Hot Stock: BRC Asia shares up on general offer from Esteel

SHARES of mainboard-listed steel distributor BRC Asia jumped five Singapore cents or 5.8 per cent to 91 Singapore cents as at 12.28pm on news of a general offer for its shares.

It was also actively traded with some 5.3 million shares changing hands over the early session.

Esteel Enterprise is making a mandatory general offer for shares that it does not already own in BRC Asia at 92.5 Singapore cents a share.

Esteel made the offer after having acquired a 43.77 per cent stake in BRC Asia from Lingco Marine, Lingco Holdings, Seah Kiin Peng, Sin Teck Guan Private Limited and Lim Siak Meng last Friday.

HG Metal Manufacturing, another mainboard-listed steel distributor which holds about 22.62 per cent of BRC Asia, has also signed a conditional agreement to accept the offer for its entire share, subject to shareholders' approval.

Once this goes through, the offer will become unconditional, the deal arranger ABN Amro NV (Singapore Branch), said.

HG Metal shares were trading at one Singapore cent or 1.7 per cent lower at 57 Singapore cents as at 12.28pm.

BRC Asia said it will appoint an independent financial adviser to advise its independent directors.