Posted on 01 Oct 2009
Lion Corp Bhd said its subsidiary Megasteel Sdn Bhd plans to dispose of 102 million shares in Lion Industries Corp Bhd (LICB), representing a 14.31% stake, to Tan Sri William Cheng.
Megasteel is 79% owned by Lion Corp’s wholly-owned subsidiary Limpahjaya Sdn Bhd.
In a filing with Bursa Malaysia, Lion Corp said the disposal would be conducted via an option agreement entered into by Megasteel with Cheng.
“Assuming the exercise price of the LICB shares is RM1.57, the Lion group is expected to incur a loss of about RM192mil from the proposed disposal of LICB shares by Megasteel,” the company said.
It added that proceeds from the sale would be used to service Megasteel’s debts.
The proposed disposal is expected to be completed in the second quarter of next year.
