Mi Technovation inks MOU to negotiate Accurus acquisition

-A +A

KUALA LUMPUR (Oct 8): Mi Technovation Bhd has entered into a memorandum of understanding (MOU) with Accurus Scientific Co Ltd and its shareholders for the purpose of due diligence and negotiations related to the group's proposed acquisition of all or part of the equity interest in Accurus.

Taiwan-based Accurus is involved in the manufacturing of solder spheres which are widely used in advanced packaging, such as ball grid array and wafer level packaging in the semiconductor industry.

"The proposed acquisition will provide an opportunity for the parties to establish a potential business integration for a wider product portfolio within the same distribution channel and value chain in anticipation of leveraging the combined strengths of the company with Accurus," said Mi Technovation in a filing with Bursa Malaysia.

Under the MOU, both parties will work on the due diligence review and to negotiate in good faith the terms of a sale and purchase agreement for the acquisition.

The MOU will be in force up to Jan 31, 2021, or any other date as may be agreed upon, during which the parties may not enter discussions or negotiations with any other party in respect of the equity interest in Accurus.

"The MOU will not have any material effect on the issued and paid-up share capital and substantial shareholders of the company, earnings and net assets and gearing of the company for the financial year ending Dec 31, 2020.

"More details on the financial effects on the proposed acquisition will only be available upon execution of the sale and purchase agreement," said Mi Technovation.

Mi Technovation's share price fell 10 sen or 2.35% to RM4.15, giving the group a market capitalisation of RM3.11 billion.

S Kanagaraju