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.