Lion Industries Plans To Dispose Of Entire Stake In AAPL For S$26.65 Mln

KUALA LUMPUR, Jan 8 (Bernama) -– Lion Industries Corporation Bhd (LICB) has proposed to dispose of its entire stake in Angkasa Amsteel Pte Ltd (AAPL) to a South Korean-listed company, Daehan Steel Co Ltd, for a cash consideration of S$26.65 million (equivalent to approximately RM80.90 million). This comprises 11.52 million ordinary shares representing approximately 50 per cent of the share capital of AAPL, a Singapore incorporated company. In a filing to Bursa Malaysia Monday, LICB said the disposal proceeds would be utilised for its proposed investment and working capital requirements of the group. "The proposed disposal will enable the group to dispose of its non-core assets. "LICB proposes to expand into the flat steel business through the proposed acquisitions of flat steel assets with a production capacity of up to 3.20 million tonnes per annum of hot rolled coils and up to 0.70 million tonnes per annum of cold rolled coils. "Following completion of the proposal, LICB would be able to embark on the flat steel business, thus strengthening its presence in the steel industry in Malaysia," it said. LICB said the total funding required to implement the proposal would amount to approximately RM636 million. The disposal will have no effect on the issued share capital of LICB and the substantial shareholders’ shareholdings and is not expected to have any material impact on the earnings and earnings per share of the group for the financial year ending June 30, 2019, it added. -- BERNAMA