KUALA LUMPUR (Aug 27): OM Holdings Ltd (KL:OMH), a manganese miner dual-listed in Australia and Malaysia, said on Wednesday it has found another buyer for its Chinese smelting unit after the previous deal fell through.
Shaanxi Sinian Metal & Mining Co Ltd, a major manganese ore trader in China, has agreed to purchase 60% equity interest in OM Materials (Qinzhou) Co Ltd for 120 million Chinese yuan (RM70.9 million), the company said in an exchange filing.
“The proceeds received from this sale will be redeployed to support the company's working capital needs,” OM Holdings said.
OM Materials operates a wholly owned smelter in Qinzhou, China, producing high-carbon ferromanganese and sintered ore. However, the plant ceased operations in December 2021 due to high power tariffs in China.
The company decided to sell 90% of OM Materials to the previous buyer, Beijing Kunpeng Hongsheng Metal Co Ltd, in November 2023. However, Beijing Kunpeng was unable to meet all the conditions outlined due to difficult market conditions.
OM Holdings regained 100% of the equity interest and control of the unit, and part of the proceeds received will be returned to Beijing Kunpeng, except 15.0 million yuan as part of the settlement.
A conditional sale and purchase agreement was signed in July 2025 with the new buyer, Shaanxi Sinian, followed by an addendum on Tuesday to finalise the cash and share transfer mechanism, OM Holdings said.
The sale to Shaanxi Sinian is expected to close by the end of 2025, and once the deal goes through, OM Holdings will be the “strategic partner” with a 40% stake in OM Materials, the company added.