Lion Industries Acquires Chinese Real Estate Developer in RM 210 Million Debt Settlement by Lion Diversified

KUALA LUMPUR (December 16): Lion Industries Corp Bhd (LICB) will take over China-based real estate developer Well Morning Ltd, in a RM 210.35 million debt settlement by Lion Diversified Holdings Bhd (LDHB), which is currently in liquidation.

Of the total outstanding debt of RM 210.35 million, LDHB owes RM 26.79 million to Antara Steel Mills Sdn Bhd and RM 35.17 million to Lion Waterway Logistics Sdn Bhd, both subsidiaries of LICB , as well as RM 148.39 million to Posim Marketing Sdn Bhd, which is an indirect 74% subsidiary of LICB.

Well Morning, a wholly-owned subsidiary of LDHB, in turn owns 100% of Changshu Lion Enterprise Co Ltd, a China-based real estate developer.

The LICB said LDHB was ordered by the Malaysian High Court to be liquidated under the provisions of the Companies Act 2016 on October 15, 2019.

“Given the fact that LDHB is currently in the process of liquidation, the liquidator of LDHB is therefore not in a position to reimburse the outstanding guaranteed amount to each of the guaranteed parties. As such, the proposed settlement would allow secured parties to recover the unpaid secured amount that is long overdue.

“The proposed settlement will result in a net gain after minority stake of RM 162 million in the LICB group, which will strengthen its financial position,” the group said.

The net gain will translate into an increase of around 24 sen per share for its fiscal year ended June 30, 2021, he said.

LICB rose 4.5 sen or 10.5% to close at 47.5 sen, giving a market cap of RM 341.01 million.