Hot stock: GK Goh rises 38.5% to S$1.26 offer price
SHARES of GK Goh surged at the start of its first day of trading since its founder and executive Goh Geok Khim and its managing director Goh Yew Lin launched a voluntary conditional offer to take the company private.
As at 9 am on Wednesday (Mar 1), the mainboard-listed counter was 38.5 per cent or S$0.35 higher at the offer price of S$1.26. It remained at this level as at 9.15 am.
GK Goh ended last Friday 1 per cent or S$0.01 lower at S$0.91, before its request for a trading halt on Monday morning.
ShareInvestor data indicated that no married deals were recorded in early trade.
GK Goh’s share price movement came after its founder and managing director made a S$1.26 per-share offer to take the investment company private.
The offer price was below GK Goh’s net asset value per share of S$1.3033 as at Dec 31, 2022, but represented a premium of 38.5 per cent over the company’s last traded price of S$0.91, before the announcement was made.
Existing majority shareholder GKG Investment (GKGI) has given an irrevocable undertaking to accept the offer. The offeror’s owners are also both directors of GKGI, which own some 62.89 per cent or 197.6 million of GK Goh.
Notwithstanding the irrevocable undertaking, the offeror will have to shell out about S$147 million to fully acquire the outstanding 116.6 million shares in the company.
