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Chronology: Korea’s sprawling political scandal hits NPS over Samsung units’ merger

Nov 29, 2016 (Gmt+09:00)

2 Min read

The following are key events in relation to Samsung C&T Corporation’s takeover of affiliate Cheil Industries Inc. in 2015, and prosecutors’ investigations into NPS. For related story, click here. 

- May 26, 2015: Samsung C&T and Cheil, units of the Samsung Group, announced a decision to merge.

- May 27, 2015: Elliot Associates announced an opposition to the merger between the two Samsung units, saying that the proposed 1:0.35 merger ratio significantly undervalues Samsung C&T.

- June 4, 2015: Elliot Associates said in a regulatory filing that it had secured a 7.12% stake in Samsung C&T.

- June 9, 2015: Elliot Associates filed an injunction request with a Seoul district court to block a Samsung C&T’s shareholder meeting convened to vote on the merger and the merger deal.

- July 1, 2015: A Seoul district court rejected an injunction request by Elliot to block a shareholder meeting convened to vote on the merger and the merger deal.

- July 3, 2015: An advisory firm Institutional Shareholder Service (ISS) recommended Samsung C&T shareholders to reject a takeover of Cheil.

- July 7, 2015: Wan-sun Hong, then the NPS’ CIO, met with Samsung Electronics Vice Chairman Jay Y. Lee. Then the NPS’ three senior officials, including domestic equity division head, joined the meeting.

- July 10, 2015: NPS decided to approve the merger at an internal investment committee meeting: eight of the 12 committee members voted in favor of the merger.

- July 17, 2015: NPS voted for the merger between Samsung C&T and Cheil at shareholder meetings of both Samsung C&T and Cheil.

- Aug. 6, 2015: New York-based activist hedge fund Elliot Associates LP said it would sell a bulk of its shares in Samsung C&T back to the company, after its failed attempt to block the deal.

- Sept. 1, 2015: Samsung C&T took over Cheil Industries to become a combined entity.

- Nov. 22, 2016: Ex-NPS Chairman Choi Kwang was questioned by prosecutors.

- Nov. 23, 2016: Prosecutors raided the NPS’ fund management division office in Seoul, and summoned a former NPS’ CIO Wan-sun Hong for questioning.

- Nov. 24, 2016: Hyung-Pyo Moon, chairman of the NPS, showed up at a prosecutors’ office in Seoul for questioning. Moon was the welfare minister at the time of the merger.

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