HG Metal proposes cash distribution from stake sale in BRC Asia and capital reduction exercise

SINGAPORE (Sept 25): HG Metal is proposing a capital reduction exercise to write off accumulated losses as well as a cash distribution to return to shareholders surplus capital from the sale of its BRC Asia stake.

On Sept 9, HG Metal had entered into a conditional agreement with Esteel Enterprise for the disposal of all 42.1 million BRC Asia shares held by the company at $0.925 each for nearly $39 million under a cash offer by Esteel Enterprise.

The net sale proceeds from the proposed disposal, after deducting all costs and expenses, is estimated to be $38.8 million.

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