Local activist hedge fund Korea Corporate Governance Improvement (KCGI) has become the No. 2 shareholder of the holding company of South Korean construction conglomerate Daelim Group, industry sources said Friday.
The KCGI fund bought 32.6 percent of Daelim Corp. from the UniKorea Foundation for 120 billion won (US$99 million), according the sources. The foundation earlier this month announced that it will sell its stake in Daelim Corp. for tax reasons.
Daelim Corp., an unlisted firm, serves as the holding company of Daelim Group. It holds a 21.7 percent stake in Daelim Industrial Co., South Korea's No. 3 builder and the group's flagship unit.
With the latest deal, the KCGI is now the No. 2 shareholder after Daelim Group Chairman Lee Hae-wook, who holds a 52.3 percent stake in Daelim Corp.
The KCGI fund is the second-largest shareholder in Hanjin KAL, the parent company of South Korea's flag carrier Korean Air Lines Co., with a 15.98 percent stake. It has also made a preliminary bid to acquire a major stake in the country's No. 2 full-service carrier, Asiana Airlines Inc. (Yonhap)