KUALA LUMPUR (Sept 26): Insas Bhd (KL:INSAS) is planning to dispose of its entire remaining 5.65% stake in Inari Amertron Bhd (KL:INARI), valued at roughly RM580 million, to raise cash for working capital and repay credit facilities.
Insas is seeking shareholders' mandate for the planned sale at a general meeting to be called, as the deal crosses major transaction thresholds under Bursa Malaysia's Main Market listing rules.
The stake, comprising 218.05 million shares in the outsourced semiconductor assembly and test provider, is to be sold in the open market or via direct business transactions to third-party buyers yet to be identified over a 12-month period, Insas said in a bourse filing on Friday.
Insas expects the shares to be priced at no more than a 10% discount to the five-day volume-weighted average market price (VWAP) of Inari Amertron shares immediately preceding the transaction date.
Based on an illustrative price of RM2.43 per share — which is 10% less than Inari Amertron's VWAP up to Sept 11 — the disposal is expected to raise RM529.87 million in gross proceeds.
This will give rise to an estimated net gain of RM360 million, after deducting the RM158.32 million carrying amount of the sale shares and the expected costs of the disposal.
Over the 12 months up to Sept 11, Insas net sold 289.99 million Inari shares (293.31 million shares sold versus 3.32 million acquired) at an average transaction price of roughly RM2.06 per share, pocketing a net gain of RM285 million.
From the anticipated proceeds, Insas plans to use RM270 million to repay its outstanding revolving credit facilities. Of the balance, it will set aside RM248.32 million for working capital, including to pay dividends to shareholders, buy back its own shares and invest in feasible opportunities. The rest will go towards defraying the cost of the exercise.
As at Aug 31, the group's total borrowings had risen to RM449 million, its Friday filing showed. Insas previously closed its financial year in a comfortable net cash position of about RM885.8 million at end-June, with RM240.7 million in cash and RM1.05 billion in bank deposits against total borrowings of RM407.0 million.
The monetisation comes as Inari Amertron reported a sharp drop in its latest annual net profit amid business headwinds. Its net profit for the financial year ended June 30, 2026 (FY2026) sank 41.7% to RM127.5 million from RM218.75 million in FY2025. Inari Amertron's net profit has been steadily declining since FY2022.
While Inari Amertron's share price has retreated nearly 31% from five years ago, the stock is up about 53% year to date, closing at RM2.66 on Friday for a market capitalisation of RM10.26 billion.
Insas closed unchanged at 88 sen, valuing it at RM636.98 million.