GK Goh Holdings offers $135m to delist SGX-listed Boardroom

A man checks his phone at the entrance of the Singapore Exchange Ltd. (SGX) headquarters in Singapore, on Thursday, Jan. 19, 2017. Photographer: Ore Huiying/Bloomberg

GK Goh Holdings Limited (GK Goh), a Singapore-listed investment holding firm with interests in aged care, and corporate services, has made a voluntary unconditional cash offer to acquire Singapore-listed corporate services firm BoardRoom Ltd for S$184.50 million ($134.80 million).

The offer, at  S$0.88 per share, was made through Salacca Pte. Ltd. (Salacca), a wholly owned subsidiary of GK Goh.

Salacca currently owns approximately 169.24 million shares or 80.72 per cent stake in BoardRoom Ltd as of August 28, 2018, according to the company’s ownership data provided by Singapore Exchange Limited (SGX).

The offer price of S$0.88 represents a premium of 14.3 per cent to the last transacted price of S$0.77 a share on May 03, 2019, the last trading day of the stock prior to the offer announcement.

The offer price is also an 18.4 per cent premium over BoardRoom Ltd.’s one-month volume weighted average price (VWAP) of S$0.743 on May 03.

According to BoardRoom’s financial adviser, CIMB Bank Berhad Singapore, the stock’s trading liquidity has been low, and the offer is an opportunity for shareholders to realise their investment at a premium over the prevailing trading prices.

The latest acquisition offer for BoardRoom Ltd comes on the heels of a takeover of another Singapore- and Hong Kong-based corporate services provider RHT Holdings earlier this month. The takeover offer for RHT Holdings came from a global rival Inc.Corp, which is backed by Swedish private equity (PE) firm EQT.