HG Metal sets Oct 25 for EGM to vote on share capital reduction, sale of BRC Asia stake

SINGAPORE - Steel stockist HG Metal Manufacturing on Tuesday (Oct 3) announced the date of its extraordinary general meeting (EGM), which is being held to seek shareholders' approval for a proposed S$81.55 million share capital reduction.

The company has said that it plans to write off S$68.2 million in accumulated losses and to return the rest to shareholders as surplus capital, paying out 10.5 Singapore cents a share.

Cash for the distribution is expected to come from a proposed sale of HG Metal's 23 per cent stake in Singapore-listed steel prefabrication dealer BRC Asia to private company Esteel Enterprise for close to S$40 million, or 92.5 cents a share.

Net sale proceeds will amount to around S$38.8 million, HG Metal has estimated, and part of that will go towards the pay-out to its shareholders.

The EGM will be held at HG Metal's headquarters in Jurong Port Road, on Oct 25, at 3.30pm.