Shares of Southern Steel jumped by a record 30% in Kuala Lumpur after the Bloomberg News report. The stock was still 27% higher as of 4.34pm local time.
Southern Steel Bhd. surged by a record after people familiar with the matter said Hong Leong Group, a conglomerate controlled by billionaire Quek Leng Chan, is considering selling its majority stake in the unit and seeking a valuation of as much as US$200 million ($274.0 million).
The Malaysian company is working with advisers on the planned divestment of its 70% stake in the Kuala Lumpur-listed arm, the people said. A deal could value Southern Steel between US$100 million to US$200 million, the people said. At the top of the range, it would be more than double the firm’s current market capitalization of about US$89 million.
