South Korea has been ordered to pay Elliott Investment Management $53.6 million in damages caused to the US activist investor by a former administration’s intervention in the 2015 merger of two Samsung affiliates.
(Bloomberg) — South Korea has been ordered to pay Elliott Investment Management $53.6 million in damages caused to the US activist investor by a former administration’s intervention in the 2015 merger of two Samsung affiliates.
South Korea’s justice ministry announced the decision in a statement Tuesday, citing a ruling by The International Centre for Settlement of Investment Disputes. Arbitrators accepted about 7% of Elliott’s $770 million in claims, it said.
The tussle between Elliott and South Korea dates back to 2015, when the activist investor lost a proxy fight opposing a merger between Samsung C&T Corp. and Cheil Industries Inc. The tie-up was seen a plan to boost Samsung heir Jay Y. Lee’s stake in a de-facto holding company of the conglomerate.
Samsung narrowly avoided defeat in the fight after gaining a critical swing vote from South Korea’s government-run National Pension Service. A corruption scandal later revealed the NPS sided with Samsung after pressure from the presidential office guided by then-president Park Geun-hye. Both Lee and Park were convicted of bribery charges but granted special pardons.
Elliott initiated the dispute for arbitration in 2018 and urged the South Korean government to pay it at least $770 million. The activist, which had about a 7% stake in C&T in 2015, argued it would have seen greater gains on its investment without South Korea’s intervention. South Korea rejected this claim, saying Elliott was able to profit from its position via hedging transactions.
Why Samsung’s Billionaire Heir Is In and Out of Jail: QuickTake
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.