during a conference call with the ISS on June 19.”

Meanwhile, Yoon Yong-am, head of Samsung Securities, said on Wednesday that “The swap ratio of the merger was set according to the local laws so no one should alter it.”

Each Samsung C&T share will be exchanged for 0.35 of a share in Cheil Industries, according to the proposal for the merger.

Disgruntled by the share-swap ratio, U.S. hedge-fund manager Elliott Associates filed injunctions to block the merger, arguing that C&T was significantly undervalued.

By Kim Young-won (wone0102@heraldcorp.com)