DNeX unit SilTerra’s board composition frozen pending conclusion of suit

KUALA LUMPUR (Jan 10): The parties involved in a lawsuit concerning the appointment of SilTerra Malaysia Sdn Bhd’s directors have agreed that no changes be made to the composition of the board pending the conclusion of the case.

The parties are SilTerra and DNeX Semiconductor Sdn Bhd (DSSB), both of which are controlled by Dagang Nexchange Bhd (DNeX), as well as Tethystronics Technologies Co Ltd (TTCL).

In a bourse filing, DNeX said a consent order was recorded at the High Court on Tuesday (Jan 10), and it is to remain effective until the legal matter is disposed of.

The consent order also states that SilTerra’s board is entitled to convene for subsequent meetings on matters related to the company, but cannot deliberate on the legal matter.

“The consent order will allow the board of SilTerra to operate their business as usual with a functional board,” DNeX said.

TTCL is a special-purpose vehicle ultimately owned by Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (CGP Fund), which also holds a 40% equity interest in SilTerra. DNeX owns the remaining 60% of SilTerra.

The civil suit revolves around DNeX’s exercising its rights as a majority shareholder of SilTerra to appoint directors to SilTerra’s board via member’s written resolutions (MWR), a move which is being contested by TTCL.

TTCL wants SilTerra and DSSB to be restrained from acting upon the MWR and directors’ written resolution purportedly passed on Nov 21, 2022.

It is also seeking to restrain Silterra and DSSB from taking any steps towards effecting any further change in the composition of SilTerra’s board.

Another relief sought by TTLC is for the defendants to restore the composition of SilTerra’s board of directors to the composition prior to the appointment resolutions.

Shares in DNeX finished one sen or 1.94% lower at 50.5 sen, giving the group a market capitalisation of RM1.58 billion.