Sanan

INARI Amertron Bhd is making a major strategic move into the global LED sector by teaming up with China’s Sanan Optoelectronics Co Ltd to jointly acquire 100% equity interest in Lumileds Holding BV and its 11 subsidiaries in Asia and Europe for an enterprise value of USD239 million (RM1.03 billion).

In a filing with Bursa Malaysia, Inari said the acquisition will be undertaken via a Hong Kong-incorporated special purpose vehicle (HK SPV), in which Sanan will hold a 74.5% stake and Inari 25.5%, through their respective subsidiaries.

The transaction will be fully funded in cash.

In addition to the acquisition cost, both parties will inject a further US$41 million (RM176.3 million) into Lumileds for working capital needs, bringing the total investment outlay to US$280 million (RM1.2 billion).

Inari’s share amounts to US$71.4 million (RM307 million), which will be funded from the remaining proceeds of its 2021 private placement.

Established in the Netherlands, Lumileds is a globally recognised mid-to-high-end LED manufacturer.

Its entire back-end assembly operations are located in Penang, employing over 2,500 staff – a factor Inari said would further bolster Malaysia’s electrical and electronics (E&E) ecosystem.

Inari expects the acquisition to be earnings-accretive over time, as it enables the group to diversify its customer base and product offerings, while enhancing operational synergies.

“The operational efficiency of Lumileds International is expected to improve significantly with Inari’s active participation as a shareholder and management of Lumileds International as its entire back-end assembly operations are located in Penang with more than 2,500 employees. Both Inari and Malaysia stand to benefit from the continued growth of operations locally, strengthening the local electrical and electronics ecosystem,” Inari added.

The acquisition is subject to regulatory approvals, including from Bank Negara Malaysia and relevant foreign authorities.

It is targeted for completion by the third quarter of Inari’s financial year ending June 30, 2026.

Sanan, listed on the Shanghai Stock Exchange, is a leading LED chipmaker in China with RMB16.1 billion revenue in FY2024.

The deal marks a key milestone in Sanan’s global expansion plans.

Lumileds, which has an indicative market valuation of US$287 million, reported unaudited net assets of US$210 million as at end-2024. The acquisition price was negotiated on a willing-buyer, willing-seller basis.

Inari said there will be no impact on its share capital as no new shares will be issued. The board believes the deal is in the best interest of the group. — TMR