Dalton Investments Inc., a US-based activist fund, has secured a 5.02% stake in South Korea’s Kolmar Holdings Co., stoking speculation the world’s No.3 original development manufacturer (ODM) for cosmetic products would become a new shareholder activism target.Dalton, with $4.3 billion in assets under management as of June 30, has been buying shares in the parent company of Kolmar Korea Co., in the market since early this year.On Oct.30, it disclosed its stake in the holding firm in accordance with South Korean laws that require shareholders with a stake over 5% in a listed domestic company to report its shareholding to financial regulators.
Kolmar Holdings shrugged off concerns about Dalton's possible move against the company for shareholder activism.“Dalton has not requested anything in particular,” said a Kolmar Holdings official.“We view it as an investment in an undervalued company with a high future value, rather than aimed at putting pressure on our management.” Dalton is one of leading shareholder activists in Asia.
In May, it sent a letter to Fuji Media Holdings with a recommendation to take the Japanese group private as its shares have underperformed.Dalton held a 6.55% stake in Fuji MediaIn 2019 and 2020, respectively, Dalton pushed Hyundai Home Shopping Network Corp.and Samyung Trading Co., a chemical materials and products distributor, to implement shareholder-friendly measures.
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