BRC Asia
BRC Asia website.

Singapore-based steel maker BRC Asia said it received a conditional cash offer from Esteel Enterprise at a price of 92.5 Singapore cents a share.

Private firm Esteel Enterprise is an investment vehicle that is 80 percent owned by Advance Venture Investments and remaining by Toptip Holding Pte.

The offer price represents a premium of about 8 percent to last traded price on the SGX on September 8 and a premium of 10 percent to volume weighted average price of the shares on the SGX for the one month period up to and including the trading day.

Esteel is making the offer after having acquired some 81.6 million shares from Lingco Marine, Lingco Holdings, Seah Kiin Peng, Sin Teck Guan and Lim Siak Meng at 92.5 Singapore cents per share on September 8.

This gives Esteel a 43.77 percent stake in BRC Asia, and triggers a mandatory offer under the takeover code.

Esteel Enterprise said it intends to keep BRC Asia listed on the SGX main board.

Shares in BRC Asia jumped about 6 percent to S$0.91 on the Singapore Exchange.