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PETALING JAYA: Khazanah sold SilTerra Malaysia Sdn Bhd to Dagang NeXchange Bhd (DNeX) and a Chinese company for RM273 million, according to a report.
The Edge reported that DNeX and Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (CGP Fund) signed a share purchase and sale agreement to take over the semiconductor unit.
Citing a statement from DNeX, he said that the company will acquire a 60% stake in SilTerra’s share capital for RM163.8 million, while CGP Fund will get the remainder for RM109.2 million.
“The consideration for the DNeX purchase will be financed through a combination of income that will be obtained from a proposed private placement, internally generated funds and / or loans,” according to the financial daily.
DNeX and CGP Fund will also inject at least RM200 million into the company.
“Of the capital injection, approximately RM150 million will be used primarily as capex to upgrade SilTerra’s equipment and manufacturing capabilities into new technologies, with the remainder going to working capital,” DNex said.
The report added that DNeX will inject around RM120 million, based on its 60% stake.
DNeX said the acquisition will be completed before the third quarter of this year, while the capital injection is expected to take place within six months thereafter.
Thanking Khazanah for entrusting the company with SilTerra’s transformation, DNeX Managing Director Syed Zainal Abidin Syed Mohamed Tahir said he was optimistic about the company’s potential to grow at a rapid pace.
“We believe SilTerra can take advantage of the current shortage in the global semiconductor market and achieve better financial performance in the coming years,” he said.
He added that DNeX has set a two-year deadline for SilTerra to become profitable again.
