Investors urge KT&G to spinoff ginseng business

Feb.28.2023

Investors demand KT&G split profitable ginseng business, appoint external directors, and improve shareholder return policies.

Several activist investors have filed an injunction with the Daejeon District Court in South Korea, demanding that KT&G address their grievances by spinning off its profitable ginseng business, appointing certain external directors, and strengthening its shareholder return policy.

Investor group led by Singaporean private equity firm Flashlight Capital has repeatedly urged the company to spin off its ginseng business to restore the company's value and stock price.

However, during last month's investor relations event, KT&G refused this request. KT&G Senior Executive Vice President Bang Kyung-man stated, "In the long run, splitting the company has almost no benefit for the company's value or shareholders.

Bang expressed concerns that if the ginseng business department separates, KT&G may lose its "synergy".

During the meeting, KT&G rejected a request from the fund to strengthen KT&G's shareholder return policy. The tobacco manufacturer stated that the current policy "should be temporarily retained.

Lee Sang-hyun, the founder of Flashlight Capital, believes that once KT&G adjusts its investment portfolio to better achieve its environmental, social, and governance goals, its stock price will rebound beyond 140,000 Korean won, which was last seen in 2016.

The stock price of KT&G reached its lowest point on February 17 at KRW 87,100, but has since slightly recovered.

Reference:

Investors are urging KT&G to proceed with the spinoff of their ginseng business.

#USA

This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

Thailand National Health Commission Advances Vape Regulation Aligned with Anti-Drug Agenda

Thailand’s Deputy Prime Minister Sophon Saram, who chairs the National Health Commission (NHC), presided over a meeting aligning the nation’s e-cigarette control policies with the government’s “Quick Big Win” anti-drug strategy. The session reviewed progress under the National Health Assembly Resolution on Protecting Children and Youth from E-Cigarettes, which includes five key measures on awareness, enforcement, and prevention.

Nov.05 by 2FIRSTS.ai

AIRSCREAM Solidifies South African Leadership & Championing Truth in Vaping

As South Africa’s leading lifestyle vaping brand, AIRSCREAM is accelerating its regional growth strategy with the launch of its bold new initiative, “Trust ML, Not Puff.” The campaign calls for factual, millilitre (ml)-based transparency across the vaping industry, directly confronting misleading puff-count marketing practices and promoting clear, standardised information that reflects the true value and capacity of vaping products.

Nov.28

Kyrgyzstan considers six-month ban on e-cigarette and e-cigarettee-liquid imports

According to Kyrgyz media, the Ministry of Economy and Commerce has launched a public discussion on a draft decree proposing a six-month ban on the import of e-cigarettes and nicotine-containing liquids. The measure, based on Article 15-1 of the Law “On Protecting Citizens’ Health from the Consequences of Tobacco and Nicotine Use,” aims to safeguard public health and prevent youth nicotine addiction.

Nov.12 by 2FIRSTS.ai

Germany OLG Cologne: Touchscreen Vape Use Violates Driving “Phone Ban”

Germany’s OLG Cologne ruled that adjusting an e-cigarette touchscreen while driving violates the “phone ban” under road traffic law. The driver, caught changing vape settings on the highway, was fined €150 and received one penalty point, as the court said such actions pose significant distraction risks.

Oct.27 by 2FIRSTS.ai