Court rules Samsung C&T not obligated to pay delayed interest to Elliott

On Friday, a Seoul court rejected a lawsuit filed by Elliott of the United States, a hedge fund, claiming equivalent amount of 26.7 billion won in delayed interest from Samsung C&T resulting from the 2015 merger of two Samsung subsidiaries.

Elliott, who owns 7% of Samsung C&T, had been leading a proxy fight against the merger with Cheil Industries, making it grossly unfair and undervaluing the company as well as investors’ interest. The merger went ahead on the support of a crucial vote from the state-run National Pension Service despite Elliott’s opposition.

After the mergers, Elliott pursued its appraisal rights to demand that Samsung C&T buy back its shares. It remained in court until there was a disagreement on the agreed price for its own share.

They settled in 2022; Samsung C&T agreed to pay Elliott 72.4 billion won. But Elliott last year filed a lawsuit seeking 26.7 billion won in outstanding interest, arguing that it was owed under a “secret agreement.”

Samsung C&T argued that it owed no delayed interest. That’s how the Seoul Central District Court agreed with it yesterday, dismissing the claim that the award it agreed to include any money that comes in by delayed interest.