Wednesday 29 Nov 2023
By /
main news image

KUALA LUMPUR (Aug 5): Mi Technovation Bhd has subscribed for a 45 million yuan (RM29.36 million) increase in the capital of Talentek Microelectronics (Hefei) Ltd, as part of its efforts to set its foothold in the semiconductor final test segment in China.

The deal will see Mi Technovation, through its wholly-owned unit Suzhou Mi Equipment Co Ltd (Mi Equipment China), becoming a 22.64% shareholder in Talentek for nine million yuan, whereas another 36 million yuan will be utilised as capital expenditure and working capital.

"The proposed subscription represents a strategic business collaboration between the Semiconductor Equipment Business Unit (SEBU) of Mi Technovation Group and Talentek Microelectronics that is largely complementary to the group's existing businesses.

"This will enable the SEBU via Mi Equipment China to be involved in the China domestic ecosystem, i.e. the semiconductor final test segment," it said.

"In view of the massive investment and development in the semiconductor industry, the board foresees that Talentek and Mi Equipment China will stay at a perfect position to collaborate on the development of automated test equipment and test handler as well as providing test service to its domestic customers in China," it added.

Mi Equipment China entered into the capital increase agreement with Talentek, Lansus Technologies Inc and Wuhan Silicon Integrated Co Ltd.

Post-capital increase, Talentek's registered capital will rise to 39.76 million yuan, from 27.76 million yuan.

Mi Technovation's share price rose six sen or 1.41% to RM4.31 today, valuing the equipment testing services provider at RM3.55 billion.

Edited ByS Kanagaraju
      Text Size