BRC Asia BEC has announced its proposed acquisition of 19.9% of the entire issued and paid-up share capital of Angkasa Daehan Steel for an initial consideration of $16.1 million.
On April 23, the company entered into a conditional sale and purchase agreement (SPA) with Daehan Steel and LTC Corporation. BRC plans to acquire 4.6 million ordinary shares in the capital of Angkasa, while Daehan will acquire the remaining 6.9 million Angkasa shares held by LTC.
Upon completion of the agreement, BRC will hold 19.9% of the issued and paid-up share capital of Angkasa, with Daehan owning the remaining 80.1% stake.
BRC says the acquisition presents a strategic opportunity for the company with the exit of LTC to take a financial interest in Angkasa, which operates in a sector that it is familiar with and that has growth potential.
The acquisition is not expected to have any material impact on either the net tangible assets per share or the earnings per share of BRC for the FY2024 ending Sept 30.
Shares in BRC closed unchanged at $1.97 on April 23.
