Yesterday, Dagang NeXchange Bhd (DNeX) announced that it has signed a takeover offer with Khazanah, a subsidiary of the Malaysian government, to jointly acquire SilTerra Malaysia Sdn Bhd, a 200mm wafer foundry in Malaysia, with Beijing CGP Investment Co Ltd.

DNeX said that Khazanah had notified the company of the acquisition offer on February 5 and had signed the final agreement. It is reported that DNeX invested 60% in this acquisition, and Beijing CGP Investment Co Ltd accounted for 40%. Earlier news stated that the transaction price was US$82.95 million.

Khazanah has a background of Malaysian government funds and has previously stated that it hopes to sell equity to local companies. DNeX also announced that it is confident that it can improve SilTerra's operations and improve its performance.

SilTerra is a semiconductor and MEMS foundry that began commercial production in 2001. Its factory is located in Kulim, Malaysia. SilTerra provides advanced standardized CMOS Logic, High Voltage, Power MOSFET and Mixed-Signal/RF technology.