Japanese steelmaker Nippon Steel’s trading arm has agreed to acquire a 10 percent stake in Malaysian pipe and flat steel producer Leform Berhad, a move aimed at strengthening supply chain cooperation and supporting Leform’s operational growth.
According to a statement from Leform Berhad, Nippon Steel Trading Corporation’s Malaysian subsidiary NST Trading Malaysia Sdn Bhd will subscribe to 143.1 million newly issued shares in the company. The shares will be issued at RM 0.1688 per share, a price determined at a discount to the five-day volume-weighted average market price, totaling RM 25 million ($6.37 million). Once the transaction is completed, Nippon Steel’s trading arm will hold a 10 percent ownership stake in Leform through the primary share placement.
Investment aimed at strengthening supply chain and margins
The proceeds from the transaction are expected to be utilised primarily for the purchase of raw materials, enabling the group to stock products in advance of orders, improve delivery efficiency and procure steel materials ahead of anticipated price increases to enhance gross profit margins, according to Leform
Leform managing director Law Kok Thye emphasized the strategic importance of the investment, stating that the partnership would not only strengthen the company’s capital base but could also create potential synergies that enhance supply chain resilience and expand market reach.
