ValueMax offers S$3.58m for Sengkang Pawnshop

VALUEMAX Group said after Wednesday's trading close that it has entered into a share purchase agreement to acquire Sengkang Pawnshop Pte Ltd for a cash consideration of over S$3.58 million.

The purchase consideration is for 100 per cent of the issued and paid-up share capital comprising 2.47 million ordinary shares in Sengkang.

Sengkang will become a wholly-owned subsidiary of ValueMax upon completion of the acquisition.

The audited net asset value of Sengkang for the year ended Dec 31, 2016 was S$3.2 million.

The group plans to draw on internal resources to fund the acquisition. It added that the target acquisition will provide an additional revenue stream and is in line with its expansion strategy.

The completion of the acquisition is conditional upon, among others, the approval of the Registrar of Pawnbrokers for the share transfer.