 |
[Alpha Biz=(Chicago) Reporter Kim Jisun] DB HiTek's conflict with KCGI is escalating. KCGI is an activist fund led by Kang Sung-boo, and became the second-largest shareholder in March by purchasing a 7.05% stake in DB Hi-Tech through Carofi Holdings, a limited investment company.
DB HiTek announced on the 20th that Carofy Holdings has filed a lawsuit for an injunction (management dispute) for reading and copying accounting books.
The filing and application date is the 9th and the competent court is the Incheon District Court Bucheon Branch. DB HiTek said, "We will respond according to legal procedures."
KCGI earlier predicted active shareholder action, saying that DB Hitech is extremely undervalued due to the outdated management behavior of its owner family and management despite its excellent corporate value.
KCGI disclosed the fact that it filed an injunction on the 13th, saying, "I doubt that DB Hitech is being used as a tool to pursue the private interests of the founding chairman Kim Joon-ki's family."
KCGI said, "DB Hitech has opaque management and does not have a proper internal control system," and called for various data disclosure and management meetings to protect general shareholder rights.
On the 1st, KCGI also pressed the management by releasing a letter of shareholders, saying, "DB HiTek's controlling shareholders and management are refusing to talk through shareholder consultations."
In response, DB HiTek countered that the amount of data requested by the KCGI was so large, and there were many issues to be legally reviewed, such as the exposure of business secrets due to the disclosure of the accounting data director, the provision of undisclosed information, and equity in the provision of data between shareholders, but did not refuse face-to-face consultations.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
