Activist fund manager Align Partners noted on the 28th that it holds a 6.64% equity stake in private equity firm STIC Investments.
According to the Financial Supervisory Service's electronic disclosure system on that day, Align Partners has reported that its ownership of 2,769,478 shares of STIC Investments has triggered a new reporting obligation. The purpose of the holding is general investment.
Align Partners has been steadily purchasing STIC Investments equity through its proprietary account and the fund 'Align Partners Korea Fund LP' since the 20th, surpassing a 5% ownership rate.
Align Partners has reportedly been accumulating STIC Investments shares for at least a year. A spokesperson for Align Partners said, "We have been communicating with the company and determined that the good stock is undervalued, so we purchased equity. We have no intention of taking over management rights."
While management rights are not threatened, the acquisition of equity by Align Partners may pose a burden for STIC Investments. As of December 31 last year, the founder, Chairman Do Yong-hwan, holds a 13.46% equity stake. The American private equity firm Miry Capital is the second-largest shareholder with 10.78%. Chairman Do is maintaining management rights through the company’s own shares, totaling 13.44%.