US hedge fund demands US$770m from S. Korea over Samsung merger

14 July 2018 12:10 am - 0     - {{hitsCtrl.values.hits}}

A A A

SEOUL (AFP): A US hedge fund is demanding almost US$800 million from South Korea at an international tribunal over the controversial merger of two units of the giant Samsung conglomerate, officials said yesterday.


The 2015 deal, in which fashion, food and leisure operator Cheil Industries took over construction company Samsung C&T for US$8.0 billion, featured in the sprawling corruption scandal that brought down ousted president Park Geun-hye.The transaction which activist fund Elliott Associates and other shareholders said wilfully undervalued C&T was seen as a key step to ensuring the succession of Samsung heir Lee Jae-yong.

 

It went through after the National Pension Service (NPS) - C&T’s biggest shareholder approved it.


Prosecutors accused Lee of seeking government backing for the deal, and at trial he was found guilty of bribery and sentenced to five years in prison, although most of his convictions were later overturned on appeal.


Now US-based Elliott, whose 7.12 percent stake in C&T made it the company’s second-largest shareholder, has sent a “notice of arbitration” of an investor-state dispute to the South Korean government, the justice ministry said in a statement. 


“In the notice, it claims it suffered no less than US$770 million damages from the merger between Samsung C&T and Cheil Industries as a result of the government’s ‘illegitimate’ intervention,” the ministry said.


Elliott is seeking a ruling from the UN Commission on International Trade Law (UNCITRAL) and suggested Britain as the arbitration venue, it added.


The government now led by Park’s longstanding opponent Moon Jae-in had launched a joint task force to address the issue, it said.


Former health minister Moon Hyung-pyo was convicted of abuse of power for pressuring the NPS to vote for the merger and was sentenced to 30 months in prison, a ruling upheld by the appeal court.


At his trial, prosecutors argued that Moon had been ordered to support the deal by then-president Park, who was subsequently jailed for 24 years for bribery, coercion and abuse of power.

 

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Employees’ health and safety our top-most priority - Brandix

When inquired, Brandix Apparel Limited said that health and safety of employe

“Workers who fainted had water sprinkled on their faces and had to work again”

Health authorities believe the first reported Covid-19 infected worker from t

“Social media ruined us” - husband of Minuwangoda Brandix factory worker

The Minuwangoda Brandix factory worker who first tested positive for Covid-19

Last rites far from home

The body of the Sri Lankan migrant worker Bandu who died of coronavirus in Du

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.