SINGAPORE (May 15): G.K. Goh, the 80.72% owner of Boardroom, is making an 88 cents per share cash offer for all the shares of Boardroom it does not own.
The offer price is at a 14.3% premium to Boardroom’s last traded price on May 3 of 77 cents and a 17.6% premium over Boardroom’s six-month volume weighted average price (VWAP) of 74.8 cents.
Based on Boardroom’s issued and paid-up share capital of some 210 million units, the offer values the takeover group at $184.5 million.
G.K. Goh is an investment company owning operating businesses as well as a diverse portfolio of investments.
Boardroom and its subsidiaries are providers of corporate secretarial, share registry, business solutions and advisory services.
Boardroom has a NTA per share of 89.23 cents. In 1Q19, the group reported earnings of $161,000.
Although G.K. Goh intends for Boardroom to continue its existing business activities, the offeror does not intend to keep the listing status of Boardroom given the cost of maintaining its listing as well as the stock’s low trading liquidity.
If G.K. Goh receives more than 90% acceptances, it intends to exercise its right to compulsorily acquire all the offer shares not acquired under the offer and proceed to delist the company from the Singapore Exchange.
The offer vehicle is Salacca and the advisor is CIMB Bank Berhad.
