Anda pushes for right to copy KT&G shareholder list

South Korea's Anda Asset Management Co. said on Tuesday it applied for an injunction Jan. 9 to view and copy the shareholders’ list of KT&G Corp., the world’s fifth-largest tobacco maker, to intensify shareholder activism.

If the court grants the injunction, it will allow Anda to see and duplicate the document of shareholders' names, addresses and ownership rates under Korea's Commercial Act.

Anda sent an activist shareholder letter to the Korean tobacco firm on Oct. 31 of 2022. In the letter, the asset manager urged actions to boost shareholder value: the spin-off and listing and rebranding of Korea Ginseng Corporation (KGC), KT&G's ginseng affiliate; hiring more outside directors of the board and global marketing professionals; increasing dividends; and setting up plans to improve the corporate governance such as retiring treasury shares.

KT&G said it will thoroughly review Anda's requests in early November of 2022 but hasn't responded to the letter since then, according to the asset manager.

“KT&G’s management and board seem to have no will to accept shareholder proposals. We will access the shareholders’ list, secure proxy voting rights from other investors and put the proposals on the agenda at the upcoming general meeting of shareholders,” Anda stated.

The board of KT&G must execute business restructuring and manage capital efficiently to maximize the value of individual shareholders, who make up 65.3% of the tobacco firm’s stakeholders, said Anda’s Managing Director Park Chul-hong.

The Kospi-listed KT&G stock, which closed at 92,000 won ($74.3) on Jan. 9, is nearly the same level as the price in 2008 despite increases in revenue and operating profits, Anda noted.

The tobacco giant's annual revenue was 3.2 trillion won in 2008 and is estimated to have reached 5.7 trillion won in 2022. During 2019-2021, it posted more than 1.3 trillion won in operating profit each year.

According to KT&G's latest disclosure, Korea's National Pension Service (NPS), First Eagle Investment Management LLC and Industrial Bank of Korea hold 7.55%, 7.12% and 6.93% stakes, respectively, in the tobacco maker as of June 30, 2022. Other institutional investors own a combined 10.16%, and KT&G's employee ownership association holds 2.94%. Individual investors hold 65.30% via Anda.

Write to Dong-Hui Park at donghuip@hankyung.com
Jihyun Kim edited this article.