Insas earmarks RM30 million for dividends under Inari disposal plan

A proposed Inari Amertron Bhd share disposal would provide RM30 million for dividends to Insas Bhd shareholders, the group said. The plan covers up to 218.05 million shares and requires approval at an extraordinary general meeting on November 26.

Insas outlined the proposal in a shareholder circular lodged with Bursa Malaysia. The holding amounts to 5.63 per cent of Inari and is owned through two wholly owned subsidiaries: Insas Technology Bhd and Media Lang Ltd.

An illustrative sale price of RM2.50 for each share would yield estimated proceeds of RM545.13 million. Insas proposed directing RM265 million towards repaying revolving credit facilities, assigning RM238.22 million to working capital and setting aside RM11.91 million for estimated disposal expenses.

The working capital portion could support operations, purchases of its own shares and investments in opportunities deemed feasible, the group said. It anticipates distributing the dividend within 12 months after receiving the proceeds, but its board will determine the amount and payment date.

Market conditions will guide pricing. The applicable lower limit would be the higher of RM2.12 per share or Inari's five-day volume-weighted average market price discounted by 10 per cent. A sale at RM2.12 would bring estimated proceeds to RM462.27 million without changing the RM30 million dividend allocation.

No prospective purchasers have been identified. Subject to shareholder consent, the mandate would last 12 months and allow sales in one or several tranches, through market transactions or directly to third parties.

Insas said the proposal continues its efforts to realise value from its longstanding Inari investment and redirect resources towards future opportunities. It said the move did not signal an unfavourable assessment of Inari or the semiconductor sector's longer-term outlook.