Samyoung ENC "Disposal of Treasury Shares to Secure R&D Investment Funds"

Published 05 Jan.2021 10:50(KST)

[Asia Economy Reporter Hyungsoo Park] Samyoung ENC announced on the 5th regarding the disposal of treasury shares that "we selected institutional investors who can hold long-term and sold the shares, and upon checking the holding status, it was confirmed that most institutions are still holding the shares."

Samyoung ENC sold 555,000 shares on December 7 last year at 7,657 KRW per share, totaling 4.249 billion KRW. The buyers include Suseong Asset Management, Winvest Venture Investment, Centum Invest, and Cape Investment & Securities. According to the company, except for Suseong Asset Management, the institutions still hold the purchased shares as of December 22 last year.

Minority shareholders who convened an extraordinary general meeting on the 15th filed a provisional injunction to prohibit the exercise of voting rights against the four institutional investors the day before.

A Samyoung ENC official said, "We sold treasury shares to secure funds for research and development (R&D) investment," adding, "We sought institutions that can hold long-term for the shareholders." He continued, "The actual selling price was decided at a level discounted by 5% compared to the closing price the day before," noting, "This is lower than the usual discount rate for treasury share sales."

The official also explained, "After the court's approval to convene the extraordinary general meeting, the minority shareholders who sold a large number of shares cannot blame the institutions holding the shares," and "The purchasing institutions expect growth based on Samyoung ENC's e-navigation and other technologies."

Regarding accusations of spreading false information and defamation, Samyoung ENC refuted, stating, "As a listed company, we do not engage in actions that harm shareholders."