Foreign hedge funds pose little threat to Hanssem, SK

Foreign hedge funds pose little threat to Hanssem, SK

Hanssem headquarters in Seoul / Courtesy of Hanssem

By Park Jae-hyuk

Recent shareholder actions taken by foreign hedge funds against SK Chemicals and Hanssem are expected to have a limited impact on the market, considering domestic laws and responses by other investors.

Teton Capital Partners, a Texas-based fund serving as Hanssem’s second-largest shareholder with an 8.64 percent stake, filed an injunction with Suwon District Court earlier this month asking it to ban Hanssem founder Cho Chang-geol and four affiliated persons from helping IMM Private Equity conduct due diligence on the furniture maker before its takeover.

Hanssem confirmed this Friday, a day after Lotte Shopping announced its decision to invest 299.5 billion won ($255 million) in a special purpose entity set up by IMM to acquire Hanssem.

Teton has urged the furniture maker’s largest shareholder not to provide the potential buyer with important information, such as licenses, assets and intellectual properties the company has, as well as major contracts it has signed.

The U.S. firm is said to have particularly complained about the buyer’s plan to acquire the largest shareholder’s stake for 220,000 won per share, without allowing other major shareholders to sell their stakes at the same price. Hanssem’s stock price closed at 117,000 won, Friday.

“Regarding the court injunction, our board of directors will take countermeasures in compliance with the law,” Hanssem said in its regulatory filing. “We will disclose the progress of this litigation in the future.”

Given that IMM has conducted due diligence since it signed a memorandum of understanding with Hanssem’s largest shareholder in July, Teton’s recent legal action does not seem to pose a significant problem to the acquisition deal.

In addition, most legal experts do not expect the court to accept Teton’s request, because domestic laws do not mandate that the largest shareholder talk with other major shareholders before selling its controlling stake.

Foreign hedge funds pose little threat to Hanssem, SK

SK Chemicals headquarters in Seongnam, Gyeonggi Province / Courtesy of SK Chemicals

SK Chemicals has been urged by Singapore-based Metrica Partners to sell its 18.3 percent stake in SK Bioscience upon the expiry of a share lockup period, Sept. 18, and to distribute a special dividend of 357,000 won per share.

“Your current share price of 278,000 won represents an 83 percent discount, which is an embarrassing indictment of the company’s governance,” Metrica wrote in a letter sent to SK Chemicals’ board last Wednesday. “Boards have a fiduciary duty to care about the share price.”

Metrica held less than a 5 percent stake in SK Chemicals as of the first half of the year, but is trying to join hands with other minority shareholders through a website it opened earlier this month.

SK Chemicals has yet to disclose its response to the foreign hedge fund.

According to securities industry insiders, there is a slim chance that SK Chemicals will accept the request, because the sale of its stake in SK Bioscience could have a negative impact on the subsidiary’s valuation.

Investors also appear to remain reluctant to bet on Metrica’s victory, given that its letter only had a temporary impact on the prices of SK Chemicals and SK Bioscience shares.

Although the price of SK Chemicals stock rose from 267,000 won to 290,500 won Wednesday and to 303,500 won Thursday, it eventually fell to 301,000 won Friday. The price of SK Bioscience’s shares, which temporarily dropped to 287,000 won from 307,500 won Wednesday, bounced back to 298,000 won Thursday and to 299,500 won Friday.

Internet Explorer Channel Network
News Related

OTHER NEWS

More K-pop stars sing for webtoon soundtracks

Singer-actor Jinyoung is set to release, “You Said You Don’t Know Love,” a soundtrack for the popular webtoon, “Morning Kiss at Tiffany’s,” on Oct. 21. Courtesy of orangeDmsn By Dong ... Read more »

Casino faces major class action after money laundering allegations revealed

Star Entertainment Group shareholders are forming a class action after alleged inadequacies were exposed in the casino’s systems related to the management of anti-money laundering and counter-terrorism financing risks. Maurice ... Read more »

Air Force chief meets with US officials ahead of major defense exhibition

(Yonhap)South Korean Air Force Chief of Staff Gen. Park In-ho met with a delegation of senior US military and defense officials in Seoul on Monday to discuss bilateral cooperation ahead ... Read more »

S. Korea voices concern over Japan's Fukushima water release plan

This photo, provided by South Korea’s foreign ministry, shows Ham Sang-wook (L), Seoul’s deputy foreign minister for multilateral affairs, speaking with Rafael Grossi (R), director general of the International Atomic ... Read more »

