HG Metal, BRC Asia shares jump after activist fund urges sale

Singapore

SHARES of steel distributor HG Metal and steel mesh maker BRC Asia surged after activist investment fund Quarz Capital Asia published an open letter on Wednesday, saying that HG should consider selling its 22.6 per cent stake in BRC Asia and return money to HG's shareholders.

The fund said HG should do a "full strategic review on the potential divestment of its non-core but substantial" stake in BRC Asia "with a market value in excess of S$30 million", adding that it "believes that multiple buyers are interested in building up substantial stakes in BRC Asia as evident by the unsolicited bid announced by the company recently".