[Edaily Reporter Kim Hyung-wook ] SNT Holdings has proposed to the current management and major shareholders that they discuss the company’s mid- to long-term growth strategy and financial stability. This move is interpreted as an effort to gain the upper hand as it seeks to participate in management as the largest shareholder of SMEC CO.,LTD (28.15%, including SNT MOTIV).

SNT Holdings announced on the 22nd that it had sent a certified letter to SMEC CO.,LTD Chairman Choi Young-seop, CEO Kwon Oh-hyuk, other current executives, related parties, the employee stock ownership association, and ManhoRope&Wire, proposing a meeting. The requested date and location are the SMEC Juchon Plant in Gimhae on the 29th.

The main agenda items for this proposal include investment in growth businesses, fundraising, financial stability, and measures to enhance corporate and shareholder value. SNT Holdings maintains that, given the anticipated growth opportunities for SMEC CO.,LTD in areas such as semiconductor-specific equipment, the financial conditions necessary to support this growth must be reviewed jointly.

An SNT Holdings official stated, “If additional external funding is required during the business expansion process, we must consider not only the scale, terms, and structure of the financing but also its impact on existing shareholder value.”

According to SMEC CO.,LTD’s public filings and securities firm analysis reports, SMEC CO.,LTD’s debt-to-equity ratio rose from 158.7% at the end of 2022 to 221.5% at the end of June this year. Additionally, during the same period, total debt increased approximately 2.6-fold, from 64.9 billion won to 171.4 billion won. SNT Holdings is concerned that this debt burden could lead to increased interest expenses and constraints on investment capacity.

The SNT Group is seeking to gain a stake in SMEC CO.,LTD’s management after becoming its largest shareholder during the fundraising process for SMEC CO.,LTD’s acquisition of HYUNDAI WIA’s machine tool business. Having already secured a 28.15% stake, the group has established itself as the largest shareholder, surpassing the combined holdings of the current management and its affiliates (13.70%), the employee stock ownership association (4.72%), and ManhoRope&Wire (1.13%)—which together account for approximately 20% of the shares.

SMEC CO.,LTD successfully defended its management control at the shareholders’ meeting this past March by first appointing standing directors recommended by management with the support of a majority of general shareholders. However, the SNT Group has continued its efforts to secure management control, including acquiring additional shares in SMEC CO.,LTD and engaging in legal battles to gain access to and make copies of the company’s accounting records.

The court previously concluded that SNT Holdings’ request to inspect and copy SMEC CO.,LTD’s accounting records was lawful. Based on this ruling, SNT Holdings is entitled to enforce a daily penalty of 10 million won—totaling 300 million won—but has not yet done so, instead urging SMEC CO.,LTD to comply voluntarily.

SNT Holdings stated, “We proposed the appointment of candidates this past April to form the audit committee as required by the revised Commercial Act, but have yet to receive a substantive response,” adding, “Therefore, as the largest shareholder, we determined it necessary to once again establish a forum for official dialogue.” The company further noted, “We will review our future course of action by taking into account the responses from each party to our meeting proposal and the progress of the discussions.”