KUALA LUMPUR (Oct 27): Southern Steel Bhd said that it is not aware of any agreement that its major shareholder Hong Leong Group — a conglomerate helmed by billionaire Tan Sri Quek Leng Chan — had entered into that would need to be disclosed to Bursa Malaysia.
The company said this in a Friday bourse filing while responding to a query by Bursa Malaysia in relation to a report on Wednesday about the group's plan to divest its majority stake in the steel products manufacturer. It is seeking a valuation of as much as US$200 million (RM957.2 million) for the unit.
Hong Leong Manufacturing Group Sdn Bhd and HLMG Capital Sdn Bhd — both controlled by Quek — are the top two major shareholders of Southern Steel, collectively holding a 69.97% stake in the company, according to its annual report.
“The company, having made due inquiry with its board of directors, its major shareholder and all such other persons reasonably familiar with the matter, wishes to confirm that as of the date of this announcement (Friday), it is not aware of any agreement involving the company entered into by the major shareholder which requires disclosure pursuant to Main Market Listing Requirements of Bursa Securities,” it clarified.
Following the news, Southern Steel also advised its shareholders and investors to be prudent in trading its shares in the company.
Shares of Southern Steel reached a record high of 74 sen after the news break. At 2.09pm on Friday, the stock was down by 3.38% to 71.5 sen. The counter has risen 25.44% from a low of 57 sen since the beginning of this year.
Meanwhile, the company said that it will make the necessary announcement to Bursa when it becomes aware of any material development involving the matter.