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Nongshim Headquarters. (Photo = Nongshim) |
[Alpha Biz= Paul Lee] Since last year, shareholder activism has been spreading, and it seems to have reached Nongshim, Korea's largest retail company.
According to investment banking (IB) industry sources on Monday, Unlocking Value, a small shareholder group that has accumulated 1% of Nongshim's shares, sent a second public letter to the Nongshim board of directors requesting a plan to enhance corporate value to be announced within this year.
Unlocking Value reported that it holds a combined 0.95% of Nongshim's total issued shares. This makes it the fifth-largest among the known minority shareholders.
In its public letter, Unlocking Value demanded that Nongshim announce a corporate value enhancement plan that includes: 1) improving low profitability, 2) diagnosing internal transactions, 3) disclosing profitability by business division, 4) setting a target operating profit margin, and 5) linking executive compensation with the operating profit margin.
They also stated that if Nongshim does not provide a public response by next month, they will consider entering the board of directors.
Earlier, Unlocking Value sent a request to the Nongshim board on January 22, asking for the announcement of a corporate value enhancement plan.
In response, Nongshim emphasized its commitment to increasing shareholder value, focusing on long-term growth momentum such as strengthening its overseas business under its mid- to long-term vision.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
