Inari Bhd is optimistic the proposed 100 per cent equity acquisition of Amertron Inc (Global) Limited will boost its revenue by three fold.
Inari, an electronics manufacturing services (EMS) provider, and Amertron Global, a Cayman Islands-incorporated company, inked a memorandum of understanding today to start negotiations for the acquisition, expected to be completed in the second half of this year.
Inari managing director Dr Tan Seng Chuan said the company expects to achieve a revenue of US$60 million for the financial year ending June 30, 2012 (excluding the proposed acquisition).
"On a combined basis, upon completion in eight to 10 months, we will have a revenue of US$180 million.
"It will take us a while to work out the handover following Amertron's large network, thus Inari foresees 20 months down the road to benefit from this synergy," he told reporters after the signing ceremony here today.
He said the sales and purchase value would be based on the audited net tangible asset value of Amertron Global, indicatively at US$320 million as at June 30, 2011.
Amertron has three EMS plants, two operating in the Philippines and one in China, with about 3,700 employees worldwide.
He said with Amertron Global on board, Inari would be a step closer to becoming a multinational EMS player.
The acquisition would enable Inari to move into new markets, broaden customer base, expertise and manufacturing capacity as well as increase its current staff strength four-fold, he said.
"This move to strengthen our position will give us access to Amertron's global customer base in Asia, the US and Europe.
"Today's signing ceremony marks the company's second strategic move after the first merger and acquisition exercise, the 51 per cent investment in Ceedtec Sdn Bhd," Tan added.
In its goal to be a leading global EMS industry player, Inari embarked to be listed on the ACE Market of Bursa Malaysia in July 2011.
Inari provides end-to-end, vertically-integrated semiconductor packaging services for radio frequency chips in the wireless and mobile technology markets, while Amertron Global, also an EMS provider, focuses on the manufacture of mainly optoelectronic modules.
Going forward, he said compared to the global EMS industry worth US$150 billion, the expected US$180 million still places Inari as a relatively small player.
For the next lap of growth, Inari will be looking at opportunities to grow as soon as possible given the competitive global landscape, he added. -- BERNAMA
Inari, an electronics manufacturing services (EMS) provider, and Amertron Global, a Cayman Islands-incorporated company, inked a memorandum of understanding today to start negotiations for the acquisition, expected to be completed in the second half of this year.
Inari managing director Dr Tan Seng Chuan said the company expects to achieve a revenue of US$60 million for the financial year ending June 30, 2012 (excluding the proposed acquisition).
"On a combined basis, upon completion in eight to 10 months, we will have a revenue of US$180 million.
"It will take us a while to work out the handover following Amertron's large network, thus Inari foresees 20 months down the road to benefit from this synergy," he told reporters after the signing ceremony here today.
He said the sales and purchase value would be based on the audited net tangible asset value of Amertron Global, indicatively at US$320 million as at June 30, 2011.
Amertron has three EMS plants, two operating in the Philippines and one in China, with about 3,700 employees worldwide.
He said with Amertron Global on board, Inari would be a step closer to becoming a multinational EMS player.
The acquisition would enable Inari to move into new markets, broaden customer base, expertise and manufacturing capacity as well as increase its current staff strength four-fold, he said.
"This move to strengthen our position will give us access to Amertron's global customer base in Asia, the US and Europe.
"Today's signing ceremony marks the company's second strategic move after the first merger and acquisition exercise, the 51 per cent investment in Ceedtec Sdn Bhd," Tan added.
In its goal to be a leading global EMS industry player, Inari embarked to be listed on the ACE Market of Bursa Malaysia in July 2011.
Inari provides end-to-end, vertically-integrated semiconductor packaging services for radio frequency chips in the wireless and mobile technology markets, while Amertron Global, also an EMS provider, focuses on the manufacture of mainly optoelectronic modules.
Going forward, he said compared to the global EMS industry worth US$150 billion, the expected US$180 million still places Inari as a relatively small player.
For the next lap of growth, Inari will be looking at opportunities to grow as soon as possible given the competitive global landscape, he added. -- BERNAMA
