Khazanah sells Silterra to DNex and China-based Equity Fund for RM273 mil cash

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KUALA LUMPUR (March 31): Dagang NeXchange Bhd (DNeX) and Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) (CGP Fund) have signed a share sale and purchase agreement with Khazanah Nasional Bhd to take over loss-making semiconductor unit SilTerra Malaysia Sdn Bhd for RM273 million cash.

In a statement, DNeX said under the agreement, DNeX will buy a 60% equity interest in SilTerra for RM163.8 million, while CGP Fund will acquire the remaining 40% for RM109.2 million.

The purchase consideration for DNeX will be funded through a combination of proceeds to be raised from a proposed private placement, internally-generated funds and/or borrowings, the statement said.

DNex and CGP Fund have also committed to a capital injection of at least RM200 million by way of subscribing for new ordinary shares to be allotted and issued by SilTerra.

“From the capital injection, approximately RM150 million will be mainly utilised as capital expenditure to upgrade SilTerra’s equipment and manufacturing capabilities in new technologies, with the remaining allocated for working capital. Based on DNeX’s 60% equity stake, the capital injection by DNeX shall amount to approximately RM120 million.

(More to come)