CSC Steel Holdings Bhd (CHB) has announced that it has disposed of its entire six percent shareholding in CSGT Metals Vietnam Joint Stock Company for $1.2 million (VND 28.6 million). The transaction is expected to be completed within three months from the date of the share transfer agreement.
CHB’s decision to disinvest its sharing in CSGT is a result of stiff competition in Vietnam steel market from local manufacturers and imported steel products after the implementation of several free trade agreements. The company will use the earnings from the disinvestment for its working capital.