Broadway Industrial Group B69 has announced the proposed disposal of its wholly-owned subsidiary BIGL Enterprise Management (Beijing) for a purchase consideration of $100,000.
On Dec 19, the company said that it had entered into a share purchase agreement with Beijing PiLuoYu Medical Technology for the entire issued share capital of BIGL Beijing.
Broadway Industrial explains that after BIGL Beijing’s investment in Beijing Ant Brothers Technology Co in January 2020, the robotics business was faced with severe impacts caused by the unprecedented Covid-19 pandemic and worsening of global economy market conditions.
According to the company, its plans for BIGL Beijing could not materialise in line with its business plans despite significant efforts to accelerate its growth strategy as a result of the economic environment.
The board of Broadway Industrial says the proposed disposal is in the best interest of the company and its shareholders.
Additionally, the proposed disposal is part of the company’s strategy to focus on its core capability in machining and its newly set up precision engineering business, which is expected to have “greater synergy” with its hard disk drive business.
See also: Interra Resources granted 12-month extension to meet SGX watch-list exit requirements
Shares in Broadway Industrial closed unchanged at 8.6 cents on Dec 19.
