Court rules Samsung C&T not obligated to pay delayed interest to Elliott
People walk toward the entrance to Samsung C&T's headquarters in Gangdong District, Seoul, March 11, 2022. Newsis
A Seoul court on Friday dismissed a suit filed by U.S.-based hedge fund Elliott seeking some 26.7 billion won ($20.2 million) in delayed interest from Samsung C&T as a fallout of the 2015 merger of two Samsung units.
Elliott, which owned a 7-percent stake in Samsung C&T, led a proxy fight against the firm's merger with Cheil Industries, citing unfair terms that it said greatly undervalued the company and investors' interest. The controversial merger went ahead, backed by the state-run National Pension Service's swing vote in Samsung's favor.
In response, Elliott exercised appraisal rights, demanding Samsung C&T buy its stake back. The matter was taken to court when the two sides could not reach an agreed-upon price per share.
They reached a settlement in 2022, when Samsung C&T paid 72.4 billion won to Elliott, but the American hedge fund filed a suit last year seeking an additional 26.7 billion won in delayed interest, claiming it was under the terms of the "secret agreement."
Samsung countered that it has no obligation to pay the delayed interest.
The Seoul Central District Court on Friday dismissed the demand for the return of the contract money, saying delayed interest was not part of the agreed-upon amount. (Yonhap)