Posted on 17 Jan 2022
Lion Industries Corp Bhd (LICB) has proposed to dispose of its entire stake in Eden Flame Sdn Bhd for RM135.88 million cash, its Bursa Malaysia filing showed on Friday (Jan 14).
The group announced that its wholly owned subsidiary, Amsteel Mills Sdn Bhd, has entered into a conditional sale and purchase agreement with Esteel Enterprise Pte Ltd for the proposed disposal which is based on Eden Flame's pro forma management accounts as at Nov 30, 2021.
Following the disposal, LICB is expected to realise a gain of approximately RM56.54 million.
"LICB plans to utilise the proceeds for its existing business, new investment/business opportunities, deferred payables and/or working capital, the proportion of which has not been determined.
"The proposed disposal would enable the LICB Group to unlock the value of Eden Flame and the proposed disposal is expected to increase the net assets (NA) and NA per share by approximately RM56.54 million and 8.3 sen respectively," it said.
According to the group, Eden Flame owns the long steel plant located in Pasir Gudang, Johor that produces billets which are rolled into steel bars and light sections such as angle bars, flat bars and U-channels.
Based on its website, LICB is principally involved in steel, property development, building materials and others.
Shares in LICB gained 1.5 sen or 2.4% to 64 sen on Friday, giving it a market capitalisation of RM459.46 million.
Source:The Edge
