Japan-based steelmaker Nippon Steel Corp. has announced that it has commenced discussions with Tatt Giap Group, the existing majority shareholder of Malaysian manufacturer of electro-galvanized (EG) steel sheets Nippon EGalv Steel (N-EGALV), to acquire majority shares in the latter company through a share transfer. Following the transaction, Nippon Steel's shareholding in N-EGALV is expected to increase to 50.1 percent.
Since the acquisition of 10 percent shares of N-EGALV from Tatt Giap Group in February 2010, Nippon Steel and Tatt Giap Group have established a strong relationship through the provision of technical assistance by Nippon Steel to N-EGALV regarding the manufacturing of electro-galvanized anti-fingerprint steel products to be used for electric appliances, as well as the supply of cold rolled steel substrates to N-EGALV.
In addition to such cooperation, Nippon Steel and Tatt Giap Group have been discussing a desirable management scheme for N-EGALV, and have agreed to commence consideration of a transfer of the issued shares of N-EGALV presently owned by Tatt Giap Group to Nippon Steel by the end of June 2011, so that N-EGALV will become a consolidated subsidiary of Nippon Steel.
N-EGALV, with 150,000 mt of electro-galvanizing capacity, plans to start its commercial production of electro-galvanized anti-fingerprint steel products for electric appliances in the near future using the technology licensed by Nippon Steel.