On 12 April 2017, the Board of Directors of LICB (“Board”) had announced the following proposals:

(i) Lion Metal Industries Sdn Bhd, a wholly-owned subsidiary of the Company, had on 12 April 2017 entered into a sale and purchase agreement with Yinson Corporation Sdn Bhd (“Yinson”) (“SPA”) for the disposal of a piece of leasehold land in Klang, Selangor Darul Ehsan measuring approximately 3.23 hectares (or 7.98 acres) in area together with the buildings erected thereon (“Property”) to Yinson for a sale consideration of RM45 million (“Proposed Sale”); and

(ii) Amsteel Mills Sdn Bhd (“AMSB” or the “Lessee”), a 99%-owned subsidiary of LICB, had on 12 April 2017 entered into a lease agreement with Yinson (“Lease Agreement”) for the lease of the Property from Yinson for a period of 5 years (“Lease Term”) with an option to renew the Lease Term for another term of 5 years (“Renewed Lease Term”) together with an option to purchase the Property during the Lease Term and the Renewed Lease Term (“Purchase Option”) (“Proposed Leaseback”).    

The Proposed Sale and the Proposed Leaseback shall collectively be referred to as the “Proposed Sale and Leaseback”.

The Proposed Sale was completed on 1 January 2018 (“Completion Date of SPA”). Pursuant to the Lease Agreement, the lease of the Property by AMSB from Yinson shall commence on the Completion Date of the SPA. Please refer to the Company’s announcements dated 12 April 2017 and 2 January 2018 for details of the Proposed Sale and Leaseback.

The Board wishes to announce that AMSB had on 15 July 2022 served a notice to Yinson to exercise the Purchase Option (“Notice”). The parties shall execute a sale and purchase agreement in such form mutually agreed between AMSB and Yinson as attached in the Lease Agreement with Yinson within 10 business days from the date of Notice.