South Korean activist fund Anda Asset Management has requested SK chemicals to dole out some of its holdings in SK bioscience to enhance shareholder value following plunge in stock value in the wake of the spinoff and listing of SK bioscience.
Anda Asset Management announced on Tuesday that it has asked SK chemicals to yield around 10 percent of its stake in SK bioscience to shell them out to shareholders.
In a letter sent to SK chemicals’ board of directors, Anda Asset Management said that the board of directors and the company’s management need to actively come up with measures to address SK chemicals’ undervaluation. SK chemicals’ market value is currently undervalued by 75 percent compared to its net asset value (NAV), according to Anda Asset Management.
“We will do our best to motion the agenda on stock dividend scheme at the regular shareholders’ meeting next year,” said Anda Asset Management.
[Source: SK chemicals]
SK chemicals spun off its vaccine and drug business to launch SK bioscience in July 2018. SK chemicals, which is the largest shareholder of SK bioscience with its 68.48 percent stake in the company, has been embroiled in a legal dispute with its minority shareholders who have continuously demanded compensation after the spinoff and the listing of SK bioscience last year. Many minority shareholders have entrusted their voting rights to Anda Asset Management, which holds a 0.53 percent stake in SK chemicals.
SK chemicals meanwhile disclosed on Monday that operating profit fell 5.2 percent on year to 87.2 billion won ($66.81 million) during the second quarter, although revenue climbed 17.6 percent on year to 501.3 billion won on sales increase in high-value-added products of its polyethylene terephthalate glycol (PETG) business.
Shares of SK chemicals were up 0.5 percent at 107,000 won as of 2:30 p.m. Tuesday, but lost 28 percent from the beginning of the year.
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