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BackPalliser Capital increases its holdings in Nanzi Electric by more than 5% and becomes a major shareholder
Palliser Capital increases its holdings in Nanzi Electric by more than 5% and becomes a major shareholder
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自由时报24 minutes agoBusiness2 min readChinaView original

Palliser Capital increases its holdings in Nanzi Electric by more than 5% and becomes a major shareholder

Palliser CapitalWUS Printed CircuitSmith

Quick Look

  • British active hedge fund Palliser Capital has increased its stake in Taiwanese printed circuit board manufacturer Nanzi Electric from 4.3% to more than 5%, becoming a major shareholder in accordance with the regulations of the Taiwan Stock Exchange.
  • Fund founder Smith said that Taiwan's AI and Huida supply chains provide attractive investment opportunities.
  • Nanzi Electric is favored because it is severely undervalued and has no major family or government shareholder control.

AI-generated summary

Why It Matters

Palliser Capital is a UK-based activist hedge fund founded by former Elliott Investment Management executive James Smith, focusing on identifying undervalued companies with structural growth potential. WUS Printed Circuit is a Taiwanese printed circuit board manufacturer headquartered in Kaohsiung whose products are used in data centers, benefiting from AI and Nvidia supply chain demand.

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Xu Hanzhong, chairman of Nanzi Electric. (File photo)

[Financial Channel/Comprehensive Report] British active hedge fund Palliser Capital has increased its holdings in Taiwanese printed circuit board manufacturer Nanzi Electric (2316). Palliser is increasing its efforts to find companies in Taiwan and Japan that have benefited from the AI boom and are undervalued.

According to Bloomberg, a recent regulatory filing stated that Palliser, founded by James Smith, a former senior executive at Elliott Investment Management, has increased its shareholding in Nanzi Electric from 4.3% to more than 5%, making it the largest shareholder of Nanzidian in accordance with Taiwan Stock Exchange regulations.

Please read on...

Palliser had asked Nanzi Electric to consider measures to increase shareholder value as early as June, including possibly privatizing the company.

Smith said that Taiwan is currently one of the company's most attractive investment markets, with AI and Nvidia's supply chain creating particularly attractive investment opportunities. He said that Palliser is currently considering several potential new investment targets.

Nanzi Electric, headquartered in Kaohsiung, produces advanced circuit boards for use in data centers, which fits the characteristics Palliser typically looks for in investment targets. Smith said the fund typically targets companies with valuations of about $1 billion to $10 billion and believes these companies have considerable room for revaluation.

He also pointed out that Nanzidian's shareholder structure is attractive, saying that the company does not have any family or government shareholders holding at least half of the company's equity and thus controlling the company.

Smith believes that although Nanzidian's industry has benefited from strong structural demand, the company is still seriously undervalued by the market. Palliser's appeal was limited analyst coverage and what he described as a significant gap in market perception of the company's valuation.

In addition to the technology industry, Palliser is also optimistic about potential opportunities in Taiwan's financial and real estate industries, believing that industry consolidation may provide opportunities to unlock shareholder value.

Regarding the issue of privatization, Nanzi Electric said in June that it currently has no privatization plan.

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What to Watch

AI outlook — possibilities, not facts

  • WUS Printed Circuit will convene a board meeting within the next three months to discuss Palliser's shareholder value enhancement proposals.

    Likely · Within months

  • If WUS Printed Circuit rejects privatization, Palliser may pressure the board for reforms via shareholder proposals.

    Possible · Within months

Open Questions

  • What attitude does the board of directors of WUS Printed Circuit hold toward Palliser's privatization request?
  • Does Palliser plan to further increase its shareholding ratio?
  • Will the Taiwan Stock Exchange review the impact of such foreign stake increases on corporate governance?

Related Topics

Palliser Capital
PeopleJames SmithHsiu Han-Chung
OrganizationsElliott Investment ManagementWUS Printed CircuitTaiwan Stock Exchange
PlacesTaiwanKaohsiungUnited Kingdom
TopicsWUS Printed CircuitSmithElliott Investment ManagementNvidiaPrivatizationShareholder value
This article was originally published by 自由时报.

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