Activist investor stated to push for adjustments at Korean tobacco firm KT&G (OTCMKTS:KTCIF)

An activist investor is alleged to have acquired a stake in Korean tobacco agency KT&G (OTCPK:KTCIF) and is pushing for the corporate to enhance, together with spinning off its ginseng enterprise.

Flashlight Capital Companions, which was based by Carlyle Group’s former head of Korea, is asking for a ginseng enterprise spin-off, divesting non-core belongings and including new administrators to KT&G’s board, in keeping with a letter seen by In search of Alpha.

“Whereas we expect the corporate possesses extraordinarily precious belongings and spectacular market share, we imagine embracing significant environmental, social and governance (“ESG”) enhancements and including recent views to the Board of Administrators (the “Board”) might help KT&G shut its important 50% buying and selling low cost and ship enhanced worth to all stakeholders,” Flashlight Capital Managing Companion Sanghyun Lee wrote within the letter.

Flashlight Capital stated it has had personal discussions with KT&G management over the past six months and believes its suggestions may result in a 100% upside over the subsequent yr and 5x over the subsequent 5 years.

Flashlight is alleged to have constructed a 1% stake in KT&G, in keeping with a WSJ report, which reported the information earlier Thursday.

Whereas KT&G shares have risen 13% in Korea this yr, it is buying and selling on the similar worth it was 15 years in the past and at a “steep” low cost to its peer, in keeping with the letter.