KUALA LUMPUR: Inari Amertron Bhd signed an agreement with PCL Technologies Inc to set up a joint-venture to secure, manage and manufacture optical transceivers and other related products in Penang.

Under the shareholders’ subscription agreement, Inari Amertron said the entity to be formed will have an initial capital of RM20.85 million. Inari and PCL would subscribe 30% and 70% stake in the entity respectively, the semiconductor group said in a filing with Bursa Malaysia.

Inari Amertron said the entity will carry out business operations at Plant 34 in Penang or other plants owned by the company.

Inari Amertron also said the proposed subscription represents an opportunity to invest in a business relationship with PCL with a view to collaborating on a good business opportunity.

“Notwithstanding the minority position, the entity will enable Inari to diversify its earning streams while tapping the expertise of PCL in the optotronics sector.

“Besides, the entity will carry out operations at Plant 34 or other plants owned by Inari group in Penang, as such rental payable by the entity at the prevailing market rate will generate a source of cash flow and or income to Inari,” it added.

PCL is a company listed on the Taiwan Stock Exchange and is mainly engaged in the research, manufacturing and sales of the optical transceiver module.

PCL also provides complete engineering and product manufacturing solution of complex optical and electro-mechanical components. Its product lines include optical transceivers, fibre channels, transistor outline-can packages and optical sub-assemblies, widely used in high-speed bandwidth transmission between netcoms, cloud computing, wireless communication and telecommunications equipment.