As per Dagang NeXchange Berhad’s (“DNeX’s”) two Bursa announcements dated 15 December 2022, DNeX’s subsidiaries, DNeX Semiconductor Sdn Bhd (“DNeX Semiconductor”) and SilTerra Malaysia Sdn Bhd (“SilTerra”), were served with an Originating Summons together with notice of Application (ex-parte) for injunctive relief and remedies by Tethystronics Technologies Company Limited (“TTCL”) a special purpose vehicle ultimately owned by Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) (“CGP”), which also holds 40 per cent equity interest in SilTerra. SilTerra is a 60 per cent owned subsidiary of DNeX Semiconductor which in turn is a subsidiary of DNeX. We also received TTCL’s Notice of Arbitration, to commence arbitration proceedings against DNeX Semiconductor and SilTerra under the Asian International Arbitration Centre Arbitration Rules, 2021.
As a majority shareholder, we have exercised our rights to strengthen our position and to ensure that SilTerra’s business continues to do well. Part of the action taken was to strengthen the SilTerra Board by bringing in experienced subject matter experts into the Board. This move by DNeX is governed by SilTerra’s constitution. We have the right to nominate directors as a majority shareholder pursuant to SilTerra’s Constitution. These actions are now being contested by TTCL.
TTCL’s Originating Summons was filed solely to obtain an injunction to restrain the new Board members from acting as Directors and exercising their rights as Directors of SilTerra. However, TTCL is not seeking any orders or relief to remove the new Board members in the said Originating Summons.
We do not in any way expect any material financial impact or operational impact arising from either of these matters.
Adhering to Rule 44 of the Asian International Arbitration Centre Arbitration Rules, 2021, we are bound to confidentiality in all matters relating to the arbitral proceedings. In tandem and as a listed entity on Bursa Malaysia, we are committed to exacting disclosure requirements. Should there be any pertinent announcements to be made, we will do so in accordance with these requirements.
Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Executive Chairman
Dagang NeXchange Berhad (“DNeX”)
15 December 2022