VIP Asset Management increases stake in LOTTE rental to 7.33% and urges value-up measures
VIP Asset Management disclosed an increase in its stake in LOTTE rental from 6.20% to 7.33% (approximately 413,000 shares added) through open market purchases.
While the stated purpose is 'general investment', the filing includes a detailed shareholder proposal criticizing the 'governance discount' and demanding aggressive shareholder return policies.
Specifically, VIP requests: (1) total shareholder payout ratio of at least 50% of consolidated net income, (2) priority on share buybacks and cancellations until the undervaluation is resolved, and (3) utilization of approximately 400 billion won in capital reduction dividend reserves.
This follows the terminated sale to Affinity Equity Partners (SPA canceled) and is part of VIP's push for value enhancement.
[AI Comprehensive Analysis]VIP Asset Management's stake increase signals institutional confidence, but the public pressure on management may increase short-term volatility. Fulfillment of these demands could lead to a re-rating, but unresolved governance uncertainty remains a risk.