Mirae Capital Increases Stake in Stick to 12.46%
Minority Shareholder Coalition Also Boosts Holdings
Activist Alliance’s Combined Stake Surpasses Largest Shareholder
Stick Investment, a domestic private equity fund (PEF) manager, is facing mounting pressure to boost its stock price. This comes as Mirae Capital has increased its stake, and both Align Partners and a coalition of minority shareholders have joined the movement.
According to the investment banking (IB) industry on July 1, U.S. asset manager Mirae Capital further increased its stake in Stick last month, raising its ownership to 12.46%. Mirae Capital initially acquired a 10% stake in Stick and remained quiet for a while, but since December 2024, it has steadily continued to purchase additional shares.
Stick Investment logo. Stick Investment
Although Mirae Capital has stated that its investment is for general investment purposes, the atmosphere is tense. This is because domestic activist fund Align Partners currently holds 6.64% of Stick's shares, and the coalition of minority shareholders has also recently increased its stake, ramping up the pressure.
According to the minority shareholder platform ACT, as of the afternoon of June 30, 589 individual investors in Stick had collectively acquired a 6% stake (2,498,785 shares). These investors have reached out to the company, Mirae Capital, and Align Partners, announcing their intention to push for the cancellation of treasury shares held by Stick. To this end, on June 24, they requested the company to convene an extraordinary general meeting of shareholders, but the request was rejected on the grounds that formal requirements had not been met.
The shareholder coalition stated, "Last month, we recommended the cancellation of a portion of treasury shares to enhance corporate value, support the stock price, and strengthen communication with shareholders, but the company ignored our suggestions and has not communicated with us. Therefore, through this extraordinary general meeting, we aim to clearly convey our position to the management once again."
Currently, the combined stakes of Mirae Capital, Align Partners, and the minority shareholder coalition far exceed that of the largest shareholder. The largest shareholder of Stick is Chairman Do Yonghwan, who holds a 13.46% stake. Including the shares of related parties, Stick’s total stake amounts to 19%. In contrast, the combined shareholding of Mirae Capital, Align Partners, and the minority shareholder coalition reaches 25.1%.
For now, it appears unlikely that Mirae Capital and Align Partners will act in concert with the minority shareholder coalition. However, since both Mirae Capital and Align Partners became shareholders due to Stick’s undervalued stock price, some observers believe that a more active activist campaign?such as shareholder proposals and boardroom pressure?could soon materialize.
The background to Stick’s listing dates back to its origins as a venture capital firm investing in startups in 1996. Stick acquired the listed company DPC, and through a stock swap, DPC became Stick’s parent company. In 2021, DPC merged with Stick, and after the merger, DPC changed its name to Stick Investment, resulting in a backdoor listing on the KOSPI market. At that time, this was the first KOSPI listing by a domestic PEF manager.
Stick’s stock price has remained stagnant since its listing. In December 2021, the share price was around 14,000 KRW, but it then declined to the 5,500 KRW range. News of activist funds acquiring shares led to a rebound, with the price recovering to the 10,000 KRW level last year. However, as of June 30, the stock closed at 10,860 KRW, continuing its sideways movement.
As a result, the market is closely watching how Stick will utilize its treasury shares. Stick currently holds 13.54% of its own shares. While treasury shares do not carry voting rights, if they are transferred to a third party friendly to the largest shareholder, those voting rights can be restored.
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