Temporary anti-dumping measures on ethanolamine products produced in the Malaysia, Saudi Arabia, Thailand and the United States is also being introduced.
KUALA LUMPUR: Prestar Resources Bhd
has proposed to list 51%-owned unit Tashin Steel Sdn Bhd on the ACE Market of Bursa Malaysia via a special purpose vehicle (SPV).
Under the proposal, the SPV, Tashin Holdings, would acquire the entire share capital of Tashin Steel from Prestar and the remaining 49% stake from Formula Naga Sdn Bhd for an aggregate purchase consideration of RM144.07mil, satisfied via an issuance of 288.14 million new shares in Tashin Holdings.
Tashin Holdings would then undertake an initial public offering of 59.02 million new shares or 17% of the enlarged share capital of the company.
Prestar and Formula Naga will make a further offer for sale of 15.9% of the enlarged share capital, for selected investors approved by MITI by way of private placement.
Of the issue shares, 17.38 million or 5% will be offered to the public, with the remainder going towards employees and associates of the company, entitled shareholders and selected investors.
Upon completion of the IPO, Prestar and Formula Naga will have a 34% and 33.1% stake in Tashin Holdings respectively, while 32.9% will be held by the public.
Prestar said the proceeds from the public issue would go towards the purchase of industrial land, capital expenditure and working capital for Tashin Group.
Meanwhile, the proceeds from the proposed offer for sale will go towards the repayment of Prestar's bank borrowing, which amounts to about RM41.07mil as at Dec 31, 2017.
"Upon completion of the Proposed Listing, the future earnings and EPS of the Prestar Group for subsequent years may be affected due to the deconsolidation of Tashin Steel from the Prestar Group’s audited consolidated financial statements.
"Notwithstanding the effect on the future earnings and EPS of the Prestar Group, it is expected that there will be interest savings for the Prestar Group arising from the repayment of borrowings via the proceeds raised from the Proposed Offer for Sale, as well as the deconsolidation of Tashin Steel from the Prestar Group’s audited consolidated financial statement," said Prestar in its filing with Bursa Malaysia.
The group expects the proposed listing to be completed by the fourth quarter of 2018.
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