KUALA LUMPUR – Dagang NeXchange Bhd (DNeX) is now the majority owner of SilTerra Malaysia Sdn Bhd after the listed IT services provider completed its purchase of a majority stake in the chip foundry.
DNeX purchased 60% of the Silterra from Khazanah Nasional Bhd for RM163.8 million, to be satisfied entirely by cash, while the remaining 40% is held by Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Centre Ltd (CGP Fund).
“We are pleased to announce the completion of our acquisition of SilTerra. Our entry into the semiconductor market is certainly well timed given the current global shortage of chips affecting deliveries of cars, home appliances, notebooks, smartphones, and video game consoles, among others.
“We expect demand to continue to rise beyond 2024 driven by the growing adoption of 5G wireless technology, IR 4.0, Internet of Things, cloud computing and electric vehicles,” DNeX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said in a statement today.
To put SilTerra “on the map again”, Syed Zainal said DNeX will look at greater plant utilisation and cost optimisation.
DNeX and CGP Fund will also seek to upgrade SilTerra’s equipment and manufacturing capabilities, optimise its product mix and improve sales margins.
These “are expected to drive turnover and enhance the earnings potential of SilTerra”, DNeX said.
DNeX’s shares ended 5.19% lower at 73 sen today, valuing the IT company at RM2.11 billion. – The Vibes, July 26, 2021
