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.
Hong Leong and its advisers have reached out to companies in the same industry as well as financial investors to gauge their interest, the people said, asking not to be identified as the information is private. Deliberations are ongoing and the Malaysian conglomerate could still hold onto its stake, they added.
Representatives for Hong Leong Group and Southern Steel didn’t respond to requests for comment.
Southern Steel was founded in 1963, and its galvanized sheet plant in Penang, north of Kuala Lumpur, started production two years later, according to its website. The company was listed on the Bursa Malaysia, then known as the Kuala Lumpur Stock Exchange, in 1993. Hong Leong, which was Southern Steel’s partner since 1981, became the largest shareholder after buying shares from others including NatSteel.
