CSC Steel drops plan to buy YKGI’s assets

This article first appeared in The Edge Financial Daily, on November 7, 2018.
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KUALA LUMPUR: Steel manufacturer CSC Steel Holdings Bhd, without providing a reason, has aborted its plan to acquire certain assets of YKGI Holdings Bhd.  “CSC Steel’s board of directors wishes to inform that the proposed transaction has been aborted,” it said in a Bursa Malaysia filing on Monday.

On March 20, CSC Steel announced 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 a 25-acre (10.12ha) land, housing 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 two sen or 1.85% lower at RM1.06 on Monday, with a market capitalisation of RM391.47 million. YKGI shares were also down 0.5 sen or 2.7% at 18 sen, valuing it at RM63.12 million.