PETALING JAYA: Lion Industries Corp Bhd (LICB) has proposed to dispose of its entire 100% equity stake in Eden Flame Sdn Bhd for RM135.88mil.
In a filing with Bursa Malaysia, LICB said its 99%-owned subsidiary, Amsteel Mills Sdn Bhd (AMSB), had entered into a conditional sale and purchase agreement with Esteel Enterprise Pte Ltd for the proposed disposal of Eden Flame for an adjusted consideration of RM135.88mil based on Eden Flame’s proforma management accounts as at Nov 30, 2021.
Eden Flame owns the long steel plant located in Pasir Gudang, Johor that produces billets that are rolled into steel bars and light sections such as angle bars, flat bars and U-channels. The plant is not in operation as at to-date.
The audited net loss and capital deficiency of Eden Flame for the financial period ended June 30, 2021 were RM36.46mil and RM36.46mil, respectively.
Upon completion of the proposed disposal, the LICB group is expected to realise a gain of approximately RM56.54mil based on the proforma management accounts as at Nov 30, 2021.
LICB said the proposed disposal would enable the group to unlock the value of Eden Flame and realise a gain of RM56.54mil that will enhance its financial position.