SNT Holdings said on the 6th that recent reports comparing SMEC's disposal of treasury shares with its own use of treasury shares on the same footing are "different in nature and purpose."
SNT Holdings said SMEC's disposal of treasury shares was "for the purpose of preserving the controlling shareholder's management rights." The company said, "SMEC's disposal of treasury shares caused losses to the company and all shareholders, while enabling the controlling shareholder to secure a friendly 3.9% (2,677,031 shares) equity stake without any funding burden—an act of breach of duty." It also argued that SMEC failed to honor its previously disclosed purpose for holding treasury shares and its disposal plan.
By contrast, SNT Holdings stressed that its disposal of treasury shares was carried out with a clear purpose of securing funds for future new-technology investments. In particular, it issued exchangeable bonds (EB) at a premium to the reference share price, and as a result, said standalone book value per share (BPS) is expected to increase by about 7,400 won. It said this corresponds to 13.9% versus the previous day's closing price.
SNT Holdings also emphasized its track record of acquiring undervalued companies, normalizing them, and placing them on a long-term growth trajectory. SNT Dynamics (formerly Tongil Heavy Industries) was acquired while under court receivership and, through on-site operational improvements and restoration of core technological competitiveness, turned to profit within one year of the acquisition. SNT Motiv (formerly Daewoo Precision) said it grew into a core affiliate spanning civilian and defense businesses by expanding its global customer base and pivoting to a business centered on future mobility components.
SNT Holdings added, "We respect SMEC's corporate value and technological competitiveness," and "We will continue to exercise responsible shareholder rights in a way that aligns with the interests of all shareholders and the company's long-term development."