BNK Financial Group and JB Financial Group have decided to reject the merger feasibility review request from activist fund Align Partners Asset Management.
On July 28, both BNK and JB Financial announced through public disclosures that they would not proceed with a review of the merger feasibility after discussions.
BNK Financial stated in its disclosure, "After thorough discussions in the board meeting, we have decided not to proceed with the merger feasibility review and will not establish a special committee for this purpose." In the board vote, out of eight attending directors, five opposed the merger with JB Financial, two were in favor, and one abstained.
JB Financial also commented, "After careful consideration, we believe it is not appropriate to initiate a review of the merger at this time."
Earlier, on July 14, Align Partners sent a public letter to BNK and JB Financial, demanding a review of the merger's feasibility and the establishment of a special committee composed of independent outside directors. Align is the second-largest shareholder of JB Financial, holding 14.83% of its shares, and also owns over 1% of BNK Financial.
The proposal from Align Partners has faced backlash from local civic groups and the unions of both companies. The Busan Citizens' Coalition for Balanced Development and other organizations held a press conference at the Busan City Council, urging the activist fund to halt its merger attempts, citing concerns that the essential roles and public nature of local financial institutions could be compromised.
Meanwhile, Align Partners expressed disappointment in a statement following the disclosures from both companies, saying, "We are very disappointed that they have refused to even independently and professionally review the strategic and financial feasibility of a merger between local financial groups." They emphasized, "We will immediately request access to the minutes of the boards' meetings to verify what information and discussions led to their decisions and will consider our next steps."
On July 28, both BNK and JB Financial announced through public disclosures that they would not proceed with a review of the merger feasibility after discussions.
BNK Financial stated in its disclosure, "After thorough discussions in the board meeting, we have decided not to proceed with the merger feasibility review and will not establish a special committee for this purpose." In the board vote, out of eight attending directors, five opposed the merger with JB Financial, two were in favor, and one abstained.
JB Financial also commented, "After careful consideration, we believe it is not appropriate to initiate a review of the merger at this time."
Earlier, on July 14, Align Partners sent a public letter to BNK and JB Financial, demanding a review of the merger's feasibility and the establishment of a special committee composed of independent outside directors. Align is the second-largest shareholder of JB Financial, holding 14.83% of its shares, and also owns over 1% of BNK Financial.
The proposal from Align Partners has faced backlash from local civic groups and the unions of both companies. The Busan Citizens' Coalition for Balanced Development and other organizations held a press conference at the Busan City Council, urging the activist fund to halt its merger attempts, citing concerns that the essential roles and public nature of local financial institutions could be compromised.
Meanwhile, Align Partners expressed disappointment in a statement following the disclosures from both companies, saying, "We are very disappointed that they have refused to even independently and professionally review the strategic and financial feasibility of a merger between local financial groups." They emphasized, "We will immediately request access to the minutes of the boards' meetings to verify what information and discussions led to their decisions and will consider our next steps."
* This article has been translated by AI.
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