- The merger is to enhance the Company's and shareholders' value

Samsung C&T emphasized that they have strictly adhered to legal guidelines during a court hearing on June 19th regarding two injunction cases filed by global hedge fund, Elliott Associates, L.P. ("Elliott").

Regarding Elliott's injunction against the convocation of a general meeting of stockholders, Samsung C&T reiterated that the merger decision was based on sound business rationale as the company sought diversification of its portfolio and new drivers of growth.

Samsung C&T explained that Elliott's views regarding the fair value of Samsung C&T and Cheil Industries were unfounded and that the statutory merger ratio complies with the Enforcement Decree of the Financial Investment Services and Capital Markets Act ("FSCMA"), which mandates that the merger ratio between public companies be set by share price.

Samsung C&T stated that it is unreasonable for Elliott to put its own rights above others by denying other shareholders the opportunity to exercise their voting rights at the EGM.

Regarding Elliott's injunction against the sale of treasury shares and restricting the use of voting rights for those shares, the Company stated that the resolution to dispose treasury shares was made mainly to secure funds to compensate shareholders exercising their appraisal rights.

Samsung C&T Corporation will continue to work towards the successful completion of the merger in accordance with applicable laws, which it believes is in the best interest of the Company and its shareholders.

distributed by