What’s Happening?

On July 25, 2025, a court approved the request by Kolmar Holdings to convene a shareholders’ meeting for Kolmar BNH. The main agenda item is the appointment of new board members, directly related to the power struggle between Kolmar Holdings and Kolmar BNH. Following a lawsuit filing announcement on May 9th, the conflict is clearly escalating.

Why is this Dispute Significant?

Kolmar BNH already faced a decline in Q1 2025 earnings (sales, operating profit, and net income all decreased year-over-year). Rising raw material costs, increased financial expenses, and intensified market competition are cited as key factors. This management dispute adds another layer of uncertainty, potentially disrupting business strategies and leading to a decline in company value. It could also negatively impact future growth drivers, such as the investment in the Sejong No. 3 plant.

What Does This Mean for the Stock Price?

Short-term volatility is expected. The outcome of the shareholders’ meeting and the new management’s strategy will significantly influence the stock’s direction. Prolonged conflict could put downward pressure on the price, while a swift resolution and positive management changes could lead to a rebound. The Q2 earnings release will be crucial in assessing whether the company can recover from the Q1 slump.

What Should Investors Do?

Investors should closely monitor the management dispute and the company’s future business strategies. A long-term investment perspective is crucial, avoiding impulsive reactions to short-term price fluctuations. Thorough research, including understanding the details of the dispute, analyzing potential outcomes, and gathering information on the new management team, is essential for managing investment risks.