Mountaineer Partners urges Vishay board to adopt accelerated share repurchase

Mountaineer Partners Management which owns over 2 million shares of Common Stock, par value $0.10 per share, of Vishay Intertechnology, has issued an open letter to the Company’s board of directors, urging the Board to enhance shareholder value at the Company by adopting and implementing a $600 million accelerated share repurchase. The letter read, in part, ” Mountaineer Partners has been a long-term significant holder of Vishay Intertechnology for more than two years, with ownership of more than 2 million of the Company’s shares outstanding. We have appreciated our ongoing dialogue with management and the Company’s board of directors throughout the course of our investment and the opportunity to share our views on the steps the Board can take to unlock value for the benefit of its shareholders. As I am sure you agree, CEO Joel Smejkal and his team presented a very compelling business plan on April 2, 2024 at Vishay’s first ever Investor Day. The market, however, had a very different take as it sent Vishay shares down that day and lower still through the end of the week. Given Vishay’s overcapitalized balance sheet, the Board should take advantage of Vishay’s irrationally low valuation by approving and implementing a $600 million accelerated share repurchase. With over $1.5 billion of cash and revolver availability, and a stock trading at 8.8x 2023 Adj. EPS, a $600 million share repurchase is a prudent mechanism for delivering compelling shareholder returns. Our research indicates that should the Company combine a $600 million accelerated share repurchase with the $725 million of repurchases through 2028 indicated in the Investor Day planix, Vishay could repurchase 45% of shares outstanding at current prices while comfortably funding the compelling growth plan presented at the Investor Day.”