KUALA LUMPUR: Lion Industries Corporation Bhd’s (LICB) Amsteel Mills Sdn Bhd is selling its 100% stake in in Antara Steel Mills Sdn Bhd to Singapore’s Esteel Enterprise Pte Ltd for US$122mil or RM509.96mil.
In a filing with Bursa Malaysia on Tuesday it said its 99% owned Amsteel was selling its entire 218 million shares and 30 million redeemable preference shares in Antara.
"The proposed disposal would enable the LICB group to unlock the value of Antara and realise a substantial gain of approximately RM403.10 million that will
enhance and consolidate its financial position," it said.
The unaudited net profit and net asset of Antara for the 12-month period ended June 30, 2021 are RM56.47mil and RM268.79mil respectively. The directors of Antara are Tan Sri Cheng Heng Jem, Ooi Kim Lai and Lee Whay Keong.
As for Esteel, its subsidiaries namely BRC Asia Ltd is involved in prefabricated steel reinforcement steel products for use in concrete, trading of rebars and manufacturing and sale of wire mesh fences.
Esteel’s other subsidiary, Lee Metal Group Limited is involved in steel merchandising and fabrication of reinforcement steel products for the construction and building industry.
On the RM509.96mil sale consideration, it involves US$114.80mil (RM479.86mil) plus US$ equivalent of cash-in-company for the entire 218 million ordinary shares; and US$7.20mil (RM30.10mil) for the entire 30 million preference shares.
LICB said Esteel agreed to pay the additional consideration to the seller for the acquisition of the extra assets (being the Labuan inventory, the Labuan current assets and the Labuan account receivables) and assumption of the liabilities.