Posted on 05 Oct 2015
Southern Steel sells BSWPL for RM25m
Southern Steel Bhd (SSB) is selling its entire 45% stake in Bekaert
Southern Wire Pte Ltd (BSWPL) for US$5.69 million (RM25.09 million) to
be used to repay bank borrowings and for working capital. In a filing to
the exchange, SSB said it has entered with Bekaert Singapore Pte Ltd
and NV Bekaert SA for the disposal that is expected to generate a net
gain of about RM25 million to the SSB Group. It said the sale will
enable SSB Group to realise its investment in BSWPL and to focus on its
remaining businesses. The original cost of investment made by SSB in the
shares sale on May 8, 2012, was RM73.44 million. However, due to the
challenging environment surrounding the steel industry since then, SSB
Group’s cost of investment in BSWPL has been fully impaired as at June
30, 2015, said SSB.
