business
Inari rises 2.12% on getting approval for RM100 million matching grant
The RM20 million matching grant received by Inari Amertron Bhd will be in exchange of 20 million non-redeemable convertible preference shares by the company to MIDA or its nominee. – File pic, March 4, 2016.Shares of Inari Amertron Bhd rose 2.12% at mid-morning today after its wholly-owned subsidiary Inari Integrated System Sdn Bhd (IISB) has received a letter of approval from the Malaysian Investment Development Authority (MIDA) for a one-to-one matching grant of RM100 million.
At 10.15am, Inari rose 7 sen to RM3.37 with 934,200 shares traded.
In a filing with Bursa Malaysia, Inari said the matching grant was for the purpose of modernising and upgrading the manufacturing facilities, equipment and machineries of IISB for the manufacture of advanced communication chips and die preparation.
The semiconductor manufacturer said that the RM20 million matching grant will be in exchange of 20 million non-redeemable convertible preference shares (CPS) by Inari to MIDA or its nominee.
The CPS is convertible into ordinary shares of Inari at any time within a period of three years at a conversion price to be determined. The CPS will bear dividend at 2% per annum from the date of issuance until the date of conversion.
Inari added that the RM80 million matching grant will be disbursed by MIDA to IISB within a period of three years and IISB will pay dividend/interest at the rate of 2% per annum for a period of 10 years. – The Edge Markets, March 4, 2016.
Please note that you must sign up with disqus.com before commenting. And, please refrain from comments of a racist, sexist, personal, vulgar or derogatory nature and note that comments can be edited, rewritten for clarity or to avoid questionable issues. As comments are moderated, they may not appear immediately or even on the same day you posted them. We also reserve the right to delete off-topic comments