PETALING JAYA: Press Metal
Aluminium Holdings Bhd (Press Metal) has proposed acquiring a further 35.6% stake in PMB Technology Bhd (PMBT) for RM464.95mil in cash, a move that will turn the silicon metal producer into a subsidiary, as the aluminium giant seeks to expand its silicon-aluminium alloy business.
The proposed acquisition involves the purchase of 664.22 million PMBT shares from five members of the Koon family at 70 sen per share. The sellers are Tan Sri Koon Poh Keong, Datuk Koon Poh Ming, Datuk Koon Poh Tat, Koon Poh Weng and Datuk Koon Poh Kong.
Upon completion, Press Metal's stake in PMBT will increase from 23.2% to 58.8%.
Press Metal said the purchase price was negotiated on a willing-buyer, willing-seller basis and reflects the challenging outlook for the silicon metal industry, which continues to face structural oversupply and softer downstream demand.
The 70 sen offer represents a discount of about 4.1% to PMBT's audited net assets per share of 73 sen as at Dec 31, 2025, and a 2.8% discount to its unaudited net assets per share of 72 sen as at March 31, 2026.
The acquisition will be funded entirely through internally generated funds and is not expected to require any material additional financial commitment beyond the purchase consideration, as PMBT's operations are already running.
Press Metal said the transaction is aimed at repositioning PMBT's operations away from silicon metal manufacturing towards higher-margin silicon-aluminium alloy production.
The company plans to leverage PMBT's existing facilities, including its secured 129-megawatt power supply and factory located within the Sarawak Corridor of Renewable Energy, to expand its silicon-aluminium alloy smelting capacity, subject to the necessary approvals.
The group noted that PMBT has been affected by the sharp decline in silicon metal prices, which fell from US$3.47 per pound in 2022 to US$1.27 per pound in July 2026.
PMBT swung from a profit attributable to shareholders of RM110.4mil in 2022 to a net loss of RM12.8mil in 2025, while losses widened to RM24.6mil in the first quarter of 2026.
Despite the difficult outlook for silicon metal, Press Metal believes demand for silicon-aluminium alloys remains supported by clean energy applications, while long-term aluminium demand is expected to benefit from electric vehicles, renewable energy infrastructure and artificial intelligence data centres.
The company said securing additional renewable power capacity through PMBT would strengthen its competitive position in low-carbon aluminium production and support future growth.
Press Metal expects the enlarged group to benefit from operational synergies through integrated procurement, marketing and production processes, as well as better utilisation of power capacity and manufacturing assets.
Financially, the acquisition is projected to have no material impact on Press Metal's net assets per share, while gearing would increase modestly to 0.43 times from 0.37 times.
On a pro forma basis, earnings per share for the financial year ended Dec 31, 2025 would improve slightly to 25.67 sen from 25.48 sen, mainly due to a gain on bargain purchase.
The transaction is classified as a related-party transaction because the vendors are directors and major shareholders of Press Metal.
The interested directors have abstained from board deliberations and will abstain from voting at the extraordinary general meeting, where approval from non-interested shareholders will be sought. UOB Kay Hian (M) Sdn Bhd has been appointed as the independent adviser.
The proposed acquisition is expected to be completed in the third quarter of 2026, subject to shareholder approval and other regulatory requirements.
