Lion Industries Corp Bhd announced today that the proposed sale of Antara Steel Mills Sdn Bhd to Esteel Enterprise Pte Ltd by its 99% subsidiary Amsteel Mills Sdn Bhd will not be completed as the amended and revised sales contract (A&R SPA ) expired.
In a statement today, Lion Industries said the Saturday (April 10, 2021) payment deadline to meet all preconditions outlined in the A&R SPA has not been met or canceled.
“Consequently, the A&R SPA has expired and the proposed sale will not be completed,” Lion Industries said.
Securities trading at Lion Industries was suspended for one hour from 9am this morning. It opened unchanged at Sept 88 at 10 am but later fell as much as Sept five, or 5.68%, to a low of Sept 83.
At 11.03 it dropped slightly to 85 Sept, still down three Sept, or 3.41%. The counter, among the most actively traded shares, saw 42.8 million shares change hands.
Last June Lion Industries announced its intention to sell its 100% stake in Antara Steel Mills, which operates a hot-rolled iron (HBI) plant in Labuan, to Esteel Enterprise for US $ 128 million (about RM546.56 million).
Lion Industries said the initial investment in Antara was RM138.23 million, while the Labuan plant was previously acquired for RM300 million.
“Based on the pro forma based on the latest audited consolidated statement of financial position of Lion Industries as of June 30, 2019, following the completion of the proposed sale, the group is expected to generate a profit of 433.16 million ringgit,” it said then. [: ]