Lee Metal Group Ltd Announces Divestment Of Stakes In LMG Indoferro Pte Ltd And LMG Indocoke Pte Ltd

Lee Metal Group Ltd announced that the Company has entered into an agreement with Mr. Fajar Suhendra (the Purchaser) for the sale of 100% equity interest in its wholly owned subsidiaries, LMG Indoferro Pte Ltd (LMG Indoferro) and LMG Indocoke Pte Ltd (LMG Indocoke)(the Proposed Divestment). LMG Indoferro and LMG Indocoke are the investment vehicles through which the Company holds a 15% stake in PT Indoferro and PT Indocoke Industry respectively. Both PT Indoferro and PT Indocoke (collectively the Indonesian Companies) are companies duly incorporated in Indonesia to operate a blast furnace and coking plant for the production of steel products. The Purchaser is presently the controlling shareholder of the Indonesian Companies, and together with his family members, holds directly and indirectly a 70% stake in the Indonesian Companies. The consideration for the Proposed Divestment shall be the aggregate amount of $17.3 million, to be fully satisfied in cash upfront by the Purchaser in agreed tranches before completion of the Proposed Divestment takes place. The Company intends to use the divestment proceeds for working capital requirements of the Fabrication & Manufacturing business which continues to expand capacity to cope with market demand.