Samyoung ENC Minority Shareholders Urge Management Normalization

[Asia Economy Reporter Hyungsoo Park] Minority shareholders of Samyoung ENC are continuing collective actions urging the company to normalize its management.

According to related industries on the 29th, minority shareholders of Samyoung ENC demanded that the management directly clarify the issuance of 10 billion KRW convertible bonds, calling it an attempt by speculative capital to seize management rights.

Earlier, Samyoung ENC issued 10 billion KRW worth of convertible bonds in January this year to BK Shipbuilding Investment Association and Now Ace Partnership Fund.

The minority shareholders stated, "If there is no attempt to seize management rights, the board of directors must clearly express the intention to cancel the call option shares through the board meeting" and "the conversion price adjustment (refixing) clause should also be deleted."

They added, "As the management directly mentioned, exercising the call option rights incurs considerable costs" and "it should be clarified that there is no intention to unfairly seize management rights, and that neither external speculative capital nor the current CEO and related parties are involved."

They also demanded transparent disclosure of the usage plan and detailed breakdown of the funds raised from the bond issuance. They expressed concerns that shareholder value could be diluted if the convertible bonds are converted into common stock.

The minority shareholders further pointed out, "It appears that the board of directors is not functioning normally," and "considering recent agenda items and decisions submitted to the board such as the convertible bond issuance decision and the nomination of outside directors and auditors, these could negatively affect the company's operations and organizational culture."

They raised issues about the inclusion of individuals unrelated to the shipbuilding equipment business among the new outside director candidates. They judged that appointing figures from the finance and mergers & acquisitions (M&A) industries as outside directors in a manufacturing company like Samyoung ENC, which is growing into a strong small and medium enterprise, is related to an attempt by speculative capital forces to seize management rights.

The minority shareholders reported that they tried to confirm whether there were procedural issues related to the resignation of former CEO Hwang Jae-woo, but Samyoung ENC did not provide a response.

This content was produced with the assistance of AI translation services.