Ssangyong Cement creditors reject Taiheiyo offer

The administration responsible for selling South Korea's Ssangyong Cement is likely to reject an offer made by Japan’s Taiheiyo Cement Corp, Ssangyong’s second-largest shareholder, to acquire all its shares. It was based on the judgment that the Japanese cement maker's offer was intended to obstruct the sale. 

"The offer by Taiheiyo to take over all the Ssangyong Cement stake is equivalent to saying Ssangyong must accept its claims of preemption right currently in dispute in the court," commented a source close to the deal. "It's an offer we have to refuse because it was not made in good faith and just intended to delay the sale” the source argued.

The stock trading proposal delivered recently to the council included a provision that Taiheiyo would acquire the 46.14 percent stake held by the council on condition that the latter give up on the main bidding scheduled on 22 December 2015.