Coway Responds Officially to Align Partners' Shareholder Proposal and Dividend Demands
In a significant move, Coway Co., Ltd., recognized as the 'Best Life Solution Company', has formally addressed a shareholder proposal submitted by Align Partners Capital Management Inc. on January 7, 2025. The proposal, filed through the Seoul-based law firm Hannuri Law LLC, urges Coway to distribute dividends amounting to approximately 90% of the company’s consolidated net income. This suggestion starkly contrasts with Coway’s previously stated target of a 40% return for shareholders, designed to ensure the company's financial stability and long-term growth.
On January 16, 2025, Align Partners issued an open letter to shareholders, further emphasizing their demands and expectations, which have now raised eyebrows within the investment community. Coway's management responded diligently by communicating their stance to Align Partners via their legal counsel and simultaneously made their response available on the company’s Investor Relations (IR) website.
In its response, Coway confirmed the receipt of the proposal from Align Partners and conveyed it to its Board of Directors for diligent consideration. While expressing respect for the shareholder's input, Coway emphasized its commitment to adhering to its established policies regarding profitability and shareholder returns. Coway's management plans to present its own organized agenda regarding shareholder returns, standing on solid foundations like the finalized annual financial statements and the external audit’s progress, which reflects the company's healthy financial environment.
Jangwon Seo, CEO of Coway, stated, 'Our primary goal is to enhance shareholder value through consistent performance improvement. We appreciate your trust and support as we strive for sustainable growth of the company.' Coway remains focused on delivering tangible returns while evaluating Align Partners' proposal through a thorough review of its long-term strategic plans.
Established in Korea in 1989, Coway has built a formidable reputation as a leader in appliances promoting healthy living. The company’s extensive portfolio includes innovative products like water purifiers, air purifiers, bidets, and mattresses, which have all contributed to a healthier atmosphere at home for consumers. Recently, Coway has introduced the brand BEREX, aimed at enhancing sleep and wellness through advanced mattresses and massage chairs.
With a commitment to innovation, Coway leads in its sector backed by intensive research, engineering expertise, and exceptional customer service. Focusing on groundbreaking products with excellent market share and brand recognition, Coway has carved a niche with products acclaimed for performance and reliability. The firm is also expanding its global footprint with successful operations in countries such as Malaysia, the USA, Thailand, China, Indonesia, Vietnam, Japan, and Europe.
As Coway navigates through this shareholder proposal, it showcases its dual commitment to maintaining shareholder trust while prioritizing the company's financial health.
On January 16, 2025, Align Partners issued an open letter to shareholders, further emphasizing their demands and expectations, which have now raised eyebrows within the investment community. Coway's management responded diligently by communicating their stance to Align Partners via their legal counsel and simultaneously made their response available on the company’s Investor Relations (IR) website.
In its response, Coway confirmed the receipt of the proposal from Align Partners and conveyed it to its Board of Directors for diligent consideration. While expressing respect for the shareholder's input, Coway emphasized its commitment to adhering to its established policies regarding profitability and shareholder returns. Coway's management plans to present its own organized agenda regarding shareholder returns, standing on solid foundations like the finalized annual financial statements and the external audit’s progress, which reflects the company's healthy financial environment.
Jangwon Seo, CEO of Coway, stated, 'Our primary goal is to enhance shareholder value through consistent performance improvement. We appreciate your trust and support as we strive for sustainable growth of the company.' Coway remains focused on delivering tangible returns while evaluating Align Partners' proposal through a thorough review of its long-term strategic plans.
Established in Korea in 1989, Coway has built a formidable reputation as a leader in appliances promoting healthy living. The company’s extensive portfolio includes innovative products like water purifiers, air purifiers, bidets, and mattresses, which have all contributed to a healthier atmosphere at home for consumers. Recently, Coway has introduced the brand BEREX, aimed at enhancing sleep and wellness through advanced mattresses and massage chairs.
With a commitment to innovation, Coway leads in its sector backed by intensive research, engineering expertise, and exceptional customer service. Focusing on groundbreaking products with excellent market share and brand recognition, Coway has carved a niche with products acclaimed for performance and reliability. The firm is also expanding its global footprint with successful operations in countries such as Malaysia, the USA, Thailand, China, Indonesia, Vietnam, Japan, and Europe.
As Coway navigates through this shareholder proposal, it showcases its dual commitment to maintaining shareholder trust while prioritizing the company's financial health.
Topics Financial Services & Investing）
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