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Dalton Takes 5% Stake in Korean Cosmetics Maker Kolmar, Sparking Activist Talk

The beauty products manufacturer trades at less than half its book value despite buyback efforts
South Korea
k 024720.KO Beauty 40
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Dalton Investments Inc. acquired a 5.02% stake in Kolmar Holdings Co., raising speculation about potential activist moves at the South Korean cosmetics manufacturer.

The US investment firm, which manages $4.3 billion, built its position through market purchases since early 2024. While Dalton claims the investment is passive, market observers point to the fund’s track record of pushing for corporate changes across Asia.

Kolmar Holdings, which controls Korea’s third-largest cosmetics contract manufacturer, has seen its shares plunge 41% from their July peak of 12,140 won despite announcing a 20 trillion won ($14.3 million) share cancellation program. The stock now trades at 0.44 times book value.

A company official dismissed activist concerns, saying Dalton likely sees value in the underpriced shares. The holding company derives revenue from dividends and royalties from subsidiaries including Kolmar Korea Co., packaging maker Yonwoo Co., and health supplement producer Kolmar BNH Co.

Dalton’s recent activism includes pressing Fuji Media Holdings to go private and urging SK Group to boost share buybacks. The fund has previously targeted other Korean firms including Hyundai Home Shopping Network Corp. and Samyung Trading Co. for shareholder-friendly reforms.

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