Opposition of Sales
Minority shareholders in SK Securities Co. are gathering their shareholdings to vote against the sale of the company at an extraordinary general meeting.
Previously, SK Securities’ labor union also officially announced its opposition to the sale of the company’s controlling stake when three South Korean companies – Q Capital Partners, Hoban Construction and Cape Investment & Securities – have been shortlisted on June 28. Accordingly, the sale is expected to run in difficulties.
According to investment banking industry sources on July 11, SK Securities’ minority shareholders officially set up “SK Securities’ Individual Investors’ Gathering” online on July 8 and has started activities.
Until now, 125 minority shareholders have joined the group and their shareholdings amount to 2.4 million shares, or 0.6 percent. Their shareholdings must exceed 3 percent to call a shareholders' general meeting according to the commercial law and the articles of association. As SK Securities has higher minority shareholdings than other securities firms, all eyes are on how the minority shareholders’ opposition will affect the sale in the future.
The minority shareholders have formed the group to protect the rights of shareholders and made their move because they have made a loss due to a fall in stock prices after potential buyers are recently unveiled.
As the news that large financial companies, such as Mirae Asset, Woori Bank and Korea Investment Holdings, are considering the participation in the bid spread, the price of SK Securities’ stocks reached a 52-week high on June 9 at 1,940 won (US$1.68).
However, any large companies submitted a letter of intent (LOI) until the deadline and SK Securities saw its stock prices down 23 percent from its high on July 10.
An official from SK Securities’ Individual Investors Gathering said, “We want to deter SK Group from selling SK Securities to a candidate which is not qualified to acquire a financial company, and suggest Chairman Chey Tae-won take over SK Securities’ share. There is consensus that it would be better in terms of shareholder value if the group secures existing transactions, including bonds related to SK Telecom, for a certain period of time and sell the stake through a takeover bid instead of third party allocation.”
However, it is unclear that the issue can be addressed even when an extraordinary general meeting takes place. An official from the legal department at the securities firm said, “SK Holdings is the one that sells SK Securities’ stake so it is more realistic that minority shareholders ask SK Holdings to hold an extraordinary general meeting to achieve their end.”