Court Rejects SNT Holdings' Injunction Against Smec, Setting Stage for Main Lawsuit

The Changwon District Court has rejected SNT Holdings’ petition for a preliminary injunction to prevent voting rights at Smec, escalating the management control dispute to a full trial. The court’s decision hinged on the unconfirmed status of friendly shareholdings, positioning the upcoming shareholders’ meeting as crucial. SNT Holdings acknowledged the court’s decision but clarified it doesn’t rule on the legality of the treasury share disposal.

The core issue – the legality of the treasury share disposal – remains unresolved, and SNT Holdings intends to pursue legal action in the main proceedings. The outcome of the shareholders’ meeting, specifically how Manho Steel and the employee stock ownership association exercise their voting rights, will be pivotal. If they support current management, the legality of the treasury share disposal will be questioned as a potential defense mechanism.

SNT Holdings also announced plans to transfer its entire 13.65% stake in Smec to SNT Motive, alongside the full stake in SNT Robotics. SNT Motive aims to leverage Smec’s production base and precision machinery capabilities, alongside the planned acquisition of WIA Machine Tools, to bolster its robotics and automation business. Industry observers see the injunction dismissal as the beginning of a new phase, anticipating a more thorough examination of the treasury share disposal’s legitimacy and impact on shareholder value during the main lawsuit.

(Source：서울경제)