BTS agency to host global audition to recruit talent

Courtesy of Big Hit Music Big Hit Music, the K-pop agency behind BTS and Tomorrow X Together, said Monday it will throw a global audition to launch a next-generation boy ... Read more »

Moon orders plan for booster shots for people who receive J&J COVID-19 vaccine

President Moon Jae-in is administered a COVID-19 vaccine booster shot at the National Medical Center in Seoul last Friday. (Yonhap)President Moon Jae-in on Monday ordered officials to swiftly set up ... Read more »

POSCO chief to lead World Steel Association for 3 years

By Kim Hyun-bin POSCO Group Chairman Choi Jeong-woo has been appointed to be part of the executive board of directors for the World Steel Association, and is scheduled to become ... Read more »

S. Korean, US, Japanese intelligence chiefs to discuss N. Korea in Seoul: source

These file photos from May 9, 2021, show, from left to right, Avril Haines, the US director of national intelligence; Park Jie-won, head of South Korea’s National Intelligence Service; and ... Read more »

Market LIVE Updates: SGX Nifty indicates a flat to positive start for the Indian indices

Read more »

Nearly 90 cities, counties in danger of extinction due to population decrease

gettyimagesbank Nearly 90 small cities and counties that are in danger of extinction due to population decrease have been designated as “depopulation areas” for intensive support from the central government, ... Read more »

89 cities, counties, wards designated as depopulation areas

Minister of the Interior and Safety Jeon Hae-cheol announces the designation of 89 cities, counties and wards as depopulation areas in a news conference in Seoul on Monday. (Yonhap)Nearly 90 ... Read more »

Seoul closely monitoring N. Korean leader's increased messages toward US: ministry

North Korean leader Kim Jong-un speaks at a lecture to commemorate the 76th founding anniversary of the ruling Workers’ Party last Sunday, in this photo released by the North’s official ... Read more »

New virus cases hit 3-month low

Health workers take samples for COVID-19 at a makeshift testing center near Seoul Station in central Seoul, Oct. 18. Yonhap South Korea’s daily coronavirus cases dropped to the lowest level ... Read more »

Asia jittery ahead of China GDP; oil high

Asian shares are on edge ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world's second-largest economy even as ... Read more »

Facebook to hire 10,000 people in EU to build 'metaverse'

Attendees walk past a Facebook logo during Facebook’s F8 developer conference in San Jose, Calif., April 30, 2019. Facebook on Monday announced plans to hire 10,000 people in the European ... Read more »

S. Korea to start deploying new hand-held mine detector next year

This image, provided on Monday by the Defense Acquisition Program Administration, shows a newly developed hand-held mine detector. (Defense Acquisition Program Administration)South Korea plans to start deploying a new military ... Read more »

Lee to appear at parliamentary audit amid snowballing development corruption scandal

This photo, provided by the National Assembly’s photo press corps, shows Gyeonggi Gov. Lee Jae-myung speaking at the National Assembly in Seoul last Friday. (National Assembly Photo Press Corps)Gyeonggi Gov. ... Read more »

Busan's Ilgwang Beach becomes outdoor art gallery

“Narratives from the Hadal Zone” (2021) by Kim Kyung-hwa / Courtesy of the artist and Busan Biennale Organizing Committee By Park Han-sol Ilgwang Beach in Busan, one of the many ... Read more »

Key suspect in corruption-laden development scandal detained upon return from US

Nam Wook (C), a key figure in a sprawling land development scandal in Seongnam, Gyeonggi Province, is swarmed by reporters at Incheon International Airport, west of Seoul, on Monday, after ... Read more »

'Squid Game' draws attention to Jeju Island

Actress Jung Ho-yeon as Kang Sae-byeok in Netflix original series “Squid Game” / Courtesy of Netflix By Nam Hyun-woo The popularity of Netflix’s original series “Squid Game” is pushing up ... Read more »

Namkoong Min's fascinating makeover as elite spy agent

Actor Namkoong Min / Courtesy of MBC Lee Ha-nee emerges as rom com queen, creating rare rivalry in Friday-Saturday dramas By Kang Hyun-kyungDrama fans these days are faced with a ... Read more »

Wall St climbs on strong bank results

US stocks have risen as Goldman Sachs was the latest big bank to report strong results and better-than-expected retail sales eased worries about demand. The three major stock indexes were ... Read more »

China to keep up scrutiny of internet sector

This illustration file picture taken in Paris shows the logo of the US social network application Linkedin on the screen of a tablet. Microsoft on Oct. 14 said it will ... Read more »

