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KUALA LUMPUR: Inari Amertron Bhd
has decided to abort its plan for a joint venture with Taiwan-listed optoelectronics company, PCL Technologies Inc, to expand the business in China.
In a filing with Bursa Malaysia, the electronics manufacturing services company said after numerous discussions between it and PCL during the past months, both parties were not able to form the JV entity (JVE) with a configuration that could satisfy the business strategies of both parties.
“Thus Inari and PCL have decided jointly and mutually to terminate the memorandum of understanding (MoU) and hence negotiations with respect to the formation of the JVE have ceased,” it added.
To recap, Inari had on March 8 last year acquired a 9.7% stake in PCL for RM44.5mil and on the same day signed a memorandum of understanding with PCL to set up a 50:50 JVE to offer outsourced semiconductor assembly and test (OSAT) services to major customers in China.
The vision was to list the JVE in China within five years.
Inari said the MoU’s termination did not have any financial impact on the company.
“Notwithstanding the termination, the company will continue to explore other potential business opportunities in China that will be useful for the expansion of the company’s OSAT business,” it said.
The Inari Amerton group provides electronic manufacturing services in the semiconductor industry for radio frequency, optoelectronics and fibre-optics technologies.
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