SNT Holdings has moved to secure voting rights ahead of SMEC's regular shareholders meeting, escalating the management control dispute.
SNT Holdings said it began soliciting proxies for voting from SMEC shareholders on the 17th. The solicitation runs through the 30th, and the regular shareholders meeting will be held on the 31st in Gimhae, South Gyeongsang.
The solicitation applies to all shareholders with voting rights listed in SMEC's shareholder registry as of Dec. 31 last year. Shareholders may exercise their voting rights by electronic proxy, written proxy, or in person at the shareholders meeting.
Earlier, SMEC began soliciting proxies on the 14th.
SNT Holdings, in a letter to shareholders, flagged SMEC's steep earnings decline and capital reduction as problems. It criticized a lack of explanation for the changes in the financial structure, stressing that "to restore competitiveness, responsible change on the board and a strategic pivot are needed."
It also presented as key tasks a transition into a smart manufacturing solutions company based on core components and control technology to respond to changes in the robotics industry, the stable completion of the acquisition of Hyundai WIA's machine tool business, and the establishment of transparent governance.
SNT Holdings said, "This regular shareholders meeting will be a critical turning point on whether SMEC maintains its current management structure or restores competitiveness through responsible management and strategic change," adding, "We ask for active voting and participation."
Meanwhile, the injunction SNT Holdings filed in February seeking to place its shareholder proposals on SMEC's agenda was dismissed without separate judgment after SMEC accepted the proposals. However, the injunction seeking to bar the exercise of voting rights by SMEC, Manho Rope & Wire, and the employee stock ownership association is currently being reviewed by the court.