KUALA LUMPUR (June 6): Frontken Corp Bhd plans to buy another 11.42% stake in Ares Green Tech Corp (AGTC) for RM13.3 million, raising its shareholding in the Taiwanese company to 84.6%.
 
In a filing with Bursa Malaysia, Frontken said AGTC is one of the market leaders in Taiwan, with advanced technology, good customer relationship and high operational efficiency.

It added AGTC is poised to benefit from anticipated growth within the global semiconductor market.
 
AGTC is principally involved in the provision of surface treatment and advanced precision cleaning for the thin film transistor-liquid crystal display industry, as well as the semiconductor industry.
 
Frontken said it would use internally-generated funds to purchase additional stake from six private entities and persons.
 
The purchase, Frontken said, provides an attractive opportunity for the group to further increase its interest in AGTC, at a price below the range of the trading price earnings ratio (PER) of similar, but not directly comparable companies with AGTC.
 
“Further[more], the improved outlook of the global semiconductor industry should bode well for AGTC and help to bolster its business growth. This should, in turn, contribute positively to the future earnings,” the filing added.
 
Frontken’s share price closed unchanged at 29 sen today, for a market capitalisation of RM303.9 million.