[Stock in Focus] Stick Investment Surges 9% on Activist Align Offensive

Stick Investment is surging on October 31, following the launch of full-scale shareholder activism by activist fund Align Partners Asset Management.

As of 9:50 a.m. on this day, Stick Investment was trading at 100,470 won, up 880 won (9.18%) from the previous trading day.

This is due to the intensifying offensive by activist funds surrounding Stick Investment, which has increased the likelihood of the situation escalating into a management rights dispute.

According to the Financial Supervisory Service's electronic disclosure system on October 30, Align disclosed that it has changed its purpose of holding shares in Stick Investment from "general investment" to "influencing management rights." Changing the purpose to influencing management rights allows the fund to actively intervene in overall management, including the appointment and dismissal of executives. Align also increased its stake by 0.99 percentage points from the previous 6.64%, securing a total of 7.63%.

Align is a leading activist fund that has actively engaged in corporate management under the banner of enhancing shareholder value and improving governance structure.

In addition to Align, other major activist shareholders include U.S.-based private equity fund Millie Capital (13.38%) and Petra Asset Management (5.09%). The combined stake of these institutions exceeds 20%, surpassing the 19% stake held by Chairman Do and related parties.

Align, in alliance with Millie Capital and minority shareholders, has been pressuring Stick Investment to retire all of its treasury shares, amounting to 13.5% of outstanding shares.

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