London-based hedge fund Palliser Capital is moving to divest its stake in SK Square, the investment arm of South Korea’s chip-to-energy conglomerates SK Group, according to a local news report Monday.
Though Palliser Capital was found to have held a stake of more than 1 percent in SK Square in October, the hedge fund had brought down its holding to under 1 percent as of December, the report said.
The claim comes less than three months since the two entities were quoted to be on “friendly” terms by the industry. Palliser Capital released a statement in November, saying it is pleased SK Square has taken a “meaningful and constructive step” by issuing a corporate reform plan.
Palliser Capital was projected to have bet on SK Group’s business restructuring drive and push to uplift corporate value by securing a stake in the investment arm.
Though SK Square holds around a 20 percent stake in the group’s key chipmaking affiliate SK hynix, which translates to roughly 30 trillion won ($20.8 billion), its market capitalization stands at around 13.3 trillion won, significantly lower than the equity holding.
Though Palliser Capital is yet to officially comment on the report, it could have opted for a short-swing profit, as SK Square stocks are on the rise, partly backed by the corporate reform drive.
The share price of SK Square rose by 50.47 percent last year from 50,260 won at end-2023 to 79,300 won at end-2024. It has continued to inch up this year, gaining 26 percent year-to-date. As of Tuesday noon, the stock price stood at 99,600 won.
Palliser Capital was founded in 2021 by its Chief Investment Officer James Smith, who had worked at Elliott Investment Management. While it has primarily been engaged with global mining giant Rio Tinto and Japanese property group Tokyo Tatemono, the hedge fund has also called for change at Samsung C&T, the de facto holding company of Samsung Group. With a 0.62 percent stake in Samsung C&T, it has urged the company to make efforts to boost its share price.
silverstar@heraldcorp.com
