Activist Investor Flashlight Makes Offer for Samsung Affiliates' Stake in S-1

By Fabiana Negrin Ochoa

Activist investor Flashlight Capital Partners has made a $654.6 million offer to buy Samsung Group affiliates' stake in S-1, ramping up its bid to unlock shareholder value at Korea's largest security services company.

Flashlight is offering 116,000 won a share, equivalent to $83.76, for the 20.6% slice of S-1 held by Samsung SDI, Samsung Life, Samsung Fire & Marine and two other affiliates.

The firm said that represents a 45% premium to current market levels and exceeds S-1's all-time closing high.

In a statement, Flashlight said it doesn't see a strategic reason for the affiliates to retain the S-1 holding, and that selling off a noncore asset would free up capital for investment.

Founded by Sanghyun Lee, former head of Korea at Carlyle Group, Flashlight said its activist campaign is the first to be launched since South Korea amended the Commercial Act as part of a broader corporate governance push.

In June, Flashlight published a letter to S-1's board outlining a five-point plan to boost shareholder value. Among its requests was a call for the company to establish a three-year shareholder value-creation roadmap and draft a five-year strategic plan to address growth opportunities.

Flashlight, which is also an S-1 shareholder, said that the boards of the five Samsung Group affiliates have until Sept. 23 to respond to the offer.

Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com

(END) Dow Jones Newswires

August 26, 2026 22:41 ET (02:41 GMT)