HG Metal shareholders vote fully in favour of capital reduction, sale of BRC Asia stake

HG Metal shareholders on Wednesday voted fully in favour of an asset sale and capital reduction exercise during its extraordinary general meeting (EGM).

Shareholders of the steel distributor voted on plans to pay a cash distribution of 10.5 Singapore cents per share, and to write off S$68.2 million of accumulated losses.

Cash for the distribution is expected to come from a proposed sale of HG Metal's 23 per cent stake in steel mesh maker BRC Asia for S$39 million.

The move comes after activist fund Quarz Capital Asia had in June urged the firm to consider selling its stake in BRC Asia, arguing that the stake provided no value to HG Metal's operations.

No parties were permitted to abstain from voting on the resolution, it said.

Ardent Business Advisory Pte Ltd was appointed as the scrutineer for the EGM.