Last time when The Edge first reported that Boustead have intention to dispose BPLANT, Boustead also announce that it has not aware about any agreement entered by its major shareholder LTAT.
Hong Leong Group looking to sell its 70% stake in steel manufacturer for as much as RM956 million.
PETALING JAYA: Southern Steel Bhd’s shares surged 31.25% or 18 sen on reports that billionaire Quek Leng Chan’s Hong Leong Group is considering selling its stake in the steel products manufacturer for as much as US$200 million (RM956 million).
It hit an intraday high of 74 sen before paring its gains and closing at 73.5 sen with 1.32 million shares traded. People familiar with the matter said the Quek-controlled Hong Leong Group is working with advisers on the planned divestment of its 70% stake, according to a Bloomberg News report.Should the deal go through at the higher range of the valuation, it would be more than double the company’s current market value of RM438.29 million. headtopics.com
Additionally, they said the conglomerate and its advisers have reached out to companies within the industry and financial investors in gauging their interest. Apart from Hong Leong Manufacturing Group Sdn Bhd and Signaland Sdn Bhd, which are members of Hong Leong Group Malaysia, its other shareholders include the founding business families based in Penang, according to its website.
Southern Steel was listed in in 1993 on the Kuala Lumpur Stock Exchange, now known as Bursa Malaysia.
@Cnlim, this is the fun part of being in the stock market. When topic is hot, we add oil and fire into it, make it more hot. When topic is cold, we put it into freezer quietly.
Attention needed on this news. Based on my own understanding and interpretation, this settlement will resulted in a gain of approximately RM200mil for SSTEEL, am I right?
Any expert that have follow up this case since 2019 can share your opinion here? Because the company have already recognise the losses on 2019, that why I am expecting there should be a gain based on this settlement agreement.
Based on share capital of around 600mil share. If SSTEEL is going to recognise 100mil gain, there will be EPS of 16sen. If 150mil gain, then there will be EPS 25sen. If 200mil gain, then there will be EPS 33sen.
And with this RM200 mil cash received, assume it has fully use to pair off its debt. Based on 5% per year, this RM200mil will save interest cost by 10mil.
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Albukhary
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Posted by Albukhary > 2023-10-27 14:21 | Report Abuse
This type of announcement make us more convince there is something brewing.