CSC Steel drops plan to buy YKGI's assets

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KUALA LUMPUR (Nov 5): Steel manufacturer CSC Steel Holdings Bhd has aborted its plan to acquire certain assets of YKGI Holdings Bhd.

It did not give a reason for the termination.

"The board of directors of CSC Steel wishes to inform that the proposed transaction has been aborted," it said in a filing with Bursa Malaysia today.

On March 20, CSC Steel announced that it had entered into a mutual confidentiality agreement with YKGI with a view of potential acquisition of certain assets of YKGI.

Earlier, The Edge weekly had reported that YKGI was in talks to sell its manufacturing plant in Kapar, Klang. The report stated that the 25-acre land, which houses a manufacturing plant that processes hot rolled coils had a net book value of RM83.18 million as at end-2014.

CSC Steel's counter closed 2 sen or 1.85% lower at RM1.06 today, with 87,200 shares done, bringing a market capitalisation of RM391.47 million. YKGI shares were also down 0.5 sen or 2.7% at 18 sen, with 369,500 shares traded, valuing it at RM63.12 million.