Press Metal Aluminium Holdings has proposed acquiring the stake for RM464.95 million (US$113.6 million), raising its interest in PMBT to 58.8% and making the firm its subsidiary, The Edge Malaysia reported.
The sellers are Koon Poh Keong, Koon Poh Ming, Koon Poh Tat, Koon Poh Weng and Koon Poh Kong, all of whom sit on Press Metal’s board.
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The Press Metal logo is seen on a building. Photo from the company’s website |
The acquisition prices the shares at RM0.70 each, below both the company’s latest audited net assets per share of RM0.72 and its unaudited net assets per share of RM0.73.
The deal is considered a related-party transaction as the sellers are directors and substantial shareholders of Press Metal.
The transaction will be financed entirely with internally generated funds and is expected to close in the third quarter of this year, subject to shareholder approval and regulatory requirements.
Press Metal said the acquisition aims to shift PMBT’s operations from manufacturing silicon metal to higher-margin silicon-aluminum alloy and use its existing facilities to expand capacity, according to The Star.
It expects demand for silicon-aluminum alloys to be supported by clean energy applications and, in the long term, electric vehicles, renewable energy infrastructure and artificial intelligence data centers.
RHB Research said the acquisition could strengthen Press Metal’s downstream expansion strategy by providing greater access to sustainable energy supply, as quoted by the New Straits Times.
PMBT’s market capitalization was at RM3.37 billion on Monday while Press Metal was valued at RM65.5 billion.
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Koon Poh Keong, group CEO of Press Metal. Photo from the company’s website |
Press Metal was founded by Poh Keong and his four siblings in 1986 as an aluminum extrusion company. From a rented factory in the Malaysian state of Selangor, the firm has become Southeast Asia’s largest integrated aluminum producer.
The brothers together control the firm, with the eldest Poh Keong serving as group CEO. Forbes ranked them second on its Malaysia rich list in April with a combined estimated net worth of $9.7 billion, trailing only tycoon Robert Kuok.