LONDON, March 01, 2018 (GLOBE NEWSWIRE) -- LONSIN Capital Limited, together with its affiliates, representing over 5% of the shares outstanding of Asia Pacific Wire and Cable ("APWC", ticker “APWC US") on February 23, 2018 wrote to the Board of Directors of the Company and to the Board of Directors of the main Shareholder Pacific Electric Wire and Cable Co. the intention of interest to acquire a majority of APWC US at US$4.00 per share.
The proposal would represent a 62% premium to February 22, 2018 ’s close of $2.475 and a 47% premium to the five-year average closing price on NASDAQ.
LONSIN has expressed concern to the management, both orally and in writing, concerning the failure of the Company to take sufficient action to enhance shareholder value and to include an additional independent director on the Company’s board of directors over time. On May 18, 2016 LONSIN wrote a requisitioned, open letter to the Board of Directors of APWC asking the Board to consider a range of measures that could help deliver enhanced shareholder value without much cost to the Company. The Board responded by stating that they “took very seriously concerns about shareholder value.”
Almost two years later, it is clear that this statement by the APWC Board is questionable. 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”) in Thailand.
In light of the underwhelming track record of the incumbent Board and Management of APWC over the short, medium and longer term, 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.”
A response received from the Board of PEWC’s US legal counsel, Michael Hagan, on February 27, 2018 states that the "LONSIN letter has 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 the March 8, 2018 owing to existing commitments of the directors.
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Source:Lonsin Capital Limited