Singapore-based steel producer Green Esteel will buy a 50.1 percent stake in Malaysia-based Southern Steel for MYR 315.9 million ($72.13 million), according to a statement by Southern Steel. If the transaction is approved, Southern Steel will become a subsidiary of Green Esteel.
In addition, Southern Steel plans to offer a 10.18 percent stake to investors to meet public shareholding requirements as Green Esteel becomes a major shareholder.
Southern Steel has a total annual production capacity of 150,000 mt at its mesh manufacturing plants located in Klang and Prai in Malaysia.
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