Kinsteel Bhd announced it has form a strategic alliance with Maju Holdings Berhad by acquiring 51% equity interest in Perwaja and Gurun Assets. Maju would retain 49% equity interest in Perwaja and Gurun and acquired a substantial stake in Kinsteel Bhd.
Kinsteel Bhd and Datuk Pheng Yin Huah
Kinsteel Bhd managing director is not stranger to chinese community as he is a social activists. He is Federation of Pahang Chinese Associations (FPCA) President.With that position, he is deem a central committee of Federation of Malaysia Chinese Associations. Few years ago, he contest for the post of President of Federation of Malaysia Chinese Association but fail. Few months ago, he agree not to contest the post again this year and remain as a central committee. He must be in negotiation on strategic alliance at that point of time and shift his focus to his own business rather than social activity. If he become President of Federation of Malaysia Chinese Association. He would represent chinese community in Malaysia. Thus, sometime might have to oppose government policy on behalf of chinese community. This might contradict role in business which view as a partnership between bumiputra and non-bumiputra.
Maju executive chairman Tan Sri Abu Sahid Mohamed said Perwaja and Kinsteel had been business partners for a long time, and that Kinsteel managing director Datuk Pheng Yin Huah was also a close friend.
The deal also view as a partnership between bumiputra and non-bumiputra malaysia to protect Malaysia's steel industry being take over by foreigner. As report stated that India most richest man Mittal Group eyeing Perwaja Steel in Malaysia.
Steel Industry in Malaysia after this
After this strategic alliance. Steel industry in Malaysia is control by 3 focus core group.
First is Lion Group. Lion Group is no stranger to every body. The group started from steel industry and has diversified to other industry like Parkson. It diversified geographically as well as they have a lot of investment in China.
Second is Ann Joo and Malayawata Group. Ann Joo Group is a veteran in steel business. They have interest in furniture making and in property business. They own a shopping mall in Kepong in private. They have taken over Malayawata from Pernas. This make them a significant group in steel industry. Ann Joo make a General Offer to acquired all the shares in Malayawata that they did not own recently.
The third is Kinsteel-Perwaja if the deal go through.
Other is not a focus group in steel industry. Like diversified Hong Leong own Southern Steel and Melewar's Group Melewar Steel. Althogh the company is large and significant, they are not focus in steel industry nor they are veteran in steel industry. Then there is numerous small player.
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5 comments:
Ann Joo owns a shopping mall in Kepong?
Is it owned through the holding company -Ann Joo Corporation Sdn Bhd?
It is definitely something new to me.
Not own by Ann Joo directly. Own by a private company control by Ann Joo's director. The shopping Mall ia at the junction of Jalan Ipoh, Jalan Kuching and Jalan Kepong.
THank you for your reply.
Is it Kompleks Desa that you are referring to?
May I know whether the director mentioned in your message is holding executive power?
From my understanding, all the excutive positions in AJR are held by the Lim family.
Yes ,own by Lim family. However, I have long time never pass by that road. I cannot recall the exact name of the mall. There should be a "Gold" on the name of the complexe
is it Sungai Emas?
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