Activist Palliser Capital pushes for changes at SK hynix’s largest holder – WSJ

Activist investor Palliser Capital has accumulated a stake in the holding company of Korean chipmaker SK hynix (OTCPK:HXSCF).

London-based Palliser owns more than 1% of SK Square, an arm of conglomerate SK Group, after building the position over the past two years, according to a WSJ report on Tuesday, which cited people familiar with the matter.

SK Square is SK hynix’s largest holder with a ~20% stake. SK Square trades at a large discount to its underlying holdings, especially its stake in SK Hynix (OTCPK:HXSCF), which is valued at about $20 billion, according to the report.

Palliser has had talks with SK Square about reducing the discount through increased investment spending and accelerating its share repurchase plan, the WSJ said. Palliser also been advocating for more board directors with asset-management experience.

An SK Square spokesperson told the WSJ that the company plans to “increase its corporate value through new investments, portfolio value-up initiatives, and the monetization of noncore assets.”

SK Hynix (OTCPK:HXSCF) competes with Micron (MU), Samsung Electronics (OTCPK:SSNLF) and others.