SINGAPORE (June 2): Steel manufacturer HG Metal Manufacturing confirmed it has received a letter from Switzerland-based activist fund manager Quarz Capital Management.

In a filing on Thursday night, HG Metal says it “conducts regular reviews of the strategic options of the group from time to time [and that] certain issues raised in the Quarz letter have also been considered by the board in its engagement with the company’s shareholders during the company’s annual general meetings.”

HG Metals’ confirmation comes after an open letter to its management was issued by Quarz on May 31, saying shares of HG Metal remained severely undervalued, despite a turnaround in profitability in 2016. The shares, which closed at 35 cents on May 30, the last full trading day before the release of the letter, was trading at a 60% discount to its book value, and a discount of 20% and 35% relative to its peers, noted Quarz.

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