Exchange “Dispute between shareholders intensifies, approval is difficult until management is stabilized”
Kyobo “Interfering with Affinity’s listing”… Affinity “Excessive promotion of listing”
The Korea Exchange did not approve Kyobo Life’s listing on the stock market, which is in the process of being listed on the stock market.
The Korea Exchange announced on the followingnoon of the 8th that it had made the decision following discussing whether or not to list Kyobo Life on the stock market at a public listing committee meeting on the followingnoon of the 8th.
The exchange said that it is difficult to approve Kyobo Life’s listing review until management is stabilized as management disputes between the 1st and 2nd largest shareholders have intensified.
Shin Chang-jae, chairman of Kyobo Life Insurance, expressed his active will for listing by making a statement at the Listing Disclosure Committee of the Yeouido Exchange in Seoul.
In Kyobo Life, the largest shareholder, Chairman Shin, and related parties hold a 36.9% stake.
Chairman Shin asserted, “We won the arbitration lawsuit with two financial investors (FIs) where disputes between shareholders are ongoing, so there is no problem with the listing regulations.”
He emphasized that “close to two-thirds of the company want to go public,” he said.
Kyobo Life applied for a preliminary review for listing on the stock exchange in December last year, but the review was delayed because it was having a legal battle over the exercise of stock purchase right (put option) once morest foreign private equity funds such as Affinity and Appalma Capital, which are major shareholders.
Affinity and Aperma exercised the put option saying that Kyobo Life did not fulfill its previous listing promises, but Shin’s side insisted that the exercise of the put option be null and void.
Some inside and outside the financial investment industry are looking at Shin’s move to promote an IPO as unfavorable.
The sincerity of Chairman Shin is being questioned, saying that he may have been moving to promote an IPO with awareness of affinity.
An official from the financial investment industry said, “The exchange did not approve the listing, so Kyobo Life has a justification not to respond to the put option exercise. It is highly likely that the decision will be made at the half level, so losses are inevitable.”
The Affinity Consortium said through the data on the same day, “We cannot shake off the suspicion that Kyobo Life was forced to go public in order to use it advantageously in individual disputes with the major shareholder, even though Kyobo Life knew that it did not meet the listing requirements.” We urge you to fulfill your obligations.”
He added, “Chairman Shin’s faithful fulfillment of his obligations must precede the resolution of long-term disputes and successful listing. We have to act for it.”
On the other hand, Kyobo Life claims that it did not pass the listing review due to interference from Affinity.
A Kyobo Life official said, “Even though the listing requirements were met, it was not approved for listing due to a dispute between shareholders.” “I’m guessing it’s not interfering,” he said.
He added, “We expect that disputes between shareholders will be resolved through listing.”
/yunhap news
