Sale of Stake in BRC Asia Limited
August 12 2008 - 8:50AM
UK Regulatory
RNS Number : 1672B
Acertec PLC
12 August 2008
12 August 2008
Acertec plc
("Acertec" or the "Group")
Sale of stake in BRC Asia Limited ("BRC Asia")
Acertec today announces that it has agreed to sell its 70.28% holding in BRC Asia, the market leader for mesh and pre-fabricated
reinforcement in Singapore, to a consortium of five buyers. The consortium includes HG Metal Investments Pte Ltd, Lingco Marine Pte Ltd,
Siem Seng Hing & Co Pte Ltd, Chye Hin Hardware (Pte) Ltd and Sin Teck Guan (Pte) Ltd. The consortium will purchase the shares through a
special purpose vehicle, HG Metal Pte Ltd.
The sale is conditional, inter alia, on approval by the shareholders of HG Metal Manufacturing Ltd, the Singapore publicly listed parent
company of HG Metal Pte Ltd, (the "Shareholders' Approval") and an extraordinary general meeting will be convened in due course at which
resolutions will be proposed seeking such approval. 17.68% of the shareholders have committed to vote in favour. The sale is to complete
in two tranches. The acquisition of the first tranche of shares, representing 56.14% of the issued share capital of BRC Asia, will complete
following receipt of the Shareholders' Approval. The acquisition of the second tranche of shares, being the balance of the holding
(representing 14.14% of the issued share capital of BRC Asia), shall complete 12 months after completion of the acquisition of the first
tranche.
The total consideration, to be paid in cash, is S$48.1 million (�17.9 million)1 of which S$38.4 million (�14.3 million)1 is to be paid
on completion of the first tranche of shares and S$9.7 million (�3.6 million)1 on completion of the acquisition of the second tranche of
shares.
As at 31 December 2007, 100% of BRC Asia's net assets were S$44.9 million (�15.7 million)2. For the year ended 31 December 2007, 100% of
BRC Asia's post-tax profits were S$5.2 million (�1.7 million)3.
In its annual report and accounts for the year ended 31 December 2007, Acertec disclosed a minority interest of �4.6 million on its
balance sheet and a post-tax profit of �0.5 million attributable to the minority interest in BRC Asia.
The proceeds of the disposal will be used to reduce Group debt. Following the disposal of BRC Asia, Acertec will continue to operate in
two business units: its BRC division is the UK's largest supplier of engineered steel products (re-bar and mesh) used in concrete
construction; and Stadco is the UK's largest supplier of body-in-white pressings and sub-assemblies to automotive Original Equipment
Manufacturers ("OEMs"). Acertec expects to record a loss on disposal of approximately �2 million.
David Hussey, Acertec Chief Executive, commented:
"We evaluated the strategic options for our stake in BRC Asia and concluded that best value could be achieved by its disposal. We are
confident that we have achieved a fair price for our holding and the proceeds received will help reduce Group indebtedness.
"We are also confident that we are passing majority ownership of BRC Asia into good hands and the buying consortium will help continue
the good record achieved by this business over recent periods."
- Ends -
Note:
1 Exchange rate of 2.6839 S$/� as at 12 August 2008
2 Exchange rate of 2.865 S$/� as at 31 December 2007
3 Average exchange rate of 3.009 S$/� for the year ended 31 December 2007
Enquiries:
Acertec plc 01789 403070
David Hussey, Chief Executive
Jonathan Cook, Group Finance Director
Hawkpoint Partners Limited 020 7665 4500
David Renton
Weber Shandwick Financial 020 7067 0700
Nick Oborne / Rachel Martin
This information is provided by RNS
The company news service from the London Stock Exchange
END
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