Broadway Industrial receives US$50m offer for hard disk business
PRECISION manufacturer Broadway Industrial Group has received a binding letter of intent (LOI) from Seksun Technology (Suzhou) Co, which is offering US$50 million to buy the former's hard disk drive business.
Incorporated in China, Seksun Technology (Suzhou) Co's core competencies are in precision metal stamping. The company serves customers from the hard disk drives, consumer electronics, automotive and telecommunication industries.
It is the largest production outfit of Seksun's group of companies - a metal stamping specialist with manufacturing operations in Singapore, Thailand and China.
Under the LOI, which Broadway Industrial received on Monday, the potential buyer plans to acquire substantially all assets used in Broadway Industrial's actuator arm and related parts manufacturing operations, the group said in a bourse filing on Tuesday morning.
These are the assets and properties owned by BIGL Technologies (Shenzhen) Co, excluding the land and buildings situated at Pingshan Street in Shenzhen and covered under Shenzhen Title Certificate No 0227103. The target assets also include any mutually agreed properties or assets between the parties.
The proposed US$50 million purchase price is subject to certain assumptions, including assumptions relating to the financial conditions of Broadway Industrial's actuator arm and related parts manufacturing operations, the group said.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Shares of mainboard-listed Broadway Industrial closed at 12.4 Singapore cents on Monday, up 0.3 cent or 2.5 per cent.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Hong Kong regulator to probe PwC auditing role over Evergrande
US: S&P, Dow open flat as Middle East jitters ease, Netflix weighs on Nasdaq
DBS puts 46 retail units, HDB shops on market for S$210 million
China to facilitate Hong Kong IPOs and expand Stock Connect
Global equity funds see surge in outflows as rate cut hopes fade
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece