Shift in Merger Value From 'Market Value' to 'Fair Value'... Mandatory External Valuation and Disclosure Expanded

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From December 9, a sovereign listed corporation must apply fair value instead of market value when calculating the merger value. The Board of Directors shall prepare and disclose a statement of opinion on the purpose, expected effect, and appropriateness of the merger, and be evaluated by an external evaluation agency. The intention is to strengthen the disclosure of relevant information so that shareholders can make rational decisions during th…

연합뉴스-Yonhap News Agency

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(Seoul = Yonhap News) Reporter Kang Su-ryeon = As the standard for calculating the merger price of listed companies changes from 'market price' to 'fair value,' and shareholders assess the appropriateness of the transaction and their interests...

ddaily.co.kr

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[Digital Daily, Reporter Kim Nam-gyu] In the future, when listed companies merge, the method of calculating the merger value by putting the recent stock price into a fixed formula will disappear. Instead, corporate value is evaluated based not only on stock prices, but also on the company's assets and future profit value. This is a measure to improve the fairness of merger prices and strengthen shareholder protection. According to the Finance Co…

asiae.co.kr

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Going forward, when determining the price for corporate mergers and acquisitions (M&A), fair value considering asset value, earnings value, etc., must be applied, and the board of directors must disclose an opinion statement regarding the merger price.