Singapore’s Foxconn emerges as new substantial shareholder of DNeX

by PRIYA VASU / pic by BLOOMBERG

DAGANG NeXchange Bhd has announced that Foxconn Singapore Pte Ltd, a subsidiary of Hon Hai Precision Industry Co Ltd, has emerged as a substantial shareholder of DNeX with a 5.03% stake.

In a statement today DNeX said it has received an official notification from Foxconn on June 13, 2021 that it had acquired 120 million shares from existing shareholders of DNeX.

“DNeX is always open to any collaboration with strategic partners and investors that can bring value to the group. We welcome the entrance of the new shareholder, Foxconn.

We foresee this latest development can bring great potential to DNeX and we believe Foxconn’s entry can offer opportunities to unlock and create value across the high technology sector value chain and beyond,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.

He said potential areas for collaboration between DNeX and Foxconn are semiconductor and downstream products, electric vehicles and businesses related to the electric vehicle value chain.

Moving forward, Syed Zainal Abidin said DNeX is focused on growing its business and transforming the company into a technology player capable of competing in the global marketplace.

Together with Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre, DNeX is currently finalising the acquisition of SilTerra Malaysia Sdn Bhd, which manufactures semiconductor wafers that are supplied to multinational fabless and integrated device manufacturer companies.

“The outlook of the semiconductor sector is expected to stay bullish with increasing demand continuing up to 2024, which can lead to sustainable positive earnings for SilTerra and DNeX. This makes the acquisition of SilTerra timely and strategically compelling for DNeX. We are confident that our business in the semiconductor market will grow at a strong pace,” said Syed Zainal Abidin.