Sovereign Asset Management Urges Shareholders to Vote for CEO-Selected Directors at SK Corp.'s Shareholders' Meeting

Strategic Insights -

Sovereign Asset Management, the second-largest shareholder of SK Corp., is waging a campaign to win more seats on the oil refiner's board of directors through its chosen candidates. With the company's annual shareholders' meeting scheduled for March 12, Sovereign is seeking support from union leaders and minor shareholders to vote for its preferred directors. This heated competition has been ongoing since SK Corp.'s management, led by Chairman Chey Tae-won, provided a bailout package to its trading arm, SK Networks, despite opposition from Sovereign.

Key Takeaways:

  • Sovereign Asset Management, the second-largest shareholder of SK Corp., has called on union leaders and minor shareholders to vote for its preferred director candidates at the company's annual shareholders' meeting on March 12.
  • Sovereign holds a 14.99% stake in SK Corp., the nation's largest refiner and de facto holding company of the SK Group.
  • The company's management, controlled by SK Group owner Chey Tae-won, has been at odds with Sovereign since providing a bailout package to its trading arm, SK Networks, despite strong opposition from Sovereign last year.
  • Sovereign has been trying to remove Chey and other incumbent directors from the board since then.
  • SK Corp.'s union leader, Lim Myung-ho, has expressed support for neither Sovereign nor the current management, citing the need for a managerial vacuum to be avoided.
  • Lim stated that the labor union will finalize its position after monitoring whether Chey will deliver on his reform promises.

Statistics:

  • Sovereign Asset Management holds a 14.99% stake in SK Corp.
  • The company's annual shareholders' meeting is scheduled for March 12.
  • SK Corp.'s management, controlled by Chey Tae-won, has been at odds with Sovereign since last year when they provided a bailout package to SK Networks despite opposition from Sovereign.

Sources:

  • Asia Pulse, "Sovereign Asset Management Urges Shareholders to Vote for CEO-Selected Directors at SK Corp.'s Shareholders' Meeting" dated March 3.