KUALA LUMPUR: Insas Bhd plans to allocate RM30 million for dividend payments to shareholders from the proceeds of its proposed disposal of up to 218.05 million shares in Inari Amertron Bhd.
The proposed disposal involves a 5.63 per cent equity interest in Inari, held through its wholly-owned subsidiaries, Insas Technology Bhd and Media Lang Ltd.
In a circular to shareholders filed with Bursa Malaysia today, Insas said the proposed disposal could generate estimated proceeds of RM545.13 million, based on an illustrative disposal price of RM2.50 per share.
Besides the allocation for dividends, RM265 million of the proceeds would be used to repay revolving credit facilities, while RM238.22 million would be allocated for working capital requirements. RM11.91 million set aside for estimated disposal-related expenses.
The group said the working capital allocation could fund its operations, share buybacks and investments in feasible opportunities.
It expects to pay the dividend within 12 months of receiving the disposal proceeds, with the actual amount and timing to be determined by the board.
The proposed disposal represents a continuation of the group’s deliberate and disciplined monetisation of its long-held investment in Inari, said Insas.
“This is to realise its accumulated value at prevailing market valuations and re-mobilise its capital and resources for future growth opportunities as and when they arise.
“The Proposed Disposal Mandate is not premised on an adverse view of Inari or the long-term prospects of the semiconductor industry,” it said.
The disposal price will be determined based on prevailing market conditions, subject to a maximum discount of 10 per cent to Inari’s five-day volume-weighted average market price or a floor price of RM2.12 per share, whichever is higher.
At the minimum price of RM2.12 per share, the disposal would generate estimated proceeds of RM462.27 million, with RM30 million still earmarked for dividends.
Insas said it had yet to identify potential purchasers for the shares, which may be disposed of in one or more tranches through the open market or to third-party buyers.
The proposed mandate, valid for 12 months, is subject to shareholders’ approval at an extraordinary general meeting scheduled for Nov 26.