Eugene Group said March 31 that it will continue buying shares in its hostile takeover target Tong Yang, after suffering a defeat a day earlier in its first attempt to secure control of the building materials maker.

“We respect the decision of other shareholders,” Tong Yang said, referring to the outcome of the previous day's shareholders meeting.


At the meeting, minority shareholders, who as a whole control nearly 70 percent of Tong Yang, turned down Eugene’s proposal to add six new members to the company’s boardroom, opening the door for Eugene-appointed personnel.

“We will increase our stake in Tong Yang until we secure a stable control of its management,” Eugene said.

Eugene, holding 13.04 percent of Tong Yang shares, has secured the support of Pine Tree Asset Management, the No. 2 shareholder with a 10.03 percent stake.

Tong Yang graduated earlier this year from a court receivership and now has a cash stockpile of about 300 billion won ($263 million) after it sold assets to repay debt, including a controlling stake in Tong Yang Cement.



By Lee Sun-young
(milaya@heraldcorp.com)