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Broadway Industrial enters non-binding proposal to sell hard-disk business
PRECISION manufacturer Broadway Industrial Group has entered a non-binding indicative proposal to dispose of its hard-disk-drive business via the sale its wholly-owned unit, BIGL Asia, to a potential buyer whose identity has not been disclosed. In a bourse filing on Thursday, Broadway Industrial said that the consideration for the sale will be in cash or equity, and will be determined following the buyer’s due-diligence process.
The buyer intends to retain all key management and technical staff of BIGL Asia. It also plans to execute the sale-and-purchase agreement by Nov 15, and to complete the sale by Dec 30, subject to unforeseen circumstances or delays caused by the Covid-19 pandemic. Broadway Industrial added that the buyer entered a non-compete and non-solicitation agreement on Thursday to enable it to access confidential information for the due diligence. If the sale does not proceed, the agreement will still stand 18 months after the termination by written notice of discussions. Shares of Broadway Industrial closed at S$0.098 on Thursday, up by S$0.001 or 1.03 per cent.