Activist Investor Expresses Its 'Frustration' In A Letter Delivered To Magnachip Semiconductor

Magnachip Semiconductor Corp MX is a designer and manufacturer or analog and mixed-signal semiconductor products for various applications. On Thursday, Magnachip Semiconductor received a letter from activist investor and major shareholder Pleasant Lake Partners. The investment fund owns a 10.2 percent stake in Magnachip Semiconductor and delivered a presentation to the company in 2015 which argued that the company's stock is undervalued as a pure-play on foundry. The presentation was followed up by a request to be considered as a potential buyer in any upcoming auction process. The activist investor expressed its "frustration" in its letter on Thursday. "We have sought to work constructively with the Company and its advisors in order to complete our diligence and effectuate a binding agreement for PLP to purchase the company," the letter stated. "However, despite our repeated attempts to negotiate with you, you and your advisors have placed undue burdens and restrictions on us." The letter continued that Magnachip Semiconductor continues to restrict its ability to perform a proper due diligence on the company. "We ask that you and the rest of the Board work constructively with us so that we may perform the diligence necessary to finalize a binding bid in conjunction with one or more partners," the letter concluded. "We are prepared to devote all necessary resources to evaluate and consummate a transaction.