KUALA LUMPUR: Inari Bhd, an investment holding company
with subsidiaries involved in the electronics manufacturing services (EMS) industry, aims to grow three times bigger once its acquisition of Amertron Inc (Global) Ltd is completed.

"When the acquisition is approved, the combined entity is expected to have a workforce of 5,000 in Malaysia, the Philippines and China, and to generate revenues of approximately RM600 million, based on the past financials of Inari and Amertron," Chief Executive Officer Lau Kean Cheong told Bernama after the company's Annual General Meeting here today.

Inari International Ltd, a wholly-owned subsidiary of Inari Bhd, had entered into a conditional sale and purchase agreement with the shareholders of Amertron on July 23.

Amertron is an EMS provider in the opto-electronics segment.

Under the agreement, Inari International had acquired over 23 million shares, representing 100 per cent of the total issued and paid-up share capital of Amertron, for a total consideration of US$32 million.

Inari Bhd Executive Vice Chairman Dr Tan Seng Chuan said the company is optimistic of being able to compete with Amertron, which is twice as big.

"Although we have been in the industry for just six years, we are growing fast," he added.

For the financial year ended June 30, Inari Bhd reported a revenue of RM180.8 million, an increase of 51.1 per cent over the RM119.6 million for the financial year ended June 30 last year.

The higher revenue was primarily due to increased trade volume from its major customers as a result of strong growth in the smart mobile devices market globally.

The company's pre-tax profit for the 2012 financial year (FY2012) was RM20.3 million, compared to RM20.5 million for FY2011.

However, the company said, last year's pre-tax profit included a one-time gain comprising the excess of fair value of subsidiaries acquired over the investment cost of RM7.5 million, arising from the acquisition of subsidiaries which formed part of Inari's listing exercise on the ACE Market of Bursa Malaysia Securities Bhd.

Inari's net dividend was 2.8 sen with respect to FY2012 or a dividend rate of 28 per cent per ordinary share of RM0.10 each or a dividend yield of approximately 7.4 per cent based on the last closing price of 38 sen per share.

"Our shareholders were very happy with our dividend payout," Tan said, adding that there not many questions were asked during the meeting. -- BERNAMA