Posted on 17 Jan 2022
Malaysia’s Lion Industries plans to dispose of its entire 100% shareholding in its long products plant to Singapore’s Esteel Enterprise, Kallanish notes.
The company announced in a filing with Bursa Malaysia that its 99%-owned subsidiary, Amsteel Mills, had entered into a conditional sale and purchase agreement on 14 January with Esteel. This is for the proposed disposal of Eden Flame for an adjusted consideration of MYR 135.88 million ($32.5m), based on Eden Flame’s proforma management accounts as at 30 November 2021.
The transacted assets include the plant and machinery, mainly a 100-tonne electric arc furnace, ladle furnace, six-strand continuous casting machine and two rolling mills. Also included are leasehold land totalling approximately 70.69 acres, together with the erected buildings and structures, and a lease expiring on 6 February 2025 for leasehold land of approximately 27.36 acres.
Eden Flame is the owner and operator of the now-mothballed mill in Pasir Gudang, Johor, which produces bar and light sections such as angle bars, flat bars and U-channels. Eden Flame was incorporated in Malaysia in January 2020 as a private limited liability company.
Last October, Amsteel entered into a conditional sales and purchase proposal agreement with Esteel for the latter to purchase Amsteel’s 100% shareholding in Antara Steel Mills for $122m (see Kallanish passim). Antara operates a 900,000 tonnes/year design capacity hot-briquetted iron plant in Labuan, East Malaysia.
Source:Kallanish
