Flashlight Capital Partners has issued a public letter to the board and shareholders of S-1 Corporation, calling for a five-point plan to improve governance and unlock value at Korea’s largest security services firm. The activist fund notes that S-1 trades at roughly 3.3 times EV/EBITDA, a steep discount to the 12.0 times for SK Shieldus and 11.1 times for global peers, and that cash and financial assets represent nearly half of its market capitalization. Flashlight Capital’s proposals include a three-year shareholder value roadmap, a five-year strategic plan targeting cybersecurity, drones, and senior care, a capital allocation framework for excess cash, CEO-led quarterly earnings calls, and board reforms to comply with Korea’s amended Commercial Act. The fund says it was rebuffed when it sought discussions with S-1’s CEO and board chairman, and it highlights that every S-1 CEO in the past 25 years has come from within Samsung Group, with the current CEO previously working at a Samsung catering affiliate.
S-1 CorpActivist fund proposes governance overhaul and value-unlocking plan, highlighting undervaluation and excess cash.
Samsung Electronics Co Ltd