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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.
Shares of mainboard-listed Broadway Industrial closed at 12.4 Singapore cents on Monday, up 0.3 cent or 2.5 per cent.