134.1 Billion Won Alliance

A Hyundai Steel plant in Dangjin county, Chungnam Province.
A Hyundai Steel plant in Dangjin county, Chungnam Province.

 

Being against the merger of Hyundai Steel and Hyundai Hysco, the number of shares which exercised the right to demand a purchase has reached 2 million.

Hyundai Steel and Hyundai Hysco announced in a public notice on June 18 that a total of 1,951,820 shares – 1,177,118 shares from Hyundai Steel and 774,702 shares from Hyundai Hysco – exercised the appraisal rights by stockholders to oppose the merger.

With the price of appraisal rights of 72,100 won (US$65.35) per share, Hyundai Steel’s purchase prices reached 84.87 billion won (US$76.92 million), while that of Hyundai Hysco reached 49.23 billion won (US$44.62 million) at a price of 63,552 won (US$57.60) per share. The total purchase prices amounted to 134.1 billion won (US$121.54 million).

When Hyundai Steel and Hyundai Hysco agreed about the merger earlier, they decided to cancel the merger if Hyundai Steel’s price of stock purchase claim surpasses 500 billion won (US$453.19 million) or that of Hyundai Hysco exceeds 200 billion won (US$181.27 million). On the same day, Hyundai Steel closed at 67,900 won (US$61.54) while Hyundai Hysco closed at 57,500 won (US$52.12), which are both lower than the strike price of appraisal rights.

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