Leon Fuat Metal Sdn Bhd agreed to acquire 87% stake in Pcm Steel Processing Sdn Bhd from Yodogawa Steel Works, Ltd. and Fujiden International Corp. for MYR 3 million.
July 27, 2017
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Leon Fuat Metal Sdn Bhd agreed to acquire 87% stake in Pcm Steel Processing Sdn Bhd from Yodogawa Steel Works, Ltd. (TSE:5451) and Fujiden International Corp. for MYR 3 million on July 28, 2017. Leon Fuat Metal Sdn Bhd will pay MYR 0.3 million as deposit and the balance will be paid within three business days after completion. Leon Fuat Metal Sdn Bhd will acquire 10.4 million shares of Pcm Steel Processing Sdn Bhd out of which 10.1 million share will acquire from Yodogawa Steel Works, Ltd. and 0.24 million shares from Fujiden International Corp. Leon Fuat Metal Sdn Bhd will fund the acquisition via a combination of internally generated funds and bank borrowings. As of December 31, 2016, Pcm Steel Processing Sdn Bhd reported a revenue of MYR 6.1 million, net loss of MYR 2.8 million and net assets of MYR 2.7 million. The transaction is subject to the approval by the Board of Directors of Pcm Steel Processing Sdn Bhd and a new shareholders agreement to be agreed and executed between the existing shareholder, Nippon Steel & Sumikin Bussan Corporation and Leon Fuat Metal Sdn Bhd. The transaction is expected to close in third quarter of 2017.
Yodogawa Steel Works, Ltd. is a Japan-based company principally engaged in the manufacture, processing and sale of iron and steel products. The Company operates in four business segments. The Steel Sheets-related segment manufactures and sells coated steel sheets, galvanized steel sheets and cold-rolled steel products. The Roll segment is engaged in the manufacture and sale of steel rolls, non-ferrous rolls, etc. The Grating segment is engaged in the manufacture and sale of gratings. The Real Estate segment is engaged in the leasing and sale of real estate. Other businesses include sale of mechanical plants, power distribution projects by solar power generation, etc.
Leon Fuat Metal Sdn Bhd agreed to acquire 87% stake in Pcm Steel Processing Sdn Bhd from Yodogawa Steel Works, Ltd. and Fujiden International Corp. for MYR 3 million.