Malaysia’s King Buys 2.25% Stake in Southern Alliance Mining

what happened

Newsmetry API reports that Malaysia’s King Sultan Ibrahim has purchased 2.25% of Singapore-listed Southern Alliance Mining. The S$6.1 million ($4.76 million) transaction was arranged off-market with managing director and controlling shareholder Pek Kok Sam. The shares changed hands at S$0.425 each, about 11.84% above the October 12 close.

The iron ore producer is increasing its involvement in Malaysia’s rare-earths sector. Southern Alliance Mining owns 40% of MCRE Resources, which runs the country’s first rare-earth mining site in Perak state. The company also intends to acquire Paramount Synergy Sdn Bhd, a participant in a rare-earths project in Johor.

The deal was between the king and Pek rather than with Southern Alliance Mining itself. Pek therefore remains in control, and the transaction will not alter the group’s board, management or operations. Sultan Ibrahim, a member of Johor’s royal family, became king in January 2024 and is due to hold the position for five years under Malaysia’s rotating monarchy. Johor’s royal press office did not respond to a comment request. The exchange rate used was $1 to 1.2804 Singapore dollars.

why it matters

The purchase gives Southern Alliance Mining’s rare-earths expansion an additional high-profile shareholder while leaving control and management unchanged. Investors may focus on progress with the Perak and Johor projects.

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