Inari seeks transfer to Main Market

KUALA LUMPUR (July 9, 2013): Inari Amertron Bhd, an electronics manufacturing services provider listed on the ACE Market of Bursa Malaysia, expects a transfer to the Main Market in the fourth quarter of this year.

Its vice-chairman, Dr Tan Seng Chuan, said the proposed transfer to the Main Market, which is pending approvals from the authorities and the shareholders at an upcoming EGM, comes after the group completed the acquisition of Amertron Inc (Global) Ltd, a key player in the optoelectronics manufacturing sector. The group has changed its name to Inari Amertron, from Inari Bhd.

"Amertron will add US$100 million (RM321 million) to our revenue in the financial year ending June 30, 2014," he told reporters after the launch of the group's new corporate identity and a signing ceremony with M&A Securities Sdn Bhd as its principal adviser for the corporate exercise here yesterday.

Inari provides semiconductor packaging services for global players in the radio frequency (RF) mobile industry, which includes back-end wafer processing and RF testing for key components used in the manufacturing of mobile smart devices such as smartphones and tablet PCs.

Listed on the ACE Market since July 2011, Inari has reported a three-year net profit totalling RM53.2 million from financial years ended June 30, 2010 to 2012, satisfying the minimum uninterrupted profit track record of RM20 million over three years to be eligible for the transfer.

Tan said the group's proposed transfer reflects a natural progression for Inari as a fast-growing public-listed company, as it seeks to institutionalise and broaden its shareholder base as a Main Market company.

"Our Penang facilities have a capacity utilisation of 80% to 85%. With the acquisition of Amertron, it will enlarge our total facility floor space to 400,000 sq ft from 200,000 sq ft. Our number of employees has increased to 4,600 from 1,800," said Tan.

The enlarged group has a total of nine manufacturing plants in Penang and Johor, and Kunshan (China), as well as Clark Field and Paranaque (Philippines).

"We will spend the next one year working on the integration of Inari and Amertron," Tan said, adding that the group is aiming for RM1 billion revenue in three years, from about RM600 million currently.

The successful consolidation of Inari Amertron enhances the group's position as a leading player in the RF and optoelectronics segment, and its entrenchment in global EMS supply chain, he added.