SNT Holdings Proposes Talks to Smak... "Improvement of Shareholder Relations Is Prerequisite"

Consultation Schedule Not Set After September Meeting Proposal

Requests for Capital Increase and Management Oversight System

"Will Reconsider Direction if Uncertainties Remain"

SNT Holdings has requested that Smak engage in discussions to establish proper shareholder relations. The company’s position is that, rather than merely contesting control, consultation is needed to promote the company’s growth and enhance shareholder value.

On October 7, SNT Holdings issued a statement titled "Background of Investment in Smak and Future Shareholder Relations" to Smak shareholders, conveying this message.

SNT Holdings explained that on September 29, it proposed meetings to Smak’s major shareholders in order to discuss mid- to long-term growth strategies, investment and financing, and financial stability. However, a specific consultation schedule has not yet been set.

Earlier, at the annual general shareholders’ meeting on March 31, when the issue of duplicate proxies arose, SNT Holdings abstained from voting and left the meeting. The company also stated that it did not file any lawsuits challenging subsequent shareholder resolutions.

SNT Holdings claimed that its initial investment in Smak was not intended as a hostile takeover. The company explained that it has prioritized enhancing corporate value through cooperation while respecting the existing management team’s authority.

Additionally, SNT Holdings reported that the court did not accept Smak’s claim that SNT Holdings had planned a hostile M&A and falsely disclosed the investment purpose as a simple investment.

SNT Holdings stated that it participated in a capital increase to help Smak secure growth funds without relying on additional borrowing, and at the same time proposed measures to guarantee employment and organizational stability for Smak employees. As the largest shareholder, SNT Holdings also emphasized the need for board participation and a management oversight system in order to supervise key business and financial matters.

A representative from SNT Holdings stated, "It is necessary to resolve major business and financial uncertainties facing Smak and achieve substantive improvement in relations. Otherwise, a fundamental review of the basic direction regarding future shareholder relations will be unavoidable."

According to SNT Holdings, the management dispute between the two parties intensified when, ahead of the record date for the annual shareholders’ meeting, Smak began to donate or dispose of its treasury shares at low prices to the employee stock ownership association and Manho Steel.

SNT Holdings added that, although it requested access and copies of accounting books, it did not receive sufficient materials or explanations and therefore initiated interim injunction proceedings. It claims that it has still not been able to review the accounting books even after the court’s decision on the injunction.

This content was produced with the assistance of AI translation services.