KUALA LUMPUR (Aug 24): Asteel Group Bhd (KL:ASTEEL) has received a mandatory takeover offer from businessman Datuk Clifford Hii Toh Leong, who is seeking control of the steelmaker through a RM20.25 million deal to acquire a 52.94% stake.

Hii Capital Holdings Sdn Bhd, wholly owned by Hii, is acquiring 270 million Asteel shares from a group of shareholders at 7.5 sen apiece, according to an exchange filing on Monday.

Under Malaysian takeover rules, the acquisition triggers a mandatory offer for all remaining Asteel shares not already held by Hii Capital, Hii or persons acting in concert with them, also at 7.5 sen apiece.

The mandatory offer could require up to about RM18 million in additional cash if fully accepted, on top of the RM20.25 million Hii Capital has agreed to pay for the controlling stake.

The offer is unconditional and is not subject to any minimum acceptance level, as Hii Capital will already own more than 50% of Asteel upon completion of the acquisition.

However, Hii intends to maintain the listing status of Asteel.

The offer will remain open for acceptances for at least 21 days from the posting date, up to a maximum of 60 days.

The cash offer price of 7.5 sen represents a 4.31% premium over Asteel's one-month volume-weighted average market price (VWAP) of 7.19 sen, a 9.65% premium over its three-month VWAP of 6.84 sen, and an 11.61% premium over its six-month VWAP of 6.72 sen.

Hii, 43, previously held senior roles at SEG International Bhd (KL:SEG) and HCK Capital Group Bhd (KL:HCK). He is also the founder of Gambit Group Sdn Bhd, which provides information technology services, investment and business management consultancy, and operates a Digital Asset Custodian registered with the Securities Commission Malaysia.

Hii is the son of Tan Sri Clement Hii Chii Kok, the founder and executive chairman of property developer HCK Capital and group managing director and major shareholder of private education group SEG International.

The Kuching-based steel manufacturer reported a net profit of RM1.37 million for the second quarter ended June 30, 2026 (2QFY2026), more than five times the RM270,000 recorded a year earlier. Quarterly revenue rose 19.8% to RM80.6 million from RM67.3 million.

UOB Kay Hian (M) Sdn Bhd is acting as the principal adviser to Hii Capital and Hii for the takeover offer. 

Shares of Asteel were unchanged at 7.5 sen at the midday break on Monday, giving the group a market capitalisation of RM38.25 million.