Broadway Industrial Group has announced that it has terminated the asset and share purchase agreement (SPA) in relation to the disposal of its hard disk drive (HDD) business on July 1.
Broadway Industrial had signed the SPA on Dec 31, 2020 for the disposal of its wholly-owned subsidiary BIGL Asia to the Seksun group of companies for a cash consideration of US$50 million ($67.22 million).
In its filing to the Singapore Exchange (SGX) on July 1, Broadway Industrial explains that the closing of the SPA was subject to the satisfaction or waiver of the conditions precedent by June 30, including the approval of shareholders to be obtained through an EGM.
See also: SGX RegCo queries Broadway Industrial on unusual trading activity as share price jumps 33%
The company had announced on June 16 that its circular to shareholders was still subject to the SGX-ST’s regulatory review process and that it intended to engage with the buyer to discuss an extension to the long-stop date.
However, the parties have not been able to agree on the extension of the long-stop date on mutually acceptable terms.
To that end, Broadway Industrial states that it has issued the notice of termination to terminate the SPA with immediate effect. The termination is not expected to have any material adverse impact on the net tangible assets or earnings per share for the FY2021 ending December.
Broadway Industrial states that it will continue to focus on its ongoing business activities in relation to the HDD business while it continues to source for other corporate, business, acquisition and financing opportunities as and when available.
As at 4.18pm, shares in Broadway Industrial are trading 1.5 cents or 10.87% lower at 12.3 cents.
Photo: Bloomberg
