According to industry sources, it has been found that the South Korean corporate M&A market showed a slight growth last year and South Korean companies’ payment following the exercise of appraisal rights increased during the same period as well.
The Korea Securities Depository announced on January 23 that a total of 119 listed corporations, 13 more than in the preceding year, completed their M&A transactions or signed their M&A deals last year. 54 and 65 out of the total were those listed on the Korea Composite Stock Price Index (KOSPI) and the Korea Securities Dealers Association of Automated Quotations (KOSDAQ), respectively. Their payment to shareholders that resulted from the exercise of appraisal rights increased 22.1% from 429.4 billion won (US$367 million) to 524.4 billion won (US$448 million).
Last year, LG Life Sciences paid 335.4 billion won (US$286 million) during its merger with LG Chem. It was followed by Mirae Asset Daewoo (69.8 billion won or US$59.6 million), Thumb Age (9.4 billion won or US$ 8.0 million) and SPG (6.1 billion won or US$5.2 million).
“Among the 119 listed corporations, 107 went for merger, five went for transfer of business and seven opted for stock exchange and transfer,” the Korea Securities Depository explained.