Dreamus Company’s Second Largest Shareholder Shinhan Venture Investment Begins Full-Scale Efforts to Enhance Shareholder Value

Shinhan Venture Investment, the second largest shareholder of Dreamus Company listed on the KOSDAQ market, announced on the 6th that it has "embarked on a full-scale move to enhance shareholder value."

Previously, Shinhan Venture Investment's PE (private equity) division established Neospes in 2021 for the purpose of management participation investment and invested in Dreamus Company. Neospes currently holds a 23.49% stake in Dreamus Company, making it the second largest shareholder. The largest shareholder is SK Square, holding 38.67% of the shares.

Recently, Dreamus Company resolved to convene a shareholders' meeting with the agenda of transferring capital reserves to retained earnings, which was a result of Shinhan Venture Investment actively urging the strengthening of shareholder return policies and enhancement of corporate value. This measure aims to secure distributable resources under the Commercial Act to promote practical shareholder value enhancement methods such as share repurchases and dividends.

As of the closing price on the 2nd, Dreamus Company's market capitalization stood at approximately 119.5 billion KRW, which is not significantly different from its cash and cash equivalents of 86.2 billion KRW. Shinhan Venture Investment stated, "Except for some lease liabilities, there is no debt, but the intellectual property (IP)-linked businesses such as artists and concert goods are showing strong performance, and despite recording a return to profitability in the third quarter, the stock price is severely undervalued." They analyzed, "Considering that the cash holdings are not reflected in the stock price, there is sufficient potential for stock price appreciation even with cash dividends."

Shinhan Venture Investment emphasized that it will devise various methods to enhance shareholder value in the future beyond this measure. A Shinhan Venture Investment official said, "We will cooperate with the company’s management to support sustainable growth strategies such as discovering new businesses, but if shareholder value is not enhanced, we will also consider ordering cost efficiency improvements and changes in management composition, prioritizing shareholder-friendly policies." They added, "Our goal is to provide tangible benefits to shareholders through the 'value-up' of the invested companies."