by NURUL NAJMIN ABU BAKAR

TETHYSTRONICS Technologies Co Ltd (TTCL) has won an arbitration against Dagang NeXchange Bhd (DNeX) in relation to board appointments at a joint venture outfit.

In an exchange filing yesterday (Feb 12), Dnex said it has received the final arbitration award from the Asian International Arbitration Centre (AIAC) in favour of TTCL over a dispute concerning SilTerra Malaysia Sdn Bhd’s board structure.

TTCL alleged that DNeX’s subsidiaries, DNeX Semiconductor Sdn Bhd (DNeX Semi) and SilTerra, breached agreements by appointing additional directors through a members’ written resolution.

DNeX stated that the arbitration costs will not have a material financial impact on the group for the financial year ending Dec 31, 2025.

Despite the ruling, DNeX assured that SilTerra remained fully operational, with business continuing as usual.

On Dec 15, 2022, TTCL filed an originating summons and arbitration proceedings against DNeX, DNeX Semi and SilTerra.

TTCL then was owned by Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (CGP), which held a 40% stake in SilTerra, while DNeX Semi owned the remaining 60%.

TTCL sought to prevent the newly appointed board members from acting without requesting their removal, while DNeX defended the appointments as being in line with SilTerra’s constitution and intended to strengthen its board with experienced industry experts.

Meanwhile, arbitration proceedings between DNeX Semi and Mimastronics Technologies Co Ltd, a TTCL subsidiary, over a proposed investment in SilTerra are ongoing.