South Korean PCB manufacturer ISU PETASYS (KOSPI: 007660) is set to meet with its minority shareholders on January 7, as part of an ongoing dialogue aimed at resolving current tensions surrounding the company's financial and governance decisions.

According to the Minority Shareholders Coalition, the meeting is scheduled for 10 AM and will involve a discussion on the company's controversial plans, including the cancellation of a proposed capital increase, the introduction of new roles to improve communication with minority shareholders, and a potential special shareholders' meeting.

To ensure effective communication, the Coalition has confirmed that five of its representatives will attend, alongside senior executives from ISU PETASYS, including one of the company's registered directors. This director will reportedly cancel participation in the CES 2025 event in Las Vegas to attend the meeting, which will take place from January 7–10.

This face-to-face engagement follows a series of unsuccessful requests from the Coalition for a direct meeting with the company's management. These demands have been in response to the company's decision to acquire JEIO, a second-tier battery company, and its subsequent announcement of a large-scale capital increase. The Coalition has been vocal in its opposition, arguing that the company has failed to adequately address shareholders' concerns and has urged the company to withdraw the capital increase proposal. Additionally, they have suggested creating a dedicated position for better communication with minority shareholders and implementing measures for governance improvements.

In response to these concerns, ISU PETASYS issued a public statement clarifying that its decision to acquire JEIO, reported on December 3, is not final, and the company will provide further updates once a decision is made or within the next three months. However, the company had not provided any substantive response to the Coalition’s requests for a meeting until the recent scheduled engagement.

The Coalition has also raised the prospect of calling a special shareholders' meeting to introduce a "cumulative voting" system, which would allow minority shareholders to have more influence in the selection of board members. If an agreement is not reached during the January 7 meeting, the Coalition plans to proceed with this initiative, with the aim of having their recommended candidates join the board at the regular shareholders' meeting in March.

The increasing pressure from minority shareholders has also caught the attention of financial regulators. The Financial Supervisory Service (FSS) has recently rejected ISU PETASYS's revised capital increase proposal, citing a lack of clarity regarding the rationale behind the company's decision to acquire JEIO. The FSS has demanded that the company provide more detailed information, including the reasoning for its decision and the potential impact on investors.

With tensions rising, the outcome of the January 7 meeting is expected to have significant implications for ISU PETASYS's future direction, particularly regarding its corporate governance and financial strategies.