Malaysia-based Southern Steel Berhad (SSB) has announced that it has signed a heads of agreement with local steelmaker Ann Joo Resources Berhad for the proposed acquisition of 100 percent of the issued share capital of the latter.
The deal is subject to the terms of a sale and purchase agreement to be finalized and the approval of both Southern Steel and Ann Joo shareholders. SSB will pay a MYR 70 million ($17.29 million) deposit upon signing the definitive agreement.
The proposed deal includes Ann Joo Resources Berhad’s wholly-owned subsidiary Ann Joo Integrated Steel Sdn Bhd.
Strategic move to strengthen upstream position
SSB stated that the acquisition aligns with its strategy to strengthen its position in the upstream steel manufacturing sector.
Both SSB and Ann Joo operate in similar segments, and the transaction is expected to:
- enhance operational scale,
- optimize production capacity,
- improve procurement efficiency,
- create operational synergies.