PJ Asset Management Issued A Letter to All Shareholders of T
TAIPEI, Dec. 15, 2019 /PRNewswire/ -- PJ Asset Management (PJAM)'s announcement to TECO's shareholders (on Dec. 13rd) was as below:
In compliance with the Securities and Exchange Act 43-1, PJAM and its subsidiary have notified TECO Electric & Machinery (the "Company" or "TECO") of our collective holdings over 10% common stock in TECO on Nov 28, making us the largest investor.
Subsequent to the announcement, we appreciated Chairman Chiu, CFO Yeh and IR manager Chien taking the time to meet with us on Dec 06 to discuss PJAM's "value creation proposition" laid out below. A friendly dialog to express our concerns and TECO's clarifications regarding our view was fully exchanged during the meeting. We were promised with regular engagements in the future to review the progress of our proposition. Considering the content of conversation may affect all investors, we feel it necessary to issue a public letter and make our appeal known to all investors.
PJAM has a strong track record of value investment and working with the investee companies to create long-term, fundamental value. Either through engagement with the target company's key stakeholders or issuance of the public letter, PJAM wishes to provide professional advices or necessary resources to help enhance the target company's operational efficiency, to remedy its chronic undervalue, and to improve its businesses and to unlock significant, sustainable value for its shareholders.
PJAM has spent considerable time working with industry experts and analysts to understand the challenges TECO's business is facing and potential solution. The outcome of the review shows TECO has the potentiality to achieve US$380 million of value creation. The value-added upside may arise from the following areas.
TECO's sustainable value creation and opportunities:
We were glad to hear that Chairman Chiu agreed with most of the proposed points and explained some measures have been taken place prior to our meeting, which include:
In addition to the consensus above, we sincerely hope the Company's board and management team can seriously consider other options suggested by us, such as
In doing so, we believe there is the potential to unlock the full, long-term value for TECO shareholders in a sustainable manner. This path requires only an acknowledgement of TECO's history of investments and a willingness to change course and realize the tremendous opportunity at hand. The friendly interaction was a start of regular engagements for both parts to review the progress of our proposition. We welcome the constructive discussion and look forward to working with the Company amiably hereafter.
SOURCE PJ Asset Management