Insas allocates RM30mil for dividend payments from Inari stake sale
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.
Insas Bhd intends to distribute RM30 million in dividends to shareholders from the funds generated by the potential sale of up to 218.05 million shares in its wholly-owned subsidiary, Inari Amertron Bhd. The proposed sale involves a 5.63% equity stake in Inari, held through Insas Technology Bhd and Media Lang Ltd. An announcement to shareholders, submitted to Bursa Malaysia, disclosed that the sale could yield an estimated RM545.13 million, contingent on a suggested disposal price of RM2.50 per share.
Of the proceeds, RM265 million would be utilized to settle revolving credit lines, while RM238.22 million would be earmarked for working capital expenses. RM11.91 million has been set aside for anticipated costs related to the disposal. The company anticipates disbursing the dividend within 12 months of receiving the proceeds, with the exact amount and timing to be determined by the board.
The planned disposal is a part of Insas' ongoing strategy of carefully extracting value from its long-term investment in Inari, aiming to capitalize on its accumulated worth at current market rates and freeing up capital for future growth. The proposed disposal mandate is not based on a pessimistic view of Inari or the semiconductor sector, according to Insas.
The final disposal price will be contingent on prevailing market conditions, with a cap on discount at 10% below Inari's five-day volume-weighted average market price, or a minimum floor price of RM2.12 per share, whichever proves more favorable. Even at the lower price point, Insas is still prepared to allocate RM30 million for dividends.
The mandate, valid for 12 months, requires shareholder approval at an extraordinary general meeting set for November 26.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.