South Korea Ordered to Pay Elliott $48.5 Million Over Samsung Merger
An arbitration tribunal has ordered South Korea to pay U.S. hedge fund Elliott approximately $48.49 million plus interest. The ruling found the government's involvement in the 2015 merger of Samsung C&T and Cheil Industries to be causally linked to Elliott's losses.
South Korea has been ordered to pay U.S. hedge fund Elliott approximately $48.49 million plus interest, the Ministry of Justice announced on October 1. An arbitration tribunal determined that the government's involvement in the 2015 merger between Samsung C&T and Cheil Industries was causally linked to losses incurred by Elliott.
The ministry stated that the tribunal upheld the same damages award as the initial arbitration. This decision represents a continuation of a prolonged legal dispute concerning the corporate merger.
The ruling follows English court proceedings that reviewed the dispute. South Korea had previously secured a court order to set aside an earlier award. This action sent the case back to the tribunal, indicating that the legal battle persisted beyond the initial arbitration.
The case stems from a contentious 2015 merger between Samsung C&T and Cheil Industries. Elliott Management, an activist investor, had contested the merger's approval process, alleging it unfairly impacted shareholder interests. The latest ruling appears to affirm Elliott's claims regarding financial damages.