Foxconn’s entry can offer opportunities to unlock and create value across the high-tech sector value chain and beyond
by PRIYA VASU / Pic by BLOOMBERG
DAGANG NeXchange Bhd (DNeX) stated that Foxconn Singapore Pte Ltd, a subsidiary of Hon Hai Precision Industry Co Ltd, has emerged as a substantial shareholder with a 5.03% stake.
In a statement yesterday DNeX noted that it had 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,” DNex group MD Tan Sri Syed Zainal Abidin Syed Mohamed Tahir stated in a release yesterday.
He added that potential areas for collaboration between DNeX and Foxconn are in the space of semiconductor and downstream products, electric vehicles (EVs) and businesses related to the EV value chain.
Syed Zainal 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 from Khazanah Nasional Bhd for RM273 million cash.
SilTerra 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 our business in the semiconductor market will grow at a strong pace,” said Syed Zainal Abidin.
In an exchange filing yesterday, DNeX stated that Azman Karim has ceased to be a substantial shareholder after disposing of five million shares in the company on June 11, 2021.
DNeX closed half a sen higher at 86.5 sen yesterday, valuing the company at RM2.06 billion.