Ann Joo Resources Berhad has terminated its initial plan to sell its upstream assets to Southern Steel Berhad opting instead to divest 100% of its equity interest in Ann Joo Steel Berhad to Singapore-headquartered Green Esteel Pte Ltd.
The company has officially executed a conditional sale and purchase agreement with Green Esteel. This comes immediately after Ann Joo mutually agreed to terminate a prior Heads of Agreement (HOA) signed with Southern Steel on March 27, 2026.
The new cash deal involves a comprehensive restructuring of Ann Joo’s manufacturing where Green Esteel will acquire 100% of AJSB (comprising 612.99 million ordinary shares) along with its wholly-owned subsidiary, Ann Joo Integrated Steel Sdn Bhd (AJIS).
Ann Joo is retaining strategic real estate out of the transaction. The sale explicitly excludes three parcels of land in Selama, Perak, and a separate parcel in Province Wellesley South, Penang, together with all structural buildings erected on them.
Upon completion of the transaction, both AJSB and AJIS will entirely cease to be subsidiaries of Ann Joo and will transition into wholly-owned units of Green Esteel. Ann Joo will carry no remaining contingent liabilities or corporate guarantees following the disposal.
While the exact final cash consideration will be computed using automated adjustment mechanisms outlined in the SPA, Ann Joo expects to book an illustrative net proforma gain on disposal of RM157.13 million.
The incoming cash pile is expected to materially strengthen the group’s net assets (NA) and earnings per share for the current financial year. Furthermore, the company clarified that based on its audited financial statements for the financial year ended December 31, 2025, the massive asset sale will not trigger any regulatory red flags, ensuring the company does not fall into “Cash Company” status or Practice Note 17.
