It hit an intraday high of 74 sen before paring its gains and closing at 73.5 sen with 1.32 million shares traded.

People familiar with the matter said the Quek-controlled Hong Leong Group is working with advisers on the planned divestment of its 70% stake, according to a Bloomberg News report.

“The deal could value Southern Steel between RM478 million and RM956 million,” the people said.

Should the deal go through at the higher range of the valuation, it would be more than double the company’s current market value of RM438.29 million.

Additionally, they said the conglomerate and its advisers have reached out to companies within the industry and financial investors in gauging their interest.

Apart from Hong Leong Manufacturing Group Sdn Bhd and Signaland Sdn Bhd, which are members of Hong Leong Group Malaysia, its other shareholders include the founding business families based in Penang, according to its website.

Southern Steel was listed in 1993 on the Kuala Lumpur Stock Exchange, now known as Bursa Malaysia.