It’s trying to find an alternative revenue source.
UMS has inked a deal to subscribe for 10% equity of All Star Fortress (ASF) enlarged shareholdings through issuance of new shares for a total consideration of RM145,000.
According to a media release by the semiconductor equipment manufacturer, it will provide ASF secured, interest-bearing convertible loans of up to a total of US$7.5m. This includes US$6.7m for ASF to strengthen its capability and expand its manufacturing capacity to meet their aerospace customers’ requirements.
UMS will be granted the option to convert balance amount into additional ordinary shares of ASF. Further, UMS will rent its Penang premises on a commercial basis to ASF.
This investment is part UMS’ bid to diversify beyond its traditional semiconductor business segment in order to achieve an alternative revenue source. Also, UMS is attempting to find a foothold in a high potential growth sector within the aerospace industry.
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