November 27, 2022


Stock development

Activist investor said to push for changes at Korean tobacco company KT&G (OTCMKTS:KTCIF)

Cigarettes randomly piled in a large heap


An activist trader is claimed to have obtained a stake in Korean tobacco organization KT&G (OTCPK:KTCIF) and is pushing for the enterprise to increase, which includes spinning off its ginseng organization.

Flashlight Funds Companions, which was launched by Carlyle Group’s previous head of Korea, is calling for a ginseng business enterprise spin-off, divesting non-main property and introducing new administrators to KT&G’s board, according to a letter considered by Trying to find Alpha.

“Even though we think the enterprise possesses exceptionally precious property and outstanding sector share, we feel embracing significant environmental, social and governance (“ESG”) improvements and adding contemporary views to the Board of Directors (the “Board”) can help KT&G close its important 50% trading discounted and supply enhanced benefit to all stakeholders,” Flashlight Cash Running Husband or wife Sanghyun Lee wrote in the letter.

Flashlight Money mentioned it has had non-public conversations with KT&G management over the previous six months and thinks its recommendations could direct to a 100% upside more than the upcoming yr and 5x above the up coming 5 years.

Flashlight is explained to have created a 1% stake in KT&G, in accordance to a WSJ report, which claimed the news previously Thursday.

Whilst KT&G shares have risen 13% in Korea this calendar year, it truly is buying and selling at the same price it was 15 yrs in the past and at a “steep” discounted to its peer, in accordance to the letter.