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Southern Steel and Ann Joo Terminate Long Steel Products JV MoU

Steel News - Published on Thu, 28 May 2020

Image Source: Southern Steel Ann Joo
Malaysian media reported that after nearly eight months, Southern Steel Bhd and Ann Joo Resources Bhd have mutually agreed to terminate its planned partnership to synergise opportunities in the long steel product manufacturing business. Southern Steel informed Bursa Malaysia that both the companies have agreed to terminate the Memorandum of Understanding immediate effect due to uncertain market conditions caused by the COVID-19 pandemic. Termination of the MoU is not expected to have any material effect on the company’s consolidated earnings and net assets per share for the financial year ending June 30, 2020.”

In October last year, Southern Steel Bhd and Ann Joo Resources Bhd wanted to form a joint venture company (to venture into the long steel product business. Under the MoU, Southern Steel was to sell the entire equity interests including assets and liabilities of its units Southern Steel Rod Sdn Bhd, Southern Steel Mesh Sdn Bhd, Southern PC Steel Sdn Bhd and Danstil Sdn Bhd to the JV Co for MYR 742.5 million. Ann Joo was to divest its entire interest in Ann Joo Integrated Steel Sdn Bhd, Ann Joo Steel Bhd and Saga Makmur Industri Sdn Bhd to the JV Co for MYR 907.5 million. The new JV Co was supposed to be a 45%-associate company of Southern Steel and a 55%-subsidiary of Ann Joo via the issuance of new ordinary shares.

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Posted By : Yogender Pancholi on Thu, 28 May 2020
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