Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 7): Shares of Ann Joo Resources Bhd and Southern Steel Bhd received mixed reactions upon resuming trade in the afternoon following their announcement of a new 55:45 joint venture (JV).

As at 3.40pm, Ann Joo was down 4.88% or six sen to RM1.17, with 2.05 million shares done. While Southern Steel rose 3.06% or three sen to RM1.01, with 608,800 shares done.

Earlier the two firms announced they had signed a memorandum of understanding to establish a JV company to synergise opportunities in the long product steel manufacturing business.

Under the proposal, Southern Steel will be selling the entire equity interests including assets and liabilities of its units Southern Steel Rod Sdn Bhd, Southern Steel Mesh Sdn Bhd, Southern PC Steel Sdn Bhd and Danstil Sdn Bhd to the JV company for RM742.5 million.

Ann Joo, meanwhile, will be disposing of its entire interest in Ann Joo Integrated Steel Sdn Bhd, Ann Joo Steel Bhd and Saga Makmur Industri Sdn Bhd to the JV company for RM907.5 million.

Upon completion of the proposal, the new JV company will be a 45%-associated company of Southern Steel and a 55%-subsidiary of Ann Joo.

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