Malaysian steel maker Lion Industries 99%-owned subsidiary Amsteel Mills has completed the sale of Eden Flame to Esteel Enterprise. Lion Industries Corporation Bhd announced that the final adjusted consideration from the disposal of its unit Antara Steel Mills Sdn Bhd had increased by MYR 26.15 million to MYR 697.74 million (USD 165.6 million). Total proceeds had increased due to the different exchange rate used and the date adopted for the closing of Antara’s account. Lion Industries said the final adjusted consideration was based on Antara’s closing account as of the completion date on 10 December 2021 while the actual exchange rate was based on USD 1 for MYR 4.215 as at 7 April 2021, compared to the assumed rate of MYR 4.18 previously.Singapore’s Esteel Enterprise Pte Ltd had fully paid the final adjusted consideration to Amsteel Mills Sdn Bhd, its 99-per cent subsidiary, for the entire stake in Antara.Eden Flame owns the long steel plant located in Pasir Gudang, Johor that produces billets that are rolled into steel bars and light sections such as angle bars, flat bars and U-channels. The plant includes a 100-tonne electric arc furnace, a ladle furnace, a six-strand continuous casting machine and two rolling mills. The plant is not in operation as at to-date.The company will use the deal proceeds for its existing business, new investments, deferred payables and as working capital. Concurrently, the utilisation of proceeds set for new investments or the existing business is raised to MYR 431.10 million from MYR 404.95 million previously.
Malaysian steel maker Lion Industries 99%-owned subsidiary Amsteel Mills has completed the sale of Eden Flame to Esteel Enterprise. Lion Industries Corporation Bhd announced that the final adjusted consideration from the disposal of its unit Antara Steel Mills Sdn Bhd had increased by MYR 26.15 million to MYR 697.74 million (USD 165.6 million). Total proceeds had increased due to the different exchange rate used and the date adopted for the closing of Antara’s account. Lion Industries said the final adjusted consideration was based on Antara’s closing account as of the completion date on 10 December 2021 while the actual exchange rate was based on USD 1 for MYR 4.215 as at 7 April 2021, compared to the assumed rate of MYR 4.18 previously.Singapore’s Esteel Enterprise Pte Ltd had fully paid the final adjusted consideration to Amsteel Mills Sdn Bhd, its 99-per cent subsidiary, for the entire stake in Antara.Eden Flame owns the long steel plant located in Pasir Gudang, Johor that produces billets that are rolled into steel bars and light sections such as angle bars, flat bars and U-channels. The plant includes a 100-tonne electric arc furnace, a ladle furnace, a six-strand continuous casting machine and two rolling mills. The plant is not in operation as at to-date.The company will use the deal proceeds for its existing business, new investments, deferred payables and as working capital. Concurrently, the utilisation of proceeds set for new investments or the existing business is raised to MYR 431.10 million from MYR 404.95 million previously.
