Hong Leong Asia (HLA), through its wholly-owned subsidiary Hong Leong Asia Investments Pte Ltd, has completed the acquisition of a 20% stake in steel reinforcements solutions provider BRC Asia.

The acquisition was through a subscription of 31,015,000 new ordinary shares at S$1.48 per share for a total cash consideration of S$45,902,200, and acquisition of 15,000,000 issued ordinary shares at S$1.48 per share for a total cash consideration of S$22,200,000. BRC Asia is now an associated company of HLA.

BRC is a leading steel reinforcement solutions provider in Singapore, offering a full suite of reinforcing steel products and services, such as standard length rebar and prefabrication services. The investment in BRC Asia will expand HLA’s interest in the building materials sector in Singapore and increase technology and automation opportunities for both companies, such as in Prefabricated Prefinished Volumetric Construction (PPVC) building technology.  There are also opportunities for growth overseas as China and Southeast Asian countries work towards improving productivity for the building and construction sector.

HLA Executive Chairman Mr Kwek Leng Peck said, “As Asia undergoes rapid urbanisation, enhanced productivity in the building and construction sector will be in demand. Hong Leong Asia, together with BRC Asia will have a unique opportunity to develop and scale up innovative and sustainable urban solutions for cities of the future.”

“This is a unique opportunity to acquire a meaningful stake in BRC, a company steeped in history with a strong focus on innovation and its people. There is potential to generate synergy between our concrete and steel reinforcement capabilities as we pursue the path towards technology and automation in Singapore and markets beyond,” added HLA Chief Executive Officer Mr Stephen Ho.