VIP Asset Management increases stake in Worldex to 15.64%, shifts to activist stance, calls for 20 billion won buyback and enhanced shareholder returns
VIP Asset Management raised its stake in Worldex from 15.49% to 15.64% by net buying 25,740 shares, and changed its holding purpose to general investment from simple investment.
The fund manager argues that Worldex is chronically undervalued despite strong fundamentals including 21.3% operating margin and 230 billion won cash, due to an extremely low dividend payout ratio of 2.3% over the past three years.
VIP proposes at least 20 billion won in share buybacks and cancellation this year, and a long-term payout ratio of over 40% of net income, along with linking executive compensation to total shareholder return.
The activist investor plans to engage with management and exercise shareholder rights within legal boundaries without seeking management control.
[AI Summary]VIP Asset Management formally demands improved shareholder returns including 20 billion won buyback and cancellation at Worldex, aiming to correct persistent undervaluation. This activist move could boost shareholder value but may create tension with management.