[Alpha Biz=(Chicago) Reporter Paul Lee] It has been confirmed that DB HiTek's management and KCGI (aka Kang Sung-bu Fund), an activist investor that secured a 7.05% (3,128,300 shares) stake in the company, plan to discuss it face-to-face for the first time as early as this month. Attention is focusing on whether the two sides will reach an agreement on the direction of DB HiTek management.

According to industry sources on the 22nd, the two sides have not met in person since KCGI's Carofy Holdings announced on March 30 that it had secured a stake in DB HiTek. Official documents were the only means of communication other than press releases or communication through third parties.

The two sides have been at odds since KCGI secured a stake in DB HiTek. The conflict reached its peak on the 9th when KCGI filed an injunction with the Bucheon branch of the Incheon District Court to allow DB HiTek to view and copy its accounting books and minutes of the board's meetings. DB HiTek announced KCGI's application for an injunction on the 20th and defined it as a 'management dispute lawsuit'.

KCGI is demanding the resignation of Kim Joon-ki, chairman of the start-up, and Kim Nam-ho, chairman of DB Group, to become a registered director. It also called for the formation of an independent board of directors, enhanced management transparency by strengthening internal control, and the purchase and incineration of treasury stocks.

 

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