Flashlight Capital Partners (FCP), a Singapore-based activist fund, said Monday that it had offered to acquire a 100 percent stake in a ginseng unit of KT&G., Korea's dominant tobacco company, for $1.4 billion.
FCP has submitted a letter of intent for the proposed acquisition of Korea Ginseng Corporation (KGC) KT&G's board. The fund said KGC has “immense potential” in a statement.
FCPl, an investor in KT&G, called for the tobacco monopoly to spin off its ginseng unit last year, but KT&G's board rejected the proposal.
A KT&G official confirmed that it has no plans to spin off KCG.
