Thesundaily.my reported that Marubeni Itochu Steel Inc a major shareholder of Yung Kong Galvanising Industries Bhd with an 18.41% p stake has expressed interest to subscribe for 48.80 million new shares in the latter.

In a filing to Bursa Malaysia today YKGI said the proposed restricted issue entailed the issuance of 48,799,998 new YKGI shares to MISI.

It said the equity interest held by MISI in YKGI will increase from 18.41% up to 26.78% after the completion of the proposed restricted issue.

For illustrative purposes the indicative issue price of the restricted issue shares is assumed at RM0.50 each representing a premium of about 17.45% to the five day Volume weighted average market price of YKGI shares up to and including Dec 19 2012 of RM0.4257 each"
The company said MISI wished to strengthen its relationship with the group by increasing its equity participation in YKGI.

Bernama said that in view of MISI's intention to subscribe and its strategic advantage to the group, the board is of the view that the proposed restricted issue is the most appropriate option which will also enable YKGI to raise additional proceeds in the most expeditious manner for the group's working capital requirements.”