OCI Holdings' Position Statement After Failed Shareholders' Meeting on 29th
"Will Seek Synergistic Business Based on Overseas Experience"
Lee Woo-hyun, Chairman of OCI Group, is giving a greeting speech at the regular shareholders' meeting held at the OCI headquarters in Jung-gu, Seoul on the 29th. Photo by OCI Holdings
OCI Group Chairman Lee Woo-hyun stated at the regular shareholders' meeting on the 29th, "We will continue to attempt business diversification in areas that can create synergy with existing businesses." This was his first direct comment since the merger with Hanmi Pharmaceutical Group fell through.
At the shareholders' meeting held at OCI headquarters in Jung-gu, Seoul, Lee said, "I regret that we were not rewarded with a favorable outcome at the Hanmi Science shareholders' meeting, which was held to promote the merger," but added, "Despite the challenging business environment, OCI Holdings will faithfully fulfill its role as a holding company control tower and accelerate efforts to diversify its business portfolio."
At the regular shareholders' meeting of Hanmi Science, the holding company of Hanmi Group, held the day before, the proposal to appoint five directors put forward by the brothers Lim Jong-yoon and Jong-hoon was passed. With the majority of the nine-member Hanmi Science board now opposing the merger, the integration between OCI and Hanmi Pharmaceutical was halted. Immediately after the meeting, OCI Holdings issued a statement saying, "We humbly accept the shareholders' will and will suspend the merger process with Hanmi Group," and added, "We wish for the future development of Hanmi Pharmaceutical Group."
On January 12 of this year, Hanmi Group and OCI Group announced their merger. They anticipated synergy from OCI Holdings' overseas business experience and cash-generating capability combined with Hanmi Pharmaceutical Group's R&D capabilities. Since then, brothers Lim Jong-yoon and Jong-hoon have been engaged in a management dispute with Chairman Song Young-sook and Vice Chairman Lim Joo-hyun, who led the merger. With the merger halted, Lim Joo-hyun, Vice Chairman of Hanmi Group, who was scheduled to be nominated as an inside director at OCI Holdings' regular shareholders' meeting, voluntarily withdrew his candidacy on the day of the meeting.
At the shareholders' meeting, OCI Holdings decided on a dividend of 3,300 KRW per share. This corresponds to a dividend yield of approximately 3%, representing about a 32% increase compared to the previous year. Chairman Lee emphasized, "This decision was made to repay the support of our shareholders who have trusted the company despite the difficult business environment," and added, "We will continue to establish an active shareholder return policy."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
