PJ Asset Management Issues a Letter to Shareholders of TECO Electric & Machinery
December 15, 2019 at 08:22 pm EST
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On December 16, 2019, PJ Asset Management Co., Ltd. announced that it engaged with the Chairman of TECO Electric & Machinery Co., Ltd. on December 6, 2019 expressing its concerns and the Company’s clarifications regarding PJ Asset Management’s view. PJ Asset Management also stated that the Company’s sustainable value creation and opportunities may arise from the following are: (1) Incorporate system automation business into its core business line, (2) Revisit all direct and indirect investment and shed non-performing assets by completing a sober, dispassionate, full portfolio, and operational review, (3) Conduct a comprehensive review of its existing governance policies, board, and management structure to ensure the right leadership and governance is in place for each business to achieve its full potential, (4) Improve balance sheet efficiency by reducing the equity book or excessive cash on hand, and (5) Adjust current major-shareholder-oriented strategy and identify the optimal industry position for the Company may yield significantly better tangible outcomes for customers, employees, and shareholders.
TECO Electric Machinery Co Ltd is a Taiwan-based company mainly engaged in the manufacture and sale of heavy electricity equipment and electronic control products. The Company operates through two business segments. The Heavy Electrical Equipment segment is engaged in the manufacture and sale of various motors, reducers, inverters and generators. The Home Appliances segment is engaged in the manufacture, installation and sale of various televisions and other video appliances, as well as air conditioners, refrigerators, washing machines and small household appliances. The Company is also engaged in the provision of power engineering services and power equipment, as well as electric vehicle products, fire pumps and other products. The Company operates within the domestic market and to overseas markets, including the Americas, Europe, Australia, Japan, Singapore, Indonesia and mainland China.