PETALING JAYA: Inari Amertron Bhd
has terminated its proposed joint acquisition of Lumileds Holding BV after failing to secure regulatory approval from US authorities on national security concerns.
In a Bursa Malaysia filing, Inari stated the decision was made jointly with its partner, Sanan Optoelectronics Co. Ltd, following intervention by the Committee on Foreign Investment in the United States (CFIUS).
The proposed acquisition involved a 100% equity interest in Lumileds Holding B.V. and certain subsidiaries, collectively known as Lumileds International.
The company said that while it had submitted the necessary applications, CFIUS determined the transaction posed unresolved national security concerns.
As a result, the regulator requested the parties to withdraw their filing and abandon the deal, it said.
Following this, Inari and Sanan have submitted a formal request to withdraw their CFIUS application and have agreed to terminate the transaction.
The companies will also withdraw filings with other relevant regulatory authorities as part of the process.
The acquisition was subject to multiple regulatory approvals, which were conditions precedent under the share purchase agreement. With the CFIUS decision effectively blocking the deal, these conditions can no longer be fulfilled.
“The termination of this proposed joint acquisition shall not constitute a breach of the SPA, nor shall it give rise to any risk of wrongful termination,” it said.
Inari also reiterated its commitment to grow through other avenues.
The company said it remains focused on pursuing alternative mergers and acquisitions opportunities to strengthen its competitive position and expand its presence in global markets.
This development will not affect the company’s business operations, nor will it have any material effect on the earnings, net assets, gearing or share capital of the company for the financial year ending Jun 30, it said.
