SINGAPORE (18 Sept): ISR Capital is venturing into electronic chips and components even as the company seeks new valuation report for the acquisition of a rare earths mining concession in Madagascar.

See: ISR Capital inks new deal for Madagascar acquisition

ISR announced that its wholly-owned subsidiary, Infiniti Advantage, has entered into an agreement with John Dean Ritchie (JDR), Yeo Soon Lye (YSL) and collective with JDR and Straits Hi-Rel (SHR) for the 25% stake in SHR for a consideration of $2.68 million.

SHR specialises in testing and back-end manufacturing for Hi-Rel integrated chips and electronic modules for end applications in the automotive, energy and industrial sectors.

Under the agreement, Infiniti shall apply for the issue and allotment of 16,667 shares in SHR in four stages at a subscription price of $160.80 each.

The acquisition will be funded with proceeds from the issuance of convertible redeemable bonds.

Last year, ISR presented two valuation reports to investors that valued the Madagascan concession at more than US$1 billion ($1.36 billion).

SGX raised questions about the valuation reports, and ISR has since said it will have a third one prepared. So far, no news have been heard on that third report.

Shares in ISR last traded at 0.6 cent on Friday.