BRC Asia : BEC 0% said on Tuesday (Apr 23) it has agreed to buy 19.9 per cent of Angkasa Daehan Steel, a steel reinforcement company, for S$16.1 million.

BRC entered into a conditional sales and purchase agreement with Daehan Steel and LTC Corp on Tuesday. Under the agreement, BRC will acquire 4.6 million ordinary shares of Angkasa Daehan Steel from LTC, and Daehan Steel will acquire 6.9 million ordinary shares from LTC.

Daehan Steel will hold 80.1 per cent of Angkasa Daehan Steel after the transaction.

The net tangible asset value of Angkasa Daehan Steel was S$80.7 million as at Dec 31, 2023. BRC did not commission a valuation for the deal.

The purchase amount is subject to adjustments in accordance with the terms of the agreement, BRC said.

The group said the acquisition is a strategic opportunity to take a financial interest in a company that operates in a sector familiar to BRC, and with growth potential.

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Shares of BRC closed flat at S$1.97 on Tuesday, before the announcement.