In a major deal worth $330 million, Malaysian tycoon Koon Poh Keong is further solidifying his partnership with Chinese billionaire Song Zuowen by swapping stakes in their respective aluminum companies. Koon’s Press Metal Aluminum Holdings will be selling its entire 25% stake in aluminum oxide producer Bintan Alumina Indonesia in exchange for a 25.6% share in Song’s Nanshan Aluminum International Holdings. This announcement was made on Thursday, outlining the specifics of the agreement. Following the completion of the transaction between Press Metal and Nanshan Aluminum, the latter will be spun off and listed separately in Hong Kong with plans to raise funds for future expansion through an initial public offering.
Press Metal had initially acquired its stake in Bintan Alumina to secure a steady supply of alumina, a crucial raw material for its smelting operations. On the other hand, Nanshan Aluminum currently holds a substantial indirect stake of 72% in the Indonesian company, allowing for a significant collaboration between the two entities. Bintan Alumina operates a 2-million-tonne alumina plant on the Indonesian island of Bintan, strategically located within the Galang Batang special economic zone, with access to a dedicated power facility and private port. With the growing demand for aluminum, Shandong Nanshan, the parent company of Nanshan Aluminum, announced plans last year to invest a substantial $6 billion to expand the plant on the island by 2028.
Koon Poh Keong, along with his siblings, boasts a net worth of $5.3 billion and was ranked fifth on Malaysia’s 50 Richest List released in April. Starting Press Metal in 1986 with just $50,000 in capital, the company has grown to become Southeast Asia’s largest integrated aluminum producer by output, showcasing the success and growth of their business empire. On the other hand, Song Zuowen, with a net worth of $2.5 billion, controls the Nanshan Group, which extends beyond aluminum into various sectors such as apparel, education, and airlines. The main aluminum company of the group, Shandong Nanshan Aluminum, was listed on the Shanghai Stock Exchange in 1999, further solidifying their presence in the industry and their commitment to growth and expansion.
This partnership between Koon and Song signifies a strategic move towards further collaboration and growth opportunities within the aluminum industry. With the exchange of stakes between their companies, both Press Metal and Nanshan Aluminum are positioning themselves for future expansion and investment, utilizing each other’s strengths and resources to drive sustainable growth and success in the market. The planned IPO of Nanshan Aluminum in Hong Kong post-transaction completion will pave the way for additional funding and opportunities for the company to expand its operations and cement its presence in the global aluminum market. As both tycoons continue to strengthen their partnership, the future looks promising for the growth and success of their aluminum companies and the industry as a whole.
The deal between Koon’s Press Metal Aluminum Holdings and Song’s Nanshan Aluminum International Holdings reflects a strategic and mutually beneficial partnership between Malaysian and Chinese tycoons within the aluminum industry. With Press Metal divesting its stake in Bintan Alumina Indonesia in exchange for a share in Nanshan Aluminum, both companies are set to benefit from the merger and the future opportunities it presents. The spin-off and listing of Nanshan Aluminum separately in Hong Kong post-transaction completion will provide potential funding avenues for expansion and growth, showcasing the commitment of both parties to furthering their presence and influence in the global aluminum market. As two major players join forces, the industry can expect increased competition, innovation, and growth, ultimately benefiting consumers and stakeholders alike.
