Hot stock: GK Goh up 21% on news of Boardroom stake sale to Temasek-related consortium

SHARES of GK Goh Holdings G41 (GKGH) surged as much as 21 per cent on Tuesday in early trade, after it was reported that the mainboard-listed investment firm is selling its stake in corporate services provider Boardroom to a Temasek-related consortium.

As at 9.13am, GK Goh Holdings shares were up 20.5 Singapore cents or 21 per cent at S$1.18, after 238,900 shares changed hands. The counter later eased to S$1.12, up 14.5 cents or 14.9 per cent as at 9.36am.

No married deals were recorded in early trade, according to ShareInvestor data.

The company earlier announced that it would be divesting its entire 92 per cent stake in Boardroom to Apricus Global, an investment vehicle owned by the consortium comprising Temasek-linked 65 Equity Partners Holdings and private equity firm Tower Capital Asia.

The consortium will pay S$1.48828 for each Boardroom share, which values Boardroom at around S$312 million.

In a regulatory filing, GK Goh Holdings said that it expects to fetch approximately S$287 million in gross proceeds from the divestment, higher than its market cap of S$250 million as at Jan 19 this year, which was the last trading day before it announced the strategic review of its Boardroom shareholding.

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