KUALA LUMPUR (June 26): AYS Ventures Bhd (KL:AYS) plans to sell its controlling stake in Singapore-based steel products trader Steelaris Pte Ltd in a deal valued at S$6.3 million (RM19.91 million).

In a filing on Bursa Malaysia, AYS Ventures said its indirect wholly owned subsidiary, Ann Yak Siong (Singapore) Pte Ltd, signed a binding term sheet with CosmoSteel Holdings Pte Ltd, a Singapore-based distributor of piping and system components, to dispose of its 74% stake in Steelaris.

The deal also includes the sale of two minority shareholders’ combined 16% interest, which would give CosmoSteel a 90% stake in Steelaris upon completion.

AYS Ventures will receive S$2.59 million (RM8.18 million) in cash, and 10.36 million new shares in CosmoSteel, with the overall transaction to be settled equally through cash and shares.

AYS Ventures said that while Steelaris will cease to be a subsidiary of the group after the transaction is completed, AYS Ventures will continue to have an economic interest in the business through its shareholding in CosmoSteel.

Steelaris is principally involved in the trading of steel products and owns a Malaysian subsidiary that provides accounting, administrative, and management support services, according to the filing.

AYS Ventures said the disposal is part of its strategy to realise value from its investment in Steelaris while combining the business with CosmoSteel.

It said the cash proceeds from the disposal will be used for working capital, including repaying trade creditors and funding day-to-day operations.

Shares of AYS Ventures fell by five sen or 2.3% to 21 sen at the end of Friday’s trading day, giving the group a market capitalisation of RM87.9 million.