It said this in a local bourse filing today in response to a query by Bursa Malaysia regarding reports of the planned share disposal which had surfaced on Wednesday.

Hong Leong Manufacturing Group Sdn Bhd and HLMG Capital Sdn Bhd are the two top shareholders of Southern Steel with a collective 69.97% stake.

“The company, having made due inquiry with its board of directors, its major shareholder and all such other persons reasonably familiar with the matter, wishes to confirm that as of the date of this announcement, it is not aware of any agreement involving the company entered into by the major shareholder which requires disclosure pursuant to Main Market Listing Requirements of Bursa Securities,” the filing read.

Two days ago, the group’s shares had soared more than 30% after sources told Bloomberg News that the disposal of Hong Leong’s 70% stake in Southern Steel could fetch as much as US$200 million (RM956 million).

People familiar with the matter said the conglomerate with its advisers are working on the planned divestment for a deal that could value Southern Steel between RM478 million and RM956 million.

Should the deal go through at the higher range of the valuation, it would be more than double Southern Steel’s current market valuation.

Additionally, Southern Steel said it will make the necessary announcement to Bursa when it becomes aware of any material development involving the matter, in compliance with its obligations under the Main Market Listing Requirements.

Shareholders and investors have also been cautioned to exercise prudence when trading the company’s shares, the filing added.

At market close, Southern Steel’s share price was down by 6.5 sen or 8.78% at 68 sen, giving it a market capitalisation of RM402.51 million.