The company first made the announcement to acquire a controlling stake in late Feb. Southern Steel Mesh has a book value and NTA of RM108.9 mil.

BRC Asia has entered into a conditional share purchase agreement with Southern Steel to buy 12.9 million ordinary shares or 55% of the share capital of Southern Steel Mesh, according to a bourse filing on Apr 22.

BRC Asia first made the announcement to acquire a controlling stake in Southern Steel Mesh on Feb 28, 2025. It has agreed to acquire the sale shares subject to the conditions set out in the share purchase agreement for a consideration of RM61.1 million or $18.2 million.

Southern Steel Mesh has a book value and net tangible asset of RM108.9 million as at June 30, 2024 and RM106.5 million as at Sept 30, 2024. Its net profit after tax is RM4.72 million and RM649,617 for the FY2024 and 1QFY2024.

The consideration was arrived at on a willing-buyer, willing-seller basis, taking into account inter alia the book value and net tangible asset value of Southern Steel Mesh and its profitability; future revenue and growth prospects; and the company's rationale for undertaking the acquisition.

The completion of the share purchase agreement is subject to a few conditions, including the passing of an ordinary resolution of the shareholders of Southern Steel at an EGM in respect of the proposed acquisition, among others.

BRC Asia must also have obtained either an assessment by SGX RegCo on the company's views on the application of Rule 908(2) of the listing manual about disaggregating transactions with Southern Steel and its subsidiaries with Green Esteel.

Shares in BRC Asia Bec closed 4 cents lower or 1.303% down at $3.03 on Apr 22.