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SoluM. (Photo courtesy of SoluM) |
[Alpha Biz= Paul Lee] SoluM has been sued by activist investment firm Align Partners Capital Management over the issuance of KRW 120 billion worth of redeemable convertible preferred shares (RCPS) last year, with the fund seeking to invalidate the new share issuance.
According to a filing with the Korea Exchange on the 13th, SoluM disclosed that Align Partners has filed a lawsuit requesting the invalidation of newly issued shares. The suit specifically targets the issuance of 6 million shares of Type 2 RCPS-1 and 1 million shares of Type 2 RCPS-2, which were issued on July 5 last year. SoluM stated in its disclosure that it “plans to respond in accordance with legal procedures.”
SoluM issued a total of 7 million RCPS at a price of KRW 17,108 per share last year to raise funds for operating capital and the acquisition of securities in other companies, amounting to approximately KRW 120 billion. The issuance was approved by the company’s board in June 2025 and carried out through a third-party allotment. At the time, SoluM said the proceeds would be used to expand overseas sales networks for its electronic shelf label (ESL) business and to establish new production subsidiaries.
The lawsuit is widely interpreted as stemming from opposition by minority shareholders, who argue that the RCPS issuance was effectively intended as a defensive measure to protect management control. Following the RCPS issuance, Align Partners increased its stake in SoluM from 4.99% to 8.04% through on-market purchases between August 27 and September 3 last year.
Founded in 2021, Align Partners is known for its activist investment strategy aimed at enhancing corporate value through improvements in corporate governance. Through such activities, the firm’s assets under management surpassed KRW 1 trillion last year, just four years after its establishment.
SoluM, which was listed on the KOSPI in 2021, focuses on the research, development, and manufacturing of electronic components. On the previous trading day, SoluM shares closed at KRW 15,580, up KRW 10, or 0.06%, from the prior session.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
