Align Pressures STIC Investments: "Succession Plan and Treasury Share Cancellation Needed Urgently"

Align Demands Response to Last Year's Shareholder Letter
"Plans Must Be Announced by January 19"

Activist fund Align Partners Asset Management has urged private equity fund (PEF) manager STIC Investments to swiftly devise measures to enhance shareholder value. With the deadline mentioned in a public shareholder letter sent in November last year approaching and STIC Investments showing little response, Align is increasing its pressure on the firm.

On January 7, Align announced that it had delivered this message to STIC Investments the previous day. In the public shareholder letter sent on November 24 last year, Align requested the prompt establishment of a "value-up plan" (corporate value enhancement plan), including a succession plan and the cancellation of treasury shares.

Align stated, "In response to shareholder letters sent in April and July last year requesting a corporate value enhancement plan, mid- to long-term growth strategies, and execution plans, STIC Investments replied that these would be announced through IR materials in the second half of 2025. However, that time has already passed, and nothing has been announced. Since the deadline for the value-up plan requested in the shareholder letter sent in November last year is January 19, it is urgent that key strategies and execution plans for enhancing corporate value be shared as soon as possible."

Previously, on November 24 last year, Align sent a public shareholder letter to STIC Investments demanding the disclosure of a succession plan and the cancellation of treasury shares. The letter included: ▲ the announcement of a next-generation leadership succession plan; ▲ the cancellation of all remaining treasury shares except those used for employee compensation; ▲ improvement of profit margins related to management fees and securing drivers for investment performance improvement through a revised compensation system; ▲ expansion of assets under management and investments through appropriate leverage at the management company level; ▲ the announcement of mid- to long-term corporate growth and shareholder value enhancement strategies; and ▲ institutional measures to improve the independence and expertise of the board of directors. As the measures requested in previous shareholder letters were not announced, Align set a specific deadline (January 19, 2026) and is now urging action. Align is also reportedly considering exercising its voting rights at the general shareholders' meeting if these demands are not met.

As of the end of last year, Align Partners holds a 7.63% stake in STIC Investments. The combined stake of the broader activist camp, including U.S.-based Millie Capital (13.48%) and Korea-based Petra Asset Management (5.09%), amounts to 26.20%. This exceeds the combined 19.07% stake held by STIC Investments founder Chairman Do Yonghwan (13.46%) and other key executives and related parties.