SEOUL, November 24 (AJP) - Activist fund Align Partners Capital Management has publicly urged private equity firm Stick Investment to disclose its leadership succession plan and carry out a share buyback.
Align, which holds a 7.63 percent stake, released an open letter on Monday demanding that the company present a value-enhancement roadmap by Jan. 19.
The fund argued that Stick Investment remains significantly undervalued, noting that its return on equity stood at just 0.3 percent in the 12 months through the third quarter, despite managing more than 10 trillion won in assets.
Align said the company’s long operating history, industry networks and investment expertise — a set of “intangible assets” accumulated over 26 years — should support a higher valuation.
Align called for internal reforms, including a clear succession plan and a revamped compensation structure. It proposed using half of Stick Investment’s treasury shares to offer stock-linked incentives to future leaders and to attract key talent, with the remaining shares to be canceled to reduce dilution.
The activist fund also urged the firm to make greater use of leverage and pursue strategic investments to increase assets under management and expand earnings. It further requested a long-term growth strategy and improvements in board independence and expertise.
Align criticized what it described as insufficient communication with shareholders, particularly regarding employee stock compensation involving 22.19 percent of treasury shares issued as restricted stock units.
Align said it became a shareholder in February last year and has since held four private meetings and sent five letters to management without meaningful progress — prompting the move to a public campaign.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Copyright ⓒ Aju Press All rights reserved.
