KUALA LUMPUR (Sept 18): Steel player Hiap Teck Venture Bhd has taken its first step towards iron ore mining by subscribing for 55% equity interest in mining outfit Vista Mining Sdn Bhd (Vista).
“The share subscription represents an opportunity for Hiap Teck to venture into iron ore mining business and will transform Hiap Teck and its subsidiaries into a fully integrated steel player in the country, with mining, upstream and downstream activities,” said the company in a filing to Bursa Malaysia today.
Vista is involved in iron ore exploration, mining and processing operations. It is an approved contractor by Jabatan Mineral dan Geosains Malaysia, Terengganu, to conduct mining activities on a plot of land in Dungun.
“The share subscription will not have any effect on the share capital or material effect on the net assets of Hiap Teck, but it is expected to contribute positively to the earnings for the group in the future” it added.
Hiap Teck signed an agreement with Vista for the subscription of 550,000 new ordinary shares of RM1 each in Vista, at an issue price of RM1 per share. The total subscription price is RM550,000.
The company will fund its subscription in Vista by internally-generated funds.