CYBERJAYA: Dagang NeXchange Bhd (DNeX) is upbeat about exploring new growth area in semiconductor with the bidding for SilTerra Malaysia Sdn Bhd (SilTerra).
Group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said DNeX would want to be given the opportunity to turn around the semiconductor manufacturer.
"We do have the turnaround expertise as we have managed to turn around Time Engineering Bhd, the old company of DNeX.
"We also partner with Beijing CGP Investment Co Ltd (Beijing CGP) that is willing to provide transfer of technology and ready market access to SilTerra," he told the New Straits Times (NST) and Berita Harian in an interview recently.
He said this would be vital as DNeX has the track record and capability with the partnership to turnaround SilTerra.
"We also want the bidding process to be based on merit including its contribution to the National Agenda – we believe we have the right partner, technology and market access. We have been working closely with the government to present our case.
"At the end of the day, it is up to Khazanah Nasional Bhd (the owner of SilTerra) to decide. We believe the board of Khazanah will make the right decision.
"We hope Khazanah considers us as a Bumiputera company with the capability and the right partner that can offer technology and market access as well as injection of funding. God willing, in the next two to three years, we plan to create more job opportunities and technology coming out with Malaysia," he said.
Syed Zainal said DNeX had secured Beijing CGP's support and commitment to help SilTerra have access to the right technology as well as the global market.
"If we get the opportunity to acquire SilTerra, Beijing CGP will be able to open new market for SilTerra and new opportunities for the company to export to other parts of Beijing CGP's network.
"We need to have the right partner to open the network in the semiconductor industry. Beijing CGP already has a consortium of companies not only in China but globally as well," he said, adding that SilTerra would have access to this partnership with DNeX.
Syed Zainal said DNeX would also bring its partners and expertise to strengthen SilTerra's board and management with industry and international experience to streamline the organisation to be more business focused, productive and efficient comparable to industry tier 1 players.
The DNeX-Beijing CGP consortium is also bringing in investee companies to Malaysia to support the development of Malaysia-owned semiconductor eco-system through an innovation fund to be set up by DNeX that will help locals design and manufacture local products for the international market including China.
NST previously reported that Khazanah had received four bids for SilTerra including from Taiwan's Foxconn and Germany's X-FAB Silicon Foundries before the earlier deadline for submission on July 31.
The other two were DNeX and Green Packet Bhd.
The proposal from DNeX and its strategic partner Beijing CGP was focused on planning and executing SilTerra's turnaround with a total investment of RM846 million, according to a source.
On top of a RM136 million cash payment for Khazanah, DNeX and its partner would absorb SilTerra's RM210 million bank borrowings, and inject a total of RM500 million for its capital and operating expenditures.