[Alpha Biz=(Chicago) Reporter Kim Jisun] Activist fund Anda Asset Management responded on the 26th that it was disappointed with the future growth strategy unveiled by KT&G.
On the same day, KT&G announced its mid- to long-term growth strategy to invest about 8 trillion won in core business sales in 2027, more than 50% of global business sales, more than 60% of non-cigarette business sales, and 3.9 trillion won in Capex (facilities) by 2027.
Anda Asset Management said KT&G's 3.9 trillion won Capex investment plan was appropriate, but failed to come up with a specific and effective way to enhance shareholder value.
In particular, he pointed out that KT&G executives are misleading shareholders by distorting the facts.
First of all, he refuted KT&G's claim that the listing of Korea Ginseng Corporation (KGC) on the human division is rather damaging shareholder value. Even now, it is only the same effect as listing KGC, which is an independent subsidiary, so the partnership with KT&G can be maintained as it is and remain the largest shareholder due to the treasury stock held by KT&G even after listing.
In addition, as KGC continues to be a company with excellent cash creation capabilities, its corporate value can be recognized as at least 2 trillion won, according to IDA Asset Management. It means that KGC has no problem raising capital on its own.
KT&G also refuted the explanation that the company's value has all decreased since the split in the case of human division in Korea.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
