A court dismissed SNT Holdings' request for an injunction to bar SMEC and others from exercising voting rights. SNT Holdings said it respects the court's position but added it will review legal procedures, including a suit on the merits, after confirming whether voting rights are exercised at the shareholders meeting.
Earlier, SNT Holdings raised an issue, saying SMEC disposed of treasury shares in large amounts to Manho Rope & Wire and the employee stock ownership association during a management control dispute. At the time, the shares were provided to Manho Rope & Wire at a 5% discount to the market price and granted to the employee stock ownership association free of charge, and SNT Holdings, judging this to be a "transaction to strengthen the incumbent management's voting rights," sought an injunction to prohibit the exercise of voting rights.
According to SNT Holdings on the 24th, the Changwon District Court on the 23rd dismissed SNT Holdings' request for an injunction to bar SMEC and others from exercising voting rights.
SNT Holdings said, "We respect the court's finding that, as voting rights by Manho Rope & Wire and the employee stock ownership association have not yet been exercised, it cannot be confirmed that they are friendly equity," but drew a line, adding, "This is not a judgment on the merits regarding the legality of the treasury share disposal."
SNT Holdings said it will watch whether Manho Rope & Wire and the employee stock ownership association exercise their voting rights at a future shareholders meeting. SNT Holdings said, "If voting rights are exercised as a friendly force for SMEC's current management, the disposal of those treasury shares will reveal itself as a breach-of-duty disposal aimed at securing friendly equity," adding, "After confirming this, we will review all legal procedures, including a suit on the merits."