Posted on 31 Aug 2021
Listed trading and manufacturing firm Hong Leong Asia will increase its stake in BRC Asia to 20% through the purchase of its subsidiary, Hong Leong Asia Investments.
Hong Leong will subscribe for 31,015,000 new ordinary shares in the capital of BRC at an issue price of SGD 1.48 ($1.1) per share, for a total cash consideration of SGD 45.9 million, Kallanish notes.
Meanwhile, Hong Leong has also simultaneously entered into a sale and purchase agreement with five BRC shareholders for the acquisition of an aggregate of 15,000,000 ordinary shares in the capital of BRC, for a total cash consideration of SGD 22.2m. The five shareholders are Xinsteel Singapore, Nuocheng International Trading & Investment, Toe Teow Heng, Wu Ai Ping and Shi Yong.
After the purchases are completed, Hong Leong will increase its shareholding from 3.64% to 20%.
BRC is a leading steel reinforcement solutions provider in Singapore. Its services include standard length rebar, cut and bend services, prefabrication services as well as standard and customised welded wire mesh for the building and construction industry.
Hong Leong says the investment in BRC will help expand the group's interest in the building materials sector in Singapore, and increase technology and automation opportunities for both companies.
The transaction is expected to close before year-end.
Source:Kallanish
