KUALA LUMPUR, March 2 (Bernama) -- LONSIN Capital Ltd, with its affiliates, representing over five per cent of the shares outstanding of Asia Pacific Wire and Cable (APWC), are interested to acquire a majority of APWC US at US$4.00 per share.
It had written to the board of directors (BOD) of the company and to the BOD of the main shareholder, Pacific Electric Wire and Cable Co (PEWC), on Feb 23, 2018, on its intention.
LONSIN believes that the acquisition of the majority stake would bring ‘fresh impetus´ to APWC´s assets and swiftly deliver enhanced value for all shareholders.
Previously, LONSIN had expressed concern to the management on the failure of the company to take sufficient action to enhance shareholder value and to include an additional independent director on the company's BOD over time.
In May 2016, it had also written a requisitioned, open letter to the BOD of APWC, asking the board to consider a range of measures that could help deliver enhanced shareholder value without much cost to the company.
However, almost two years later, the share price is still at a massive discount to book value, to cash per share and to the market value of the majority stake in listed subsidiary, Charoong Thai Wire (CTW), Thailand.
The Board of PEWC´s US legal counsel, Michael Hagan responded on Feb 27, 2018, stating that the LONSIN letter had been circulated to the board for their consideration.
"The response goes on to state that a substantive response to the LONSIN offer will be issued in due course but it is unlikely to be before March 8, 2018 owing to existing commitments of the directors," he said.
-- BERNAMA
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