Shareholders get unsolicited approach: BRC Asia

Steel mesh manufacturer BRC Asia advised its shareholders to exercise caution when dealing in the shares of the company
Steel mesh manufacturer BRC Asia advised its shareholders to exercise caution when dealing in the shares of the company. ST FILE PHOTO

Steel mesh manufacturer BRC Asia said certain substantial shareholders have received an unsolicited approach related to a potential transaction that may or may not lead to an acquisition of the firm's shares.

It was notified of this by the shareholders, BRC Asia said in a Singapore Exchange filing.

"The discussions are preliminary in nature and there is no certainty that these discussions will result in any transaction," said BRC Asia.

It added that it will make appropriate announcements in the event that there are any material developments on the matter.

BRC Asia advised its shareholders to exercise caution when dealing in the shares of the company and to refrain from taking any action in respect of their shares which may be prejudicial to their interests.

Shares of BRC Asia closed 0.7 per cent or half a cent lower at 69.5 cents yesterday, before the announcement was made.

BRC Asia saw a turnaround in second-quarter earnings ended March 31, with a net profit of $212,000, reversing from a net loss of $1.5 million previously.

However, revenue fell by 13 per cent to $68.8 million, due to lower delivery volume in a weak construction environment.

Jacqueline Woo

A version of this article appeared in the print edition of The Straits Times on May 31, 2017, with the headline 'Shareholders get unsolicited approach: BRC Asia'. Print Edition | Subscribe