SK chemicals CEO Jeon Kwang-hyun / Courtesy of SK chemicals

By Park Jae-hyuk

SK chemicals has remained tight-lipped about the ongoing legal dispute with its minority shareholders, who have continued to demand that the company sell part of its stake in SK bioscience and generate additional cash to expand investments and pay higher dividends.

The chemical company reiterated Thursday that it is considering "various measures" to enhance its corporate and shareholder value.

Earlier this week, Anda Asset Management, which holds a 0.53-percent stake in SK chemicals, asked a court to grant access to the list of SK chemicals' shareholders, as the chemical company did not respond to the local asset manager's letter sent last month to request a sale of SK bioscience shares and governance reform.

The latest legal action is widely viewed as preparatory to winning support from other minority shareholders, during the general meeting of shareholders in March.

A group of the minority shareholders has already started entrusting their voting rights to Anda, in order to make an official shareholder proposal later this month. They have continued to demand that SK chemicals come up with fundamental measures to enhance shareholder value, since its stock price fell sharply after the spin-off and listing of SK bioscience last year.

"We decided to conduct the campaign to make every effort to enhance shareholder value by joining hands with Anda and other fund managers overseas, including Metrica Partners, which has shown keen interest in this issue," the group's leader said in a statement.

Last year, the Singapore-based hedge fund sent letters to SK chemicals' board of directors twice to urge the Korean firm to sell part of its stake in SK bioscience and distribute a special dividend. Back then, SK chemicals CEO Jeon Kwang-hyun answered that the board would consider selling SK bioscience shares, if it "believes there is a need upon considering various relevant factors."

SK chemicals also announced last October that its board decided to strengthen shareholder-friendly management through the bonus issuance of shares and the establishment of mid-term dividend policies. However, the minority shareholders have not been satisfied with those promises.

"Whenever we made requests, the company has reiterated that it will consider measures to enhance shareholder value. We have been enraged at the company's negligence in more practical measures, such as in the payment of special dividends and the retirement of treasury stocks," the leader of the group of SK chemicals minority shareholders said.

According to industry insiders, SK chemicals is not expected to accept the request to sell its stake in SK bioscience, because the sale could have a negative impact on the subsidiary's valuation.