Magnachip Semiconductor Corp (MX): Pleasant Lake Partners Seeks to Acquire the Company

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Johnathan Lennon‘s Pleasant Lake Partners send a letter to Magnachip Semiconductor Corp (NYSE:MXdiscussing a potential acquisition of the company. Namely, Pleasant Lake Partners have been trying to complete diligence and achieve a binding agreement to acquire Magnachip Semiconductor Corp (NYSE:MX), but have come across various obstacles, such as the company’s resistance to make specific information to be of public knowledge and thus not making it possible for Pleasant Lake Partners to create a binding bid. Furthermore, Pleasant Lake Partners have demanded to work with other potential bidders for the company, to obtain Magnachip Semiconductor Corp (NYSE:MX) as a consortium, and are now asking the board to start working with them constructively in order to finally carry out the diligence needed to complete a binding bid in conjunction with one or more partners. If the board doesn’t answer to their demands they will not hold back from exercising any and all of their shareholders’ rights. According to the filing with the US SEC, Pleasant Lake Partners owns 3.53 million shares of Magnachip Semiconductor Corp (NYSE:MX), which account for 10.2% of the company’s outstanding stock. There has been a slight increase in the number of shares, compared to 3.42 million shares or 9.8% of the total amount of shares Pleasant Lake Partners reported holding in February in a previous 13D/A filing.

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Magnachip Semiconductor Corp is a holding company that produces mixed-signal and analog semiconductor products for a variety of applications such as industrial, automotive and computing to name a few.  Year-to-date, the company’s stock is down by 7.94%. For the first quarter of 2016, Magnachip Semiconductor Corp (NYSE:MX) has reported a loss per share of $0.08 and revenue of $148 million, beating the estimates of a loss of $0.26 per share and $144 million, respectively. A couple of days ago, Magnachip Semiconductor’s board amended and restated bylaws of the company to declassify board.
According to Insider Monkey’s database, at the end of December 14 investors reported long positions in Magnachip Semiconductor Corp (NYSE:MX), versus 21 fund a quarter earlier. Marc Lasry’s  Avenue Capital disclosed the most valuable position in the stock, worth around $21.6 million, and the second biggest position was held by  Glenn W. Welling’s Engaged Capital, valued at $18.3 million. Other investors long the stock are Thomas Ellis and Todd Hammer’s North Run Capital, and Don Morgan’s Brigade Capital.
Among the investors who lost interest in Magnachip Semiconductor Corp (NYSE:MX), and sold off their positions are  Charles Davidson’s Wexford Capital, which dropped a stake worth  $9.9 million, followed by Stephen V. Raneri’s LionEye Capital Management, which dumped about $8 million worth of shares during the fourth quarter.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Pleasant Lake Partners 0 3,530,515 0 3,530,515 3,530,515 10.2%
PLP MM 0 3,530,515 0 3,530,515 3,530,515 10.2%
Pleasant Lake Onshore GP 0 3,530,515 0 3,530,515 3,530,515 10.2%
Pleasant Lake Offshore Master Fund 0 3,530,515 0 3,530,515 3,530,515 10.2%
Jonathan Lennon 0 3,530,515 0 3,530,515 3,530,515 10.2%

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Page 1 of 8 – SEC Filing

Washington, D.C. 20549
OMB Number:3235-0145
Expires: February 28, 2009
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hours per response… 10.4
Under the Securities Exchange Act of 1934
(Amendment No. 6)*
MagnaChip Semiconductor Corporation
(Name of Issuer)
Common Stock
(Title of Class of Securities)
(CUSIP Number)
Pleasant Lake Partners LLC
110 Greene Street, Suite 604
New York, NY  10012
Tel. No.: 212-554-0680 
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
May 12, 2016
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [  ]
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

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