31/05/2017

Activist Fund Quarz Urges HG Metal to Return

Capital, Refocus
(Bloomberg) -- Quarz Capital Management issues open letter to HG Metal Manufacturing Ltd. board, asking it
to conduct a full strategic review to unlock S$20-25m of value to boost co. share price by more than 40% by
2018.

Quarz Capital proposes HG Metal consider sale of 23% stake in BRC Asia, which has a market value
in excess of S$30m and look into immediate distribution of S$10m of the S$29m excess net cash held
by co.
HG Metal should scale down and/or spin off its trading division, which has consistently generated low
rates of return to release initial capital of S$10m-15m: Quarz Capital
HG Metal shares trade at market cap of S$45m, which is fire-sale discount of 60% to its highly liquid
and easily valued NAV of S$111m: Quarz Capital

Co. hasnt received Quarz letter, How Siaw Ting, personal assistant to HG Metal Executive Director Foo Sey
Liang, tells Bloomberg

HG Metal shares up as much as 7.1% Wednesday; have risen 19% YTD

Klaus Wille, Abhishek Vishnoi and Kyunghee Park

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