Align Launches Anonymous Reporting Center for Aplus Asset and Dentium Stakeholders

Align Partners Asset Management (Align), a leading activist fund in Korea, has launched a "Reporting and Proposal Center for Enhancing Shareholder Value" targeting stakeholders of Aplus Asset Advisor (Aplus Asset) and Dentium, and has officially begun collecting opinions.

Information gathered through this center may, if necessary, be used as foundational material for raising issues with relevant authorities and supervisory bodies. There is speculation that this initiative will become a new driving force for shareholder activism that will lead to tangible improvements in shareholder value.

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According to Align on April 29, the establishment of this center is intended to systematically collect information on shareholder value impairment and governance issues at the two companies, and to utilize this information as a basis for future shareholder activities and for raising issues with supervisory agencies.

Reports may be made regarding: ▲abnormal share purchase activities and acquisition of friendly stakes ▲inadequate internal controls and decision-making procedures ▲pursuit of private interests by controlling shareholders and related parties ▲suspected fraudulent accounting transactions ▲unfair practices in the solicitation of proxy voting rights, among others.

In particular, Align specified as key reporting items the facts surrounding the concentrated acquisition of Aplus Asset shares by insurance companies, which it raised concerns about last month, as well as the fairness of related-party transactions within Dentium.

Align stated that, in addition to problem reports, it will actively accept constructive proposals for enhancing corporate value in areas such as capital allocation, business strategy, and investor relations (IR) activities, and will reflect these in its shareholder engagement efforts. Reports and proposals can be submitted anonymously through an online portal. The identity of reporters will never be disclosed to external parties, and no identifying information will be collected under any circumstances.

An Align representative stated, "Through the launch of this center, we will systematize the collection of opinions on factors impairing shareholder value, and conduct shareholder activities based on empirical evidence."

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