Choyeon, Eunchae from 'Produce 48' to debut in new girl group bugAboo

K-pop girl group bugAboo / Courtesy of Ateam Entertainment By Dong Sun-hwa Choyeon and Eunchae, who made their names known through Mnet’s audition program “Produce 48” in 2018, will debut ... Read more »

Seoul expresses ‘deep regret' over Kishida's Yasukuni offering

A woman prays in front of a wooden plaque showing the name of Japan’s Prime Minister Fumio Kishida seen with a “masakaki” tree that he sent as an offering to ... Read more »

Tencent increasing investments in Korea amid China regulation

People pass by Tencent’s headquarters in Guangdong, China, on July 12. AFP-Yonhap By Kim Jae-heun China’s IT giant Tencent is investing more into the Korean game sector amid the Chinese ... Read more »

'Work Later, Drink Now' to follow three female friends

Actors Lee Sun-bin, from left, Han Sun-hwa, Jung Eun-ji, and Choi Si-won pose for pictures during the online press conference of the series “Work Later, Drink Now,” Friday. Courtesy of ... Read more »

Hyundai Motor aims to produce its own semiconductors

Hyundai Motor and Kia Corp. headquarters in Seoul / Courtesy of Hyundai Motor Group By Kim Hyun-bin Hyundai Motor Group is taking steps to advance beyond its traditional strength of ... Read more »

AhnLab's coding class for employees

An AhnLab employee and his son learn coding via a metaverse platform at the cybersecurity company’s headquarters in Pangyo, Gyeonggi Province, Saturday. AhnLab held the event for its employees and ... Read more »

Dollar set to continue rally against won

An electronic board in Hana Bank’s dealing room shows the slight fall of the won-dollar exchange rate, Friday. Yonhap Foreign exchange market predicted to stabilize next year By Lee Min-hyung ... Read more »

K-pop labels take strong action against internet trolls to protect their stars

K-pop girl group BLACKPINK / Courtesy of YG Entertainment By Dong Sun-hwa In the past, K-pop labels treated online trolls with some generosity. When their stars were attacked on false ... Read more »

Key figure in land development corruption scandal heads home from US for probe

Attorney Nam Wook, a key figure in a sprawling land development scandal in Seongnam, Gyeonggi Province, speaks with reporters at a Los Angeles airport on Sunday, before departing for South ... Read more »

Strategic alliance

Avatars of officials of Shinhan Bank, Shinhan Capital and software developer Galaxy Corp. pose for a photo on the metaverse, a virtual platform, after signing a memorandum of understanding on ... Read more »

Korean picture books win international illustration awards

The covers of Lee Myung-ae’s “Tomorrow Will Be a Sunny Day,” left, and Kim Hyo-eun’s “I am the Subway” / Courtesy of Munhakdongne Publishing By Park Han-sol Two critically-acclaimed Korean ... Read more »

[ANALYSIS] Korea under pressure to mediate chip issue

U.S. President Joe Biden speaks as he participates in the virtual CEO Summit on Semiconductor and Supply Chain Resilience from the Roosevelt Room at the White House in Washington, U.S., ... Read more »

Despite opposition, KDB plans to push ahead with HHI-Daewoo deal

Korea Development Bank Chairman Lee Dong-gull speaks at a government audit held at the National Assembly, Friday. Korea Times photo by Bae Woo-han By Kim Hyun-bin State-run Korea Development Bank ... Read more »

Seoul, Washington almost ready for humanitarian aid to Pyongyang: nuclear envoy

Noh Kyu-duk, South Korea`s chief nuclear envoy, speaks with reporters upon his arrival at the Washington Dulles International Airport on Saturday. (Yonhap)South Korea and the US are almost ready in ... Read more »

Vice FM leaves for Europe for senior-level talks on security, diplomatic ties

This photo shows First Vice Foreign Minister Choi Jong-kun. (South Korea’s Foreign Ministry)South Korea’s first vice foreign minister left for London on Sunday for talks with British officials on bilateral ... Read more »

These 8 F&O stocks look good for next few sessions, upside momentum to continue

What is open interest and PCR data indicating? Before we go to what is Open Interest and PCR data indicating, let us first understand what is Open Interest and Put ... Read more »

DAILY VOICE | Give decent weightage to these 5 sectors while transforming portfolio: Vinod Nair of Geojit

Vinod Nair, Head of Research at Geojit Financial Services feels travel & tourism, hotel and aviation sectors are going to witness huge demand as the tourism sector re-opens. “My best ... Read more »