NEEDS TO CONSIDER LONG-TERM GROWTHThe NPS may have decided to object to the merger for short-term interests, hindering the long-term growth of SK Group, some asset management industry sources said.“The NPS is the second-largest shareholder of SK Inc., the parent of SK Innovation,” said the head of an asset manager.“It did not make a comprehensive decision although it must consider the long-term business as a major shareholder of SK Inc.”The pension manager holds a 7.44% stake in SK Inc., the group’s holding company, which has a 36.22% stake in SK Innovation.
OTHERS MAY JOIN THE MOVEThe NPS’ decision is expected to cause other institutional investors to reject the merger as many of them usually follow the pension manager’s moves.“Once the NPS vetoes the merger, other institutional investors are likely to exercise their voting rights in line with the move,” said a financial investment industry source.“It will be a key to win approval from foreign investors at the shareholder meeting.”The NPS’ objection may have an impact on shareholders’ appraisal rights exercises, industry sources said.
The NPS, SK Innovation’s second-largest shareholder with a 6.21% stake, decided to reject the combination plan at the company’s extraordinary shareholder meeting on Aug.27, saying its merger with the unlisted SK E&S Co.is expected to hurt the shareholder value of SK Innovation.
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