Samsung C&T prevails in Elliott suit over interest concerning Cheil merger

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Samsung C&T prevails in Elliott suit over interest concerning Cheil merger

Published: 29 May. 2025, 13:59 Updated: 29 May. 2025, 14:41

Audio report: written by reporters, read by AI

The Seoul High Court in Seocho District, southern Seoul, on May 2 [NEWS1]

A Korean appellate court on Thursday sided with Samsung C&T, ruling that the company does not owe delayed interest to U.S. hedge fund Elliott Investment Management in a long-running dispute tied to Samsung's 2015 merger with Cheil Industries.

The Seoul High Court upheld a lower court's ruling, rejecting Elliott’s appeal and affirming that Samsung C&T was not obligated to pay additional interest on a stock purchase agreement reached nearly a decade ago.

The dispute dates back to 2015, when Elliott opposed the merger between Samsung C&T and Cheil and filed a claim for stock appraisal rights, arguing that Samsung C&T’s proposed buyback price of 57,234 won ($41) per share was too low.

In March 2016, Elliott withdrew the claim after reaching a confidential agreement with Samsung C&T. Under the deal, Samsung C&T agreed to pay the difference if a court later set a higher share price in a related shareholder lawsuit.

In April 2022, Korea’s Supreme Court ruled that 66,602 won per share was an appropriate valuation, and Samsung C&T paid Elliott 72.4 billion won — the difference between the court-determined value and its original offer.

However, in October 2024, Elliott filed another lawsuit, seeking an additional 26.7 billion won in delayed interest. The hedge fund argued that Samsung C&T had paid interest to other shareholders from Sept. 8, 2015, to May 12, 2022, but only paid Elliott interest covering the period from Sept. 8, 2015, to March 17, 2016.

A lower court ruled in September last year that Samsung C&T was only obligated to pay the principal and not the delayed interest. The appellate court agreed, dismissing Elliott’s claim entirely.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]