KUALA LUMPUR (Sept 23): OM Holdings Ltd (KL:OMH), dual-listed in Australia and Malaysia, said on Tuesday that it has closed the sale of a majority stake in its Chinese smelting unit for about RM70.8 million.
In a filing with Bursa Malaysia, the company said it has disposed a 60% stake in OM Materials (Qinzhou) Co, Ltd, or OMQ, to Shaanxi Sinian Metal & Mining Co, Ltd, under a conditional sale and purchase agreement announced on July 27, 2025, and an addendum signed on Aug 26.
OM Holdings said it has received 108 million yuan (RM63.7 million) in proceeds, with the balance due by end-November. The funds will be used for general working capital.
The company will retain a 40% stake in OMQ to maintain strategic participation in the Chinese ferroalloy business.
The partial sale of OMQ is “an important strategy to strengthen our balance sheet, while maintaining our presence in the ferroalloy market in China,” said executive chairman and chief executive officer Low Ngee Tong.
The deal closure follows earlier failure to divest its Qinzhou unit. In November 2023, OMH agreed to sell a 90% interest in OMQ to Beijing Kunpeng Hongsheng Metal Co, Ltd, but after the buyer failed to meet conditions of the sale amid weak market conditions.
OM Holdings subsequently regained full ownership and returned most of the earlier proceeds to Beijing Kunpeng, except 15 million yuan retained as part of a settlement.
Shaanxi Sinian, a major manganese ore trader in China, later emerged as a new buyer, agreeing in July 2025 to acquire the stake.
OMQ, which operated a smelter producing high-carbon ferromanganese and sintered ore, has been idle since December 2021 due to high power tariffs in China.
“This transaction also marks the beginning of a new partnership with Shaanxi Sinian Metal, and we are eager to explore the joint opportunities ahead,” Low added.