The Investor Group has submitted two value-enhancing shareholder proposals for consideration at the Company’s 2024 AGM. We believe these proposals will help unlock value at Samsung C&T:
We are proposing that a dividend of KRW 4,500 per common share and KRW 4,550 per preferred share be paid in respect to FY 2023.
Approximately KRW 740 billion is needed for the dividend payout, which can be sourced sufficiently from the distribution of 100% of the post-tax dividend income from Samsung C&T affiliates and 25% of free cash flow from operations (excluding Samsung Biologics).
We believe increasing the dividend payment will help align capital allocation to shareholder expectations, and set the tone for longer-term decisions to help reduce the steep “Korea Discount” that Samsung C&T faces today.
We are proposing that the Company allocate KRW 500 billion to a share repurchase program.
This is equivalent to approximately 50% of annual free cash flow from operations (excluding Samsung Biologics) per Samsung C&T's own estimates for FY 2023-25.
Based on the Company’s 2023 year-end share price, approximately 3,861,000 shares can be repurchased, or 2.4% of total shares outstanding.5 This, coupled with an improved dividend yield of 3.5%, would bring the total shareholder yield to approximately 6% and help to narrow the discount.
A share repurchase program will enhance both earnings and intrinsic value per share, and in our view, demonstrate SCT’s commitment toward addressing its valuation problem and unlocking long-term value.
To realize Samsung C&T’s value for all shareholders, we believe that the Board must adopt a transparent, shareholder-friendly capital allocation framework that systematically considers the returns on different uses of capital, including growth investments and share repurchases.
The shareholder proposals do not preclude the Company from investing for the future, preserving ~25% of free cash flow from operations for other uses and potentially allowing capex to rise by over KRW 350 billion annually.
Please anonymously submit your comments or concerns using the form below. Note that your personal information will not be saved.
Effective Date: January 26, 2024
Our Commitment to Privacy
The sponsor of this website, www.UnlockSCTValue.com (the “Site”), is City of London Investment Management Company Limited (“CLIM”), Whitebox Advisors LLC (“Whitebox”) and other local and foreign shareholders (the “Investor Group,” the “Group” or “we”). We respect and value your privacy. This Privacy Policy is designed to assist you in understanding what information is collected from or about you through this Site and how we use and safeguard that information, as well as to assist you in making informed decisions when using the Site.
The core of our Privacy Policy is this:
We want you to feel safe and comfortable when you use the Site, and we are dedicated to developing and upholding high standards for protecting your privacy. You should read and familiarize yourself with this Privacy Policy and with our Terms and Conditions.
WHAT INFORMATION DO WE COLLECT?
Our Site does not ask you to provide any personally identifiable information. Instead, the Site only collects “clickstream data” that provides information about the type of device and browser you are using, and the website from which you linked to our Site. We may collect this data via “cookies” or other, similar technologies. For more information about cookies, visit http://www.allaboutcookies.org/.
We may use this data in an aggregate, non-personally identifiable way to help us analyze and answer questions like how much time visitors spend on each page of the Site, how visitors navigate throughout the Site and how we may tailor our web pages to better meet the needs of visitors. This information will be used to improve the Site.
DO WE DISCLOSE INFORMATION TO OUTSIDE PARTIES?
We may provide aggregate information to our affiliates or reputable third parties for the purposes described herein.
WHAT ABOUT LEGALLY COMPELLED DISCLOSURE OF INFORMATION?
We may disclose information when we, in good faith, believe that the law requires it or for the protection of our legal rights.
WHAT ABOUT OTHER WEBSITES LINKED TO OUR SITE?
We are not responsible for the practices employed by websites linked to or from our Site nor the information or content contained therein. Often links to other websites are provided solely as pointers to information on topics that may be useful to the users of our Site. Please remember that your browsing and interaction on any other website, including websites that have a link on our Site, is subject to that website’s own rules and policies. Please review those rules and policies.
CHANGES TO THIS POLICY.
We reserve the right to make changes to this Privacy Policy from time to time. Revisions will be posted on this page. We suggest you check this page occasionally for updates.
CONTACTING US.
If you have any questions about this Privacy Policy, the practices of the Site, or your dealings with the Site, you can contact SCTInvestorGroup@longacresquare.com.
Persons who access the information made available by City of London Investment Management Company Limited (“CLIM”), Whitebox Advisors LLC (“Whitebox”) and other local and foreign shareholders (the “Investor Group,” the “Group” or “we”) via this website (the “website”) agree to the following:
While the material on this website is often about investments, none of it is offered as investment advice. For members of the public, this means that neither the receipt nor the distribution of information through this website constitutes the formation of an investment advisory relationship, or any similar client relationship. The materials on this website are for informational purposes only and may not be relied on by any person for any purpose and are not, and should not be construed as investment, financial, legal, tax or other advice, recommendation or research.
This website is not an offer to sell or the solicitation of an offer to buy interests in any fund or investment vehicle (a “fund”) managed by our Group. An offering of interests in a fund will be made only by means of a confidential private offering memorandum and only to qualified investors in jurisdictions where permitted by law. An investment in a fund is speculative and involves a high degree of risk. Any fund has substantial limitations on investors’ ability to redeem or transfer their interests in a fund, and no secondary market for a fund’s interests exists or is expected to develop. All of these risks, and other important risks, would be described in detail in a fund’s confidential private offering memorandum. Prospective investors are strongly urged to carefully review the applicable confidential private offering memorandum and consult with their own financial, legal, and tax advisors before investing in a fund.
This website may contain forward-looking statements on our current expectations and projections about future events. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “thinks,” “seeks,” “targets,” “forecasts,” “could” or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our Group’s objectives, plans or goals are forward-looking. Any forward-looking statements are based on our Group’s current intent, belief, expectations, estimates and projections. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to differ materially. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.
No representation or warranty is given in respect of the correctness of the information contained herein as at any future date. Certain information included in this communication is based on information obtained from third-party sources considered to be reliable. Any projections or analysis provided to assist the recipient of this communication in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results. In addition, this website may contain performance and other data. Past performance is not indicative of future performance.
This website contains hyperlinks to websites operated by our Group and other parties. Our Group does not control the content or accuracy of information on third-party websites and does not otherwise endorse the material placed on such sites.
All information and content on this website is furnished “AS IS,” without warranty of any kind, express or implied. Our Group will not assume any liability for any loss or damage of any kind arising, whether direct or indirect, caused by the use of any part of the information provided. Our Group and its licensors do not warrant that the content is accurate, reliable or correct; that the website will be available at any particular time or location; that any defects or errors will be corrected; that unauthorized access to or misappropriation of the content will not occur; or that the content is free of viruses or other harmful components. Your use of the website is solely at your risk.
The entire website is subject to copyright with all rights reserved. No permission is granted to copy, distribute, modify, post or frame any text, graphics, video, audio, software code, or user interface design or logos. The information contained herein shall not be published, rewritten for broadcast or publication or redistributed in any medium without prior written permission from our Group.
