Elliott Loses Lawsuit Claiming Return of 26.7 Billion Won Deposit Against Samsung C&T (Comprehensive)

US-based hedge fund Elliott lost a lawsuit seeking the return of approximately 26.7 billion KRW in agreed payments from Samsung C&T.

The Civil Division 22 of the Seoul Central District Court (Presiding Judge Choi Wook-jin) on the 27th dismissed Elliott's claim against Samsung C&T for the return of the agreed payment, ruling in favor of the defendant.

The court stated, "The wording of the agreement in this case interprets 'the amount exceeding the presented price per share or the value transferred' as referring to the principal amount of the stock purchase price," adding, "It is difficult to view this as a provision including delayed damages."

Furthermore, the court explained, "Delayed damages on the stock purchase price share the same starting point, but the end date for the accrual of delayed damages may differ by shareholder, making it difficult to convert into a 'per share price' amount," and "The agreement does not include any definition or calculation method for converting delayed damages into a per share price."

Previously, during the 2015 merger between Samsung C&T and Cheil Industries, Elliott, which held 7.12% of Samsung C&T shares, opposed the merger and filed a petition with the court to adjust the stock purchase price, requesting a judgment on whether the stock purchase price was properly evaluated.

After losing in the first trial, Elliott appealed. However, in March 2016, both parties reached a confidential agreement stating that if the claim price changed in lawsuits with other shareholders, the difference would be paid accordingly, leading Elliott to withdraw its petition. Subsequently, in April 2022, the Supreme Court determined that a price of 66,602 KRW per Samsung C&T share was appropriate, and Elliott received approximately 72.4 billion KRW (6.59 billion KRW after tax deduction) from Samsung C&T in May 2022.

However, Elliott filed an additional lawsuit at the end of October last year, claiming there were unsettled delayed interest payments amounting to about 26.7 billion KRW and requested Samsung C&T to return this amount. Samsung C&T countered, arguing that based on the agreement, the 65.9 billion KRW already paid to Elliott included all delayed interest.