Privatization MOOTED:
Palliser has built a 4.3 percent stake in WUS and says it is trading at a more than 70 percent discount to its net asset value
Activist hedge fund Palliser Capital (UK) Ltd is urging Taiwanese company WUS Printed Circuit Co (楠梓電子) to enhance shareholder value, including through a potential privatization, according to documents viewed by Bloomberg News.
Palliser has built a 4.3 percent stake in WUS Printed Circuit and says the firm is trading at a more than 70 percent discount to its net asset value, according to a June 1 letter sent to the company’s board from Palliser.
The hedge fund is asking the Kaohsiung-based firm to create an independent committee to evaluate its options for boosting value — including going private or selling off its equity stake in another printed circuit board company, the letter said.
Photo: Vanessa Cho, Taipei Times
WUS Printed Circuit, valued at about US$900 million at Friday last week’s close in Taiwan, produces complex circuit boards that are in high demand amid the artificial intelligence (AI) driven expansion of data center infrastructure.
The company also holds an 11.3 percent stake in WUS Printed Circuit Kunshan Co (滬士電子), a supplier of boards to Nvidia Corp.
Palliser described the Kunshan stake in its letter as a “hidden jewel,” estimating it to be worth more than three times WUS Printed Circuit’s current market value.
WUS also received another public letter from Singapore-based Metrica Partners Pte Ltd about valuation issues.
WUS spokesperson Mandy Lu (呂淑芬) confirmed the letter from Palliser. She said the company would liaise with both investors this week and pledged to strengthen communication with shareholders.
WUS Printed Circuit currently has no plans to go private, as the purpose of such a move remains unclear, she said, adding that the firm is open to discussions. The company also has no plans to sell its stake in WUS Printed Circuit Kunshan, as the two entities are long-term strategic partners.
Palliser, founded by Elliott Investment Management LP alumnus James Smith, has focused many of its activist stakes in overlooked corporates that play an important role in and stand to benefit from the buildup of AI-related infrastructure.
