According to a recent press release, Malaysia’s Lion Industries Corp is selling its entire 50 percent stake in Singapore’s Angkasa Amsteel Pte Ltd to Daehan Steel Co for US$26.65 million mt. Lion Industries plans to use the proceeds to fund its expansion into the flat steel business and working capital requirements.
Last year, the group announced its proposed expansion into the flat steel business via the proposed acquisitions of flat steel assets with a production capacity of up to 3.2 million mt annually of hot rolled coils and up to 0.7 million mt of cold rolled coils. Lion Industries holds 50 percent minus one share in Angkasa Amsteel which was acquired in 2011 while LTC Corp Ltd holds the remaining 50 percent +1 share.
Based on the proforma consolidated balance sheet of Angkasa Amsteel as at March 31, 2018, Lion Industries is expected to receive about US$10.16 million as its share of the distribution of assets under the liquidation of the subsidiaries. Thus, the total proceeds to be derived from the proposed disposal and the restructuring exercise is about US$36.81 million. The proceeds are about 13-15 percent of the total needed for the proposed expansion into flat steel.
Angkasa Amsteel’s principal activities are in the trading and fabrication of steel and dealing in building materials. Its subsidiaries are involved in steel trading.
LICB is involved in the manufacturing of long steel products comprising bars and wire rods which are used in the construction, fabrication and manufacturing industries.