Press Metal Buys PMB Technology Stake From Koon Brothers for RM465 Million
Press Metal Aluminium Holdings will acquire a 35.6% stake in PMB Technology from its controlling shareholders, the Koon brothers. The RM464.95 million transaction makes PMB Technology a subsidiary.
Related-Party Transaction Expands Control
Press Metal Aluminium Holdings will acquire a further 35.6% stake in silicon metal producer PMB Technology. The RM464.95 million (US$113.6 million) transaction involves its controlling shareholders, the Koon brothers. This purchase raises Press Metal's interest in PMBT to 58.8%, making PMBT a subsidiary. The sellers are Koon Poh Keong, Koon Poh Ming, Koon Poh Tat, Koon Poh Weng, and Koon Poh Kong. All five Koon siblings sit on Press Metal’s board. This constitutes a related-party transaction. Press Metal will finance the deal using internally generated funds. The acquisition should close in the third quarter this year, pending shareholder and regulatory approvals.
Strategic Shift to Higher-Margin Alloys
The RM0.70 per share acquisition price sits below PMBT's net assets. PMBT's latest audited net assets per share were RM0.72. Unaudited net assets per share stood at RM0.73. Press Metal intends to pivot PMBT's operations. The goal is to shift from manufacturing silicon metal to higher-margin silicon-aluminium alloys. This also expands capacity using PMBT's existing facilities, Press Metal stated. Demand for silicon-aluminium alloys shows support from clean energy applications. Long-term drivers include electric vehicles, renewable energy infrastructure, and artificial intelligence data centres.
RHB Research views the acquisition as strengthening Press Metal’s downstream expansion strategy. It provides greater access to sustainable energy supply, the firm noted. PMBT's market capitalisation was RM3.37 billion on Monday. Press Metal's valuation stood at RM65.5 billion. The Koon brothers, who founded Press Metal in 1986, control the company. Koon Poh Keong serves as group CEO. Forbes ranked the brothers second on Malaysia’s rich list in April, with a combined $9.7 billion net worth. This strategic move by Press Metal demonstrates its capital allocation towards vertical integration and margin expansion. For investors, this deal could re-rate PMBT as a subsidiary focused on future-proof alloys, aligning with global demand shifts.
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