HG Metal Manufacturing Limited said on Dec, 10 2025 that its wholly-owned subsidiary, HG Metal Investments Pte. Ltd., has signed an agreement to subscribe for 18 million non-redeemable, non-cumulative Class B preference shares in Malaysia-based Eden Flame Sdn. Bhd. for about 5.68 million Singapore dollars.

The Class B shares are convertible into ordinary shares on a one-for-one basis and would translate into roughly 4.4 % of Eden Flame’s enlarged share capital if converted.

Payment will be split equally, with 2.84 million Singapore dollars due at completion and the balance payable when Eden Flame issues subsequent call notices. HG Metal said the investment will be funded from existing working capital and proceeds previously raised via rights issues.

Eden Flame, a wholly owned unit of Green Esteel Pte. Ltd., is building a 500,000-tonne-per-year electric arc furnace steel plant in Pasir Gudang, Johor Bahru, targeted to start operations in the third quarter of 2026.

Because Green Esteel controls 52.59 % of HG Metal, the transaction is classified as an interested-person transaction under Singapore Exchange rules. Its value equals 3.9 % of HG Metal’s latest audited net tangible assets, meaning no shareholder vote is required.

HG Metal said the deal supports its strategy to secure a reliable supply of lower-carbon steel, especially small-diameter rebars, in anticipation of rising regional demand for greener construction materials. The company expects the subscription to have no material impact on its earnings per share or net tangible assets.