Lion Industries wholly owned subsidiary Amsteel Mills has disposed its entire stake in Antara Steel Mills to Esteel Enterprise a Singapore based steel trader for RM509 million.
Antara was incorporated in Malaysia on 15 July 1975 as a private limited company. Antara currently operates the HBI Plant located in Labuan which produces HBI mainly for theexport market. The issued share capital of Antara is RM248,010,000 comprising 218,010,000 Ordinary Shares and 30,000,000 Preference Shares. Antara is a wholly-owned subsidiary of AMSB which in turn is a 99% owned subsidiary of the Company. The unaudited net profit and NA of Antara for the 12-month period ended 30 June 2021 are RM56.47 million and RM268.79 million respectively.
Esteel incorporated in Singapore is an investment holding firm and its subsidiaries BRC Asia Limited is involved in prefabricated steel reinforcement steel products for use in concrete, trading of rebars and manufacturing and sale of wire mesh fences, and Lee Metal Group Limited is involved in steel merchandising and fabrication of reinforcement steel products for the construction and building industry. Paid-up capital of Esteel is SGD10 million (equivalent to approximately RM30.80 million) comprising 10 million ordinary shares.
The main reason for the disposal was to unlock the value of Anatara and realise the substantial gain of approximately RM403 million. Lion Industries will be using the proceeds from the sale to expand into the flat steel business through the proposed acquisition of flat steel assets.
