KUALA LUMPUR (April 12): Lion Industries Corp Bhd said today the proposed disposal of Antara Steel Mills Sdn Bhd to Esteel Enterprise Pte Ltd by its 99%-owned subsidiary Amsteel Mills Sdn Bhd will not be completed as the amended and restated sale and purchase agreement (A&R SPA) had lapsed.

In a statement to Bursa Malaysia today, Lion Industries said the due date on Saturday (April 10, 2021) to meet all the conditions precedent as stated in the A&R SPA had not been fulfilled or waived.

"Consequently, the A&R SPA has lapsed and the proposed disposal will not be completed,” Lion Industries said.

Trading of securities in Lion Industries was halted for one hour from 9am today. It opened unchanged at 88 sen at 10am, but later fell as much as five sen or 5.68% to a low of 83 sen.

At 11.03am, it had pared some losses at 85 sen, still down three sen or 3.41%. The counter, among the most actively traded stocks, had seen 42.8 million shares change hands.  

Lion Industries announced in June last year it planned to dispose of its 100% stake in Antara Steel Mills, which operates a hot briquetted iron (HBI) plant in Labuan, to Esteel Enterprise for US$128 million (about RM546.56 million).

Lion Industries said the original cost of investment in Antara was RM138.23 million for the stake, while the Labuan plant was previously acquired for RM300 million.

“On a pro forma basis, based on the latest audited consolidated statement of the financial position of Lion Industries as at June 30, 2019, upon completion of the proposed disposal, the group is expected to realise a gain of RM433.16 million,” it said back then.