Itochu joins Perwaja Steel

Itochu joins Perwaja Steel

KUALA LUMPUR (AFP): Itochu Corp. of Japan has bought a five percent stake in Malaysia's state-owned Perwaja Steel, one of Southeast Asia's largest integrated steel producers, reports said yesterday.

Perwaja corporate director K.H. Kong said the new shares were issued to Itochu Corp. at three ringgit (US$1.20) each at a premium of two ringgit per share above the nominal value of one ringgit per share.

The finance and international trade and industry ministries have approved the share subscription, Kong was reported saying in local news reports.

Itochu will not have any board representation or interest in the management of the company, he said.

"Itochu's participation reflects the Japanese endorsement and confidence in the future of Perwaja Steel," Kong said.

Perwaja, once a troubled company, is now Malaysia's largest producer of steel billets and blooms.