It has been confirmed that Kim Seong-ho, the second-largest shareholder of Genebiotech, a KOSDAQ-listed company and a manufacturer of feed and animal drugs, will declare his participation in management this month. Kim's side is reportedly planning to hold an extraordinary shareholders' meeting in the future to demand a shareholder return policy and the appointment of directors.
According to the financial investment industry on the 11th, Kim Seong-ho, the representative of Renumechanical, decided to change the purpose of his ownership in Genebiotech from 'simple investment' to 'influence on management' while expanding his equity. Kim's equity ratio is known to have increased from 9.88% to 10.91%. Among this, Renumechanical's equity ratio is about 2.33%.
The total equity ratio of Lee Chan-ho, the current largest shareholder and CEO of Genebiotech, and related parties is 28.64%. Kim, who is active as a 'big player' individual investor in the domestic stock market, has been increasing his holdings in Genebiotech since May.
Kim's side is reportedly skeptical about Genebiotech's insufficient IR activities and lack of willingness to boost stock prices. A source familiar with Kim's side noted, "CEO Lee Chan-ho also holds the position of CEO at Daewon Chemical, a subsidiary, and is excessively receiving a total annual salary of 500 million won from both companies." According to this source, Kim plans to request the inspection of Genebiotech's accounting books to confirm the specific financial situation of the company.
The stock price of Genebiotech moved between 4,100 won and 4,600 won two years ago before dropping to 3,045 won in early April this year. This is also the lowest price in the past year. However, after news broke in May that Kim's side had begun acquiring equity, the stock price rose to 4,455 won (the closing price on the 8th).
Dividends have not been distributed in the last four years since a cash dividend of 30 won per common stock in 2021. The market dividend yield at that time was about 0.54%.
Kim's side plans to demand the company hold an extraordinary shareholders' meeting in the future to initiate stock buybacks and retirements, expand dividends, and appoint new directors. Since their equity ratio is still less than the largest shareholder's, they are also considering sending letters to minority shareholders to secure voting rights ahead of the showdown.
With this declaration of management participation, some raise the possibility of Renumechanical's indirect listing. A related person in the financial investment industry said, "Kim's side discussed the acquisition of equity with Genebiotech's management, along with opinions on stock buybacks, retirements, and dividend expansions, from the early stages of equity purchase, but the talks did not go well."
Kim worked as a salesperson at Geistlich's Korean branch, a Swiss regenerative dentistry company, before establishing Renumechanical in 2009. Renumechanical focuses on the production and distribution of bone graft materials and is currently preparing for a KOSDAQ listing in the first half of 2027.
Renumechanical responded regarding the declaration of management participation, saying, "As this is a public disclosure matter, we will clarify our position through the disclosure."