Shareholders of Dagang NeXchange Bhd (DNeX) have approved the acquisition of a 60 per cent stake in SilTerra Malaysia Sdn Bhd for a cash consideration of RM163.8 million.
In a filing with Bursa Malaysia, DNeX, an information technology services provider, said it has teamed up with Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership), also known as CGP Fund, to acquire SilTerra on March 31, 2021.
SilTerra is Khazanah Nasional Bhd’s semiconductor unit.
In a statement today, group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said DNeX and the CGP Fund are looking forward to growing SilTerra into a technology player capable of competing in the global marketplace.
“As part of our collaboration, we expect to turn SilTerra around in two years, with an immediate focus on increasing plant utilisation, cost optimisation and expanding market access by leveraging on CGP Fund’s network,” he said.
Syed Zainal added that given the bullish outlook for the semiconductor sector, this timely and strategically compelling acquisition, as well as the diversification of the group’s principal activities allows DNeX to benefit from sustained positive earnings and explore future growth potential over the medium to long term.
“The semiconductor sector today is seeing demand firmly outstripping supply and this reality is expected to persist with increasing demand continuing up to 2024,” he said. –Bernama