Leader Steel shares surge as much as 12% after accepting RM43 mil compensation for Klang land

• Leader Steel opened to hit its intra-day high of 53.5 sen, its highest since the 52 sen recorded on Nov 17, 2023.

KUALA LUMPUR (Jan 11): Leader Steel Holdings Bhd’s shares opened 11.5% higher on Thursdays morning, following news that it had accepted a notice of award and offer for compensation from the Klang Land Office, invoking a compulsory acquisition for a RM42.56 million piece of land in Klang, Selangor.

Leader Steel opened to hit its intra-day high of 53.5 sen, its highest since the 52 sen recorded on Nov 17, 2023.

At 11.41am, the counter pared some of its earlier gains to trade at 3.5 sen or 7.29%  higher at 51.5 sen, with 709,600 shares done. Its market capitalisation stood at RM82.57 million.

On Wednesday (Jan 10), Leader Steel announced that its wholly owned subsidiary Ferronet Asia Sdn Bhd had accepted a notice of award and offer for compensation from the Klang Land Office.

This formalises a compulsory acquisition under the Land Acquisition Act 1960 (Act 486), through which Leader Steel will acquire 28,903 square metres of land in Mukim Kapar, Klang for RM42.56 million cash.

“In view of the said affected land being currently charged to a financial institution, the compensation consideration is subject to the amount payable to the financial institution to pare down the loan, which is in line with the charge documents.

“The remaining balance is expected to be used for future business expansion, working capital and the repayment of debts,” it said.

Leader Steel added that the compensation consideration of RM42.56 million included compensation for severance damages and loss of income.

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