NPS mulls shedding Mirae Asset Daewoo shares over merger plans

[THE INVESTOR] The National Pension Service plans to exercise dissenters’ rights should Mirae Asset Daewoo's shares drop below 8,000 won (US$7.30), local news reported on Aug. 9.

The pension fund is also reportedly planning to forfeit its rights in the vote on Mirae Asset Daewoo and  Mirae Asset Securities' merger, should the price drop below the 8,000-won mark. The shares have been trading in the upper 7,000 won and low 9,000 won range since July. 

If NPS, which is Mirae Asset Daewoo’s second-largest shareholder with 6.68 percent, abstains from the vote, it could influence the merger plans.

The NPS is reportedly planning to oppose the merger at the Oct. 20 shareholders meeting if it considers the merger detrimental to the company. Even if the merger is considered favorable, the NPS plans to exercise its dissenters’ rights depending on the share price.

Mirae Asset Daewoo has set the buyback price at 7,999 won for those choosing to shed its shares before the merger. The window for expressing dissent is from Sept. 21 to Oct. 19.

Should the NPS request its stake be bought back by the company, Mirae Asset Daewoo will be required to pay out more than 170 billion won, at Aug. 9 prices.

In addition to the financial burden, NPS’ decision could potentially influence other shareholders. Excluding the NPS and Mirae Asset Securities’ stakes, 52.99 percent of Mirae Asset Daewoo is held by small shareholders.

By Choi He-suk (cheesuk@heraldcorp.com)