Malaysia Star reported that Malaysia Steel Works Bhd has agreed to sell a 54.66% stake in wholly owned unit Bio Molecular Industries Sdn Bhd to IBA Pharma SA, a subsidiary of Belgium's Ion Beam Application SA.

In a filing with Bursa Malaysia, Masteel said that under the subscription and share sale agreement signed yesterday, IBA would subscribe for 5 million shares in BioM's MYR 10 million issued and paid up capital.

Masteel would also sell 5.112 million BioM shares to IBA for MYR 1,000 cash, reducing its stake to 45.34% in the BioNexus status company which is principally engaged in the business of manufacturing and research and development of radioisotopes and radio pharmaceutical products for positron emission tomography.

It said the proposed partnership was part of the group’s plan to strengthen its business prospect where IBA would be able to contribute its considerable technical, manufacturing, research and development knowledge, and financial resources to bring the radio pharmaceutical business to its full potential and also to absolve Masteel from the guarantee of about RM10mil for the purchase of Cyclotron equipment for BioM.

IBA develops and markets leading edge technologies, pharmaceuticals and tailor made solutions for healthcare with focus on cancer diagnosis and therapy. It also active in field of industrial sterilization and ionization.

Masteel said it expected to incur a one time loss on disposal of about MYR 5.11 million in the financial year in which the proposed partnership was completed.

(Sourced from www.thestar.com.my)