HG Metal, BRC Asia shares jump after activist fund's open letter

SHARES of HG Metal and BRC Asia surged on Wednesday after activist investment fund Quarz Capital Asia published an open letter saying HG Metal should consider selling its 22.6 per cent stake in BRC Asia.

That stake is worth over S$30 million and Quarz "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", the fund said.

HG Metal jumped 28.6 per cent or S$0.10 to S$0.45 and BRC Asia rose 18.7 per cent or S$0.13 to S$0.825 on Wednesday.