Foxconn now substantial shareholder in DNEX

KUALA LUMPUR: Hon Hai Precision Industry Co Ltd’s subsidiary Foxconn Singapore Pte Ltd has emerged as a substantial shareholder in Dagang Nexchange Bhd (DNEX) after purchasing 120 million shares.

A filing with Bursa Malaysia showed the shares, representing a 5.03% stake, were acquired on June 10 from the existing shareholders.

DNEX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said DNEX is open to any collaboration with strategic partners and investors that can bring value to the group.

“We welcome the entry of the new shareholder Foxconn. We foresee this latest development can bring great potential to DNEX and we believe Foxconn’s entry can offer opportunities to unlock and create value across the high technology sector value chain and beyond,” he said.

Syed Zainal said potential areas for collaboration between DNEX and Foxconn are semiconductor and downstream products, electric vehicle and businesses related to the electric vehicle value chain.

On the outlook, he said DNEX is focused on growing its business and transforming the group into a technology player capable of competing in the global marketplace.

Together with Beijing Integrated Circuit Advanced Manufacturing and High-end Equipment Equity Investment Fund Center (Ltd Partnership) (CGP Fund), DNEX is finalising the acquisition of Silterra Malaysia Sdn Bhd.

Silterra manufactures semiconductor wafers that are supplied to multinational fabless and integrated device manufacturer companies.

Syed Zainal is upbeat on the outlook of the semiconductor sector as it is expected to stay bullish with increasing demand continuing up to 2024, which can lead to sustainable positive earnings for Silterra and DNEX.

“This makes the acquisition of Silterra timely and strategically compelling for DNEX. We are confident that our business in the semiconductor market will grow at a strong pace,” he said.

DNEX provides eservices for trade facilitation as well as system integration and consultancy. DNEX is also making its mark as a player in the oil and gas, and energy sector.

In a separate filing with Bursa Malaysia, the group said Azman Karim had ceased to be a substantial shareholder on June 11 following the disposal of 5 million shares via off-market trade.