Activist Palliser takes stake in Japan's SMC, proposes US$3.8bil buyback

Activist fund Palliser Capital has acquired a “significant” stake in Japanese factory automation firm SMC Corp and has proposed a US$3.8 billion share buyback. Palliser believes SMC is undervalued despite its strong position in chipmaking machinery and ample production capacity, pushing for improved utilization and margins. The move aligns with Japan’s corporate governance reforms, encouraging companies to deploy excess cash.

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