Activist Palliser takes stake in Japan’s SMC, proposes $3.8 billion buyback

TOKYO: London-based activist fund Palliser Capital has made a “significant” investment in Japanese factory automation firm SMC Corp and has proposed it conduct a $3.8 billion buyback, according to a letter sent to the company and reviewed by ‌Reuters.

Palliser believes SMC, ⁠which ⁠makes machinery used in chipmaking, has shown foresight in investing in production capacity but said the company is undervalued and should focus on improving utilisation and margins, the letter showed.