Activist investor Flashlight Capital Partners calls on five Samsung Group affiliates to sell their collective 20.6% stake in S-1 Corporation. Flashlight proposes an open auction for the stake. This demand follows the affiliates' rejection of a direct offer made by Flashlight in August. That offer sought to acquire the stake for approximately KRW 906.6 billion ($667 million).
The Samsung companies reportedly declined the previous offer. They cited concerns over deal certainty, not price. Flashlight argues an open, competitive auction addresses these concerns. It would also maximize value for the affiliates' shareholders. The activist fund maintains the S-1 stake is a non-core asset for the five companies. These include Samsung SDI and several financial firms. A sale would free up capital for their primary businesses.