Samyoung ENC "Important Time to Secure e-Navigation Market... Need for Stable Management Rights"

[Asia Economy Reporter Hyungsoo Park] Samyoung ENC, a developer of ship electronic equipment, urged shareholders to exercise proxy voting rights in preparation for the proxy battle at the extraordinary general meeting of shareholders scheduled for January 15 next year.

According to the Financial Supervisory Service's electronic disclosure system on the 30th, Samyoung ENC's current management requested shareholders with voting rights as of the 22nd to consolidate their voting rights.

Samyoung ENC explained, "We have successfully commercialized digital MF/HF and e-Nav ship terminals actively responding to the e-navigation (e-Nav) market introduced for the safe operation of ships," adding, "We plan to aggressively target not only domestic sales but also the maritime digitalization market led by the International Maritime Organization (IMO)."

They continued, "With the advent of the new e-Nav market, fierce competition critical to the company's survival is underway," and "The role of the board of directors and stable management activities are more important than ever." They also stated, "Minority shareholders intend to appoint outside directors and auditors at the extraordinary general meeting of shareholders to be held on January 15 next year."

The current management of Samyoung ENC claimed that the former CEO, recommended as a candidate by minority shareholders, pushed forward new businesses without properly evaluating business feasibility. They added that during the difficult management situation caused by intensified competition, employee salaries were frozen while the former CEO's salary was increased. Samyoung ENC emphasized that they had no choice but to file a lawsuit against former CEO Hwang for damages.

The management also explained that the issuance of convertible bonds, which minority shareholders raised issues about, was a choice made for the shareholders' benefit. Samyoung ENC issued convertible bonds worth 10 billion KRW in January. The coupon rate is 0%, and the maturity interest rate is 2%.

The company stated, "The issuance of convertible bonds with a 0% coupon rate for facility investment and operating funds was distorted as a means of defending management rights without considering the deteriorated financial situation due to lack of investment resources," and added, "We will prove this through the company's growth next year."

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