LIONIND

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TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONS LION INDUSTRIES CORPORATION BERHAD ("LICB" OR "COMPANY") PROPOSED EXPANSION INTO THE FLAT STEEL BUSINESS THROUGH THE PROPOSED ACQUISITIONS OF FLAT STEEL ASSETS FOR THE PRODUCTION OF HOT ROLLED COILS AND COLD ROLLED COILS ("PROPOSED EXPANSION INTO FLAT STEEL BUSINESS")

LION INDUSTRIES CORPORATION BERHAD

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
RELATED PARTY TRANSACTIONS
Description
LION INDUSTRIES CORPORATION BERHAD ("LICB" OR "COMPANY")

PROPOSED EXPANSION INTO THE FLAT STEEL BUSINESS THROUGH THE PROPOSED ACQUISITIONS OF FLAT STEEL ASSETS FOR THE PRODUCTION OF HOT ROLLED COILS AND COLD ROLLED COILS ("PROPOSED EXPANSION INTO FLAT STEEL BUSINESS")

We refer to the Company’s announcements dated 3 July 2018, 30 August 2018, 13 September 2018, 20 September 2018, 1 November 2018, 12 March 2019, 11 June 2019, 11 July 2019, 9 August 2019, 10 September 2019, 20 November 2019 and 29 November 2019 in relation to the Proposed Expansion into Flat Steel Business (collectively, “Announcements”). Unless otherwise stated, abbreviations and definitions used throughout this announcement shall have the same meaning as those previously defined in the Announcements.

On behalf of the Board, TA Securities wishes to announce that the Company had on 12 December 2019 received a letter from Megasteel informing that:

(1)      Megasteel’s solicitors, Messrs Sanjay Mohan (“Megasteel’s Solicitors”) had on 2 December 2019 lodged the Court Order for the Secured Scheme with the Companies Commission of Malaysia (“CCM”);

(2)      the respective parties had executed the following Debt Settlement Documents as set out in Section 2.5 of the Circular and the Security Trustee had on 12 December 2019 confirmed that the Debt Settlement Documents (save and except for the MS Promissory Note and SPA-II) were duly signed and dated on 2 December 2019;

          (a)        SPA-I;

          (b)        Cendana Aset Undertaking;

          (c)        Easement Documents in respect of Land E Easement;

          (d)        Easement Documents in respect of Amsteel Mills Land Easement;

          (e)        TSWC Guarantee;

          (f)         LICB Corporate Guarantee;

          (g)        National Land Code charges by Cendana Aset in favour of the Security Trustee creating fixed charges over the Megasteel Encumbered Land as a security for the Cendana Aset Undertaking;

          (h)        National Land Code charge by Secomex in favour of the Security Trustee creating fixed charges over the Secomex Encumbered Land as a security for the Cendana Aset Undertaking;

          (i)         Memorandum of charge by Cendana Domain in favour of the Security Trustee over one hundred percent (100%) of Cendana Aset’s ordinary shares as a security for the Cendana Aset Undertaking;

          (j)         Debenture by Cendana Aset in favour of the Security Trustee, creating a fixed charge over the Encumbered Assets as a security for the Cendana Aset Undertaking;

          (k)        Assignment of insurance contracts maintained by Cendana Aset in respect of the Encumbered Assets owned by Cendana Aset;

          (l)         Debenture created by Secomex in favour of the Security Trustee, creating a fixed charge over the Encumbered Assets owned by Secomex as a security for the Cendana Aset Undertaking;

          (m)       Assignment of insurance contracts maintained by Secomex in respect of the Encumbered Assets owned by Secomex;

          (n)        Memorandum of charge by Cendana Aset in favour of the Security Trustee over Secomex Shares as a security for the Cendana Aset Undertaking;

          (o)        A security sharing agreement governing the sharing of the securities under the New Securities Documents; and

          (p)        A security trustee trust agreement.

(3)      the MS Promissory Note and the SPA-II will be executed by the respective parties and be dated on Settlement Date (Secured Scheme). Upon the Settlement Date (Secured Scheme), Megasteel’s Solicitors shall lodge the Court Order for the Unsecured Scheme with CCM.

 

This announcement is dated 12 December 2019.






Announcement Info

Company Name LION INDUSTRIES CORPORATION BERHAD
Stock Name LIONIND
Date Announced 12 Dec 2019
Category General Announcement for PLC
Reference Number GA1-12122019-00069