Fishy business is not good business

Decision of who is the new owner of SilTerra is coming to the end. However last 2 great giants is still competing each other.

DNEX

GPACKET

WAIT IS THERE REALLY 2 GIANTS COMPETE IN THE SAGA?

Lets go through one by one.

DNEX

60 : Dnex

40 : CGP Beijing

DNeX has offered a total of RM470 million for the acquisition of a 100% stake in the Kulim-based chip foundry, in which it will hold 60% and Beijing CGP 40%.. Beijing CGP is owned by the Beijing municipal government (the anchor investor); China Integrated Circuit Industry Investment Fund (CICIIF), an investment fund owned by the Chinese government to develop the semiconductor industry; E-Town Capital, a state-owned investment vehicle in the high-tech industry; and China Cinda Asset Management Co Ltd, a large asset management company owned by China’s Ministry of Finance.DNeX has secured a commitment from several partners in micro-electromechanical system (MEMS), GaN foundry and other integrated circuits (ICs) to commit production in SilTerra to bring up its average selling price (ASP) per wafer even before the deal had taken place.

Khazanah Dilemma:

Diversity with exposure in trade as well as oil and gas might distract strong focus on the semiconductor and electrical and electronics sectors

Dnex claimed:

Its board of directors has confirmed that the article which stated DNeX as having offered a total of RM470 million for the acquisition of 100% stake in SilTerra is inaccurate.

Maybe more?? From 270mil (first proposal) to 470mil??

GREENPACKET

Green Packet is believed to have offered a swathe of development plans along the technological lines of AI (artificial intelligence), big data, blockchain, cloud and Internet of Things.

The grand plan entails a 6,500-acre of development across the range of technologies, with SilTerra intended to be the centrepiece that drives the value chain.

Green Packet’s proposal for SilTerra comes with two options. The first is an offer of RM235 million that includes a 30.25% bumiputera stake to be held by Md Radzi Din, CEO of Atilze Digital Sdn Bhd, a subsidiary of the group that focuses on the Internet of Things.

The second is an offer of RM334 million cash in return for higher foreign ownership. However, if it is allowed to own 100% of SilTerra without direct bumiputera ownership, the offer would be raised to US$150 million.

Khazanah dilemma:

1. how genuine was its intention and the strength and credibibility of its partners.

2. The sources said there was a thinking that the company's primary interest was in a real estate in the northern region.

3. As for its partners, they said consortium partner Dongfang Huijia was generally an asset management company and not sector focused.

4. Green Packet's two other strategic partners have experience in industrial park and electronic component distribution, and not microchip companies or producers.

GPacket claimed:

1. Green Packet has disclosed that it is merely playing a funding role in supporting bumiputra parties who are bidding for Silterra

2. Green Packet said that an entity called Nuglobal Ventures Sdn Bhd (NGV) has submitted a bid for Silterra.

3. NGV is not an associate company or subsidiary company of Green Packet

4. According to Green Packet, Nuglobal Ventures is jointly owned by majority local bumiputera shareholders and minority Chinese shareholders.

5. Funding for the majority local bumiputera shareholders will be provided by a tech fund promoted by Green Packet under an arm's-length commercial instrument, which will be paid down over time through returns from the investment or other alternative funding secured in the future, in return periodic coupon/dividends from the majority local bumiputera shareholders.

At first, 

55% local ownership with 30% own by bumi the rest held by foreign holder.

now majority bumi means 55% by bumi and the rest 44% combined local owner ship with foreign(MAYBE) or solely foreign. its just that bumi will be finance by them.

My conclusion

Green Packet is not bidder for SilTerra. We dont know perhaps bidder will Ali Baba their share if win Silterra to Gpacket in future but the whole finance thing is really confusing. Maybe it is just proxy to get Silterra. After all GPacket once offered 150mil usd if no bumi ownership required at first placed. I dont really think GPacket really need bumi. how irony.

Let me stress this again

GREEN PACKET IS NOT BIDDER FOR SILTERRA. I BELIEVE GREEN PACKET DOES NOT PRESENT IN THE MEETING OR  HANDING ANY PROPOSAL. THE ONE WHO PROPOSED IS NUGLOBAL VENTURES.

THE ONLY GIANT FIGHTING IS DAGANG NEXCHANGE BERHAD (DNEX)

#DNEX

#DAGANG NEXCHANGE