KUALA LUMPUR (April 22): CSC Steel Holdings Bhd (CHB) is disposing of its entire 6% shareholding in CSGT Metals Vietnam Joint Stock Company for US$1.2 million (RM5.25 million), as it has not been able to secure a commanding share of the Vietnam steel market.
In a filing with the bourse, the group said it had inked a share transfer agreement (STA) with CSGT International Corp for the disposal.
“CHB had tried to increase its sales to the Vietnam steel market over the years, unfortunately, CHB was not able to secure a commanding market share in Vietnam due to stiff competition from Vietnam’s local manufacturers and imported steel products after the implementation of several free trade agreements.
“As such, the disposal enables the realignment of the limited resources of CHB to improve the core business of the company,” it said.
Proceeds from the disposal will be used for the group’s working capital.
It expects to complete the disposal within three months of the date of the STA.
CSC shares rose 1.5 sen or 2.05% to settle at 74.5 sen today, giving it a market capitalisation of RM275.14 million. It saw 719,500 shares done.