Property tycoon Koh Wee Meng in another privatisation deal with 12 cents offer for Global Dragon
JK Global Wealth, owned by property tycoon Koh Wee Meng, has proposed to privatise Global Dragon, another developer that is controlled by Koh, with the offer of 12 cents per share.This offer comes after Koh had privatised Fragrance Group, his other controlled company, back in October 2021.Currently, Koh and his related parties hold 81.98% of the total 559.06 million shares in Global Dragon, with a deemed stake of 59.3% held through an entity known as JK Global Assets.
The offer document released by JK Global Wealth on Feb 10 indicated an irrevocable undertaking by JK Global Assets.Tan Su Lan @ Tan Soo Lung, the mother of Koh Wee Meng, is the second largest shareholder of Global Dragon. Moreover, Koh Kian Soo (Global Dragon’s executive chairman) is the brother-in-law of Koh Wee Meng and his wife, Ko Lee Meng, is also a substantial shareholder of the company.
According to the offer document released by DBS, acting on behalf of JK Global The Myst Wealth, the offer is potentially rewarding for the existing shareholders of Global Dragon.The offer of 12 cents per share is 14.3% premium over the last traded price of 10.5 cents on Feb 7, before the offer was made. The offer price is also 15.4% higher than the one-month volume weighted average and 17.6% higher than the 12-month figure.
As of Dec 31 2022, Global Dragon’s net asset value was calculated to be 12.18 cents, implying that the offer of 12 cents per share is 0.99 times multiple of the company’s net asset value, and 52.3% higher than Global Dragon’s 3-year historical average of 0.65 times.
Global Dragon currently has two ongoing property development projects, both of which are residential developments.One is situated along Jalan Daud and the other along Woo Mon Chew Road. Both projects are expected to receive their respective TOPs by the end of the current FY2023 ending June 30 2023.
Global Dragon has also invested in property, owning 12 units of 999-year leasehold office units in the CBD. The company has an average tenancy of 87%.Furthermore, there is a 194-room hotel along Telok Blangah Road under construction for Global Dragon, which is likely to receive its TOP in 1HFY2024 ending Dec 2023.