BRC Asia acquires 55% stake in Southern Steel unit for $18.2m

BRC Asia buys 12.88 million ordinary shares in Southern Steel Mesh.

BRC Asia has entered into a conditional share purchase agreement with Southern Steel to acquire 12.88 million ordinary shares or approximately 55% of the existing share capital of Southern Steel Mesh for $18.2m (RM61.05m).

The consideration was arrived at on a willing-buyer, willing-seller basis, taking into account the book value and net tangible asset value of Southern Steel Mesh, its profitability, future revenue, and growth prospects, as well as its rationale for undertaking the proposed acquisition.

The completion of the share purchase is subject to several conditions, including the passing of an ordinary resolution by the shareholders of Southern Steel at an extraordinary general meeting in respect of the proposed acquisition, amongst others.

Southern Steel Mesh has a book value and net tangible assets of $31.7m (RM106.5m) as of 30 September and net profit after tax of $1.4m and $193,552 for FY2024 and Q1 2024, respectively.