2007-12-07

Lion Forest to Buy 70% of Silverstone

Lion Forest Industries Bhd is reportedly proposing to buy up to 70.64% of Silverstone Corp. Bhd two years after its proposal to acquire the latter’s tyre business was rejected by the local Securities Commission despite an appeal.

LFI said the proposed debt acquisition would allow the group to secure a substantial portion of the SCB debts at discounts of not less than 40%, 80% and 95% from their nominal value. “The acquisitions would position LFI as a major stakeholder in SCB by holding approximately up to 70.64% stake in the SCB debts,” the company said.
LFI subsidiary Lion Rubber Industries has a tyre manufacturing and distribution business in China via a 75/25 joint venture with Shandong LuHe Group Co. Ltd. “Given that one of LFI’s core businesses is in tyre manufacturing and distribution business, LFI is of the view that the SCB group’s core assets, being its tyre manufacturing plant in Taiping, Perak, has synergistic benefits to the tyre division of the LFI group. LFI tyre business would be able to leverage on SCB’s technological and manufacturing know-how to complement its current tyre business in China,” it said.

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