Activist fund Truston Asset Management said on the 16th that it decided to withdraw its shareholder proposal to KCC.
Truston Asset Management said, "We welcome the KCC board's forward-looking decision to enhance shareholder value, including the cancellation of treasury shares and principles on the monetization of assets held for investment purposes and shareholder returns."
According to Truston Asset Management, KCC sent an official letter stating it would sell assets held for investment purposes at an appropriate time and return a portion of the sale gains to shareholders.
KCC holds shares in numerous listed companies, including Samsung C&T, for investment purposes, with an assessed value of 5.264 trillion won. KCC's market capitalization is 4.541 trillion won.
Truston Asset Management said, "In the market, KCC's Samsung C&T shares have been widely regarded as friendly equity within the Samsung group, creating a strong perception that a future sale was unlikely, which has been cited as a key reason for KCC's undervaluation. Therefore, the company's first official statement that it will sell investment-purpose assets at an appropriate time and return part of the sale gains to shareholders carries significant symbolic meaning."
KCC also said that if performance at Momentive, its key growth driver, normalizes, it will consider shareholder returns based on consolidation financial statements, as shareholders have requested.
A Truston Asset Management official said, "We decided to withdraw the shareholder proposal to pursue constructive cooperation instead of an unnecessary confrontation with the board, as KCC is assessed to have accepted most of our shareholder proposal agenda items."
Truston Asset Management will continue to monitor whether the company shares a transparent schedule for handling investment assets and maintains consistent communication with the market.
A Truston Asset Management official said, "This decision will be an important milestone in that the KCC board has begun to substantively reflect the reasonable voices of ordinary shareholders in management," adding, "We are withdrawing the shareholder proposal out of respect for management's decision, and we will continue constructive dialogue so that KCC can be reborn as a sound company trusted by the capital market."