"Resolve Dual Listing"... Align Partners Sends Open Letter to Unresponsive Gabia

Specific Plan for Resolving Dual Listing Demanded by July 6

Align Partners has once again urged the Gabia board of directors to resolve the issue of dual listing. After the company failed to respond to a previous shareholder proposal, Align Partners sent a public letter to shareholders.

On June 16, Align Partners announced that it had sent a public letter to the Gabia board calling for the resolution of the dual listing issue. Align Partners is a shareholder holding 14.29% of Gabia’s outstanding shares.

Through this letter, Align Partners publicly requested the Gabia board to: ▲ disclose the board's position and the current status of discussions regarding the resolution of the dual listing, ▲ establish a special committee centered on outside directors and appoint an external professional advisory firm to address the dual listing, and ▲ reveal the implementation plan for the advisory shareholder proposal (disclosure of executive compensation systems) that was passed at the general shareholders' meeting. Align Partners also requested that the company respond in a way that all shareholders can verify, such as via the Gabia website, by July 6.

Align Partners analyzed that as of the closing price on June 12, Gabia is valuing the stakes in its subsidiaries at approximately a 64% discount compared to their actual market value. Align Partners claims that due to the dual listing, the value of subsidiaries is not being fully reflected in Gabia’s share price. Currently, Gabia and its key subsidiaries—KINX, Xgate, and SPsoft—are all listed.

Align Partners has been in ongoing communication with the Gabia board since sending its first private letter to shareholders on January 16. In a reply sent in February, the Gabia board acknowledged the need for a mid- to long-term structural reorganization, but did not present any specific action plans or timelines.

In response, at the regular shareholders' meeting in March, Align Partners proposed several agenda items, including the appointment of Byungsoo Jeon as an outside director, Seyoung Choi as an independent director, and measures to enhance the transparency of executive compensation systems, all of which were approved.

Subsequently, on May 8, Align Partners inquired about the progress of resolving the dual listing and the implementation of the advisory shareholder proposal, but Gabia did not respond.

Changhwan Lee, CEO of Align Partners, stated, "It was clearly confirmed at the shareholders' meeting that shareholders want to resolve the dual listing, and since financial regulators’ policies and international precedents also point in the same direction, the board must take substantive action. As a major shareholder of Gabia, we will continue to engage constructively with the board and management to enhance shareholder value."

This content was produced with the assistance of AI translation services.