Samsung C&T Corp. shareholders on Friday approved a proposed merger with Cheil Industries Inc., beating back opposition from North American pension funds and a hedge fund that contested the combination.
“We will listen to those who opposed the deal and pledge to better engage with our shareholders and be more open to their input and feedback,” said a joint statement from the co-CEOs of Samsung C&T and Cheil announcing the voting results.
The $193.1 billion California State Teachers’ Retirement System, West Sacramento; the C$238.8 billion ($188.8 billion) Canada Pension Plan Investment Board, Toronto; the $182.2 billion Florida State Board of Administration, Tallahassee; and the $132.4 billion Texas Teacher Retirement System, Austin; voted against the proposed merger, according to their proxy-voting disclosures.
Elliott Associates — a hedge fund manager with $26 billion in assets under management and the third largest holder of Samsung C&T stock with 7.1% of the shares — also opposed the proposal, including through litigation.
“Elliott is disappointed that the takeover has been approved against the wishes of so many independent shareholders and reserves all options at its disposal,” an Elliott statement said.
“We promise to put top priority on enhancing the value of our company for shareholders, and to become a company that is loved by our shareholders, customers and society,” said the statement from the two companies.
The combined company will retain the Samsung C&T name.