Lion Industries selling Antara Steel HBI plant to Singapore's Esteel for RM546m

Lion Industries Group is expected to realise a gain of RM433.16mil from the sale of Antara Steel Mills's HBI plant and the restructuring exercise.

KUALA LUMPUR: Lion Industries Corporation Bhd (LICB) and Amsteel Mills Sdn Bhd are selling their stake in Antara Steel Mills Sdn Bhd hot-briquetted iron (HBI) plant and business in Labuan to Singapore's Esteel Enterprise Pte Ltd for US$128mil or RM546.56mil.

LICB said on Tuesday the company and its 99% owned Amsteel had signed a conditional sale and purchase agreement to dispose of the HBI plant and business in Labuan. The stake comprised of 218 million shares and 30 million redeemable preference shares in Antara.

It added the proposed disposal would hinge on Antara's restructuring exercise prior to the completion of the proposed disposal which would enable Esteel to use, maintain and/or operate the existing manufacturing facilities and business in Labuan.