KUALA LUMPUR: Khazanah Nasional Bhd is poised to take a 20 per cent stake in Inari Amertron Bhd, Singapore-based UOB Kay Hian said in a private report to its tier one clients.
“The deal would see Inari placing out a 20 per cent stake to Khazanah in exchange for a stake in SilTerra Malaysia Sdn Bhd, a wafer fabrication facility that is 98 per cent owned by Khazanah,” UOB said in the report.
The report came a few days after Affin Research revised its target price for Inari from RM1.11 to RM1.70.
Affin’s valuation was based on Inari’s planned transfer to the Main Market of Bursa Malaysia as well as positive earnings surprise expected from the company.
UOB says there are other reasons driving the Inari stock to greater heights.
A possible deal with Khazanah has brought in strong buying interest in Inari, while on a much milder level, the smart money seems to be on Insas — Inari prime mover Datuk Thong Kok Khee’s public-listed flagship company.
If indeed the deal pans out as outlined by UOB, this will be the second major deal by Inari this year.
In July, Inari completed the acquisition of opto-electronics manufacturer Amertron Inc (Global) Ltd for RM102.87 million.
UOB values SilTerra, Malaysia’s first chip fabrication company, at about US$1 billion (RM3.2 billion).
“Assuming Inari’s share price trades up to RM1.50 (prior to the exercise), a 20 per cent placement to Khazanah would be valued at
RM136 million and this could translate into Inari’s stake in Silterra of around eight to 10 per cent,” UOB said.
Meanwhile, Thong owns an indirect 35 per cent stake in Inari.
The 59-year-old businessman is also the dominant stakeholder of Insas and Formis Bhd.
Via Insas, Thong has an indirect 5.22 per cent stake in Ho Hup Construction Company Bhd.
His indirect stake in Insas stands at about some 23 per cent.
A deal with Khazanah Nasional could propel Thong to the A list of corporate Malaysia, providing the seasoned businessman the platform to restructure his other companies, namely the
Thong, a former executive director of Standard Chartered Merchant Bank Asia in Singapore, has never really been in the limelight despite his links to the IGB Group and Tan Sri Vincent Tan's Berjaya Group.
The deal with Khazanah could change the equation, with the limelight firmly on Thong, who has a big say in three public-listed firms with a combined market capitalisation of slightly more than RM1 billion.
Thong's Insas, which also lists some RM322 million in deposits with banks, is a direct beneficiary from any share price appreciation in Inari, which has risen by more than 120 per cent this year to trade in the RM1.10 levels, boosting Insas investment in quoted securities significantly.
Insas owns some 35 per cent, or 159.59 million, Inari shares. The former, with some RM52.99 million in cash and bank balances, also owns M&A Securities Sdn Bhd, which rose to prominence for its role in restructuring Sumatec Resources Bhd.