Hiap Teck Venture Berhad entered into the SSA to subscribe for 54,600,000 new ordinary shares in Eastern Steel Sdn Bhd at a total subscription price of RM53,235,000, in the Proposed Rights Issue of ESSB which will amount to a total of RM195,000,000.
ESSB was incorporated in Malaysia as a private company on 23 August 2001. The company is principally engaged in the manufacturing, selling and dealing in a range of steel products using blast furnace plant. With the successful ignition of the 1,380 m3 new blast furnace on 1 August 2023, ESSB’s production capacity has increased from the previous 700,000 MT to 2,700,000 MT per annum of steel slabs and billets. HVTB expects ESSB’s productiion to be sold locally to satisfy domestic demand and also exported to neighbouring countries principally in Southeast Asia and North Asia, and also Mexico and Turkey. It is also in the progress of constructing a new 1,450 mm Hot Rolling Mill, which will have an annual rolling capacity of 2,580,000 MT of Hot Rolled Coil upon its targeted completion in September 2024.
ESSB is a joint-venture between Shanxi Jianlong, HTVB and Chinaco. As at the date of the SSA, ESSB has an issued and paid-up share capital of RM2,078,578,983 comprising 2,308,000,000 ordinary shares with its shareholdings, as follows:
The Proposed Rights Issue entails the issuance and allotment of 200,000,000 new ordinary shares at RM0.975 each for a total consideration of RM195,000,000 to be proportionately subscribed by the existing shareholders of ESSB, namely: Shanxi Jianlong; HTVB; and Chinaco. Shanxi Jianlong has designated its sister company, JHSB, to subscribe for its entitlement to the Proposed Rights Issue of ESSB. JHSB is a 100%-owned indirect subsidiary company of Beijing Jianlong Heavy Industry Group Co. Ltd (“Beijing Jianlong”), the ultimate holding company of the Jianlong Group.