The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Oct. 20.
Activist fund proposes higher returns at Doosan Bobcat
Align Partners, a South Korean activist fund, has acquired a 1% stake in Doosan Bobcat and is advocating for higher shareholder returns, heightening tensions in the country’s corporate landscape. The fund has invested around 40 billion won ($29.21 million) and submitted a proposal calling for increased board independence and enhanced shareholder returns, with a response expected by November 15. Despite this push, the fund does not appear to be targeting a takeover of Doosan Bobcat, where Doosan Enerbility holds a controlling 46.06% stake. Although Doosan Bobcat has a strong financial outlook, including a projected operating profit of 1.024 trillion won ($731.94 million), its market capitalization and price-to-earnings ratio remain low. This uptick in activist fund activity mirrors recent trends observed with companies such as Korea Zinc and SK Square.
S. Korea questions AH-64 Apache deal amid modern warfare shifts
South Korea’s military is reconsidering its plan to purchase 36 Boeing AH-64E Apache attack helicopters, a deal worth 4.7 trillion won ($3.43 billion), due to concerns about the vulnerability of helicopters to drones and portable missile systems, as highlighted by the Ukraine war. The Republic of Korea Army (ROKA) is reassessing the role of attack helicopters in modern warfare, where unmanned systems like drones are becoming increasingly significant, and is considering reducing or even canceling the purchase. The rising cost of the helicopters, with unit prices increasing from 44.1 billion won to 73.3 billion won, is adding further complexity to the decision. This review underscores broader concerns about the relevance of traditional military assets in rapidly changing combat environments.
S. Korea sees surge in pharma and biotech IPOs, led by medtech sector
The number of South Korean pharmaceutical and biotechnology companies pursuing stock market listings is on the rise, with 12 companies going public by October this year, already matching last year’s total. This uptick is largely driven by an increasing number of medical technology (medtech) companies seeking IPOs, along with a recent interest rate cut. Medtech, which emphasizes innovations in diagnosis and treatment, has been a key player, accounting for 5 of the 12 new listings. While traditional biotech firms face high costs and limited revenue, medtech companies are attracting more investor interest due to their stronger revenue potential from product sales, a trend highlighted by Medtronic’s acquisition attempt of EOFlow, a domestic medtech company known for its wearable insulin pump.
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