PETALING JAYA: Lion Industries Corp Bhd’s subsidiary Amsteel Mills Sdn Bhd, is proposing to sell its entire stake in Antara Steel Mills Sdn Bhd, a hot-briquetted iron (HBI) plant and business in Labuan, to Esteel Enterprise Pte Ltd for US$128 million (RM546.56 million).
According to its Bursa filing, the proposed disposal is subject to a restructuring exercise to be undertaken by Antara prior to the completion of the proposed disposal.
The group is expected to recognise a gain on disposal of RM433.16 million, which will be used for its existing
business, new investment opportunities and/or working capital.
“Lion Industries proposes to expand into the flat steel business through the proposed acquisition of flat steel assets. As such, the prroposed disposal is timely for the group to undertake new investments which could include the proposed expansion into flat steel business,” it said.
The proposed disposal is expected to be completed by Oct 31, 2020.
