Activist investor Palliser Capital has called on Taiwanese electronics manufacturer WUS Printed Circuit Co to take steps to unlock shareholder value, including considering a potential take-private transaction, according to a report by Bloomberg.
The report cites correspondence seen by Bloomberg as revealing that the UK-based hedge fund, which has accumulated a 4.3% stake in the company, argues that WUS shares are trading at a steep discount to underlying asset value.
In a letter dated 1 June, Palliser said the company’s market valuation implies a discount of more than 70% to net asset value and urged the board to establish an independent committee to assess strategic alternatives.
Among the options proposed by the activist are a privatisation of the company or the disposal of its holding in WUS Printed Circuit Kunshan Co, a separately listed affiliate.
WUS Printed Circuit, headquartered in Kaohsiung and valued at roughly $900m at Friday’s close, manufactures advanced printed circuit boards used in applications benefiting from the rapid buildout of AI-related data centre infrastructure.
The company owns an 11.3% stake in WUS Printed Circuit Kunshan, whose customer base includes Nvidia. Palliser described the holding as a significant undervalued asset, estimating that its worth exceeds three times WUS’s current market capitalization.
The company is also facing pressure from another shareholder, Singapore-based Metrica Partners, which has publicly raised concerns regarding valuation.
WUS spokesperson Mandy Lu confirmed receipt of Palliser’s letter and said management intends to engage with both investors this week while improving shareholder communications.
Lu said the company currently has no plans to pursue a privatisation, noting that the rationale for such a move remains uncertain. She also stated that WUS does not intend to dispose of its stake in WUS Printed Circuit Kunshan, describing the relationship between the two businesses as a long-term strategic partnership.
Palliser reportedly declined to comment on the matter.
Founded by former Elliott Investment Management executive James Smith, Palliser has increasingly targeted companies it believes are undervalued beneficiaries of the expansion of AI infrastructure.
Earlier this year, the hedge fund disclosed investments in Japanese companies Ajinomoto and Toto, advocating measures aimed at highlighting and monetising businesses linked to semiconductor supply chains.
