Tongyang Life Insurance, an affiliate of Woori Financial Group, plans to proceed with the stock-swap process as scheduled.
Tongyang Life Insurance said on the 4th that its board approved proceeding with the comprehensive stock-swap with Woori Financial Group without exercising the contractual right to terminate.
When the two companies signed a comprehensive stock-swap agreement in Apr., they included a condition giving them the right to terminate the contract if the purchase price resulting from the exercise of appraisal rights exceeded 200 billion won.
As a result of the final exercise of appraisal rights conducted through the previous day, the purchase price came to about 204.57487 billion won, slightly exceeding the threshold, but they decided not to exercise the termination right after comprehensively reviewing minority shareholder protection and transaction stability. If the stock swap were halted, shareholders who expected to receive the purchase price could face confusion, and market uncertainty could also increase.
It was also reported that factors considered included the fact that a premium under relevant laws was reflected in this appraisal-rights purchase price and that the excess amount was not significant enough to warrant terminating the contract.
On the 11th, all issued shares of Tongyang Life Insurance will be transferred to Woori Financial Group, and on the 31st of this month, new shares of Woori Financial Group are scheduled to be listed.