Malaysian business group Lion Industries has sold 100pc stakes in Antara Steel Mills to Singapore-based company Esteel for MYR546.56mn ($128mn) on Tuesday, according to a company release. The deal includes hot-briquetted iron (HBI) plant with an annual capacity of 2.35mn mt in Labuan. Both parties signed a conditional sale and purchase agreement for the disposal of 100pc share capital of Antara.
Antara Steel’s billet plant in Johor with an annual capacity of 3.05mn mt is not included in the sale agreement.
Esteel’s subsidiary, BRC Asia is involved in prefabricated and reinforcement steel products for use in concrete, trading of rebars and manufacturing and sale of wire mesh fences, according to local media.
Lion Industries had initial invested MYR138.23mn in 2002 and later bought the Labuan plant for MRY300mn. The proceeds of the sale would be used to expand Lion’s flat steel profile.