G K Goh soars as much as 21% on Boardroom stake sale to Temasek-related consortium news
Singapore
SHARES of G K Goh Holdings (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, GKGH shares were up 20.5 Singapore cents or 21 per cent at S$1.18, after 238,900 shares changed hands. The counter later closed at S$1.14, up 16.9 per cent or 16.5 cents.
No married deals were recorded, showed 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$1.49 for each Boardroom share, which values Boardroom at around S$312 million.
GKGH has since entered into an irrevocable undertaking to accept the offer with respect to its 92 per cent stake in Boardroom if and when it is made.
In a regulatory filing, GKGH 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 - the last trading day before it announced the strategic review of its Boardroom shareholding.
The disposal of Boardroom is pending GKGH shareholders' approval before it can proceed.
An extraordinary general meeting will be convened at a later date.
Following the divestment, the company also said it expects to recommend a special dividend to be paid to shareholders after the disposal has been completed.
GKGH will then continue to hold investments across different asset classes, such as its investments in Opal Health Care, Allium Healthcare and Habitat Assets that are engaged in aged care and healthcare businesses in Australia and Singapore.
In total, these businesses and investments have an aggregate carrying value of about S$458.3 million as at Dec 31, 2020.
Before this announcement, GKGH had taken Boardroom private in July 2019, having been a shareholder since 2004.
At the time, GKGH offered S$0.88 in cash for each Boardroom share, valuing the company at S$184.5 million.
