KUALA LUMPUR (March 28): Dagang Nexchange Bhd (KL:DNEX) said it is seeking a court order to set aside an arbitration ruling against its units, DNeX Semiconductor Sdn Bhd and SilTerra Malaysia Sdn Bhd, in a dispute between the two firms and China-based Tethystronics Technologies Company Ltd (TTCL).

In seeking to overturn the arbitration award, DNeX  cited provisions under the Arbitration Act 2005 that deal with the issue of whether the matter is capable of settlement by arbitration, and whether a breach of natural justice occurred in making the award.

The group is also seeking an order for a stay of the arbitration ruling pending the final determination of its application at the High Court.

“Notwithstanding the above, SilTerra remains operational, and business continues as usual,” DNeX added in its bourse filing on Friday.

Details of the arbitration award have not been disclosed by DNeX, but the group previously stated that arbitration costs arising from the award would not have a material financial impact on its earnings for the year ending Dec 31, 2025.

DNeX owns a 60% stake in SilTerra via DNeX Semiconductor Sdn Bhd, while TTCL owns the remainder 40% in the wafer manufacturer via wholly-owned Mimastronics Technologies Company Ltd.

TTCL is ultimately owned by Beijing Integrated Circuit Advance Manufacturing and High-End Equipment Equity Investment Fund Centre (Limited Partnership), better known as CGP.

The arbitration proceedings revolved around a shareholders’ dispute concerning DNeX exercising its rights as a majority shareholder of SilTerra to appoint additional directors to SilTerra’s board via members’ written resolutions.

The move was contested by TTCL, which claimed that DNeX Semiconductor and SilTerra breached agreements on SilTerra’s board structure by unlawfully appointing the additional directors.

Shares in DNeX closed one sen or 3.64% lower to 26.5 sen on Friday, valuing the group at RM920.07 million

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