From BigGo Finance · BigGo Finance · · 2m
Oscotec Son Seeks Board Seat Amid Voting Bloc Push
Oscotec founder's son Kim Sung-yeon amasses 22.25% voting bloc to challenge board control at Nov 30 meeting.
In brief
Oscotec founder's son Kim Sung-yeon amasses 22.25% voting bloc to challenge board control at Nov 30 meeting. Oscotec founder's son Kim Sung-yeon has secured 22.25% voting bloc by pooling shares with co-holders to push for board seat changes at Nov 30 shareholders' meeting. Originally reported by BigGo Finance.
Kim Sung-yeon's voting bloc
Kim Sung-yeon, strategy planning director at Genosco and son of Oscotec's late founder, has secured a combined 22.25% voting bloc by pooling his mother's stake with co-holders including GK Asset.
Nov 30 shareholders meeting
At the Nov 30 extraordinary shareholders' meeting, he is pushing to abolish the supermajority voting requirement and appoint three new directors.
Kim's stake details
Kim holds about 13% of Genosco, the seller in Oscotec's planned buyout of the U.S. subsidiary, and independent director Kim Kyu-sik opposes the move.
Kim's counterargument
Kim Sung-yeon counters that three seats out of ten directors does not amount to control, and has pledged to recuse himself from votes on valuation and full-subsidiary conversion.
Conflict of interest
Kim Kyu-sik argues that a seller seizing the buyer's board creates a conflict of interest in setting the acquisition price.
Stakeholder positions
Kim Sung-yeon denies board control allegations, stating three directors out of ten does not equal control and pledging recusal from valuation votes.
Acquisition timeline
The acquisition target date has been pushed back from the end of this year to before next year's regular shareholders' meeting.
Mandatory tender offer
Market observers say a mandatory tender offer system is needed to prevent specific shareholders from capturing control premiums.
Voting bloc formation
On Sept 16, Kim signed an agreement to jointly exercise voting rights with four co-holders including GK Asset, covering 9.80% of shares.
Board appointments
The candidates for new directors are Ko Jong-sung, head of Genosco's research division; Kim Sung-yeon; and Park Jong-chul, a Harvard Medical School assistant professor.
Here's the gist
Oscotec founder's son Kim Sung-yeon has secured 22.25% voting bloc by pooling shares with co-holders to push for board seat changes at Nov 30 shareholders' meeting.
