Samsung C&T ends share buyback, clears key hurdle for $8 billion merger
Reuters
Published Aug 07, 2015 03:17
Samsung C&T ends share buyback, clears key hurdle for $8 billion merger
SEOUL (Reuters) - The $8 billion (5.16 billion pounds) merger of two Samsung Group [SAGR.UL] affiliates cleared another major hurdle, with requests for buybacks from shareholders opposed to the deal falling well short of the amount that could have scuppered it.
Construction firm Samsung C&T Corp (KS:000830) said on Friday it had received 670 billion won worth of stock buyback requests from shareholders who opposed the all-stock takeover offer from sister firm Cheil Industries Inc (KS:028260).
That amount was well short of 1.5 trillion won (832 million pounds), which both firms had set in May as the level at which they would scrap the deal.
Analysts say the merger now appears to be on track to be finalised in September, on schedule.
The deal is seen as a key step in a leadership transfer at Samsung Group, the country's top family-run conglomerate. It consolidates stakes in key affiliates including Samsung Electronics (LONDON:0593xq) Co Ltd (KS:005930) under the control of the founding Lee family's heirs.
Samsung C&T did not disclose details on the shares it bought back, but U.S. hedge fund Elliott Associates - one of the most vocal opponents of the merger - said on Wednesday it had sold back some of its 7.12 percent stake.
A person with direct knowledge of the matter told Reuters that Elliott sold a 4.95 percent stake to C&T, the entire share it could sell back. The fund, however, has said it would continue to do all it could to protect its interests.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.