SK surges more than 13% on news that Align holds a 1.5% stake [Stock NOW]

[The Financial News] SK is surging after Align Partners Asset Management disclosed that it holds a stake in the company.
As of 11:49 a.m. on the 21st, SK was trading at 484,000 won, up 56,000 won (13.08%) from the previous trading day. At one point during the session, it surged more than 15% and touched the 490,000-won range.
According to people in the financial investment industry, Align CEO Lee Chang-hwan presented SK as an activist investment idea at the 13D Monitor Active-Passive Investor Summit, held in New York on the 20th (local time). He said that funds managed or advised by Align held approximately 1,088,753 shares of SK, equivalent to about 1.5% of the total shares outstanding.
Align assessed that SK hynix's growth potential was not being sufficiently reflected in the value of its holding company. SK owns a 32.2% stake in SK Square, which in turn owns about 20% of SK hynix; this, Align noted, creates a structure in which the holding-company discount is applied twice.
Align valued SK Square based on its net asset value (NAV), rather than its market capitalization, and estimated SK's NAV at about 100 trillion won. The discount rate is around 75.0%, rising to 91.4% when measured against net investment assets excluding direct businesses.

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