Palliser Capital Presents Recommendations to Unlock Value and Catalyze Growth at Samsung C&T

Published a year ago via Business Wire
  • Palliser highlights US$25BN of intrinsic value to be unlocked at Samsung C&T, a potential share price upside of up to 170%
  • Palliser unveils value-enhancing recommendations at Sohn London conference

Palliser Capital (“Palliser”), a long-standing investor in Samsung C&T Corp. (“SCT” or “the Company”), with a 0.62%1 shareholding, today published a comprehensive presentation detailing opportunities to unlock significant long-term value at SCT following Palliser’s participation at the 10th Annual Sohn London Investment Conference. Palliser's presentation highlights the US$25BN disparity between SCT’s share price and its intrinsic market value, equivalent to a 63% discount (the “SCT Value Gap”), and the clear and actionable measures SCT can take to eradicate that discount while catalyzing the next phase of growth for the Company. Palliser believes SCT has an opportunity to proactively lead on governance and capital allocation and change the narrative on the “Korea Discount” for the benefit of not only SCT stakeholders, but the Korean stock market and broader society as a whole.

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The recommendations highlighted by Palliser during the presentation to remove the SCT Value Gap and catalyze growth include:

  1. Adopting a disciplined and return-oriented capital allocation framework that directs capital to the best opportunities available to SCT, while delivering a fair return for shareholders;
  2. Improving governance and transparency to rebuild investor trust, optimize decision-making, and ensure SCT’s assets and investment plans are properly understood and valued by the market; and
  3. Reducing structural inefficiencies through a transparent review of transitioning Samsung Group’s complex group structure to a holding company structure to reduce multiple group-wide inefficiencies.

Palliser Founder and CIO James Smith said:

“Palliser’s team benefits from a deep history as long-standing investors in Samsung C&T dating back over a decade, and, as such, we have a great understanding and appreciation for the Company and its high-quality assets. Unfortunately, SCT is trading at a deep discount, signaling investor concerns over capital investment and value creation, despite good underlying fundamentals. We believe our comprehensive yet practical value enhancement recommendations, if implemented, will enable the Company to significantly narrow, if not remove, this discount and realize its intrinsic value while simultaneously driving long-term growth. We look forward to a productive and collaborative engagement with SCT’s Board and management to achieve positive change for the Company, which we believe will restore investor confidence in its equity story and strengthen its position as a vital Korean economic leader.”

Full details of the presentation are outlined in the accompanying attachment.

About Palliser Capital

Palliser Capital is a global multi-strategy fund based in London. Our value-oriented investment philosophy is applied to a broad range of opportunities across the capital structure with a focus on situations where positive change and value enhancement can be achieved through thoughtful, constructive and long-term engagement with companies and across a range of different stakeholder groups. Palliser Capital is a significant shareholder in SCT with a stake of 0.62%.

1 Based on shares outstanding excluding treasury shares

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