FRAGRANCE Group founder Koh Wee Meng on Friday (Feb 10) made a voluntary conditional cash offer to take Catalist-listed Global Dragon : 586 0% private at S$0.12 apiece.

The offeror is JK Global Wealth, with Koh as its sole shareholder and director. The deal values Global Dragon at S$81.8 million.

Koh first acquired a 51 per cent stake in the company, then known as TMC Education, through JK Global Assets in 2017. As of the announcement date, JK Global Assets held 59.3 per cent of Global Dragon.

JK Global Assets and several other parties have provided an irrevocable undertaking to accept the offer from JK Global Wealth. Collectively, the parties acting in concert hold an 81.98 per cent stake in Global Dragon or 559.1 million shares.

Koh’s mother, Tan Su Lan, holds some 94.7 million shares or a 13.88 per cent interest in Global Dragon. His sister, Ko Lee Meng, holds 60 million of the company’s shares or 8.8 per cent. 

Both have provided irrevocable undertakings to tender their respective shares held for cash in acceptance of the offer. Excluding the amount due to concert parties, Koh’s cash outlay for the acquisition of Global Dragon will come to S$14.7 million.

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The offer price is 14.3 per cent above Global Dragon’s closing price of S$0.105 on Feb 7, which was Global Dragon’s last full trading day. It is also higher than Global Dragon’s 52-week closing high of S$0.119 last September.

But it is slightly below Global Dragon’s net asset value per share of S$0.1218 as at Dec 31, 2022.

Much of that value comes from its investment properties, comprising 12 units at Peninsula Plaza, on North Bridge Road, with 806 years left on the lease term.

These units are leased and generate rental income.

The group is also developing a 194-room hotel on Telok Blangah Road, as well as two other property projects in the east of Singapore: one on Jalan Daud and the other on Woo Mon Chew Road.

Shares of Global Dragon opened on Monday (Feb 13) at S$0.12. They briefly rose above the offer price to as high as S$0.121, in mid-morning trading, but have since settled back at the offer price.