Press Metal To Raise PMB Technology Stake To 58.8 Pct In RM464.95 Mln Deal
KUALA LUMPUR, Aug 3 (Bernama) -- Press Metal Aluminium Holdings Bhd plans to acquire a 35.6 per cent stake in PMB Technology Bhd for RM464.95 million in cash, raising its interest to a controlling 58.8 per cent from 23.2 per cent.
The acquisition will give Press Metal statutory control of PMB Technology, enabling it to reposition the loss-making company towards higher-margin silicon-aluminium alloy manufacturing.
Press Metal said it had entered into a conditional share sale agreement with its founders, the Koon brothers --Tan Sri Datuk Koon Poh Keong, Datuk Koon Poh Ming, Datuk Koon Poh Tat, Koon Poh Weng and Datuk Koon Poh Kong -- to acquire 664.22 million PMB Technology shares at 70 sen each.
“The acquisition will be funded through internally generated funds,” it said in a filing with Bursa Malaysia today.
Press Metal said PMB Technology, currently its 23.2 per cent-owned associate, has been hit by falling silicon metal prices, with the business slipping into losses amid structural oversupply and weaker downstream demand.
Although the acquisition would normally trigger a mandatory takeover offer, the Securities Commission Malaysia has granted Press Metal an exemption because the Koon family will remain the ultimate controlling shareholders of both companies.
The proposed acquisition is expected to be completed in the third quarter of 2026.
Following completion, Press Metal plans to leverage PMB Technology's secured hydropower supply and existing facilities in the Sarawak Corridor of Renewable Energy to convert part of its operations from silicon metal production to silicon-aluminium alloy smelting, subject to the necessary approvals.
Press Metal said the move would diversify PMB Technology's earnings base by reducing its reliance on the volatile silicon metal market while capitalising on stronger long-term prospects for silicon-aluminium alloys.
PMB Technology's performance has deteriorated in recent years as silicon metal prices fell to US$1.27 per pound as at July 24, 2026, from US$3.47 per pound in 2022. Consequently, the group posted a net loss of RM12.8 million in the financial year ended 2025 (FY2025), compared with a net profit of RM110.4 million in FY2022.
The company said the outlook for silicon metal remains challenging due to structural oversupply and softer downstream demand, with prices unlikely to recover in the near term.
Margins are expected to remain under pressure, while continued weakness in the US dollar could add earnings volatility as most silicon metal sales are denominated in the greenback.
By contrast, global demand for silicon-aluminium alloy remains broadly stable, supported by low inventory levels and applications linked to the clean energy sector.
“Furthermore, tightening global supply amid intensifying geopolitical tensions is expected to underpin a supportive aluminium price outlook,” Press Metal added.
-- BERNAMA