Posted on 30 Mar 2026
KUALA LUMPUR (March 27): Southern Steel Bhd (KL:SSTEEL) has proposed a buyout of Ann Joo Resources Bhd’s (KL:ANNJOO) upstream steel unit to strengthen its position in steel manufacturing.
Southern Steel said in a bourse filing Friday it had just executed a heads of agreement with Ann Joo for the proposed acquisition of all shares in Ann Joo Steel Bhd (AJSB). The deal is subject to the terms of a sale and purchase agreement to be finalised and the approval of both Southern Steel and Ann Joo shareholders.
The transaction will be settled in cash. The consideration will comprise the non-current assets at the value of RM1.005 billion, plus current assets minus total liabilities of AJSB. It also includes the cost of any expenses the parties agree shall be borne by Southern Steel.
The transaction includes AJSB’s wholly-owned subsidiary — Ann Joo Integrated Steel Sdn Bhd — but excludes AJSB's dormant land and property subsidiaries, namely AJSB Land Sdn Bhd and AJSB Properties Sdn Bhd.
Southern Steel, whose market value stood at RM600.4 million based on the company's closing share price of 40 sen on Friday, had deposits, cash and bank balances of RM57.9 million as at end-2025, against borrowings of RM269.8 million.
Southern Steel said the acquisition aligns with the company’s strategy to strengthen its position in the upstream steel manufacturing sector.
It also expects the deal to expand its operational scale as both companies operate in similar upstream steel businesses, improve efficiencies through optimisation of production, procurement and manufacturing resources, and create opportunities for operational and cost synergies.
Ann Joo shares closed 4.5 sen or 8.74% higher at 56 sen on Friday, giving it a market capitalisation of RM398.73 million.
Source:The Edge
