Seoul: An appellate court has upheld a lower court's decision, ruling that Samsung C and T is not obligated to pay U.S.-based hedge fund Elliott approximately 26.7 billion won (US$19.3 million) in delayed interest related to the 2015 merger of two Samsung units.
According to Yonhap News Agency, the Seoul High Court dismissed Elliott's appeal, affirming the district court's September ruling. The court found no errors in the original decision, reinforcing that Samsung C and T was not required to compensate Elliott further for the merger.
Elliott, which held a 7 percent stake in Samsung C and T, opposed the merger with Cheil Industries Inc. in 2015, arguing that the terms undervalued the company and were unfair to investors. Despite Elliott's opposition, Samsung C and T proceeded with the merger, prompting the hedge fund to exercise its appraisal rights and demand a buyback of its stake.
The hedge fund later retracted these rights after negotiating a confidential agreement with Samsung C and T in 2016. This agreement assured the hedge fund of payment adjustments if the share price changed in legal proceedings involving other shareholders.
Following a Supreme Court decision that set the appropriate price per share of Samsung C and T at 66,602 won, Elliott received 72.4 billion won as compensation. Nonetheless, Elliott pursued an additional 26.7 billion won in delayed interest, arguing that other shareholders were compensated for a longer duration.