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GK Goh closes Boardroom privatisation offer with 91.3% stake

INVESTMENT holding firm GK Goh, which wants to privatise mainboard-listed business services provider Boardroom, closed its offer on Friday past the 90 per cent delisting threshold.

But mainboard-listed GK Goh cannot force a compulsory buyout of dissenting shareholders, as it did not get hold of enough shares that it did not already own.

The voluntary unconditional cash offer in May valued Boardroom at S$184.5 million, with GK Goh dangling S$0.88 in cash for each share.

Bid vehicle Salacca and its concert parties - which began the offer exercise with 81 per cent of all Boardroom shares - have since upped their interest to 91.3 per cent, including valid acceptances representing a 10.16 per cent stake in the company.

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Shareholders who did not accept the offer can still require Salacca to buy their shares at the offer price, but the offeror does not have any right to compulsorily acquire those shares.

The offeror has indicated that it plans to take Boardroom private after the loss of free float, with greater control and management flexibility after the delisting.