Broadway Industrial Group Limited Approves Selective Capital Reduction and Delisting from SGX

Key Developments from the Extraordinary General Meeting (EGM) on 13 February 2026

Broadway Industrial Group Limited (“BIGL” or “the Company”) held an Extraordinary General Meeting (EGM) on 13 February 2026, culminating in critical decisions that will significantly impact its shareholders and the future of the Company. The meeting, chaired by Lead Independent Director Mr. Basil Chan, was attended by the full Board of Directors, senior management, and shareholders.

Key Points from the EGM

• Approval of Selective Capital Reduction and Delisting:
  • Shareholders voted in favour of a Selective Capital Reduction and a subsequent Delisting from the Singapore Exchange Securities Trading Limited (SGX-ST).
  • Both resolutions are inter-conditional, meaning if either is not approved, the other also fails.
  • Implementation remains subject to approval and confirmation by the High Court of the Republic of Singapore.
• Voting Results:
  • Both resolutions received strong backing: 85.67% of votes cast were in favour, while 14.33% opposed.
  • The controlling shareholder and its concert parties abstained from voting.
• Exit Offer Price:
  • The exit offer price under the Selective Capital Reduction is set at S\$0.262 per share, a detail that is highly price sensitive for investors.
  • This price was determined after evaluation using industry-standard valuation methods — P/E, P/NAV, and EV/EBITDA ratios — and is considered fair and reasonable by the Independent Financial Adviser, Xandar Capital Pte. Ltd.
  • Some shareholders expressed concerns that this price may undervalue the Company, particularly in light of reported strong demand in the hard disk drive (HDD) market.
• Business Rationale and Market Conditions:
  • Management clarified that although HDD manufacturers saw increased storage capacities, shipment volumes — the key driver for BIGL as a component supplier — had not materially increased, limiting the Company’s benefit from industry trends.
  • The Company’s shares have been suspended from trading due to non-compliance with the SGX’s minimum free float requirement.
  • Delisting will allow the Company to focus on business operations without the regulatory burden of public listing.
• Financial Reporting and Next Steps:
  • The Company will not announce full-year financial results before the exercise is completed. Once delisted, it will no longer be required to report financial results to the SGX.
  • Shareholders should note that completion of the exercise depends on the High Court’s approval and confirmation of the Selective Capital Reduction.

Important Considerations for Shareholders

• This is a final exit opportunity at S\$0.262 per share: Investors who disagree with the valuation or have concerns about the Company’s future prospects post-delisting should pay close attention to this offer.
• Delisting means loss of liquidity: Once delisted, shares will no longer be tradable on SGX, and ongoing financial disclosures will cease.
• Pending Legal Approval: The High Court’s approval is required before the resolutions take effect. There is a possibility that the exercise may not be completed if approval is not granted.
• Voting Outcome: The overwhelming support for the proposals indicates a strong mandate for management to proceed.

Conclusion

The approval of the Selective Capital Reduction and Delisting marks a significant turning point for Broadway Industrial Group Limited. Shareholders are strongly urged to review the exit offer and consider their options carefully, especially given the price sensitivity and the irrevocable nature of delisting. Investors should also monitor further announcements regarding the High Court’s approval, which is the final hurdle for the transaction’s completion.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation. Investors should conduct their own research and consult professional advisors before making investment decisions. The information is based on the minutes of the EGM held on 13 February 2026 and may be subject to change pending regulatory and legal approvals.

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