KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) has received shareholders' nod for the proposed private placement of up to 30 per cent of its total issued shares during its extraordinary general meeting today.
DNeX, in a statement today, said proceeds from the private placement would be channelled to fund the proposed acquisition of SilTerra Malaysia Sdn Bhd, while the balance for other business expansion or investments.
On March 31, DNeX and Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (CGP Fund) signed a share sale and purchase agreement with Khazanah Nasional Bhd to buy a 100 per cent stake in SilTerra Malaysia Sdn Bhd for RM273 million.
Under the purchase agreement, DNeX would acquire a 60 per cent stake in SilTerra while CGP Fund the balance of 40 per cent.
The purchase consideration for the DNeX's 60 per cent stake in SilTerra will amount to about RM163.8 million, which will be funded through a combination of proceeds to be raised from a proposed private placement, internally generated funds and/or borrowings.
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.
Group managing director Datuk Seri Syed Zainal Abidin Mohamed Tahir said the enlarged share capital base and cash reserve would put DNeX on a stronger footing as the company aggressively turned into a competitive technology solution provider in the global market.
"The proceeds raised will allow us the liquidity and flexibility to pursue attractive investment opportunities that could potentially unlock more value to the group. We will be exploring for technology-related assets that could deliver synergistic benefits to our group as we aim to achieve multiplier effects on the investments that we embark on," he said.
Additionally, Syed Zainal said the company looked forward to welcome more strategic investors to DNeX who not only provide the company with the additional funding, but also add value in accelerating its expansion plans.
The placement shares will be issued at a price of not more than 20 per cent to the five-day volume weighted average market price (VWAP) of DNeX shares immediately preceding the price-fixing date.
The private placement entails the issuance of up to 891.6 million shares to third-party investors at an issue price that will be determined and announced at a later date.
