Assignment and Challenges
South Korean consumer products company
This $7 billion market cap South Korean traded consumer products company was under attack from an activist. The activist had acquired a substantial stake in the company and was demanding the company triple the dividend payout and elect 2 new directors. To complicate matters, more than 45 % of the company’s outstanding shares was in the hands of foreign shareholders. It was projected that the activist could win because these shares were likely to vote against management and with the activist.
Solution
Alliance Advisors mobilized a shareholder engagement strategy that was designed to maximize the “friendly” votes or South Korean based shareholders to side with management. In addition, proxy advisors and foreign based shareholders were part of the shareholder engagement process.
Results
All of managements proposals were approved by shareholders and all the activist proposals were defeated.