DNeX - Legal proceeding against China counterpart
DNeX issued a legal proceeding against Mimastronics Technologies Company Limited, a wholly-owned subsidiary of CGP (which also holds a 40% equity interest in Silterra).
DNeX and CGP owns Silterra 60:40 respectively.
However, DNeX's 60% portion was partially funded by the issuance of ICPS (amounting to RM100m) to MIMAS via DNeX Semi.
MIMAS has the right to convert this ICPS to own 33.3% in DNeX Semi.
Post-conversion, this will translate into an additional 20%-equity interest in Silterra.
33.3% x 60% = 20%
The complication is - according to MITI, there was a condition that at least 55% of the shareholding of SilTerra was to be owned by a Malaysian entity.
A breach of this condition would trigger a possible revocation of the Licence.
DNeX is trying to resolve this issue. Jeremie said will update in due course
Dealer's comments :
May take a while to sort this out.
This seems to be a negative development. Share prices will come under selling pressure
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