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Tongyang Life Insurance. (Photo: Tongyang Life Insurance) |
[Alpha Biz= Paul Lee] Some minority shareholders of Tongyang Life Insurance have begun organizing collective action in opposition to Woori Financial Group’s planned comprehensive share exchange, raising concerns over valuation and swap terms.
According to industry sources on May 19, shareholders have been discussing coordinated responses through online communities, questioning whether the proposed exchange ratio—0.2521056 shares of Woori Financial common stock for each Tongyang Life share—fairly reflects the insurer’s corporate value.
Woori Financial is seeking to fully acquire Tongyang Life as a wholly owned subsidiary through the stock swap. Existing Tongyang Life shareholders would receive Woori Financial shares in exchange for their holdings. However, critics argue that Tongyang Life has been undervalued, citing its asset base, stock price trends, and potential for earnings recovery.
Some shareholders are also considering filing complaints with the Financial Supervisory Service, calling for greater transparency in how the exchange ratio and valuation were determined.
Under Korean commercial law, dissenting shareholders have the right to demand that the company buy back their shares. However, differences in valuation between the company and investors could lead to further negotiations or legal disputes.
While the insurance industry generally views comprehensive share swaps as beneficial for simplifying group structures and improving capital efficiency, the situation underscores the importance of clear communication and minority shareholder protection in such transactions.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
