Hot stock: Broadway shares up 17.3% after proposal to sell hard-disk business

Vivienne Tay

Published Fri, May 29, 2020 · 02:16 AM

SHARES of Broadway Industrial Group advanced 17.3 per cent on Friday after the market opened, following the company's proposal to dispose of its hard-disk business.

The precision manufacturer's shares jumped to a high of 11.5 Singapore cents as at 9.45am, up 1.7 cents or 17.3 per cent from Thursday's closing price of 9.8 cents. The counter was also the most traded, with 39.3 million shares changing hands as at 9.57am.

The company disclosed on Thursday evening that it has entered a non-binding indicative proposal to dispose of its hard-disk drive business via the sale of its wholly-owned unit BIGL Asia.

In its regulatory filing, Broadway Industrial said the sale consideration will be in cash or equity and will be determined following the buyer's due diligence process.

Shares of watch-listed Broadway Industrial were trading at 1.9 Singapore cents or 19.4 per cent higher to 11.7 cents as at 11.16am on Friday.