[Feature Stock] KINX Rises 9% on Activist Fund Align Partners' Tender Offer for Gabia

On November 26, KINX is showing strong performance. This comes as the activist fund Align Partners has launched a tender offer for shares of its parent company, Gabia.

As of 10:08 a.m. on this day, KINX shares are trading at 103,400 won, up 8,900 won (9.42%) from the previous trading day.

KINX is a company that provides internet infrastructure based on its data center IDC, with major shareholder Gabia holding a 36.3% stake.

Previously, on November 25, the activist fund Align Partners announced that it would tender for 1,353,569 common shares of Gabia. The tender offer price is 33,000 won per share, which is 20% higher than the previous day's closing price of 27,500 won. The tender offer period runs from November 25 to December 14.

Earlier, KINX also saw U.S. asset management firm Mill Capital increase its stake. On November 3, Mill Capital raised its stake from 7.16% to 9.16%. Mill Capital is an asset management firm that actively proposes measures to enhance shareholder value, such as share buybacks. It is known for its strong activist approach.

In addition, there are entities that have purchased KINX shares for the purpose of influencing management control. One such firm is U.S. asset management company Kabouter Management. On November 22, it disclosed that funds managed by the company had acquired a 5.06% stake in KINX. Kabouter Management primarily invests in small-cap stocks.

As activist funds increase their stakes in KINX and Align Partners begins its tender offer for major shareholder Gabia, market sentiment appears to be focusing on the possibility of an escalating management control dispute.