Foreign Fund Calls for Privatization Review; Nanzhi Electric: No Such Plans

Central News Agency Report

(CNA reporter Jiang Mingyan, Taipei, June 16) UK-based activist hedge fund Palliser Capital has urged PCB manufacturer Nanzhi Electric to take measures to enhance shareholder value, including evaluating the possibility of privatization. In response, Nanzhi Electric stated it currently has no privatization plans and is in ongoing communication with shareholders. The company emphasized its steady growth and improving operations, noting that being a publicly listed company is a better option for its major clients.

Media reports indicate that UK-based activist hedge fund Palliser Capital has urged Taiwan’s printed circuit board (PCB) manufacturer Nanzhi Electric to implement measures to boost shareholder value, including assessing the feasibility of privatization.

In a letter dated June 1 addressed to Nanzhi Electric’s board of directors, Palliser disclosed that it has built a stake of approximately 4.3% and recommended the establishment of an independent committee to evaluate various strategies for enhancing corporate value. These strategies include privatization or divesting its holdings in another PCB company, Wus Printed Circuit Company (Wus PCB), in which Nanzhi Electric holds a 11.3% stake.

Wus PCB supplies printed circuit boards to clients such as NVIDIA and is a key player in the AI server supply chain. Palliser described Nanzhi Electric’s stake in Wus PCB as a 'hidden jewel' in its letter.

Lyu Shu-fen, spokesperson for Nanzhi Electric, stated that while the company respects the foreign investor’s position, it currently has no plans for privatization and is actively engaging in discussions with shareholders. She also confirmed there are no plans to sell its stake in Wus PCB, as both companies maintain a long-term strategic partnership.

Lyu emphasized that as a listed company, Nanzhi Electric must consider the interests of all shareholders. From a business development perspective, the company has entered a phase of gradual growth and operational improvement. Remaining listed, she noted, is a more favorable option for large clients. (Edited by Yang Kai-xiang) 1150616

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