Korea Small Cap Gem #8: Sajo Industries - Minority Activists Take Charge

Sajo Industries is one of the mid-sized food companies in Korea, specializing in tuna fish, pet food, Korean condiments, and other food products.

A group of minority shareholders are "going activist" on this company and requesting an EGM.

• They believe that the market value of Sajo Industries' real estate is worth nearly 10x what is recorded on the balance sheet (about 5 trillion won in market value versus book value of about 0.5 trillion won).
• This group of minority shareholders are also balking at the proposed merger of Castlex Seoul and Castlex Jeju, a couple of golf courses in Seoul and Jeju, which clearly appears to be a move that could benefit the controlling shareholder but not the minority shareholders of Sajo Industries.