Financial Services Commission considers introducing mandatory tender offers for all shares·10publishes list of low-PBR companies for the month
Financial Services Commission Vice Chairman Kwon Dae-young said mandatory tender offers would be introduced as a method involving tender offers for all shares, and announced that a list of low-PBR companies would be selected and made public in the month. He also said procedures for calculating merger consideration and disclosures on voluntary delisting would be strengthened.10He also said procedures for calculating merger consideration and disclosures on voluntary delisting would be strengthened.
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Financial Services Commission Vice Chairman Kwon Dae-young said mandatory tender offers would be introduced as a method involving tender offers for all shares. The remarks concerned the protection of ordinary shareholders' rights and interests.
The remarks were made at a symposium titled “Directions for Improving the M&A System to Enhance Shareholder Value,” jointly held by the Korea Capital Market Institute and the Korean Securities Association in the month. It was reported that Vice Chairman Kwon made the remarks himself at the symposium.6the month 17 day. It was reported that Vice Chairman Kwon made the remarks himself at the symposium.
Vice Chairman Kwon said procedures for calculating merger consideration would be strengthened during the M&A process. He explained that disclosures related to voluntary delisting would also be subject to strengthening.
The Financial Services Commission said it plans to select and publish a list of low-PBR (price-to-book ratio) companies in 10month. It explained that the measure is intended to encourage low-PBR companies to make efforts to enhance their corporate value on their own.
Vice Chair Kwon said the purpose of introducing a mandatory tender offer was to “ensure that ordinary shareholders can also share in the control premium.” He said the specific system design and method of introduction would be discussed further.
These are the facts concerning the presentation by Vice Chair Kwon Dae-young and the Financial Services Commission’s implementation plans. Additional disclosures are expected when amendments to the relevant laws and regulations or detailed guidelines are announced.