Inari buys 9.75 stake in Taipei-listed PCL Technologies Inc

PETALING JAYA: Inari Amerton Bhd is buying a 9.7% stake in PCL Technologies Inc, a China based optical transceiver modules maker, for TWD355.0 million (RM44.5 million) to help expand its business in the republic.

In a stock exchange filing yesterday, Inari said it had acquired 5 million PCL shares via direct business transactions through the Taiwan Stock Exchange (TWSE) for TWD355.0 million or TWD71.0 per PCL Share.
"The acquisition price of TWD71.0 per PCL share represents a premium of 8.40% above the closing price of TWD65.5 as at March 7, 2016," Inari said
"The acquisition represents an investment opportunity which allow Inari to invest in a TWSE listed semiconductor company whose core operating businesses are complementary to Inari and it is profitable, well run and has a significant presence in China," it added.
At the same, Inari entered into the memorandum of understanding with PCL to set up a joint-venture entity (JVE) in China.
It said that the JVE will provide outsourced semiconductor assembly and test (OSAT) services to major customers in China with particular focus on front-end OSAT services.
Inari mentioned that it and PCL plans to list the JVE, which has an initial capitalisation of US$20.0 million, in China within five years.
It said the MoU represents an opportunity and commitment to foster a business relationship with PCL, with a view to collaborate and expand the OSAT and other semiconductor services in the republic.
"The MOU will also enable Inari to diversify and increase its revenue and earnings stream," it added. PCL distributes its products within domestic market and to overseas markets.