BNK Financial Group(138930) and JB Financial Group(175330) decided to reject all of Align Partners Asset Management's requests, an activist fund, to review the feasibility of a merger.
BNK Financial Group and JB Financial Group said in disclosures on the 28th that, after discussing whether to begin a review of the feasibility of a merger, they decided not to proceed.
BNK Financial Group said, "As a result of sufficient discussion by the board, we decided not to carry out a merger feasibility review and not to set up a special committee for the review." It said that in the board vote, of the eight directors present, five voted against, two were in favor, and one abstained.
JB Financial Group also said that, after reviewing Align Partners' proposal at the board, it decided not to begin a review of the feasibility of a merger.
Earlier, Align Partners sent an open letter to shareholders to BNK Financial Group and JB Financial Group on the 14th, requesting a review of the feasibility of a merger between the two companies and the establishment of a special committee composed of independent outside directors. Align Partners is the second-largest shareholder with 14.83% equity in JB Financial Group and also holds more than 1% in BNK Financial Group.